Tele2 and Kazakhtelecom form mobile joint venture
Tele2 Kazakhstan and Kazakhtelecom have agreed to combine their mobile operations into a joint venture.
The merged group of Tele2’s business and Kazakhtelecom’s Altel will have over 5.6 million customers and a market share of approximately 22%, according to Tele2.
"This transaction will enable our customers to gain access to Altel's 4G network and to benefit from its accelerated rollout across Kazakhstan," said Alison Kirkby, Tele2’s CEO.
Tele2 reported 4.4 million subscribers in Kazakhstan by the end of the third quarter. From January to September 2015, the Kazakhstan market accounted for 7% of the operator’s group sales and 1% of its core profit.
Tele2 will have operational and management control of the combined entity and own 49% of the venture’ equity while Kazakhtelecom will own 51%. Both Tele2 and Kazakhtelecom will hold 51% and 49% of the voting rights respectively.
Kuanyshbek Yesekeyev, chairman of the management board of Kazakhtelecom, said: "As a result of this deal new opportunities, related to expanding the network coverage, will emerge. The partnership will also boost the use of advanced technologies such as 4G / LTE and expand the range of services available for customers of Altel and Tele2 Kazakhstan. We are particularly pleased to team up with Tele2 since it is one of the industry leaders in corporate responsibility and corporate governance."