Mission, Visions and Values of the Company

We are a market leader in Kazakhstan and we realize our critical role in the society. We used to operate in favorable market conditions with healthy economic potential and limited competition.

We possess strong capabilities: wide and high quality network, talented and competent people, superior subscriber base with direct relationships with them, frequency licenses, reputable brands and strong cash flow.

However, we are in the fast changing industry with intensive direct and indirect competition. Trends in changing environment, including technological advances of devices and Internet itself, government regulation and changes in people’s behavior create new threats but also unique opportunities for us:

  • Traditional revenue streams, margins and return on investments are under continuous pressure.
  • There is an increasing risk of competition from global internet players (Apple, Skype, Google, Facebook etc.).
  • Customer expectations for quality of service (speed, coverage, volume, customization etc.) are continuously increasing.
  • Internet is becoming more important and indispensable part in people’s lives.
  • All devices will be connected to Internet. Significant part of data and services will be in the ‘Cloud’.
  • Devices will be multifunctional decreasing the value of hardware and increasing value of software.
  • Increasing importance of Internet and telecommunications in society results in tough regulations of our processes and prices.
  • Increasing role of internet will create new security concerns and needs for informational safety.

We have a dream to be indispensable for our customers in this changing world. In order to achieve this dream we will continuously upgrade ourselves and proactively cope with any challenges.

We know that our core business is the source for further company development. In our core business we focus on:

  • continuous increase of efficiency
  • protection of market share
  • aggressive fight for market share in non-voice services

We choose course of company development in entering new markets, creating new products and services to satisfy existing and new customer needs in exciting ways.

We believe we can strengthen the success of our operations by launching innovative services in the following areas:

  • Financial services
  • Entertainment
  • Education
  • Business enablement (support of business processes and needs)
  • Life automation (intellectual infrastructure of homes, cars etc.)

We will actively work with nationwide state initiatives related to delivering cutting-edge technologies to serve society.

We will stand by our values while making our Dream come true:

  • Stable long-term development of the company to increase shareholders value.
  • Value individuality and potential of each employee. For us, it is important that our employees are happy both in business and in their personal lives.
  • Risk-taking and courage to use new approaches and techniques to achieve our goals.
  • Fair, equitable and transparent distribution of authorities, responsibilities, information, reward and punishment.
  • Bring the benefits and make people's lives more comfortable through innovative services based on our skills in information and communication technologies.
  • Appreciate people, who are not afraid of making brave decisions and expressing their opinions, objectively handling feedbacks, taking responsibility for their words, actions and results.
  • Build mutually beneficial relationships with our customers and partners.

Strategy

Kcell’s strategy is based on three key pillars – maintaining market leadership in our core business, to lead in the emerging data business in Kazakhstan and finally to focus on cash generation.

Maintain Market Leadership in Terms of Revenue and Subscribers

Kcell intends to maintain its leading positions in the market by offering products and services at competitive prices and expanding the supply of products and services, while maintaining the quality of its networks and strengthening its brands. The Company will focus on a bespoke pricing strategy in order to maintain its leadership in the mass market and corporate segment and to encourage its subscribers to switch from pre-paid to post-paid contracts. In order to maintain the high quality of its networks and its wide coverage, the Company intends to optimize capital expenditures required for investment in equipment and development of infrastructure, including for introduction of new technologies. Kcell’s growth strategy also focuses on improving the quality of services, which should increase subscriber satisfaction and retention, and expand the customer base.

Continuing to Apply a Regional Business Approach

The Company intends to continue applying its regional business approach. The Company’s regional approach, introduced in 2009, involves devolution of oversight to management teams in each of Kazakhstan’s regions. As part of this approach, the Company measures key performance indicators on a regional basis and determines compensation for the regional management teams based on these key performance indicators. Following the introduction of this approach, key performance indicators improved across the majority of the regions and Kcell gained market share. The Company intends to pay particular attention to regions where existing growth is below expectations. In order to improve performance in these areas, the Company plans to optimize personnel, to change staff training systems, to undertake marketing and sales campaigns tailored to particular regions, and to provide other assistance to management teams in the field.

Further Strengthening of the Kcell and Activ Brands

We believe that brand recognition is becoming an increasingly important factor in clients’ choice of mobile provider. Kcell intends to continue its brand enhancement efforts. In particular, during the year under review, the Company hired the world's leading brand promotion agency to assist in a rebranding campaign for Activ. Kcell also intends to strengthen the Activ brand by improving the quality of services, particularly since its opportunities to communicate with subscribers in rural areas are relatively limited, given the shortage of media coverage. The Company plans to promote the brand through local sponsorships and advertising and promotional campaigns.

Leadership in the Mobile Data Services Segment

The use of mobile content and data services in Kazakhstan is now at a relatively low level compared to other countries. However, we see significant growth potential for these services and we intend to continue investing in 3G network deployment to expand coverage. The Company also plans to offer new data services and low cost smartphones (especially in the mass market segment) in order to foster increased use of data services. Kcell plans to promote 3G-compatible devices through USB modem distributions and lock-in contracts sold by dealers and distributors on credit terms. The Company also intends to continue building strategic relationships with leading local and international mobile content suppliers.