Strategy

Brand Strategy

The strategy is called JRun, which means “youth ahead” (Jastar Run), carries the meaning of renewed rapid movement forward and simultaneously symbolizes the renewal of the Company.

The phrase JRun is an abbreviation and is taken from the letters of the names of the four strategic directions of development. The new name of the Strategy JRun is associated with a breakthrough, rapid growth and speed that embodies the development vector of Kazakhtelecom JSC.

Strategic directions of development are named in simple and understandable words in Kazakh language that evoke warmth and trust among customers, employees and stakeholders of the Company.

Mission and vision

Mission

Become an irreplaceable and usual part of everyone’s life, changing, surprising and exceeding expectations.

Vision

Company’s vision: A leading Kazakhstan integrated service provider in the information communication market.

Coordinated actions of all Group members to maintain, strengthen and form leading positions in key segments of the information communications market of the Republic of Kazakhstan through the implementation of strategic initiatives and development areas.

Strategy goals

The main goal of the new Strategy is to create the value of Kazakhtelecom JSC by improving the customer experience in the core business, organically optimizing the cost base, as well as transforming the Company into a flexible and sustainable organization. Agility implies an obsession with the customer and a balance between search and growth initiatives.

The new Strategy defines the strategic goals of Kazakhtelecom JSC for the next five years, which are described below.

Strategic goals of the Kazakhtelecom Group of Companies on the horizon of five years

Leading the telecom market by improving the customer experience

Leadership in quality of the last mile in the B2C market

cities from 200 Mbps
Rural communities from 20 Mbps

Protecting the leading position on the B2C broadband and TV market

72-74% broadband access TV 45-50%

Strengthening the leading position in terms of revenues on the B2X market

50-52% B2X market

Become the No.1 operator by customer experience in the B2C segment

Best NPS among fixed operators

To become No.1 operator in terms of customer experience in the B2B segment

Best NPS among fixed operators

Solid growth in the ICT segment and selected new business lines up to

+14%

in revenues

Success through improved employee experience

Social stability index in the favorable zone

75%

SRS (Happy Index)

Employee Net Promoter Score

70%

eNPS

(current state — 60%)
65% loyalty
85% engagement (fact 2021 — 84%)

Employee satisfaction at each stage of life cycle

Measurement required

EJM

high standards in industrial relations

IR

Integral indicator of digital maturity:

(1) Of employee

(2) Of teams

(3) EX – of business processes

The engine of economic growth and competitive innovation

Managing data as an asset

  • Sales and churn management
  • External monetization of data
  • Optimizing internal processes
  • FCF from BigData as of 2027:
6.5

billion KZT

(as of 2032 16 billion KZT)

Migration of network and IT infrastructure to the cloud

  • Transition to microservice architecture
  • Reduction of share of equipment operated for more than 10 years in 2024 to:
15% (2022 — 34%)
  • Availability of IT platforms and digital sales channels:
99% (2022 — 99.5%)

Digital transformation of business

  • Reduction of time-to-market by half
  • Reducing the cost of scaling
  • Provision of digital and cloud-based IaaS/PaaS services
  • Entering new markets
First-class business management and better infrastructure (goals by 2032)

Creating conditions for the transition to a Gigabit Society

Reaching 18 regional centers on 100G interfaces

Meeting customer expectations for access speeds

EBITDA impact for 2023-2027:

8.3

billion KZT

for 2023-2032:

~12

billion KZT

Operational efficiency at the level of industry leaders

EBITDA for 2023-2032:

~8

billion KZT

Creation of Tower Operator

Indicators at the stage of elaboration

Supply chain automation and digitalization of CSC processes

Minimization of routine operations

Achievement of ESG corporate rating goals

  • Reduce net carbon footprint by 13% to 2032.
  • Rating: BBB (2024), A (2027).
  • As well as social initiatives.

Current global trends in the telecom­munications industry

The pandemic has put a lot of pressure on the telecom­munications infrastructure. Businesses and households around the world switched to working remotely. This shift increased Internet usage by 70% almost overnight and posed a new challenge to existing networks that had been coping effectively up to that point.

Data flow patterns have changed, with increased pressure on public and cloud infrastructures, as well as on edge and access points around the world. International experience shows that these changes in the telecommunications infrastructure are irreversible and force the Company to develop its network in line with the growing flow of data traffic.

Key trends and technologies that will be key to meeting these changing and growing data traffic needs in the world, including Kazakhstan:

  • Network and Service Integration. The boundaries between traditional segments of communications services are becoming increasingly blurred from year to year. This is due to the fact that traditional infrastructure services are being transformed into services and solutions, ready information and technological systems. In the business segment, these are Internet of Things (IoT) solutions and cloud services sold by operators as an add-on to basic services. The change in the product paradigm leads to the fact that the infrastructure becomes an additional service;
  • Development in related digital directions. In addition to bundling communications services themselves, mobile operators, first and foremost, are actively pursuing the development of FinTech, diversifying by entering the related banking sector;
  • Convergence of telecommunications and media. Leveraging existing data assets and acquiring advertising platforms to create ad-supported media models;
  • Deployment of 5G mobile networks;
  • The rise of the Internet of Things (IoT) and the evolution of the broader digital ecosystem.

Main priorities and strategic directions of development

SDD 1

Priority:

The basis of business transformation is a superior customer experience.

Goal:

The goal is to lead the telecom market by improving the customer experience:

  • leading the quality of the last mile in the B2C market;
  • growth to the status of the leading Operator by the customer experience in B2C and B2X segments;
  • protection of leading positions on the broadband Internet access and TV market;
  • strengthening leading positions on B2X market;
  • confident growth in the ICT segment and selected new lines of business.

First of all, SDD Jaqyn (“we are near”) reveals the main value of Kazakhtelecom JSC — trusting relationships with customers. Since 1994, the Company has been connecting the hearts of relatives and friends across thousands of kilometers, delivering communications and telecommunications equipment to the most remote regions of our country. Clients are the priority of the Company. SDD’s goal is to lead the telecommunications market by improving the customer experience.

SDD 2

Priority:

Focusing on the internal customer and improving their experience is the basis for the success of the Company.

Goal:

The goal is success by improving the employee experience:

  • leading employer brand;
  • increasing the level of digital maturity of employees and teams.

Unity in a changing environment and understanding of the goals determined the priorities of the strategic direction of Birlik. Orientation to the internal customer, improvement of his experience and satisfaction is the basis for the success of the Company, which proves the increased importance of the development of Birlik SDD. The aim of this direction is success by improving the experience of the employee.

Five main assumptions, consequences and challenges were identified:

  • it is the need for new approaches in HR processes from an “employee-centered” position that defines the challenge of refocusing HR work through the lens of Employee Experience, i.e., creating a better employee experience;
  • global demands suggest that the HR function will continue to transform itself into a digital function. Services must become more automated, open, transparent and understandable. Every employee must have access to digital services EX;
  • creating a customer-centric structure in which each internal customer takes care of an external customer while doing their job;
  • every employee must be proficient working with data products. There is a prerequisite for such a challenge in the growing requirements for DDDM skills on a mandatory basis, i.e., data-driven decisions;
  • along with this, the growing need for new competencies has defined the challenge for EX as attracting, engaging and supporting the best specialists, and their continuous development.

In response to the challenges before HR, JRun Strategy has the following goals:

  • become a leading brand among employers;
  • increase the level of digital maturity of employees and the entire team.
SDD 3

Priority:

Use the full potential of data, modernization of IT infrastructure, information security, the transition to a microservice IT architecture and the creation of Multicloud environment to realize business goals and gain competitive advantage.

Goal:

The goal is the engine of economic growth and competitive innovation:

  • managing data as an asset;
  • transition of network and IT infrastructure to the cloud;
  • digital business transformation.

Kazakhtelecom JSC is always the first, always one step ahead. The Company is stepping confidently into the future by changing, transforming and applying modern approach to business and technology management.

This strategic direction consists in digital transformation of the core business and network, as well as in monetization of the unique market position by applying new digital business models and partnerships.

The main activities included in the SDD:

  • managing data as an asset;
  • transition of network and IT infrastructure to the cloud;
  • digital transformation of business.

The main indicators that are expected to be achieved as a result of the implementation of this direction:

  • data monetization;
  • 99.9% — availability of IT platforms and digital sales channels;
  • ISO/IEC 20000 certification;
  • ISO/IEC 27001 certification;
  • fault tolerance of IT systems;
  • flexible scalability of digital services;
  • leaving Vendor lock-in;
  • infrastructure unification;
  • reduction of time-to-market of digital services;
  • reducing the cost of scaling;
  • the possibility of providing digital and cloud services IaaS / PaaS;
  • entry into new markets.
SDD 4

Priority:

Network modernization and operational efficiency improvement.

Goal:

The goal is first-class business management, technical modernization of infrastructure and the transition to low-carbon development as a priority direction of the Strategy of Kazakhtelecom JSC through resource saving and energy efficiency tools:

  • creating conditions for the transition to a gigabit Society (synergy with business divisions);
  • meeting customer expectations in terms of access speed (reasonable resource allocation);
  • operattional efficiency at the level of industry leaders (optimal performance management);
  • creation of a Tower Operator (leveraging unique skills);
  • Supply chain automation and digitalization of SSC processes (improving the efficiency of supporting functions);
  • achievement of ESG goals;
  • the possibility of obtaining technical specifications in an online format and tracking the status of the application in your personal account in real time 24/7. Terms of issue of technical specifications (from 10 to 15 days). Reducing litigation by half over the use of cable duct infrastructure;
  • gender equality: maintaining the share of women in leadership at the level of 35% by 2027;
  • annual support for no more than 2 thousand children of different ages in IT education.