State-owned telco Kazakhtelecom JSC has reportedly signed separate deals this week – one to finalise the selloff of its mobile unit MTS, and the other to build a subsea cable connecting Kazakhstan and Azerbaijan.
According to media reports, Kazakh Minister of Digital Development, Zhaslan Madiyev said on Tuesday that Kazakhtelecom has reached a deal to sell Mobile Telecom Services (MTS) – which operates under the brands Tele2/Altel – to Qatar’s Power International Holding (PIH) for US$1.1 billion.
PIH first revealed its intention to buy 100% of MTS in February after signing an agreement of principles with Kazakhtelecom, but the purchase price and details had not yet been finalised.
According to Doha News, Madiyev said the sale of MTS to PIH was an “expansion of investor base by means of attraction of a new name” and enhancing competition. He also said PIH has committed to expanding MTS’ network.
Trans-Caspian subsea cable
Meanwhile, according to a separate report from Russian state media outlet RIA Novosti, Madiyev announced that Kazakhtelecom JSC and Azerbaijan’s Azertelecom have formed a joint venture to construct a subsea cable across the Caspian Sea to connect the networks of both telcos.
The Trans-Caspian Fiber Optic Communication Line (FOCL) will span 370 km and cost 23 billion tenges (US$50.6 million), the report said.
The report also said that the subsea cable is part of so-called Digital Silk Road project spearheaded by China as an offshoot of Beijing’s Belt and Road Initiative (BRI).
Digital Silk Road focuses on BRI-like investments in digital infrastructure and technologies in countries between Asia and Europe, especially developing countries. Projects so far has included fibre-optic cables, data centres, 5G base stations, smart city initiatives, and e-commerce platforms, according to the China Media Project.
Kazakhstan is one of 17 countries that have formally signed on to the Digital Silk Road initiative.
In related news, while revealing the above items, Madiyev also said on Tuesday that mobile internet services are now available in 4,866 villages in Kazakhstan, according to The Times of Central Asia. Of those, over 1,160 have 4G.
Madiyev also said 5G is available with limited coverage in 20 cities, and Tele2 and Kazakhtelecom's Kcell are working to expand 5G coverage in Astana, Almaty and Shymkent, as well as regional centres. Madiyev said initial 5G rollouts would be completed by the end of next year.
