Corporate business
The Company’s revenue in the corporate segment for 2022 amounted to KZT 150.999 billion, net of VAT, broken down by B2B, B2G and B2O segments.
In 2022, the corporate segment focused on such areas as the development of the product line, identification of the most effective digital channels and their development, personalization and digitalization of services, and development of the OFD project.
As part of the implementation of the strategic objective of Kazakhtelecom JSC — the business partner of the digital economy in the corporate segment, revenue growth from new businesses in 2022 was KZT 3.884 billion. The main growth was due to the promotion of video surveillance services.
Carrying out activities in the period after the pandemic made it possible in 2022 compared to 2021 to reduce the outflow of services in the corporate segment by 21.6 thousand devices (26%).
Company’s income in the corporate segment, billion KZT
Revenues structure of the Company in the corporate segment, %
In the revenues structure in the corporate segment, the largest share of 35.1% is made up of revenues from the provision of data transmission network services. The share of revenues from the domestic market operator 29.0%, and the share of revenues under the agreement with international operators equaled 9.7%.
Dynamics of volume indicators in B2B and B2G segments, thousand devices
The decline in sales of fixed lines is an established global trend due to the development of substitute services — instant messengers and social networks. As part of the post-pandemic cost reduction efforts undertaken by customers, corporate networks were optimized, which led to the disbandment of broadband, TV and IP VPN outlets.
ARLB growth for 2022 to 2021 in the context of Internet access and IP VPN services, %
At the end of 2022, compared to 2021, the commercial indicator of ARLB increased in providing broadband access to the Internet by KZT 1,800 per month for each point, which is 9.3%, in providing IP VPN, the increase was KZT 900 (1.1%) monthly for each connected point.
By the end of 2022 the client base in the B2X segment was 63,342 clients, of which in the B2O segment the client agreements with 160 operators, in the B2G segment — with 15,835 state organizations, and in the B2B segment — with 47,347 agreements with business companies. Compared to last year, the total client base increased by 1,803 clients, which is +2.9%.
Product line expansion and differentiation
The tariff policy of the Company in the corporate segment provides for the formation of product offers aimed at fulfilling the company’s strategic goals for the transition to a customer-centric sales model.
In this regard, within the framework of a segment-oriented model, a number of package product offers for the SOHO segment have been developed and implemented.
In July 2022, a new Kasipker line was launched for this segment, consisting of eight packages and focused on customer needs. The starting package price range starts from KZT 8500 including VAT. At the same time, the package includes telephony services, broadband access, mobile telephony and rental of IMOU cameras with improved technical characteristics.
In addition, from October 2022, Nomad packages for SOHO segment were developed and introduced for sale starting from KZT 8,500 with VAT. These packages provide for inclusion of Plug&Play services “Mobile Telephony”, “Fixed Internet on LTE technology” + “IMOU video camera rental”, consisting of 3 packages with different content.
Along with this, in 2022 the following were developed:
- new line of Alan tariffs. The line provides broadband access to the Internet based on FTTx technology for game clubs;
- a package offer for the provision of broadband access and iD TV services for categories of HoReCa users;
- product offer “Temporary blocking” for the B2G segment for the period of conclusion/renewal of contracts, summing up the results of the competition/tender.
Eight services were launched in 2022, two of them for large corporate and government organizations (“Video Analytics” and “Alarm Button”) and six new cloud services on the ismet.kz portal to solve business problems of any complexity without capital costs. The current situation after the coronavirus pandemic has led commercial and government organizations to transfer employees to remote work, some events and user actions are transferred online, and marketing budgets are redirected to digital channels. These and other processes require prompt decisions and significant resource capacities. The shortage served as one of the growth drivers for the cloud services segment, and the need for businesses to reduce costs led to the search for convenient cloud solutions, such as:
Virtual servers
organized on the basis of high-performance servers with the ability to configure backups (connected in the panel) to solve business problems of any complexity: hosting highly loaded web applications, databases, remote desktops via RDP and many other tasks.
Virtual Data Center
created on the basis of virtualization from VMware — this is a pool of dedicated resources with the ability to flexibly configure the cloud infrastructure through a convenient web-panel.
VPS based on Open Source
a dedicated server running Linux from ISMET.KZ is based on Open Source solutions, which guarantees high speed servers and ease of setup.
Cloud storage
allows you to create a reliable and secure S3 cloud object storage for storing heterogeneous data with access via Swift, S3.
DNS-hosting and monitoring
allows you to easily manage your domain’s DNS records and increase the availability of your site, since we use independent NS servers.
SSL-certificates
provide secure data transmission on the Internet, confirm ownership of the domain and help advance in search engines.
At the end of 2022, “DDoS atacks Protection Service” became the killer-product in the corporate segment, with a 980% increase in revenue since the beginning of the year. The clients of the service are large second-tier banks of the Republic of Kazakhstan, as well as telecom operators of the Republic of Kazakhstan.
According to preliminary forecasts, it is expected that in 2023 “Video Analytics” and “Alarm Button” will become killer products.
Digitalization
In 2022, Kazakhtelecom JSC accelerated its implementation of the online customer service practice. The work was aimed at the growth and attraction of new clients, at transferring clients to online services, and at improving client service and improving client loyalty.
It is possible to receive various services on the ISMET.KZ business platform without leaving the office. User may:
- submit an application for connecting services online with an instant check of the technical feasibility when connecting to the Internet using optical technologies;
- use the user account to submit/monitor requests/requests and monitor the status of service orders;
- the possibility to perform self-diagnostics of the problem and solve the problem without the participation of the operator;
- to receive information on the individual account, balance sheet, itemization, replenishment;
- to receive and sign documents electronically (contracts, CC, Reconciliation Act, etc.) with electronic digital signature or QR;
- post information on its goods or services;
- search for partners, clients, contractors, etc.
In addition, the number of documents requested from clients was reduced. Integrations with information systems of government agencies allow you to receive documents in electronic form with the consent of the client. The number of registered users of the ISMET.KZ platform increased by 27% in 2022 and amounted to over 80 thousand users.
As part of the digital transformation, Kazakhtelecom JSC has launched “Digital Partner in Village” project throughout the country. The idea of the project is to engage private entrepreneurs to provide Internet services to rural communities, and the partner has the opportunity to earn money together with the operator. All interactions with the project partner are performed via a digital channel.
A project has been launched to obtain technical specifications online, which will speed up the process of connecting customers of medium and large businesses.
According to the results of 2022, the “B2B NPS Loyalty Level” retained the indicator of the previous year and amounted to 15%. The main reason for customer dissatisfaction is related to the quality of copper technology broadband access services.
Incoming and outgoing traffic in the B2X segment continues to grow. In view of the increasing demands on the availability of services, on the speed of responding to problems, on the availability of optical technologies, in 2023 the corporate segment will face global challenges to transfer business to improved technical characteristics, increase the speed of connecting broadband access using optical technologies. These improvements include continuing to digitize customers and motivate them to use digital services by reducing service times, implementing green economy principles and increasing the number of self-service services.
Operator of fiscal data
According to the Order of the First Deputy Prime Minister of the Republic of Kazakhstan — the Minister of Finance of the Republic of Kazakhstan dated April 19, 2019 No. 363 On Amendments to the Order of the Minister of Finance of the Republic of Kazakhstan dated February 16, 2018 No. 205 “On determining the legal entity that ensures the transfer of data on money settlements in the operational mode to the state revenue authorities via public telecommunications networks” were determined operators of fiscal data: Kazakhtelecom JSC, Transtelecom JSC, Kar-Tel LLP and Jusan Mobile JSC.
The Operator of Fiscal Data (OFD) project ensures the prompt transfer of information on cash settlements using cash register made during trading operations and/or the provision of services to the state revenue authorities.
Since 2015, Kazakhtelecom JSC has been providing services of accepting, processing, storing and transferring fiscal data in unchanged form to the tax authorities via wired and wireless VPN channels (SIM cards of Altel JSC, Kcell JSC, Kar-Tel LLP).
At the end of 2022, the number of active cash registers connections amounted to 302,273 units, compared to the previous year, the active client base decreased by 30 thousand. The reason for the decrease was a change in the situation on the OFD market and strong price competition.
Income from the OFD (thousand KZT) and number of cash registers
Despite the appearance of new players in the market of fiscal data operators, such as Transtelecom JSC, Jusan Mobile JSC and Kar-Tel LLP, the Company retains its leading position in the market of OFD in Kazakhstan through the optimization and digitalization of business processes and provision of services to end users.
In 2022, as part of the development of the OFD project, a new product was launched — “E-cash” — a free software cash register. Launched a subscription system for 1, 3, 6, 12 months with competitive rates. The company is aimed at retaining and maintaining the client base in a competitive market.
Within the OFD project in 2023 Kazakhtelecom JSC plans:
- development of after-sales annual contractual tariffs;
- development of promo codes with a tariff discount of up to 100%;
- integration with CRM 2.0 for package solutions with traditional CT (computer telephony) services;
- development of software for a business — a commodity accounting system.
B2O
International operator segment
The following projects were implemented in the international operator segment in 2022:
project Organization of PoP nodes in Frankfurt;
project “Laying FOCL across the Caspian Sea”, business plan at the stage of preliminary examination;
on the project “Transfer of voice traffic from the ISC to the NGN network” transfer to the NGN network in 2022 — 7 operators, 52 channels;
on the introduction of a new billing system Interconnect for the B2O segment, a CBD/ITD working group has been created, the terms of reference are under development;
network modernization project to provide transit channels between China and Europe. In the process of implementation of the project “Transit 20x100G” a transit channel with the capacity of 1x100Gb/s in the direction of China — Europe was organized. In addition, memorandums were signed with international telecommunications operators China Mobile, China Unicom and China Telecom to extend joints at the border of Kazakhstan and China.
Plans and objectives for 2023
The plans for 2023 for corporate business include maintaining the growth trend in Internet traffic consumption. Like the previous period, the main increase in income is planned to be provided by:
- implementation of the project “Organization of a PoP node in Hong Kong”;
- sales of new 2x100G transit channels in the direction of China — Europe (subject to the resumption of suspended tenders due to the geopolitical situation);
- sales of new transit channels in the direction of Central Asia, incl. Afghanistan;
- approval of the business plan for the project “Laying FOCL across the Caspian Sea”;
- transfer of voice traffic from the ICS to the NGN network (5 operators, 5 channels);
- development of business requirements for the Interconnect billing system for the B2O segment and further updating the current system or implementing a new one together with ITS.
Agreement with telecom operators
The Department of Agreements with Telecom Operators (DATO) carries out activities for the interaction of the Company with telecom operators of the Republic of Kazakhstan and tenants of communication channels:
- provides services for connecting TO networks and tenants to the Company’s telecommunications network, to the data transmission network and to the Internet;
- leases communication channels (international, long-distance and intrazonal), IP VPN services for TO and tenants;
- conducts mutual settlements with TO, tenants of communication channels and owners of departmental networks under centralized contracts of the Department.
DATO revenues in 2022 amounted to KZT 43 billion 203 million, with a plan of KZT 41 billion 245 million, the execution was 104.7%, an increase compared to 2021 amounted to KZT 1 billion 999 million, or 105%. The implementation of the plan in 2022 was affected by the growth in the volume of voice traffic from mobile operators due to the political situation in Russia and the connection of operators to the Internet access service.
DATO expenses amounted to KZT 6.36 billion, while the plan was KZT 6.17 billion, the execution was 103.1%. The cost overrun was affected by an increase in the volume of transit traffic due to the political situation in Russia and peering agreements. Overdue accounts receivable under DATO at the end of the year amounted to KZT 4.4 million.
Plans and objectives for 2023
- Timeliness of the tasks/functions assigned to the unit.
- Interaction with structural subdivisions of the Company and mobile operators on the implementation of 5G network coverage areas.
- Growth in volumes by telecom operators for the “Rental of transport network channels and the Internet” service compared to 2022.
- Timely fulfillment of contractual obligations in terms of payment under OSS revenue agreements.
- Development of instructions for interaction with MT-S LLP under the FMS agreement.
- Elaboration of issues regarding the profitability of renting Kazsat services.
- Connecting OSS to services under the FOCL RS project.
B2G
The main goal of the Department of Sales to Budgetary Organizations (DSBO) is the organization and provision of telecommunications services to government agencies and entities of the quasi-public sector.
Execution of the main indicators:
- AIP according to plan — KZT 23,922,525 million, actual — KZT 23,593,646 million (98.6%), the amount of overfulfillment of AI in 2022 by 2021 + KZT 1,412,891.
- Planned outflow — 2,303, actual — 969 (42%).
In 2022, the project “Transport for video surveillance of the Ministry of Internal Affairs of the Republic of Kazakhstan” was implemented, the income from this project amounted to KZT 3.4 billion.
Plans and objectives for 2023
- Preservation of income in the amount of KZT 3.4 billion under the project “Transport for video surveillance of the Ministry of Internal Affairs of the Republic of Kazakhstan.”
- Minimization of failures on TV connections of new ports/increases in throughput of channels.
- Development of the base of potential customers (Government agencies/Budgetary organizations) with the prospect of switching to the services of Kazakhtelecom JSC and maintaining current income on the portfolio (including under the PPP project “FOCL in RS”).
- Implementation of a system for automating the process of signing certificates of conformity within the framework of the FOCL RS PPP project.
Projects for 2023:
- FOCL project in RS (PPP 2.0).
- FOCL project for schools.
- Project “Laying FOCL along the bottom of the Caspian Sea”.