Global Telecommunications Overview and Development

In the revenue structure, the key income-generating segments are mobile communications services and data transmission and Internet access services. Their market share in 2021 was 54,1% and 15,8%, respectively. The reason for the rapid growth in the volume of traffic in cellular networks is the ever-increasing weight of content, i.e. the size of data transmitted therefrom.

The market share of the Kazakhtelecom Group in 2021 was 66,6%. The increase in the Group's share in 2019 — from 28,9% to 63% and in 2020 — by 4,1 sub-points compared to the actual value of 2019 is related to the acquisitions: in June 2019 the transaction was completed, as a result of which Kazakhtelecom JSC became the sole shareholder of Khan Tengri Holding B.V.

Mobile revenues grew by 7,8% in 2021. The market volume reached KZT 547.5 billion. Thus, the market has become significantly stronger in the conditions of a panic, a reduction in real communication, and, as a result, an increase in virtual communication between citizens both for domestic and business purposes.

The B2C segment has historically dominated the structure of revenues from mobile communications services. However, in recent years the strategies of all Kazakh operators have been aimed at the development of the corporate sector through comprehensive offerings, access to related markets (fixed communications, IT integration, e-commerce, industrial Internet), and the provision of ready-to-use sectoral solutions.

The fixed broadband segment is mature but continues to grow. In recent years, growth has been subdued, but in 2020-2021 the market has recovered due to the widespread distance of work and the life of citizens under conditions of self-insulation. The demand for higher rates and additional volumes of traffic has increased.

One of the most effective and proven tools of revenue growth in mature markets is bundling of services. In 2021, the leading Internet providers actively augmented package offerings with additional services, including the inclusion of both fixed and mobile telephony in service packages. These measures, while reducing the cost of individual services in the package, have a positive effect on the overall return on Internet access services.

The growth in income was also affected by changes in the policy of Internet providers regarding the provision of subscriber equipment — whereas previously it was transferred to subscribers on a safe and secure basis, in recent years companies have been charging lease payments for its use.

According to estimates, in 2021 the volume of the fixed broadband market was KZT 125 billion, which is 12.8% higher than the previous year.

Along with growth in revenues from broadband services, the data services segment demonstrated significant growth. In 2021, revenues from the organization of corporate VPN networks increased to KZT 35.1 billion, which corresponds to an increase of 7.3% compared to the previous year.

Channel lease and corporate network services relate exclusively to the legal entity segment. Active consumers of these services are state organizations.

Despite the high penetration of Pay TV, revenues from this type of services are growing year on year. In 2021, the volume of the Pay TV market amounted to KZT 43.9 billion, an increase of 10.3% compared to the previous year.

As before, the main income from Pay TV services is generated by households — more than 98% of the total amount or KZT 33.022 billion in monetary terms. In recent years, pay TV operators have become more focused on the corporate segment, trying to use it as a resource for additional connections.