Kcell pays the first tranche for LTE frequencies

Kcell pays the first tranche for LTE frequencies


Almaty, 17 February 2016 - Kcell Joint Stock Company ("Kcell” or the “Company”) (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, announces that it has paid KZT 14 billion as the first tranche for LTE radio frequencies. In accordance with the decision made by Kazakhstan’s Ministry for Investments and Development (“the Ministry”) in January 2016, Kcell had to pay a one-time fee of KZT 4 billion by 1 February 2016 for 10+10 MHz radio frequency within the 1700/1800 MHz band, and the first tranche of KTZ 10 billion by 1 March 2016, to gain access to 10/10 MHz radio frequency within the 700/800 MHz band. The company has already begun active preparations to launch LTE in its network.

The Ministry also informed all operators of the need to launch LTE on the previously granted frequencies by March 1, 2016.

As previously announced, the Ministry issued the radio frequency permits to mobile operators in the Kazakh market on the condition that they guarantee mobile coverage in communities with more than 500 inhabitants and along the highways and railways of national and regional importance by 31 December 2020.

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Company Overview

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 percent 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 and to introduce high quality 4G services in due course. 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.