Kazakhstan’s industry moves to Industry 4.0 in cooperation with Kcell

15.11.2023

                                                                                                                                             Kostanay

Kcell, the country’s leading mobile operator, has embarked on the digital transformation of large industrial facilities in Kazakhstan through the introduction of IT and telecom solutions. Today, the operator is actively implementing private LTE technology (private networks) using various IoT solutions. Together with the largest representatives of the country’s mining sector – Polymetal International and KAZ Minerals – Eurasian Resources Group has also chosen a private network or Private LTE from the mobile operator. The day before, at ERG’s sites in the Kostanay region – SSGPO and Kachary Ore, Kcell expanded the coverage area of the production company’s internal network by installing additional 4G base stations.

It should be noted that Kcell is planning to cover industrial sites in the mining and processing industries with Private LTE/5G networks to improve the extraction and processing of minerals and increase the efficiency of enterprises in general. For example, Kcell was one of the first operators in the CIS and the first in Kazakhstan to deploy a full private LTE network for mining giant KAZ Minerals. The success of the private LTE deployment at the “copper company” enabled the operator to extend the service to other industrial sites in the country, in particular to the factories and deposits of Polymetal International. Today, Eurasian Resources Group is also an active supporter of the use of private networks, with Kcell installing more than 30 base stations in its quarries and launching an internal and isolated network based on LTE technology.

“We launched the first private network in Kazakhstan at Kaz Minerals Group’s Aktogay mine, where the challenge was to create a stable, resilient and secure data environment for mission-critical applications. We deployed 19 base stations that are ready for the transition to 5G. Kcell’s Private LTE enabled the company to reduce downtime of mining vehicles by 50%, significantly reduce repair and maintenance costs of the data network infrastructure, and launch new digital services at the mine. As for ERG’s private network, it is the largest in terms of coverage in the country, connecting 6 companies in three regions at once – Karaganda, Kostanay and Pavlodar. The private LTE network implemented at ERG’s facilities provides a stable data transmission environment for the automated control system of mining and transportation complexes, and increases the overall efficiency of mining equipment by 10%,” said Askhat Uzbekov, Chairman of the Board of Kcell JSC.

Incidentally, today Kcell has installed 34 base stations and deployed a private LTE network at ERG’s facilities, which will enable the company to solve several tasks at once – automating a number of business processes, establishing M2M machine-to-machine communications, implementing data exchange via IoT sensors, Push to Talk closed-circuit radio communications, digital video surveillance, integrating security systems and many others, some of which are planned to be implemented with Kcell’s support. This has enabled the company to launch its own ecosystem, which can be expanded and complemented with new services and tools in the future. In addition, the operator plans to deploy a further 8 base stations at other ERG sites and further expand the manufacturing giant’s private network.

It should be noted that the Sarbaisky open pit is considered to be not only the largest in Kazakhstan, but also one of the largest ore pits in the world in terms of size, volume of rock mass and depth. The Kachary open pit is no less large, with a design depth of over 720 meters. The miners have now reached a depth of 475 meters. By way of comparison, this is the height of the television tower in Almaty’s Koktobe. And it was important for ERG to automate much of the work in such a vast area, where ore is transported by 220-tonne dump trucks – giants the size of two-storey houses. And these behemoths could potentially be controlled remotely by upgrading the current 4G communications technology to 5G.

According to the company’s specialists, the digital transformation and automation of production makes it possible to solve a whole range of problems – from increasing productivity to creating and maintaining a favorable team climate through IoT systems and sensors integrated with private LTE: monitoring the condition of the production site, machinery and equipment, as well as monitoring the health and emotional background of each employee, which can help to distribute the workload and workload properly.

“The installation of base stations at the SSGPO and Kachary Ruda sites is part of ERG’s large-scale quarry digital transformation project. Earlier, together with Kcell, we did a lot of work to build LTE networks at our companies – Shubarkol Komir, Aluminum of Kazakhstan and EEC. As a result, dozens of units of mining vehicles at these companies have a stable connection to corporate information systems. Today, thanks to modern technologies, it is possible to receive accurate information about the work of dumpers and excavators with a click, and thus effectively manage the production process. We started the project in 2019, and this year we have already covered about 216 square kilometers with private LTE networks. For comparison, this is more than the area of cities such as Taraz, Semey and Turkestan. Connecting industrial equipment, machinery and production personnel to our network will allow them to work with data in real time and directly benefit from existing and future digital products,” said Yerken Shnazbayev, Deputy General Director for IT and Digital Transformation at ERG.

A private network, or private LTE, is an independent, closed cellular network that provides a secure and managed means of communication for a specific organization or business. It differs from public mobile networks and offers a number of benefits. These include full control over their private network, including management of bandwidth, security and network configuration; the ability to prioritize and guarantee quality of service for specific applications and devices, which is important for mission-critical operations; optimizing network coverage and reliability, especially in remote or complex environments; and reducing data latency, which is important for real-time applications such as controlling robots and autonomous devices.

“Today we have been able to assess the scope and scale of the work we have been doing for more than five years and we have realized that in today’s world and with the help of new technologies we can delegate the hardest and most dangerous work to machines and equipment, making the process safer and more efficient. We are now actively rolling out 5G in the country and I am sure that we will be able to demonstrate the real benefits and advantages of the fifth-generation network right at the production site. After all, it is the mobile operators that are leading the digital transformation of the large extractive industries, which are very important for Kazakhstan’s economy. The operators have already reached a level where they are not helping us, but we are helping them to reach a new level of digitization and to introduce the elements of Industry 4.0 in various companies and enterprises. I believe that the speed of development of the entire commodity sector depends very much on local expertise, including the ability of mobile operators to implement such projects,” says Dinara Kasymova, Director of the Enterprise Department of Kcell JSC.

As is well known, Industry 4.0 is a term referring to the fourth industrial revolution, characterized by the integration of modern digital technologies into production processes, and has become widely used in the context of the current technological transformation of manufacturing industries.

At the same time, as a pioneer in the deployment of private LTE in Kazakhstan, Kcell believes that demand for private wireless networks will increase significantly with the development of 5G infrastructure. It is pLTE that can become the basis for digital transformation of enterprises, deployment and integration of various digital services and technologies – Internet of Things, artificial intelligence, big data, cloud computing, robotics and process automation in production infrastructure, creation of smart factories, digital twins and many more.

Press Office of Kcell JSC

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Member of the Management Board, Chief Finance Officer

Damir Mullashev graduated from Kazakhstan Institute of Management, Economics and Forecasting (KIMEP) in 2003. His professional experience spans 20 years in financial sector, of which 13 years in leadership roles. He started his career in the banking sector, where he worked in an investment bank since 2007 and since 2013 in a private equity fund. In 2016 he moved to the telecommunications industry and took up the role of Head of External Asset Management Service at Kazakhtelecom JSC. He has extensive experience in corporate finance (M&A), telecom asset management, as well as debt and equity financing. In September 2022, Damir Mullashev joined Kcell JSC as Deputy Chief Finance Officer and in December 2022 he was appointed acting Chief Finance Officer.

Member of the Management Board, Chief Commercial Officer

Olga Tsoi holds a master's degree in business administration from KIMEP University. She has 17 years of work experience in the commercial sector in various industries, of which 13 years in leadership roles, including 3 years in FMCG and retail, 8 years in telecom, 3 years in consulting (FinTech and InsuranceTech) and 3 years in the banking sector. In 2023, Olga was appointed Director of Consumer Department of Kcell JSC.

Daniyar Ibrayev graduated from the Military Institute under NSC of the Republic of Kazakhstan (currently the Border Force Academy under NSC) in 2000 with a degree in Telecommunications Engineering. In 2007, he graduated from the Kazakh Humanitarian Law University (Nur-Sultan), with a Bachelor of Law degree. Since 2020, he has worked at Kcell JSC as an Adviser to the Strategic Development Department, then as a Chief Expert of the Security Department. Since 2017, he has worked at The Unified Pension Savings Fund JSC and prior to that he worked in government bodies.

Kirill Strashenko graduated from the Almaty Institute of Energy and Communications in 2004, majoring in Telecommunication Engineering. From 2004 to 2016, he has held various positions at Kcell JSC, from a Data Transmission Systems Engineer to Manager of Data Transmission Systems Section. From 2016 to 2018, he has held the position of Network and IT Infrastructure Manager, and was also appointed as Project Manager for the Unified LTE Network Construction project (a joint project with Kar-Tel LLP). He was appointed Deputy Technical Director (2018-2021) and later Network Development Manager (2021-May 2022). In 2019, he was awarded the state award "Kurmetty Bailanyshy”.

Member of the Management Board, Chief Corporate Director

Mr. Uisumbayev was appointed Chief Corporate Officer and a member of the Management Board since April 15, 2022.

Azamat Uisumbayevfor the last 12 years, he has worked in the group of companies of Kazakhtelecom JSC in various positions, including Managing Director - Financial Controller of Kazakhtelecom JSC and Commercial Director of KT Cloud Lab LLP. Prior to joining the telecommunications industry, he worked in government bodies of the Republic of Kazakhstan. Higher education in the specialties - economic and legal. He has a master's degree from MPA&MBA, RANEPA, Moscow. Successfully completed an advanced training course at the Moscow School of Management “Skolkovo” under the program of additional professional education "Leaders of Digital Transformation". Currently studying under the Executive MBA program at Nazarbayev University.

Member of the Management Board, Chief Digital Development Officer

Malik Amardinovin 2008 graduated from the Academy of Banking of the Kazakhstan Alatau University, Faculty of Finance, in 2016 graduated from the Kazakhstan Engineering and Technology University, Faculty of Higher Technical Education. Total work experience - 16 years in IT, 12 of them in senior positions in the banking sector. Most recent positions are Executive Director and Chief IT Architect of Fortebank, where Malik successfully led all IT development.

Chairman of the Management Board, Chief Executive Officer

Askhat Uzbekov elected to the position of Chairman of the Management Board, Chief Executive Officer of Kcell JSC, effective May 11, 2022.

Askhat Uzbekov graduated from Turan University (Kazakhstan) in 2000 majoring in International Economics. In 2022, he took his Executive MBA from London Business School. Until 2005, Askhat Uzbekov worked in the tax and audit departments at Ernst & Young Kazakhstan LLP, and for the next seven years, until early 2012, he has held various positions in the Treasury Department of KazMunayGas Exploration Production JSC. Then for almost 2 more years, until December 2014, he worked as CFO at KMG EP International (Netherlands).

In January 2015, Askhat Uzbekov joined Kazakhtelecom JSC, the largest national telecom operator, as Finance Director. In March 2015 he was appointed Managing Director - Chief Treasurer of Kazakhtelecom JSC. In January 2016, his job responsibilities were expanded to include the duties of a financial controller of the Kazakhtelecom group of companies. From September 2016 up to the present, he has held the position of Chief Financial Officer of the company. Askhat Uzbekov was actively involved in the acquisition of the 75% stake in Kcell JSC in 2018.

Member of the Kcell Board of Directors since May 19, 2022.

Representative of shareholder Kazakhtelecom JSC

Since 2019, Ms. Kishkimbayeva has been the Managing Director for Legal Affairs and Risks of Kazakhtelecom JSC. Ms. Kishkimbayeva graduated from the Adilet Higher School of Law with a degree in Law, as well as the Kazakh State University of World Languages (English language department).

Ms. Kishkimbayeva has extensive experience in the telecommunications as well as oil infrastructure. Her previous work experience includes Kcell JSC, PetroKazakhstan Inc., KASP CJSC AralParker.

Member of the Kcell Board of Directors since May 19, 2022.

Representative of shareholder Kazakhtelecom JSC

Member of the Kcell Board of Directors since May 19, 2022. On May 19, 2022, at the Annual General Meeting of Shareholders  was re-elected for 3 years. 

Mr. Lezgovko has over 30 years of experience in the telecommunications industry. Since 1999, he has worked at Kazakhtelecom JSC. From 2007 to 2021, he has held the position of the Chief Technical Director at Kazakhtelecom JSC.

Mr. Lezgovko graduated from the Almaty Energy Institute with a degree in Automatic Telecommunications. In 2005, he was awarded the title of ‘Kurmetti Baylanysshy’.

In 2012, he was awarded the Kurmet order.

Member of the Kcell Board of Directors since May 19, 2022.

Independent director

Mr. Kivikko has many years of experience in the telecommunications industry, where he has held senior positions at TeliaSonera and Tele2. He also worked as Managing Director of Paroc Owens Corning Insulation Materials in Russia. He is currently the Managing Director at Fexcon Consulting.

Mr. Kivikko holds a Master's degree in Management Accounting and Business Law and Marketing from the School of Economics and Business Administration (University of Turku) Turku, Finland.

Member of the Board of Directors since January 15, 2019.

Independent director

Member of the Board of Directors since January 15, 2019. On May 19, 2022, at the Annual General Meeting of Shareholders  was re-elected for 3 years.

Mr. Calmes has over 20 years of experience in the telecommunications, wholesale and retail business with a particular focus on emerging markets. From December 2016 to June 2019, he was the CEO of Metro Cash & Carry Russia. Prior to that, Mr. Calmes held various senior positions in the telecommunications sector, including CEO of Tele2 Russia, Managing Director of Wind Telecomunicazioni, Managing Director of the Moscow office of VEON JSC. Mr. Calmes holds a bachelor's degree in Political science and Economics from Bates University, Maine, USA, and has also completed the Wharton School of Business Executive Development Program.

Member of the Board of Directors since January 25, 2019.

Chairman of the Board of Directors.

Member of the Board of Directors since January 25, 2019. On May 19, 2022, at the Annual General Meeting of Shareholders  was re-elected for 3 years.

Mr. Buyanov is also an independent director of Kazakhtelecom JSC and Director at Bengala Investments S.A. From 2002 to 2014, he has held the position of Senior Vice President and Chief Financial Officer, and has been a member of the Management Board of Sistema OJSC – an investment fund listed on the London Stock Exchange.

From 2014 to 2016, he has held the position of Managing Director and Head of the Investment Committee of Redline Capital Management S.A. Mr. Buyanov graduated from the Moscow Institute of Physics and Technology (MIPT) with a degree in Applied Physics and Mathematics, and completed Oxford Fintech Program by Said Business School, University of Oxford.