Telecommunications Company Kazakhtelecom Cedes Complete Ownership of MTS to Qatari Investment Group Qatari Power International Holding
In a significant move for Kazakhstan's telecommunications industry, Power International Holding (PIH), a Qatar-based global investment company, has acquired a 100% stake in Mobile Telecom-Service LLP (MTS) from Kazakhtelecom [1]. The deal, announced on January 14 of the current year, marks a strategic shift in Kazakhstan’s telecom sector, privatizing a major mobile operator to a foreign investor with strong Qatari government ties [2].
The initial agreement was signed between Kazakhtelecom, PIH, and the Samruk Kazyna Sovereign Wealth Fund in Doha, Qatar, in February of the previous year [1]. A final agreement was signed in June, according to Kazakhtelecom's press service [1]. The sale, worth $1.1 billion, was not accompanied by specific details about the terms [1].
MTS, operating under the Altel and Tele2 brands, is a leading provider of high-speed 5G communications in Kazakhstan. The company operates more than 140 retail stores in the country and employs nearly 2,000 people [1]. With this acquisition, PIH has taken full control of these assets.
The regulatory non-interference clauses in the agreement enhance operational freedom for PIH-controlled MTS but limit Kazakhstan’s ability to regulate mobile tariffs and practices for several years, potentially affecting market competition and consumer protection [2]. Notably, following the agreement, Kazakhstan committed not to interfere in MTS’s commercial or operational activities, including refraining from antitrust investigations or price controls until the end of 2026 [2]. This protection was legally supported when an appellate court canceled an antitrust probe into MTS, citing this international agreement [2].
Kazakhtelecom's Chair Bagdat Mussin expressed confidence that PIH will contribute to the growth and value creation of MTS [1]. Mussin believes that PIH will introduce innovations, high service standards, increase competition, and set new benchmarks in the mobile telecommunications industry of Kazakhstan [1].
The growth in Kazakhstan's telecommunications industry is driven by growing consumer demand for improved communication services and digital technologies. The deal fosters closer Kazakhstan-Qatar economic and strategic relations, and PIH positions itself to drive innovation and improve connectivity in Kazakhstan’s telecom market, aligning with its stated vision [3].
Kazakhstan's telecommunications industry is demonstrating sustainable growth with high levels of mobile and internet penetration. The population of Kazakhstan is approximately 20.2 million people [1]. The acquisition of MTS is a testament to the country's commitment to attracting foreign investment and promoting economic development.
References:
[1] Kazakhtelecom Press Service. (2025, January 14). Press Release: Kazakhtelecom sells 100% stake in Mobile Telecom-Service LLP (MTS) to Power International Holding (PIH). Retrieved from [URL]
[2] Kazakhstan Today. (2025, January 15). Analysis: The significance of Power International Holding's acquisition of MTS. Retrieved from [URL]
[3] Power International Holding. (2024, March). Press Release: Power International Holding announces strategic partnership with Kazakhstan. Retrieved from [URL]
[4] The Financial Times. (2025, January 15). PIH acquires MTS from Kazakhtelecom for $1.1 billion. Retrieved from [URL]
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