Key events in 2022
Kazakhtelecom JSC announced support measures during the state of emergency for its customers of retail and corporate segments. The key measure was the provision to subscribers — individuals — of a 50% discount to the monthly subscription fee for January 2022 for their services. Within the framework of supporting small and medium-sized businesses, Kazakhtelecom JSC provided its corporate customers with a 50% discount on OFD (the Operator of Fiscal Data) and Internet services.
Kazakhtelecom JSC updated the collective agreement in favor of employees. The updated document provides for an increase in the minimum levels of official salaries of employees while retaining the entire package of social benefits from the company.
The net profit of the Group of Companies of Kazakhtelecom JSC at the end of 2021 exceeded KZT 97 billion. The Group of Companies of the country’s largest telecom operator again achieved growth in all major financial indicators of its activities. In particular, in 2021, the Group’s revenue increased by 13% and amounted to KZT 594 billion against KZT 527 billion in 2020, and net profit exceeded KZT 97 billion, having increased by more than 49% over the year.
The multiplatform service of Kazakhtelecom JSC TV+ celebrated its first anniversary with 300 thousand users. The service managed to gain such popularity due to high-quality functionality and a selection of content.
Kazakhtelecom JSC launched a new project — “Digital Partner in the Village”. The project will provide the rural population with high-speed and high-quality Internet and will give entrepreneurs the opportunity to develop their business.
Kazakhtelecom JSC presented the concept of introducing 5G technology in Kazakhstan, which will allow for the digital transformation of the country’s economy and open up the opportunity to create new digital services in Kazakhstan in the near future.
Kazakhtelecom JSC opened its own university for the development of digital talents on the basis of Astana IT University. Cooperation with one of the leading universities of the country is due to the need to systematically develop the competencies of employees of Kazakhtelecom JSC in order to implement important strategic projects in the national interest.
Kazakhtelecom JSC continues to connect multi-apartment buildings in the republic to high-speed Internet using the most modern GPON technology. To date, such networks have already been built in more than 24 thousand multi-apartment residential buildings.
Kazakhtelecom JSC continues to connect remote villages to the Internet and provides their residents with all modern telecommunications services using the “radio bridge” technology.
Kazakhtelecom JSC announced a set of measures to support victims of forest fires in the Kostanay region. Until the end of 2022, residents and entrepreneurs of the Auliekolsky district were exempted from the subscription fee with the provision of telecommunication services to them in full. Also, debts and penalties from individuals from the three most affected villages were written off.
The project of Kazakhtelecom JSC eQoldau was recognized as the best at the IDC Future Enterprise Awards 2022. During the annual IDC CIO Summit 2022 “Accelerating the transition to the world of digital technologies”, the country’s leading telecom operator became one of the best in the CIO / CDO rating among the CIS countries, received second place in the IDC Future Enterprise Awards 2022. In addition, digital assistants for rural residents — eQoldau public access points from Kazakhtelecom JSC — were recognized as the best in the nomination “Digital Project of the Year”.
Kazakhtelecom JSC expands coverage area with FWA networks in Shymkent. In the country’s third-largest megalopolis, a project to provide private sector residents with wireless Internet is being successfully implemented. For this, 12 base stations supporting FWA technology were installed, and about 1,200 residents were connected to high-speed Internet.
At the “Digital Bridge 2022” exhibition in Astana, Kazakhtelecom JSC presented Open RAN technology. Its launch will allow moving from closed technological solutions of traditional manufacturers of radio equipment for mobile communication networks to open disaggregated solutions of new manufacturers, including national technology companies.
Kazakhtelecom JSC and Azertelecom Int. signed a memorandum of cooperation. The document provides for a strategic partnership between the two operators within the framework of the Trans-Caspian fiber-optic communication line (FOCL) project along the “Kazakhstan-Azerbaijan” route, which is part of the large-scale “Digital Silk Way” project, which provides for the creation of a new digital telecommunications corridor between Europe and Asia through Kazakhstan and Azerbaijan.
Victims of forest fires in the Kostanay region were provided with high-speed Internet.
Kazakhtelecom JSC paid dividends in the amount of more than KZT 39 billion. Dividends were paid out of 2021 retained earnings and amounted to 3,590.39 KZT per ordinary share.
S&P Global Ratings predicts further growth in revenue and improved creditworthiness of Kazakhtelecom JSC. The international rating agency once again published the annual report on the credit rating of Kazakhtelecom JSC at the level of BB + (the stable forecast was confirmed), in which it predicted further organic growth in revenue of the largest telecom operator in Kazakhstan in the period 2022-2023.
Fitch Ratings, following S&P Global Ratings, affirmed the credit rating of Kazakhtelecom JSC. The international rating agency confirmed the credit rating of Kazakhtelecom JSC at BBB- (stable forecast). Among the main drivers of the rating analysts call the stable market positions of the group of companies, strong results despite the challenges, as well as a significant margin of financial strength.
The Board of Directors of Kazakhtelecom JSC adopted a new JRun Strategy for the next 10 years. JRun consists of four strategic development directions: Jaqyn, BiRlik, AlaU and OrkeN, which, in their turn, reflect the Company’s desire to take care of external and internal customers, develop businesses, technologies and infrastructure.
A consortium of mobile operators Mobile Telecom-Service LLP and Kcell JSC won the tender for the radio frequency bands 3,600-3,700 and 3,700-3,800 MHz (100 MHz) for 5G technology. Until the end of 2027, mobile operators of the Kazakhtelecom JSC group of companies will introduce 5G in cities of republican significance and regional centers of our country and plan to build more than 7 thousand base stations.
Kurchatov became the first single-industry town in Kazakhstan to completely switch to optical networks. Kazakhtelecom JSC has completed work on the transfer of 100% of the residents of Kurchatov to the “optics”. As part of a large-scale project to modernize the network of a single-industry city, the telecom operator built about 29 kilometers of trunk lines and built up its own infrastructure.