Our readers have reached out to the editorial office with complaints about the rising tariffs for communication and internet services. Indeed, some mobile operators have announced an increase in tariffs for 2025. The reasons behind this and what the Ministry of Digital Development has to say about the price hikes are explained by a correspondent from Tengrinews.kz.
Earlier, the Deputy Minister of Digitalization Askhats Orazbek stated that the ministry has no influence over the operators' tariffs in accordance with the Entrepreneurial Code, which was adopted back in 2017. However, negotiations are being held with operators regarding the pricing of their services.
"At the end of (2024 - ed.) we agreed to slightly lift the spirits of the population by stating that there would be no increases," the deputy minister said at a government briefing on January 21.
Additionally, Orazbek "threatened" mobile operators in Kazakhstan with a fourth player entering the market.
Who is raising tariffs and why?
We reached out to the communication operators to understand the reasons behind the tariff increases.
Unfortunately, we did not receive a response from Kcell/Activ to our inquiry, even though we directed it to their press service on January 14.
It is worth noting that the company planned to increase the subscription fee for some tariffs on December 13. However, later the operator sent users an SMS stating that the changes were postponed for now.
According to publications from the communication operators on their official websites, the subscription fee for some tariffs will indeed change starting from February 26, 2025.
1Screenshot from activ.kz
2Screenshot from Kcell.kz
The main shareholder of Kcell is "Kazakhtelecom," which is owned by the state through the "Samruk-Kazyna" fund.
Beeline will increase the subscription fee starting February 1, 2025 (later the company clarified that this applies to 5 percent of tariffs). The tariff increases are attributed to regular investments in infrastructure. Over the past year, the company has installed more than 500 base stations, upgraded equipment at 3,000 sites, laid 230 kilometers of fiber-optic cable, and implemented new technologies.
The operator also notes the impact of macroeconomic factors: the rising costs of telecommunications equipment, electricity tariffs, and currency fluctuations. According to company representatives, these changes necessitate a review of tariffs.
Beeline adds that its capital expenditures have exceeded 300 billion tenge over the past four years, which also affects pricing.
The company's website features a message to subscribers, presenting a chart of the dollar's exchange rate against the tenge over the past several years. The authors of the message emphasize that in January 2018, the dollar was worth 332 tenge.
The Beeline brand in Kazakhstan is owned by LLP "KaR-Tel." Seventy-five percent of the company's shares belong to the Netherlands-based (later clarified to be based in Dubai) holding Veon. Twenty-five percent of the company is owned by Bulat Utemuratov.
Tele2/Altel will change the subscription fee and service volume for some tariffs starting February 11, 2025. The company stated that the tariff increases are due to rising costs for network development and modernization, maintenance and repair, the dollar exchange rate, and equipment prices.
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"The changes are driven by the need to develop infrastructure. The purchase and installation of a single base station costs the company about 100 thousand dollars. Given the dollar exchange rate, investments in equipment are constantly rising. In 2024, Tele2/Altel conducted a refarming, replacing outdated 3G technology with 4G and 5G in seven cities of Kazakhstan. The company continues to actively invest in network development to ensure that the next-generation 5G network is accessible even in the most remote corners of the country," Tele2/Altel stated in their response.
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The Tele2/Altel brands are owned by "Mobile Telecom-Service." Since January 2025, the company is fully owned by a Middle Eastern conglomerate - Qatari Power International Holding. Previously, Tele2 and Altel were owned by "Kazakhtelecom."
Is it legal to raise tariffs?
The Agency for the Protection and Development of Competition reported the suspension of the investigation against mobile operators JSC "Kcell," LLP "Mobile Telecom Service," and LLP "KaR-Tel" (Beeline), initiated in 2024. The operators have legally challenged the orders for conducting investigations.
"Also, in connection with the statements from JSC "Kcell" and LLP "KaR-Tel" regarding the increase in mobile communication tariffs for a number of tariff plans starting December 2024, the agency previously issued warnings to these operators regarding the inadmissibility of actions (or inactions) that could lead to violations of legislation in the field of competition protection," the agency added.
In January, the ARDC reported that Beeline would need to explain the tariff increases.
The Ministry of Digital Development, Innovations, and Aerospace Industry stated that Beeline had notified the ARDC and the ministry about the change in the cost of several tariff plans in February.
The agency also reminded that since January 1, 2007, government regulation of tariffs for communication services has been abolished to promote competition.
"Tariffs for communication services are set independently by communication operators based on justified costs. According to the communication operator, the increase in tariffs is due to factors such as increased expenses for network maintenance, modernization and expansion, equipment updates, currency volatility, and others," the response stated.
