Retail business

Key results

In 2022, the Company once again updated its revenue record in the retail segment, which amounted to KZT 127.1 billion, including a 50% discount on all accrued revenue for the duration of the state of emergency across the country (KZT 5 billion). An increase of 8.1%, or KZT 9.6 billion, was also recorded in 2020. The revenue plan was exceeded by KZT 5.9 billion and 4.9%. The average profitability (ARPU) of a subscriber increased by 6.5%.

127.1
billion KZT Company’s revenue in the retail segment in 2022
+6.5%
the average profitability (ARPU) of a subscriber
+1.4%
growth of the Pay TV subscriber base
+5.6%
growth of the converged services subscriber base

In the reporting period, the broadband Internet access subscriber base continued to grow by 0.3%, Pay TV by 1.4% and сonverged services by 5.6%.

At the end of 2022 there was a record low total level of overdue and doubtful accounts receivable in the amount of KZT 2.4 billion. Compared to September 2018, when there was the highest peak of overdue and doubtful accounts receivable, the figure was reduced by KZT 4 billion, or 63%.

Development of product offerings

Developed on the basis of a new modern IPTV/OTT hybrid complex and launched commercially in 2021, the new TV+ platform received significant improvements in functionality and content in 2022. Thus, in terms of UX / UI, the following functions were implemented: the main menu buttons are located at the bottom of the screen; the records of the archive are collected in the “Best on TV” tab, sorted by categories and genres, and also decorated with content covers; movie theaters are collected in one tab, on which, for the convenience of the user, recommendation selections are presented. Additionally, the next update of the mobile application introduces a vertical mode.

Another significant update for the service in 2022 is the launch of ECOM. Starting February 2022, anyone can become a TV+ user regardless of the availability of Kazakhtelecom JSC’s services. All one needs to do is to choose a subscription option and link a card to pay for the service. To increase attractiveness of the service, stimulating marketing actions were held throughout the year.

Development of Kazakh TV content

In the first half of 2022, work was carried out to improve the content of the package of TV channels. Thus, the offer of children’s TV channels in the Kazakh language was expanded — a Kazakh track was added to the channel TiJi and the channel Nickelodeon HD in the Kazakh language was included. OTT rights for Nickelodeon, Nickelodeon HD, Nickelodeon Junior and ASTANA TV channels were also added. Now every subscriber can watch these channels without being connected to the Internet from Kazakhtelecom JSC.

In addition, despite external influence (sanctions against the Russian Federation), alternative ways of delivering and purchasing TV and video content were implemented. Regardless of the foreign policy situation, it was possible to prevent a qualitative deterioration in the content of the service package.

In terms of video content, there have also been positive changes. Content from two foreign studio majors Universal and Paramount was added to the Megogo catalog. START cinema significantly increased the share of content — now, in addition to the cinema’s own production projects, users have access to a large catalog of foreign content. The line of children’s content was significantly expanded. Amediateka cinema has been releasing world premieres and new series since June. The “Made in KZ” cinema has added hits of the Khabar TV channel, such as the TV series “Kelinzhan”, “Rauza”, and many others. The catalog has also been expanded by exclusive online premieres of domestic film projects. Among them are the sports drama “Paralimpian” and the films of the participants of the international festivals “OT” and “Zere”.

At the same time, in the reporting year, the Company presented Qazaqsha, the first Kazakh-language online movie theater in Kazakhstan, to TV+ subscribers. Its catalog consists of more than 500 movies, TV series and cartoons from world movie studios with high-quality dubbing into Kazakh language, produced with the participation of professional actors.

New lines of tariff plans

On December 1, 2022 Kazakhtelecom JSC launched new lines of Bereket, Keremet TV and Keremet Mobile tariff plans. The company retained the concept of long-term contracts, including unlimited home Internet, hundreds of TV channels, cellular communications, where subscribers can get a discount on the subscription fee with a guarantee of unchanged price throughout the contract term: 1, 2 or 3 years.

One of the important innovations is unlimited access from mobile numbers included in the package to all content in the Kazakhtelecom TV+ video service. Now, subscribers of the national telecom operator can watch more than 150 TV channels and over 6,000 movies and TV series from Qazaqsha, Amediateka, Megogo and “Made in KZ” from mobile numbers of Kazakhtelecom JSC without consuming Internet traffic by activating new tariff plans.

Client experience

The year 2022 was declared the year of quality in the Company. In order to motivate employees and improve the quality of service in the retail segment, a motivational contest, The Best Customer Service, was held for the first time to motivate personnel in providing quality customer service. Employees are evaluated according to such indicators as service quality index, level of knowledge, Agent Performance (AP) client score and First Request Resolution (FRR — solution of the subscriber’s issue from the first communication). Employees are awarded quarterly in the nominations “Best Quality Specialist”, “Best Team Captain by Quality”, “Best Quality Manager”.

90% 7%
AP indicator in 2022
55% 17%
tNPS indicator in 2022

To assess the quality of front office operator service, an AP (Agent Performance) system was introduced — after each service, when connecting, replacing or disconnecting services, subscribers are sent a questionnaire, using which they can rate on a scale from 1 to 5 the quality of service by the operator. Every month more than 90% of the front office operators are evaluated by subscribers, which allows to take prompt action to improve service in the B2C segment. The AP index in 2022 grew by 7% to 90% (84% in 2021).

The key direction for the Company is the research of the level of customer loyalty — transactional Net Promoter Score (tNPS). After each service of a subscriber in service channels a questionnaire is sent to the verified subscriber’s number to assess his loyalty level — the indicator is called transactional Net Promoter Score (tNPS). The purpose of the questionnaire is to find out how much the subscriber is ready to recommend the Company to friends, colleagues, relatives. The index is estimated on a 10-point scale: when the score is low, the subscriber indicates the reasons for dissatisfaction and leaves his/her suggestions for improving the service. The tNPS score increased from 38% to 55% in 2022.

934
thousand subscribers were served online in 2022
66% 8%
the share of service in online channels

In addition, in order to improve customer service, customers were asked whether their issue was resolved in a single request (First Request Resolution). As a result of building such feedback and continuous monitoring of operators, the share of subscribers served on the first try increased from 73% to 85% by the end of the year.

Digital transactions in 2022 increased from 32% in January to 38% in November.

Compared to last year, the share of service in online channels increased by 8% and amounted to 66%. Nearly 934 thousand subscribers were served online, with 514 thousand subscribers choosing to visit the service network locations.

The Company is constantly working to improve service and to solve each client’s request, introducing new approaches to service in both traditional and digital channels. The Company has developed effective tools for customer retention: a wide range of tariff plans tailored to fill and cost requirements, prompt resolution of requests to improve service quality and other issues related to the provision of telecommunications services. In 2022, requests from over 75 thousand subscribers dissatisfied with the quality of services and tariffs were resolved.

Given the flow of customers into digital channels and the transition to online service, the capabilities and functionality of the service through a mobile application have been expanded:

  • service options via the subscriber’s personal account were expanded. The following self-services have been implemented: payment of services, details of bills, information on connected services, details of traffic for services, connection of VAS (including TV+), the ability to apply, get answers to frequently asked questions, onboarding, change to e-SIM, connection of booster, information about the arrival of a fitter;
  • subscriber verification was implemented — a system for recognizing identification documents and face recognition, which will significantly reduce customer service time. The functionality is available to customers who have access to the e-gov “Digital Documents” service through the eGov mobile application.

The year 2022 was also marked by the introduction of new digital service mechanisms and growth of service through remote channels. Among other things, the operation of WhatsApp and Telegram online channels was improved:

24/7/365

channels were switched to

service mode
30 minutes

the waiting time of the specialist’s answer from 1.5  hours at the beginning of the year to 30 minutes at the end of the year was improved

98% 26%

the percentage of the clients served

3.5 hours

the duration of the dialog with the client was reduced from 10  hours to 3.5 hours

Part of inquiries was transferred to the self-service level. Such requests as the current balance of the personal account, payment methods, SIM card registration procedure, advice on roaming and connecting TV+ services by debt, recommendations on Wi-Fi routers, and shop.telecom.kz services are handled by an online chatbot.

The index of the quality of service index compared to 2021 in the context of service channels improved as follows:

in online channels
80% in 2022 61% in 2021
in the incoming calls sector
86% in 2022 82% in 2021
in the service network points
86% in 2022 74% in 2021
in contact centers
87% in 2022 83% in 2021

Changes in the organizational structure — as a guarantee of strengthening customer-centricity and increasing efficiency

Organizational changes are an integral part of the Company’s development and growth. One striking example of such changes in 2022 was the transfer of technical personnel responsible for installation work on the subscriber side to the management of the commercial department. This change strengthens the Company’s customer centricity. Thanks to this change, the Company can more effectively meet the needs of its customers, providing them with better services and solving problems faster and more efficiently.

Thus, according to the Decision of the Board No. 48-198 dated September 26, 2022, in the organizational structure of the Retail Business Division, a branch of Kazakhtelecom JSC, a new direction for the development and support of networks has appeared, consisting of 332 staff units, united in four structural divisions: Installation Works Department, Technical Solutions Development Department, Planning and Operational Efficiency Service, Service Delivery Processes Service.

The activities of the new division are aimed at:

  • planning the development of communication networks and promotion of innovative technologies for telecommunication services;
  • organization of work on the development, definition and search for technical solutions in order to increase the number of connections for all types of telecommunications services of the Company;
  • carrying out installation work on the subscriber side;
  • control and analysis of the state of accomplishment of tasks set to improve the Company’s activities.

In 2022, there was a positive trend in the average connection time, which was achieved by optimizing installation order routes in internal software complexes and improving processes for connecting services (introduction of a motivational contest for installers with a focus on timely and high-quality service provision). This had an impact on improving subscriber satisfaction and loyalty.

The share of completed orders for the installation of services using GPON technology at the HRH for 24 hours

11.5% 21.2% 39%
2020 2021 2022

Plans for network development in 2023

The construction of optical telecommunications networks is planned for 2023:

  • in the cities of Almaty, Astana and Shymkent with connection of 42 thousand households;
  • Turkestan city with connection of 5 thousand households in multi-storey buildings and cottages;
  • in Semey, Pavlodar, Kostanay, Petropavlovsk, Taraz, Kokshetau, Aktobe, Atyrau, Aktau, Uralsk, Karaganda, Temirtau, Kyzylorda with connection of 74 thousand households;
  • in the area of the Company’s copper networks with switching of existing ADSL subscribers in the cities of Almaty, Astana and Shymkent;
  • through partner network in the cities of Astana, Almaty, Shymkent, Kokshetau, Atyrau, Aktau, Uralsk with connection of 73 apartment complexes.

In addition, it is planned to further reduce the time to connect telecommunications services, expanding the dealer network to meet the daily order queue.

Social responsibility

In the January period of 2022, when a state of emergency was introduced on the territory of the Republic of Kazakhstan, one of the many restrictions imposed on the population was the restriction of access to telecommunications services.

Realizing its social responsibility in this difficult period for the country and the need to take into account the rights of subscribers who were limited in access to communication services, the Company decided to provide discounts for individuals for the period from January 1 to January 31, 2022:

50%

for all accruals for services rendered by Kazakhtelecom JSC

100%

for tariffs for long-distance (intrazonal) telephone communication services and for connections on the networks of cellular operators provided on a per-second basis

Penalties for late payment for telecommunications services were also abolished. These measures underscore the Company’s high level of social responsibility and its readiness to take care and help its customers.