Tele2 to increase investment in Kazakh subsidiary by 600% in 2011
ALMATY. March 10 (Interfax) - Telecommunications holding Tele2 plans to increase investment in the development of its Kazakhstan-based subsidiary Mobile Telecom Service by over 600% to 1.2 billion-1.4 billion Swedish krone (around $180 million-$210 million) this year in comparison with 2010.
According to Tele2's consolidated financial reporting, the company plans to introduce its international brand (Tele2) to the Kazakh market in the first half of 2011.
The company said in its financial reporting that Mobile Telecom Service's EBITDA is forecast at a negative 500 million krona (2010 - negative 173 million krona). The company plans to start posting profits two years after the introduction of the Tele2 international brand.
At the end of 2010, the Kazakh provider's subscriber base totaled 332,000 people, which was a 25.3% increase from a year previous.
Tele2 completed the purchase of 51% in TOO Mobile Telecom Service in March 2010 from national provider Kazakhtelecom. Asianet Kazakhstan owns the remaining 49%.
Mobile Telecom Service is licensed to provide GSM-900 cellular services in Kazakhstan. The company is the third biggest GSM operation in the country after GSM Kazakhstan (Kcell, owned by Finnish-Swedish-Turkish firm FinTur and Kazakhtelecom) and Kar-Tel (controlled by Russian cellular provider Vimpelcom ).