Kcell starts sale of SAMSUNG smartphones

December 10, 2014.

Today, Kcell Company, which is leader of the Kazakhstan mobile market, announced starting of sale of the most popular SAMSUNG smartphone models, which are now more accessible for the Company’s subscribers.

In his comments on such event, the Mass Market Development Director of “Kcell” JSC Mr. Hikmatulla Nasretdinhodzhayev said: “Worldwide, smartphones are the main factor affecting the growth of mobile Internet use and development of the whole telecommunication market. It is important for us that the Kcell and activ subscribers have the possibility to purchase the most popular Samsung smartphone models just at the “Kcell” stores, and we expect that our new offers will contribute in making of the user experience of the subscribers better. The SAMSUNG smartphones are in great request for Kazakhstan citizens, and we are glad to propose them to all fans of such devices together with high-quality and advantageous offers including mobile Internet, calls and SMS”.

“Kcell” offers the range of 5 SAMSUNG smartphone models, which are most popular in Kazakhstan. They are GALAXY S5 LTE 16GB, GALAXY NOTE 4 32GB, GALAXY ALPHA LTE 32GB, GALAXY S5 MINI DUOS 16GB, GALAXY ACE 4 DUOS 4GB. Each of them is in various colours.

The most available smartphone in the range is GALAXY ACE 4 DUOS 4GB. Prepayment for such model is 4 990 tenge, and monthly payment is 2 990 tenge. For such amount, the subscriber will receive 200 minutes for calls inside the network, 500 SMS and 500 Mb Internet-traffic monthly within 12 months.

For the top models - GALAXY NOTE4 32GB and GALAXY ALPHA LTE 32GB, the initial payment is 35 000 tenge and 9 990 tenge correspondingly. The packet offer for such models includes unlimited calls inside the network, 100 minutes for calls to other operators, 1 000 SMS, as well as 10 Gb Internet-traffic, which are provided monthly subject to the annual contract.

Official guarantee service is provided for all the contracted SAMSUNG telephones purchased in the “Kcell” network.

Internet-use in the “Kcell” network goes up vigorously. For 9 months of 2014, the data transfer scope gained by 101.6%. For such period, the Kcell and activ subscribers used 21 613 687 GB Internet-traffic. Thereat, the average cost of 1 MB is 1.2 tenge. The Company believes that expansion of the smartphone range will promote further distribution of smartphones and Internet-use.




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 Company Overview

Kcell is the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and the number of subscribers. It has operated since 1998, and as at 31 December 2013 it had approximately 14.3 million subscribers, representing a market share of 46.2%, as estimated by the Company. Its estimated market share in terms of revenue was 54% for the year ended 31 December 2013.

Kcell provides mobile voice telecommunications services, messaging services, value-added services such as multimedia and mobile content services, as well as data transmission services including internet access. It has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers), and the Activ brand, which is targeted primarily at mass market subscribers. The Company offers its services through its extensive, high quality network which covers substantially all of the populated territory of Kazakhstan.

In December 2012, Kcell successfully completed its offering of GDR’s on the London Stock Exchange and common shares on KASE. The price was set at USD 10.50 per GDR and KZT 1,578.68 per share with each GDR representing one share.  The offering consisted of a sale by TeliaSonera of 50 million shares, which represent 25 percent of Kcell’s share capital. TeliaSonera holds directly and indirectly 61.9% of the Company’s common shares.

Kcell plans to benefit from the significant growth potential for mobile data services in Kazakhstan. The Company intends to continue to invest in the deployment of its 3G network to expand coverage. Kcell aims to maintain its market leadership in terms of revenue and the number of subscribers by offering its products and services at competitive prices, expanding its offering of products and services, maintaining the high quality of its network and enhancing its brand value.