How Freedom Telecom is building telecom operator around financial ecosystem

Freedom Telecom is one of the most ambitious projects in Kazakhstan’s telecommunications market. It is the country’s first operator to be built not from scratch, but on the foundation of Freedom Holding’s established financial ecosystem, which includes a bank, SuperApp and a media company. The holding has already invested more than $200 million in infrastructure to create the technological foundation for Freedom Telecom. But why is a financial holding company building telecommunications networks from scratch? Why does fear of radio-frequency radiation remain a major barrier to the development of communications infrastructure outside major cities? And when will a new mobile operator emerge in Kazakhstan? Freedom Telecom CEO Kairat Akhmetov spoke with Kursiv about those issues, as well as the company’s use of SHL tests in hiring and its integration of AI into business processes.

— What strategic value does Freedom Telecom bring to the holding, and what business model are you ultimately building?

— A large holding needs its own infrastructure. Having a telecom company within the group gives us control over connection quality and content delivery speed. That is critical for banking services, where reliability and security are essential, and for the Freedom Media project, where speed is crucial. Essentially, we are an infrastructure component of the ecosystem, enabling fixed-line internet, Wi-Fi and, potentially, mobile services.

Communications are now a basic necessity, like electricity and water, and we want to keep them affordable. The economics work both ways: In the long run, selling communications services through SuperApp is more profitable than operating on the open market because we don’t have to pay to acquire the customer again — they are already part of the ecosystem. That is the model we are building: infrastructure embedded in the holding company’s financial and digital ecosystem.

— But why did you decide to build the infrastructure yourself rather than lease existing networks?

— There simply isn’t any ready-to-use infrastructure on the market that we can lease and depend on. If there is only one cable in a region, it creates a single point of failure. Imagine a tractor accidentally cutting that cable. Everyone loses service. Building a new operator while depending on someone else’s single point of failure doesn’t make sense. We need control over reliability, and only our own network can provide that.

— Building a telecom network requires significant investment. What is currently holding back the development of the country’s telecom infrastructure?

— There are several major obstacles. First, regulations are complex, and obtaining permits to lay cables and gain access to rooftops can be difficult. Second, telecom requires enormous infrastructure investment, and capital in Kazakhstan is currently very expensive. It is easier to keep money in deposits than to invest it in construction. But communications infrastructure will not develop without investment, so we are making a deliberate decision to invest. The third obstacle, which is often overlooked, is fear of radio-frequency radiation. In fact, I believe it is at the root of many of the country’s communications problems.

— Why is fear of radio-frequency radiation such a barrier for the industry? Tell us more about that.

— Kazakhstan’s limits on the permitted power of telecom equipment are significantly more restrictive than those in many other countries, and the permitted levels are much lower than the intensity of sunlight. Despite what many people believe about radio signals, the reality works the other way around. The farther you are from a base station, the more power your phone has to use to reach the network — it has to «shout» louder. That also drains the phone’s battery faster. Base stations should be closer to people so they can operate at lower power, essentially «whispering.» Unfortunately, because of public concerns, base stations are often not allowed on rooftops. That restricts the development of communications infrastructure across the industry.

— Where is your network already operating, and how is it structured?

— Our services — fixed internet, Wi-Fi, fixed wireless access (FWA) and B2B services — are interconnected and operate as a unified system, complementing one another. We have already launched FWA networks in Shymkent, Aktau, Taraz, Turkistan and Konayev, and we are rolling out the technology in Astana and Almaty. The service is already available in some parts of those cities. We use Huawei equipment. Thanks to the favorable frequency range and wide bandwidth, we can deliver speeds of more than 2 gigabits per second. We also operate about 3,000 Wi-Fi hotspots, and the number of users has already surpassed 1 million. These are not separate products. They are layers of a single network on which we build customer services.

— What does your customer base look like today, and where are you growing the fastest?

— We have a significant base of anchor B2B clients and a growing number of fiber-optic customers. As I mentioned, we have surpassed 1 million Wi-Fi users. FWA is growing very quickly. In some cities, we have already captured 10% of the market in less than a year.

— Which areas generate revenue today, and which are investments in the future?

— We don’t want people to think we are purely a B2B company. We aren’t. B2B does generate most of our revenue today, but we already have a mass-market segment that includes fixed internet, Wi-Fi and FWA for households. Strategically, we are focusing on both consumers and small and medium-sized businesses. The idea is to offer more than an internet connection. We want to provide comprehensive products, including AI-based solutions, video surveillance and Wi-Fi, and connect them with Freedom Bank products and services such as Freedom Travel. That is something a traditional operator cannot offer.

Click here to read the full interview.