Kazakhstan

Mobile

During this quarter, Tele2 in Kazakhstan focused on preparing for the launch of the Tele2 brand. The first launch is planned to take place during Q2 2011 in the region of Aktobe.

In that respect, the main activities consisted in swapping out the old equipment and rolling out the new 2G and 3G enabled network. Tele2 intends to triple the amount of base stations in 2011, which will allow the company to guarantee good network quality. Tele2 in Kazakhstan has also worked intensely on establishing good relationships with the regional distributors and on widening its distributor network throughout the country to support the upcoming commercial launch. Another key focus area during Q1 was to develop marketing communication campaigns.

During the previous quarter, the company has managed to negotiate interconnect rate cuts with the two largest competitors. In Q1, Tele2 in Kazakhstan continued to work actively on negotiating even lower mobile termination rates for 2011 and 2012.