Kazakhtelecom has announced in a statement to the Kazakhstan Stock Exchange (KASE) that it has completed the sale of its subsidiary Mobile Telecom Service LLP operating under the Tele2/Altel brand to PIH. The state-controlled communications company and the Qatari investtor signed an agreement of cooperation in February 2024 without disclosing the transaction value. However, the Kazakh Digital Development, Innovation and Aerospace Industry Ministry has estimated the MNO could be worth up to US$1.1bn.
Kazakhtelecom has slow let its grip on the country's telecommunications market. According to local media, there have been ongoing discussions about the need to demonopolise and privatise the three-MNO market (of which Kazakhtelecom controlled two) since at least 2022. Kazakhtelecom owns a 51% stake in a second MNO, Kcell, while the third (and market leader) Beeline is owned by now Russian-free VEON.
What is next for the tower and telecom market
Until recently local MNOs have considered passive infrastructure as a source of competitive advantage and have refused to sell or share towers. As reported previously by TowerXchnage, Tele2 owns 1,400 towers and its management had been reviewing the company’s tower strategy. We are yet to see whether its new owners will pursue a different startegy for its infrastructure. First, it needs to fulfill its 5G spectrum license obligations. Both Kcell and Tele2/Altel won 5G spectrum licences which also include them activating over 7,000
base stations, upgrading towers and providing 5G coverage in 75% of cities by 2027.
Kcell owns 2,500 towers, but TowerXchange understands it is further from selling its assets.
Beeline is believed to have around 1,500 towers in addition to shareable and non-shareable rooftops but has disclosed plans to create a special purpose company to house the towers and “transform” all the tower sites to get the best return on a sale.
The country's largest independent towerco LC Commerce has developed its portfolio through sale and leaseback transactions with Kcell and tele2/Altel and continues to grow its portfolio through build-to-suit demand from the two operators.
