Retail business
Key results
In 2023, the Company’s revenue in the retail segment totalled KZT 144.5 billion. Average subscriber yield (ARPU) increased by +13.8%.
In the reporting period, the growth of the broadband subscriber base made up +1.6%, the growth of Pay TV +13.2% and converged services +5.5%. At the end of 2023, the Company’s total level of overdue and doubtful receivables totalled KZT 2.8 billion, being lower than planned.
The Company’s sales volumes for 2023 increased by 40% to 184,000 services. The Pay TV services achieved the largest growth in +25% due to full digital sales of TV+. Broadband Internet access service sales increased by +21%.
The effect of sales through digital channels for 2023 totalled KZT 982 million and reached 11.2% of all sales.
Development of product offerings
The Company seeks to provide original content on its platforms to attract and retain new users. Therefore, creating its own original content was the next stage in the development of the TV+ platform after the launch of interactive TV and the integration of the best online cinemas.
In May 2023, Salem social media company and Kazakhtelecom JSC entered into a cooperation agreement, planning to promote domestic product on the TV+ television platform. Domestic series “Black Yard”, “Qarga”, “Sheshe” and “1286”, which are joint products of Kazakhtelecom JSC and Salem social media, became in 2023 the bestsellers of TV+ platform and allowed Kazakhtelecom JSC to triple its mobile audience.
The interest in own content led to a surge in Kazakhstani people downloading the TV+ mobile application to their own smartphones that allows them to watch literally wherever the Internet is available: at work, on business trips and when travelling. As a result, TV+’s own content attracted around 131,9 thousand new paying users in 2023. In addition, in terms of video content, in September 2023 we added Premier Cinema and in December 2023 – More Cinema.
New lines of tariff plans
In 2023, the Company retained the concept of long-term contracts including unlimited home internet, hundreds of TV channels, and cellular services, where subscribers can get a discount on subscription fees with a guarantee of unchanged price throughout the contract period.
The Company launched TV+ mobile service on mobile numbers included in the Bereket package. Thus, the national telecom operator subscribers connecting new tariff plans can watch more than 150 TV channels and more than 6,000 films and series from Made in KZ, Salem, AMEDIATECA, QAZAQSHA, more.tv from Kazakhtelecom mobile numbers without consuming additional Internet traffic.
In 2023, there was an important change in the new line-up regarding the telephony services provision: telephony services were excluded from service packages that include Internet access via optical technologies. These services can now be purchased separately only if necessary.
Client experience
The Company improves the quality of service in the retail segment. Since October 2023, the Company implemented livechat on the telecom.kz website and in the mobile application to increase responsiveness to its subscribers’ requests. As a result, 30,238 subscribers received support via live-chat.
In December 2023, the Company launched the Omilia robot, which integrated 20 dynamic and 15 static scripts to serve 160 and 165 subscribers in voice mode.
In the reporting period, the Company also improved operation of online channels in WhatsApp and Telegram:
- channels operate on a 24/7/365 round-the-clock service mode;
- we improved the waiting time for a response from a specialist from 30 minutes at the beginning of the year to 3.5 minutes at the end of the year;
- we reduced the duration of dialogue with the client from 3.5 hours to 2 hours;
- we improved the percentage of serviced dialogues from 98% to 99%;
- we transferred some requests to the self-service level. Such queries as current personal account balance, payment methods, SIM card registration procedure, advice on roaming, TV+ service connection, debts, recommendations on Wi-Fi routers, shop.telecom.kz services are handled by an online chatbot.
We served online about 950,000 subscribers.
Improvement of service installation process
In 2023, the Company’s retail business mainly focused on organising, maintaining and supporting work on installation and connection of telecommunications services.
Key performance indicators in 2023:
The Company attributes this to a number of factors:
- digitalisation of the Company’s interaction with its customers (online customer service);
- reduction of the digital divide due to the deployment of modern networks in rural areas;
- reduction of time spent by the Company’s employees on providing services due to the automation of business processes.
In 2023, the Company achieved a number of key goals in the service quality improvement:
- connecting at least 90% of new subscribers to the Company’s services within no more than 24 hours of their request;
- fixing 95% of customers’ damages within no more than 12 hours:
- solving all problems of 90% of customers in one visit to them by the Company’s specialists.
The Company managed to achieve such results due to the automation of internal business processes. For example, the Company implemented a WFM-system (Workforce Management – a personnel management system distributing orders for service connection in automatic mode, depending on which installer is available at the moment). This allows activation of services on equipment in one “click” and drastically reduces the time of servicing each individual subscriber.
The Company continues improving this system. We assume the clients will use it to schedule a convenient day and time for the Company’s specialists to visit them. Kazakhtelecom introduced similar changes using Self-Service tools in its external services. This allows subscribers to solve some of their problems on their own, without using the Company’s operators.
Network development
From January to December 2023, the Company commissioned optical networks throughout Kazakhstan under the project on the Development of broadband network using FTTx technology. This provides high-speed Internet access to 39,634 subscribers in 557 apartment blocks and 1,725 subscribers in the private sector of cities.
In addition, in 2023, optical networks were commissioned under a partnership model of network construction, enabling connection of 64,709 households to high-speed internet access.
In 2023, to reduce the digital divide in villages, we procured 145 Wi-Fi radio bridge base stations and 10,063 client terminals to provide internet access to 145 rural settlements in 16 regions of the country.
Also planned:
- Expansion of optical networks in Almaty and Astana cities in 2024, enabling access to high speed broadband internet access for 54,201 households.
- Construction/expansion of optical networks in all major cities of Kazakhstan, enabling access to highspeed broadband internet access for 169,014 households.
In addition, the Company plans to modernise the GPON network in Almaty and Karaganda by replacing outdated station equipment. For this purpose, we purchased and installed GPON equipment in Almaty for 4,592 PON ports and in Karaganda for 3,776 PON ports. Also, the Company concluded a Contract for purchase of GPON equipment for 4,560 PON ports for the cities of Almaty, Kostanai, Karaganda, Shymkent and Almaty region. At the same time, we will redistribute the station equipment dismantled in the cities to rural settlements.
Changes in organisational structure
The Company continues to improve its organisational structure and this contributes to enhancing its efficiency.
In 2023, to create a fullfeatured management system for Kazakhtelecom’s investment projects, providing an end-toend management mechanism for the full cycle of investment projects in the Retail Business Division (a Kazakhtelecom JSC’s branch), we transformed the Project Office Service into the Business Development Service.
Social responsibility
The Company strives to increase the accessibility of telecommunications services for people with special needs.
In September 2023, the Company launched a preferential tariff plan “social” for people with special needs, giving them the opportunity to use all modern digital services at a favourable price. The Company has filled the new package with the most popular services allowing subscribers to use the tariff as comfortably as possible. The package includes unlimited access to the Internet at a speed of 8 Mbps (ADSL)/100 Mbps (FTTh), unlimited calls to fixed numbers within the Republic of Kazakhstan and calls to the numbers of Altel/Tele2 operators.
Tariff Plan "Social"
