New mobile provider may appear in Kazakhstan

During the Government’s meeting, Vice Minister of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan Askhat Orazbek noted that in the event that current communication service providers are unable to meet the needs of Kazakhstanis in terms of service quality and pricing, a new telecom operator could be launched in the country, Kazinform News Agency reports.

Askhat Orazbek further emphasized that the Ministry has high expectations for the deal to sell Tele2 and Altel to a Qatari investor, as it should increase competition among telecom operators.

"We have experienced a duopoly in the mobile market for some time, similar to an oligopoly, which is generally not considered beneficial, so the deal that has taken place, we have high hopes for it, because we cannot regulate tariffs. But we are relying on the so-called invisible hand of the market, the competition of the three independent mobile operators, which will improve the quality of communication. We are confident that this will have an impact on prices. Remember, when Tele2 entered the market, they significantly reduced tariffs, compelling Kcell and Beeline to follow suit. Therefore, we anticipate a similar effect from this deal,” the Vice Minister noted.

According to him, the new team will be handling the current situation in the company over the next six months and taking steps to improve the market. If these objectives are not met, the Ministry of Communications will introduce a new operator within two years. The frequency bands have already been prepared for this purpose.

"Following a two-year period of observation, the decision will be made to introduce a fourth operator to the market, provided that the three current operators fail to meet the satisfaction of citizens with regard to quality and tariffs," he added.

As reported earlier, Kazakhstan has surpassed Japan in the global internet speed ranking.