ASTANA, Kazakhstan-Kazakhtelecom, the national operator of the Central Asian republic of Kazakhstan, said it plans to buy a controlling stake in its Kirghiz counterpart. The government of the neighboring republic of Kirghizia decided to sell 50 percent plus one share of landline monopolist Kyrgyztelecom and said it would grant the buyer a GSM license to make it more investment attractive.
The regulator has already instructed the Radio Frequency Committee to grant Kyrgyztelecom frequencies in the 900 MHz band, while Kyrgyztelecom said it is creating a subsidiary that will provide cellular communications.
Kazakhtelecom, which also requested a mobile communications license from its government, said it has already qualified as a tender bidder for Kyrgyztelecom. “We have estimated the price (of the asset), which is a commercial secret,” said Kazakhtelecom President Aben Bektasov.
He also conceded that the Kazakhtelecom board had approved a US$110 million loan from the European Bank for Reconstruction and Development.
Kyrgyztelecom stock is split among the government (77.84 percent), the Social Fund of Kirghizia (12.51 percent), and various private individuals and small legal entities (9.65 percent). The authorized capital of the carrier is close to US$13 million.
Two wireless carriers are currently operating in the small Central Asian republic of Kirghizia with a population of 5 million-Katel (TDMA) and Bitel (GSM). The operators have an estimated total of 60,000 clients, and the penetration in the country is only 0.5 percent. Wireless communications are still a privilege of businessmen and state officials in Kirghizia.
