Kazakhstan to invest billions in broadband internet expansion

Kazakhtelecom, the national telecommunications operator, plans to invest up to $1 billion to provide fiber-optic internet to one million Kazakhstanis by the end of 2027, according to Bagdat Mussin, head of Kazakhtelecom, who spoke at the recent Kursiv Ecosystems Forum 2024 in Almaty.

Mussin stated that approximately 1.8 million households use fiber-optic and wired internet services provided by Kazakhtelecom, with about 800,000 using wired connections.

«You’re probably wondering what we can do to make everyone happy. Well, you likely already know the answer — focus on improving internet quality. So I started thinking about how to make one million customers satisfied. Ultimately, we calculated that we’d need about a billion dollars. We’ve developed a business plan and it’s now under review by the Board of Directors,» Mussin said.

As part of the plan, 800,000 Kazakhtelecom customers using wired internet will be switched to fiber optics over the next 3.5 years. Additionally, by the end of the first quarter of 2025, the company will install new equipment in 580,000 households.

«We promise that by the end of the first quarter of 2025, we will install new equipment so that everyone can enjoy Kazakhtelecom’s digital solutions. By the end of this year, 300,000 customers will benefit, and so far, we have already replaced about 25,000 modems. Our goal is to equip 300,000 households by year’s end to enhance customer satisfaction,» Mussin added.

Mussin is convinced that these initiatives will help develop digital ecosystems and attract additional customers by enhancing the offerings of these ecosystems.

In September 2024, Kazakhtelecom reported that it plans to replace 300,000 of its customers’ old routers with new ones by the end of the year to improve internet quality. Mussin noted that when he joined Kazakhtelecom, he encountered significant negative feedback about the quality of the internet service.

Kazakhtelecom is controlled by the government of Kazakhstan through the Samruk-Kazyna holding, which owns 71.32% of the company’s stock. Jusan Bank holds an 8.10% stake. The telecom giant includes two operators, Kcell and Mobile Telecom Service (which operates the Altel and Tele2 brands). The latter is in the process of being sold to Qatar’s Power International Holding.