NC «KTZ» JSC sells its share in telecommunication operator company.
«NC«Kazakhstan Temir Zholy» JSC plans to sell 49 percent of its share in «TransTelecom» JSC, one of the largest Kazakhstani communication operators, which is part of the list of strategic assets, adopted by the Government of the Republic of Kazakhstan. The sale of this asset will be organized by means of open two-staged bidding. As our edition was told by the company, currently call for application has started for the potential participants of the bidding. The value of the asset, based on the assessment of the «PriceWaterhouseCoopers Tax and Advisory» LLP, is 6,8 billion Tenge.
Sale of share in «TransTelecom» JSC is done within the framework of privatization program, announced in the country, the main goal of which is to decrease state participation in business and transfer the assets to the competitive environment.
The company started its operation in 1999 as the main operator of «KTZ», providing technical support and modernization of the railway communication system, which existed at the time. Already in few years, «TransTelecom» went beyond just servicing the railway and opened new perspective directions. In 2007-2012 the subsidiary of the Kazakhstani railway monopolist has become leader on the market in ensuring access to the internet of the operators due to development of fiber-optic mainlines, which connected the capital of Kazakhstan with such cities as Almaty and Petropavlovsk. Currently the fiber-optic lines of «Transtelecom» have connected the whole country, its total length reaching almost 11 thousand kilometers. It should be noted that activity of the company are not limited by internet communication. It also includes provision of local, long-distance and international communication services to both natural persons and legal entities, as well as conference communication, radiophone connection, creation and operation of satellite and radio-relay telecommunication systems. The company has own production basis, where the equipment for radio- and wire-communication, television, information processing and transmission, video conferences and other technical equipment is produced. Moreover, the company is involved in engineering-geological and engineering-hedrogeological works, as well as designing activities, including urban design.
«Trannstelecom» is also the only operator in the country, which by the contracts from «KTZ» is implementing the system of electronic track diagnostics «Mainline». This project is scheduled for several years, and its concept has been already supported by the Sovereign Welfare Fund «Samruk-Kazyna» and has been included in the list of investment projects of the Group.
According to the director on information technologies of «Transtelecom» JSC Mr. Vladimir Sobolev, another long-term project of the company, which has also been supported by the Fund is the program for implementing energy-efficient systems for rolling stock of the «KTZ». «Till 2025 within the framework of ACS «Power dispatch hauling» we are planning to equip 1240 sections of diesel engines and 1043 sections of electric engines with special equipment, which will allow saving 7 to 13 percent of fuel depending on the type of engine by means of controlling the energy resources for hauling. The second objective of this project is complex automation of the business processes in locomotive sector by means of introducing electronic route for the engine driver. In course of the project it is planned to equip major part of the locomotives with metering devices. The client pays only monthly fee for using the system, and all costs on its development and support bears the «Transtelecom» JSC, - explained Mr. Sobolev.
The company will participate in a large international project. «Currently «Transtelecom» JSC is participating in implementing the project «Integrated city of the future management system, information technologies and system for ensuring comprehensive security in the facilities of «Astanna ЕХРО-2017» for «National company «Astanna ЕХРО-2017» JSC, - continued Vladimir Sobolev. The aim of the project is to conduct works for developing technical solutions for creation of IT infrastructure, security system, development of the cost estimates documentation, implementation of the SmartCity and SmartGrid technologies for the period of exhibition and future use for the facilities of «Astana ЕХРО-2017». Currently a project team was created in «Transtelecom» for implementation of this project, consisting of highly qualified experts».
The company emphases that for organization of the exhibition the best available technologies and innovative solutions will be used. The following world-renowned companies will be partners of «Transtelecom» in implementing this project: CISCO, HP, SAP, Microsoft, SIEMENS and SAMSUNG. However, telecommunications are still the priority direction for future development of the company. Based on the assessments of J'son & Partners Consulting, in 2013 the market of telecommunication services «accumulated» in Kazakhstan 647,3 billion Tenge. Last year, although the results have not been produced yet, according to the estimates, the cumulative revenue of the market players in this sector will reach 675,2 billion Tenge. Moreover, based on the analysts assessments, the market is far from saturation, and its annual growth is predicted in the range of 3-5 per cent.