KAZAKHTELECOM JSC: RATIONAL ATTITUDE TOWARDS OUR CONSUMERS
This was announced at the "Atameken" site within the framework of the roundtable chaired by Yulia Yakupbayeva, Deputy Chairman of the Management Board of the Atameken NCE RK.
"The aim of the round table is to understand and listen to the opinion of the parties on the issue of buying Kcell company's shares by Kazakhtelecom. Atameken gathered deputies, industry actors to discuss the deal and understand how it can affect the mobile services market," - Yulia Yakupbayeva opened the round table.
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The alarm about the purchase of 75% stake in Kcell by Kazakhtelecom JSC was sounded by Alexander Komarov, Chief Executive Officer of Beeline Kazakhstan.
"Controlling two assets with a total subscriber share of 65% and a larger share of revenue is a high level of concentration. This does not occur in developed markets. From our point of view, it will lead to an increase in concentration in the fixed-line market," - Komarov said.
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He is concerned that the monopoly and economic concentration will lead to an intensive increase in tariffs and Kazakhtelecom will be able to dictate its terms to the market. Komarov noted that the distribution of purity waves would also suffer. To date, between the three actors in the mobile communications market, the frequency spectrum is divided as follows: 50% (Altel, Tele2), 25% (Kcell), 25% (Beeline). The spectrum determines the number of subscribers that a company can serve simultaneously, the volume of investments and the speed.
"Under current legislation, operators have the right to use spectrum jointly. If the transaction takes place, then there is a high probability that the mentioned spectra will act together. It will form a disproportion of 75% by 25%. And this merger gives a colossal advantage," - said Beeline CEO.
In turn, the chief financial director of JSC Kazakhtelecom Askhat Uzbekov said that the company does not try to restrict competition in any way.
"We are a national operator and, first of all, we pursue the interests of the state. Our tariffs certainly do not pursue either for the dollar to the tenge rate of exchange, or for the rate of inflation. We understand that we represent a fairly large item of expenditure in the budget of each family. And we behave reasonably from the point of observing the economic interests of the company and consumers," - Uzbekov said.
Legal adviser of JSC Kazakhtelecom Vladimir Popov noted the presence of several key players in a number of countries, for example, in China, Australia, Mexico. And he assured colleagues that no growth of tariffs and market control are foreseen.
"Kazakhtelecom" has no control in the activities of cellular operators, since it owes a 49% of voting share capital in the combined holding company with European partner Tele2," - explained Vladimir Popov.
According to the appeal of LLP "KaR-Tel", Kazakhtelecom filed a petition for economic concentration in the Committee on Regulation of Natural Monopolies and Protection of Competition under the Ministry of National Economy of the Republic of Kazakhstan (CRNMPC) in order to recognize the transaction as legitimate.
"It is premature to draw conclusions without having received the results of the CRNMPK review. In general, the market will bear risks, but they should be studied and analyzed in detail," - the President of the National Telecommunications Association of Kazakhstan Asylbek Khairushev voiced.
The executive director of Beeline Kazakhstan noted that such round tables with the participation of business representatives and the authorized body clearly demonstrate the position of entrepreneurs and allow minimizing further risks.
"It's great that we can discuss the market position before the decision is made. I am glad that such issues are being discussed at the site of the "Atameken" NCE," - Komarov noted.
On April 20, the representative of CRNMPK did not attend the meeting. Yulia Yakupbayeva assured that "Atameken" will send a letter to the authorized body. According to the regulations, the Committee on Information and Communication Technologies, Education and Innovation under the NCE will consider the appeal of entrepreneurs. Also, the National Chamber will ask CRNMPK to provide the results of market analysis.
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