Corporate business

Kazakhtelecom is the leader in the telecommunications market of the Republic of Kazakhstan, in the corporate segment either. The Company has the most developed infrastructure, a large branch network, as well as a large technical and human resources potential.

Key performance results in 2023

The Company offers its customers a wide range of modern telecommunication services, including telephony, data transmission, internet access and satellite communication services. Based on the results of operations for 2023 in the corporate segment, the Company’s revenue by B2B, B2G, B2O segments totaled KZT 155.2 billion, net of VAT.

As part of the implementation of the strategic objective of Kazakhtelecom JSC in the corporate segment in 2023, the revenue growth amounted to KZT 4.2 billion against 2022.

Company’s revenue in the corporate segment, billion KZT

Revenues structure of the Company in the corporate segment in 2023, %

In the Company’s revenues structure in the corporate segment, the largest share of 39.7% is revenues from the provision of data transmission network services. The share of revenues from the domestic market operator makes up 35.5%, and the share of revenues under the agreement with international operators equaled 10.4%.

Changes in B2B and B2G segments, ‘000 devices

The decline in fixed line sales is an established global trend due to the development of messenger and social networking servicessubstitutes. Due to the formation of new regions and customers’ relocation to new regional centres, inventory and cost reduction measures, corporate networks were optimised, which led to the disbanding of FL, broadband, TV and IP VPN outlets.

ARLB growth for 2023 to 2022 in the context of Internet access and IP VPN services.

At the end of 2023 compared to 2022, ARLB’s commercial indicator increased by KZT 5,000 per month for each outlet of broadband Internet access, which is 10.3%, and by KZT 2,200 (5.9%) per month for each connected outlet of IP VPN.

As of the end of 2023, the customer base in B2X segments was 97,436 BINs, of which in B2O segment the contracts with 172 BINs of telecom operators were supported, in B2G segment – with 15,068 BINs of state organisations, in B2B segment – with 82,196 BINs of business companies.

Digitalisation and transformation results for 2023:

International operator segment (B2O)

In the international operator segment, in 2023, the Company implemented the following projects:

Construction of FOCL along the Caspian Seabed

Kazakhtelecom is implementing a strategically important project for the country – construction of the Trans-Caspian fibre-optic communication line (FOCL) along the Kazakhstan– Azerbaijan route, which is a part of the large-scale project Digital Silk Way – creation of a digital corridor between Europe and Asia.

The Trans-Caspian FOCL will provide data transit between Europe and Asia, as well as enable Kazakhstan to reserve existing routes and create an international digital hub on its territory. It will facilitate access to new markets and improve the usability of the internet and data transmission capacity between the countries. In addition, the project is also unique in that it will provide the first submarine cable route under the Caspian Seabed.

The main goal of the project is to ensure telecommunication security and information sovereignty of Kazakhstan.

Within the implementation of the project on Construction of FOCL along the Caspian Seabed the parties signed an agreement on the terms of cooperation, registered a joint venture CASPINET B.V., the shareholders of which are Kazakhtelecom JSC and Azertelecom Int. Ltd.

Commissioning of the FOCL is planned for 2026, with the introduction of optical lines into commercial operation in the second half of 2026.

The main route will run along the route “Aktau–Sumgayit district” and will be about 370 km, the reserve canal with a length of about 330 km will be laid along the route “Kuryk– Buzovna”.

A FOCL bandwidth of 400 terabits per second (Tbps) is a very high data transfer rate. As an example, global Internet traffic per day in the early 2020s is estimated to be approximately 500 Tbps per second. This means that a bandwidth of 400 Tbps could provide almost 80 per cent of all daily global Internet traffic.

Organisational procedures completed in 2023:

The foundation for the international project is laid.
First steps in logistical and project preparation initiated.
A business plan for the project is developed.
Terms of reference for further design approved.

Plans for 2024 and the medium term:

Tender documentation development to select a contractor for the design and construction of FOCL along the Caspian Seabed.
Holding tenders and signing contracts with contractors and partners for the design and construction of FOCL.
Start of the design phase for the subsea part of FOCL.
Clarification of terms and stages FOCL construction.

We will inform on the project implementation in our next reports.

SuperHighway Initiative

As part of the SuperHighway initiative, Kazakhstan plans to build a high-speed digital information network (superhighway), with two branches stretching from China to Azerbaijan and Russia.

In January 2023, the Samruk-Kazyna Fund approved the Kazakhtelecom’s initiative on the development of a pre-feasibility study for the SuperHighway project. As part of the study, we determined the impact of the Super Highway and Super Data Centre on the economy, studied world experience, assessed risks, developed a technological solution, carried out survey work, and prepared a financial model. At present, Kazakhtelecom JSC works on defining conditions for the project implementation.

We will inform on the project implementation in our next reports.

Target Superhighway topology

New businesses and products

The Company continues to develop new services for its customers in the B2B and B2G segments. In 2023, we launched new services on the ismet.kz portal, including information security services.

DDoS Protection’ service

This service provides reliable protection of IT infrastructure from DoS/DDoS attacks, including zero-day attacks, by applying the most advanced developments in the field of cyber security. This innovative solution provides protection against both internal and external attacks, regardless of their origin – from Kazakhstan or beyond its borders.

The Service is integrated into Kazakhtelecom JSC’s network infrastructure, which ensures effective counteraction to DDoS attacks of any complexity.

For more details on the service, please visit ismet.kz portal.

Alarm button

The Alarm button from Kazakhtelecom JSC is a modern solution in the sphere of public security. SOS button allows making an emergency call from the place where the device is installed to the centre of operative response of the Ministry of Internal Affairs in case of illegal actions or emergency situations.

Alarm buttons are tied to the location, thus reducing the time of calling police officers.

The Alarm button advantages:

Ease of use
Fast signal transmission
Possibility to receive prompt assistance
Possibility of integration into a comprehensive school security system

The use of the Alarm Button in schools provides participants of the educational process with an additional level of protection, contributes to the creation of a safer educational environment.

For more details on the service, please visit ismet.kz portal.

Internet with access to cache servers

Cache servers are part of the infrastructure of the largest content providers: online games, video hosting, online cinemas, and social networks, located in the territory of Kazakhstan in Kazakhtelecom JSC’s data centres. The service improves user experience of the end subscriber by reducing ping in games, fast video uploading and more stable connection to services of content providers. Connection of the service on Internet with access to cache-servers is possible for telecom operators that have a direct joint or are consumers of the Internet service from Kazakhtelecom JSC. This product also reduces expenses for purchase and maintenance of expensive equipment: data storage systems, servers, power supply installations, network equipment.

For more details on the service, please visit ismet.kzportal.

The killer product in the corporate segment (at the end of 2023) was the KASIPKER package product for individual entrepreneurs with the ability to choose a variation to suit their business. On average, revenue growth since the beginning of 2023 is 11% per month.

We created the Kasipker product to support small and medium-sized businesses. The tariff line consists of three packages and includes mobile telephony services, calls to mobile operators and unlimited calls within Kazakhstan, Internet access, as well as video surveillance service IMOU Kazakhtelecom.

Focusing on the customer’s needs, the Company gives them an opportunity to choose from several variations of filling within one tariff plan: Bailanysta, Qorganysta and Bari bar. Each of them takes into account individual wishes of the customer and makes it possible to choose the most optimal package of services at a favourable cost for their business.

New products and services on the ismet.kz business platform in 2024:

Launch of a new platform for business deals:

Launch of a new platform that will become a central point for entrepreneurs to interact. It is a place where businesses can find everything they need to solve current problems and increase sales.

Ismet Docs – Electronic Document Management:

Launch of an electronic document management system. This reduces “mountains” of paper documents, increasing the efficiency of information exchange between users and promoting a more efficient working environment.

Upgrade of TU Online to version 3.0:

With the upgrade to version 3.0, TU Online will have full-cycle functionality from obtaining TU to connecting services remotely and without paper documents.

Fiscal data operator

In 2023, the Company maintained its leading position in the market of fiscal data operators in Kazakhstan through optimisation and digitalisation of business processes and provision of quality services to end users.

Kazakhtelecom’s FDO service (fiscal data operator) helps entrepreneurs to process and transmit data from cash register devices to state authorities online that makes doing business easier.

In 2023, Kazakhtelecom presented to its users an updated version of E-Kassa mobile application with new functions, services and interface. The small and free programme from Kazakhtelecom fully replaces cash control machines and is designed for cash accounting, registration and control of cash transactions.

Earlier E-Kassa was hosted on the ismet.kz business platform, and since December 2023 it has become an independent application that can be downloaded to a smartphone in Google Play Market, App Store and App Gallery. E-Kassa can be used in trade and services to register the sale or purchase of goods, print cheques or transmit them electronically, and store information on cash transactions. In addition, E-Kassa can work for 72 hours in offline mode: the application will save all issued cheques and send them to the FDO as soon as communication with the server is restored. This is especially important for businesses with several sale points or with a large customer flow.

New product in B2G and B2C segment in 2024

In 2024, the Company plans to develop the Social Wallet project. The goal of the project is to introduce a digital payment instrument to simplify the receipt of social payments by citizens, as well as their use on the basis of the instant payment system of the National Bank of the Republic of Kazakhstan. The service, developed by the Kazakh IT company BTS Digital and integrated into the eGov mobile application, allows receiving all social payments, including monetary and non-monetary measures of state support, paying with electronic money, transferring funds to cards, as well as receiving free medicines and hot lunches in schools.

In the future it is planned to add to the “Social Purse” the possibility of buying food at a discounted price, taxi services for the disabled, purchase of rehabilitation equipment for people with special needs and much more.

We will give more details about this in our next report.