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News Business contenceTeliaSonera News p. 4 The Logic of Value Innovation р. 26 Kcell News p. 10 Product Interview Are you sick of your scotch-tape-wrapped phone? Lars Nyberg: Together in a New Generation We’ve an offer for you! р. 28 of Mobile Technology р. 6 Nurlan Sargaskaev: Market Innovation as a Mirror for Leader р. 20 NFC: Prospect for a Future p. 22 App Discovery for Smartphones р. 32 Analytics The Death of SMS Thinking aloud р. 34 and the Digital Caste System р. 12 Photo report Digest р. 18 Berkutchi. The great hunters р. 36

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TeliaSonera Ranked Among World’s 100 Most Sustainable Companies term will compensate for the short-term negative impact on our revenues. We can already see that TeliaSonera is ranked 13th in the Global 100 list of the hundred most stable and sustainable the volume of services has more than doubled compared with a year ago. companies around the world. The list was recently presented at the World Economic Forum The cornerstone of our strategy is networks in Davos. TeliaSonera was named the best telecommunications operator in managing social, quality and their capacity. During 2011, we ecological and regulatory risks and opportunities invested more than SEK 17 billion in network development and licenses. In many of the “We are happy that our corporate by the Corporate Knights Inc. together countries where we operate, we have taken a responsibility efforts have been noticed and with Innovest Strategic Value Advisors leadership role in technology, having been the valued on a global level. This recognition Inc., an international investment first operator to launch 4G. The roll-out will confirms that we are on the right track and that research firm. The top 100 most continue. In Sweden, for example, there is already our commitments bring valuable results,” said sustainable companies are selected access to 4G in 200 locations and throughout Eija Pitkänen, Vice-President, Head of Corporate from among 3,500 publicly listed 2012 we will add one city or village to that list Responsibility at TeliaSonera. companies. Each year, the Global 100 each day. After the launch of 4G tablet PCs before The Global 100 Most Sustainable is presented at the World Economic Christmas, we look forward to the opportunity to Corporations in the World was initiated in 2005 Forum in Davos. offer 4G cell phones by the first quarter. The fourth quarter marked an important step for several of our branches. In Sweden, we have achieved more than 500,000 TV customers. The Spanish company Yoigo has reached its Continued Revenue Growth and Positive target of 3 million subscribers and had positive Trends in Profitability EBIT and cash flow. Mobile operator Ncell in TeliaSonera Has Completed the First Transactional Nepal became a market leader. And finally, with TeliaSonera announced the company’s performance indicators for January-December 2011 Azercell’s 3G launch in Azerbaijan in November, Phase in Increasing its Share in Kcell and earnings per share decreased to SEK 4.20 we are now providing 3G service in all of our 3.2% (excluding acquisition costs). EBITDA in (4.73). markets in the Eurasian region. TeliaSonera has completed the first transactional phase to increase its the reporting currency grew 2.1% to SEK 9.191 Free cash flow decreased to SEK 9.629 Lower levels of free cash flow compared stake in GSM Kazakhstan LLP, providing mobile services under the brand million (9,002) and marginal profits grew 33.9% (12.901) mainly due to higher CAPEX spending to previous year are due to receiving less-than- Kcell. As was announced earlier, TeliaSonera acquired a 49% stake in the (33.5%). and low dividends from associated companies. expected dividends from associated companies Operating income, excluding the sum of The Board of Directors proposes that the and investments made by us in acquiring company from Kazakhtelecom JSC non-recurring items, decreased 5.6% to SEK amount of dividends paid to ordinary shares be frequency spectrum. Disputes over the ownership 7.519 million (7.969). SEK 2.85 per share (2.75), totaling SEK 12.3 and management of Turkcell particularly affected Net income of the parent company owners billion or 68% (58) of the net income from parent the decrease in the volume of dividends. Recent decreased 6.3% to SEK 4.972 million (5.309 company owners. court decisions in our favor and the recent million in 2010) and earnings per share were SEK publishing of a decree from the Capital Markets 1.15 (1.18) Comments from Lars Nyberg, Board of Turkey on the principles of corporate certain conditions, 25 percent of the shares Free cash flow decreased 70% to SEK President and CEO governance are important steps in the right minus one share will be sold in an Initial 523 million (1.742) due to increased CAPEX of “The fourth quarter was the crowning moment of direction in addressing the issues with Turkcell. Public Offering (IPO) on the stock exchange. SEK 0.6 billion and absence of dividends from another successful year for TeliaSonera. We are In line with our strategy to increase the Preparations for the IPO have already associated companies (0.9). proud to have been able to generate growth and share of ownership in major holdings, we signed begun and it is expected to be held during Fourth Quarter Results In the quarter, the number of subscribers maintain a healthy balance between revenues an agreement to increase our stake in Kcell in 2012. Depending on the share price after The volume of net sales in local currencies, grew 2.4 million in consolidated companies and and expenditures — a pre-requisite for improving Kazakhstan. We will continue to look for new the IPO, TeliaSonera may have to complete excluding acquisitions, increased 2.1%. The 3.3 million in associated companies. The total our EBITDA, excluding the sum of non-recurring opportunities within our presence or neighboring additional payments to Kazakhtelecom. volume of net sales in the reporting currency number of subscribers was 170 million. costs, for the third year in a row. areas. Despite significant investments in After the first transactional phase, increased 1% to SEK 27.123 million from SEK After the launch of our new brand identity in infrastructure and equity, our strong financials GSM Kazakhstan LLP belongs to Fintur 26.851 million in 2010. Yearly results May, the most tangible benefit for our customers have led to a proposal introduced by the Board Holdings (51%) and TeliaSonera (49%). Costs in local currencies, excluding The volume of net sales in local currencies, was our new offer at a significantly lower cost of Directors to increase payments on ordinary Fintur Holdings B.V. is in turn owned acquisitions, decreased 4.6%. Costs in the excluding acquisitions, increased 2.6%. The and improved system for cost control in terms of dividends to SEK 2.85 per share. Following approval of the transaction by by TeliaSonera (58.55%) and Turkcell reporting currency decreased 5.8% to SEK volume of net sales in the reporting currency data roaming. Users can now keep up the same Looking ahead, we think that our revenues regulatory bodies, TeliaSonera acquired a 49% (41.45%). Once both steps of the 7.828 million (8.311). decreased 2% to SEK 104.354 million (106.979). amount of mobility while traveling as they use and earnings in local currencies will continue to stake from Kazakhtelecom JSC for USD 1.519 transaction are completed, TeliaSonera will EBITDA in the local currencies, excluding Net income of the parent company owners in their home countries. We are convinced that grow in 2012 despite the difficult situation the billion, in line with earlier announcements. have a 61.74% of effective ownership the sum of non-recurring items, increased decreased 13.7% to SEK 18.341 million (21.257) the increased use of these services over the long global economy and the industry.” TeliaSonera also confirmed that, subject to of Kcell.

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interview

Kcell mobile operator, a subdivision of European telecommunications company TeliaSonera, has been working in Kazakhstan for 14 years. Over the years, TeliaSonera has played a key role in setting the main trends in Kazakhstan’s mobile market. The company has additionally brought along both the unique experience of pioneering the telecommunications industry and high standards in business ethics. To find out what has already been accomplished and to learn more about the prospects for further industry development around the world and in our country, we spoke with Lars Nyberg, TeliaSonera President and CEO Lars Nyberg Together in a New Generation of Mobile Technology

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— TeliaSonera is a member of the Foreign Investors’ wherever we are. The choice is easy. The majority of laptops is by the end of 2013. So far, it is only for data services, but the Council chaired by the President of the Republic of sold with a subscription to mobile broadband and has a mobile addition of 4G voice calling capabilities is expected in 2013. Kazakhstan, Nursultan Nazarbayev. How do you evaluate broadband modem built in. the contribution made by TeliaSonera to Kazakhstan's TeliaSonera foresees that in two years over a million Swedes — Now that there are examples of the successful economy? What are your future plans for investment in will be watching television on their handsets every day. We also commercial operation of 4G networks globally, our country? estimate that in five years, the average smartphone user in Sweden including TeliaSonera’s experience, what do you think — We have been in Kazakhstan since 1998 through our subsidiary will consume almost 3 GB of data every month, compared to around about the potential of a rapid widespread expansion GSM Kazakhstan/Kcell. Since that time, we have invested about 300 MB today. That means a tenfold increase. of 4G? USD 2 billion in the country’s economy and paid additional USD Business customers will increasingly explore the benefits of — Data usage is exploding worldwide. Although the figures might 2 billion in taxes and other obligatory payments. We have created its establishment, combining video conferencing apps, 4G tablets and a high-quality differ, the growth trend I have mentioned above is universal. a world-class mobile network which provides 95 percent of the 4G network. We estimate that in five years from now the 4G mobile TeliaSonera estimates that in five years the average smartphone population with access to high-quality modern telecom services, broadband user in Sweden will consume an astonishing 45 GB of user will consume almost ten times more data traffic than s/he and we are continuously working to optimize and modify our data SinceKcell has directly and data per month. does today. services. Therefore TeliaSonera continues to roll out 4G network and There is no way 3G technology can cope with such Since early 2010, we have been offering high speed mobile data indirectly created services in all the Nordic and Baltic markets to secure network amounts of data. Therefore next-generation technologies are (Internet access) services through our WiMAX network, and, since quality and provide the latest technology to customers. Our 4G/LTE a must. Some network equipment vendors are ready to offer December 2010, through our 3G network, as well. The terms of the some 40,000 jobs services are already available in over 200 locations throughout the what they call 4.5G. However, we also need mobile devices 3G license oblige Kcell to provide access to 3G services in all cities region and we have over 100,000 customers using 4G in the Nordic supporting these standards, and that’s where suppliers have with 50,000 citizens or more by the end of 2012. Kcell had fulfilled and Baltic countries, with the majority of them in Sweden. (In lagged behind, so far. nearly 90 percent of this obligation by the end of 2011. Our mobile in Kazakhstan total, TeliaSonera has 16.5 million wireless customers and about 3 TeliaSonera started selling LTE-compatible tablet PCs in Internet services provide our customers with a flexible and reliable million broadband customers in the Nordic and Baltic countries). the Nordic markets in the second half of 2011, and as soon as access to the Internet in Kazakhstan, where the development of since we entered the market in late 2008. In technologically In Sweden, TeliaSonera’s 4G network covers more than 40 they became available on the market, in Q1/2012, we started fixed telecommunication infrastructure is to a great extent hindered advanced markets new subscriptions are mostly related to data percent of the population and will expand to more than 90 percent offering LTE compatible smartphones as well. by geographical conditions. and M2M data transfers. And TeliaSonera intends to take the In addition to telecommunication infrastructure, we lead in the market for providing high-speed, top-quality mobile have made significant contributions in the country’s social and broadband services. educational spheres. Every year, Kcell initiates and participates in programs and projects supporting various areas of Kazakhstan — In the light of slowing growth in voice and social and cultural life, including the training and education of reorientation toward data traffic, can we expect the young talents. For example, the Kcell Academy project provides leading operators’ profits to grow more slowly as well? continuous training and education to schools and universities in What growth of this indicator is expected in the next Kazakhstan, encouraging young minds to compete, brainstorm, several years? TeliaSonera think creatively and develop their talents and skills. To date, over — Data services, if priced correctly and fairly, should contribute to USD 13 million have been invested in corporate social responsibility further profitable growth. In our experience, customers will gobble continues to roll projects. up all the bandwidth we can provide. Therefore— What may change in the operators’ work, their strategy and Since its establishment, Kcell has directly and indirectly However, voice services still constitute a substantial fraction business processes following drastic growth in data traffic? created some 40,000 jobs in Kazakhstan. By providing TeliaSonera of operators’ revenues, and I think this will continue to be the case. out 4G network and — Regardless of the type of services, I think customer experience will be employees with the opportunity to receive training and learn from TeliaSonera will develop our traditional high-quality voice service at the top of the agenda for all operators. Providing access and quality others’ experience through our international employee exchange into a modern Internet-telephone service, with the capability of services in all the services to millions of data-hungry users every day is our challenge for program, at Kcell, we are raising a generation of highly skilled interactive communication, chatting, data sharing and much more, the future. Understanding how to deal with exploding volumes of data business professionals for Kazakhstan’s telecom industry. in the future. Nordic and Baltic and increased video traffic, and removing barriers for international Above all, TeliaSonera is a significant long-term industrial usage are the keys to our future success. investor, playing an important role as an infrastructure builder, — More than two years have passed since the first employer and taxpayer in Kazakhstan, and we intend to continue in commercial launch by TeliaSonera of the 4th generation markets to secure — Is TeliaSonera considering launching an LTE network in our commitments. of high-speed mobile data services based on LTE Kazakhstan? If so, when can it be expected? technology. How is this network developing in the Nordic network quality and — Yes, there is an enormous interest in launching LTE/4G in — Is there still potential on the world GSM market and Baltic countries now? How would you describe the Kazakhstan. I think there is a great potential for high speed Internet for revenue growth through the acquisition of new demand for 4G/LTE services in these countries? services in this country, which mostly depends on mobile Internet subscribers? Can we say that some significant unexplored — The Nordic and Baltic countries are currently experiencing a provide the latest access. markets are still available? boom in mobile broadband Internet access through new types of Being part of TeliaSonera, Kcell has the opportunity to benefit — New voice subscriptions are still a significant revenue source in Internet services. Laptops with a mobile broadband connection technology from our pioneering experience and accumulated industry knowledge. developing markets. In our operations we have had this experience have become our life companions, bringing us information, This is one of the reasons behind the success of all the mobile operators in Nepal, where mobile penetration has grown from 15 to 45 percent TV programs, entertainment, new business, education, etc. — to customers in the Eurasian region owned by TeliaSonera.●

january – march / №1[21] 10 11 News

an SMS containing TRN, IIN or BIN notices about the expiration of notices the subscriber would like Activating the subscription AutoPay Grows Number codes to 7010. In a return SMS the the period for confirmation of the to receive can be selected during (via SMS) means that in case subscriber receives information about receipt of accompanying notes for this process. After this step, the of a tax event concerning the the code’s owner, including surname, oil, etc.), notices about tax returns taxpayer will receive a unique taxpayer (according to the of Participating Banks initials, and the TRN and IIN numbers. (information about changes in status activation code and a short number notices selected to be received SMS to 7010 costs 20 tenge and of submitted tax forms, information for SMS, which are displayed in in the Taxpayer’s Personal Kcell recently expanded the number of banks where customers may automatically recharge their mobile phone accounts includes VAT. on issue of new tax forms), and the Taxpayer’s Personal Profile. To Profile), s/he will be alerted by using AutoPay. This service can now be accessed by BTA Bank customers The second service, which notices about using the text activate and pay for subscriptions, SMS. The subscription period is will be appreciated by legal message information distribution the user sends an SMS with the 30 days and it can be extended by entities, individuals, and private service. digital activation code to the re-texting the digital activation This service was earlier made account (kids’ numbers, parents’ entrepreneurs, is designed to receive To use this service, taxpayers corresponding short numbers: code to the corresponding number. available to Kaspi Bank customers. numbers, etc.). informational SMS from the Tax should register the mobile • 7020 — for private entrepreneurs Further information about services The AutoPay service is quite To activate AutoPay, inquire Committee about up-coming tax telephone number on which they (600 tenge, including VAT) available may be found on GSM convenient as customers need not at any participating bank to fill events including general information wish to receive information and • 7030 — for legal entities (1490 Kazakhstan/Kcell’s website at www. search out pay terminals, constantly out an application and then notices, targeted notifications notices in Taxpayer’s Personal tenge, including VAT) kcell.kz and the Tax Committee of tally up their minutes, or wait for set how much money you want (about tax audits, in-house audits, Profile through the Tax Committee’s • 7040 — for individuals (200 tenge, Kazakhstan’s Ministry of Finance’s their phones to run out of minutes replenished on your mobile violations in accompanying notes, website (www.salyk.kz). Types of including VAT). website at www.salyk.kz. at the most inopportune moment. phone each time. After the It’s so simple and convenient: when application has been submitted, the balance reaches 100 tenge or confirm the connection by less, the phone will immediately replying to the SMS that will replenish itself from a bank automatically be sent to the account assigned by the subscriber. subscriber’s chosen number. Payment is transferred without AutoPay is provided free of commission fees and subscribers charge and there are no bank fees may tie several numbers into one for payments. Using Internet Mobile Services at Night is Now for Taxpayers Unlimited Kcell and the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan announced the launch Kcell, Activ and Vegaline subscribers can of two mobile services for taxpayers. The new services will allow Kazakhstan citizens to save a significant amount now enjoy unlimited mobile Internet! From of time while sending inquiries to the tax authorities 1am till 9am, Astana time, use Unlimited Nighttime Internet without worrying about “E-government is currently being Kazakhstan’s mobile government and data usage. Watch video, listen to music, actively developed in Kazakhstan, making the lives of our subscribers and download files as much as you want! allowing government agencies, among easier,” said Veysel Aral, CEO of GSM others, to provide services to the public Kazakhstan/Kcell. through the Internet. By launching The first of two services is No matter how much the subscriber connect the modem with Unlimited at night time, and during the day the word “night” to 888 (one-time new services in cooperation with the designated to check the assignment downloads, this service costs just 70 Nighttime Internet to the computer use the Unlimited Internet service. connection fee is 200 tenge including Tax Committee, we are writing a new of an Individual Identification Number tenge a day and may be connected and download all night long. When connected to several Internet VAT). chapter in the development of public (IIN) or Business Identification Number or cancelled at any time. This service Kcell offers many convenient services, the Unlimited Nighttime After turning this service on, a services and introducing the concept (BIN) to taxpayers on the basis of their expands the possibilities for mobile services and tariffs for round-the- Internet will take priority over the subscription fee of 70 tenge a day will of ‘mobile government.’ We are very Taxpayer Registration Number (TRN), Internet users. Tablet PC users can clock usage of mobile Internet, which others. be automatically charged until it is pleased to be the first mobile company as well as to obtain data about the watch video, chat online, and listen subscribers may combine to take the There are several ways to cancelled. If the subscriber’s account to implement these services, further taxpayers using their TRN and IIN/BIN. to music. Kcell Connect 3G users greatest advantage. For example, use connect these services. On the balance is negative, the service will be encouraging the development of To use the service, subscribers send can forget about wired internet — the Unlimited Nighttime Internet USSD-menu, dial *888*1*1# or text suspended.

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analytics The International Mobile World Congress is one of the than they are now. Franco Bernabè said that, in order to deal most important industry events, bringing together the largest with this flow, operators will together need to invest more than global companies, operators, software developers, telephone and 800 billion dollars, but such funds are hard to come by. telecommunication equipment manufacturers, representatives Rajeev Suri, CEO of Nokia Siemens Networks, thinks that from Ministries of telecommunications, Internet giants and the gigabyte revolution is nearing and by 2020 all users will people just interested in mobile technology to discuss current consume a gigabyte of traffic on a daily basis with data transfer development trends in the mobile market. 2012 saw record- speeds to the subscriber increasing ten-fold. He points out that The Death of SMS breaking numbers with 67,000 visitors from 205 countries all of these changes demand that operators strike a balance and 1,500 participating companies housed in a 70,500 m2 area between continued investment in the network and the need to and the Digital Caste System with the largest companies displaying their latest products. ensure efficiency in order to maintain profits. This in turn raises Conference organizers estimate that the congress contributed new challenges for equipment manufacturers. The result of this Vasiliy Kalabin more than €300 million to the Barcelona (€25 million more trend is a constant struggle to cut costs. “This is why operators than last year). are consolidating both in terms of the number of players GSMA CEO John Hoffman noted that this year’s congress on the market and in terms of how companies do business was a phenomenal success, by any measure: “The record by implementing joint infrastructure projects and creating numbers that attended this year’s event underscore how central organizations for joint procurements,” says Rajeev Suri. mobile is to the lives of people around the world. This is also Heated debate broke out over the future of text messaging. illustrated by the breadth of companies that participated at It is a very profitable service for operators and transmitting Mobile World Congress, with representation from not only the messages as data traffic is much less attractive for profitability. traditional mobile industry players, but companies from vertical There are currently many Internet services for mobile phones sectors such as automotive, health and finance, among others.” that allow users to send messages, making them serious Mobile technology has already become an important part of competitors to the text message. Skype, for instance, gives users ordinary people’s lives, but the possibilities for development are the ability to make free audio and video calls in addition to impressive. And there will be a lot of changes. While some visitors messaging on 3G, 4G and WiFi networks and is now available were checking out the new gadgets, others were discussing the on all major operating systems for smartphones. problems and trends in the telecommunication industry, trying to According to data from Ovum, an analytical consulting outline future technologies in this industry and predict changes in firm, last year, mobile service operators earned £9 billion less the way people live and companies work. due to people switching from paid texting to free messaging. In the future, profits will shrink even more. The Dangerous Internet Franco Bernabè said that the free messenger programs are Mobile operators investing in mobile access that is without doubt undermining the ability of cellular companies to invest in their the main trend in the industry right now have two conflicting networks since texting is one of the most cost-effective services sides of the coin to deal with. On the one hand, it’s a new source that provides revenue for exactly that purpose. According of revenue which can help a company grow at a time when other to some experts, message transfer services could completely sectors are close to saturation. On the other hand, however, replace operators, turning them into nothing more than regular mobile Internet is overloading the network and requires huge Internet providers. investment with less grand returns and reduces marginality of In a preemptive strike, GSMA announced a joint project market participants. among the largest mobile operators to create an integrated During discussions at the congress, a number of large platform called Rich Communications Suite (RCS) for sending operators complained that revenue gains are small due to growing text messages on an IP-protocol. It has been proposed to create competition from Internet companies, taxes are increasing, and new software that will be preinstalled on cell phones from there is pressure from government to reduce tariffs. Just recently, various operators. The project will be launched this year in European regulatory bodies forced operators to lower the cost of Spain, France, Germany, Italy and South Korea. mobile data transfers starting in July 2012. Across the European During the MWC –2012 Union downloading 1 Mb of data costs more than 2 Euros, but as The Automobile as a Mobile Device of July, the cost should not be more than 0.9 Euros. That said, if you try to look a bit deeper, you will see that in Barcelona, experts and managers in Franco Bernabè, GSMA Chairman, complains about the operators still have a lot of opportunities for development the telecommunications industry shared tough price control in the industry, considering this one of the through mobile Internet access. Machina Research estimates main causes of problems, especially in Europe. Vittorio Colao, that by 2020, the Connected Life market will amount to 4.5 their vision for the future of mobile CEO of Vodafone, said that with the construction of the LTE trillion dollars. networks, the speed of mobile Internet access will increase and Michael O’Hara, Chief Marketing Officer of GSMA noted, communication networks will be forced to handle more traffic: in three years, mobile telephones are currently dominating in the market, but smartphone users will be downloading three times more data the situation will change in the future with the new wave of

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smartphones, tablet PCs, consumer electronics, and M2M devices itself when you step out of it. Traffic jams and accidents will Near Field Communication is mentioned often when shopping and mobile devices are increasingly influencing (Machine-to-Machine). In his words, the Connected Life will decrease sharply in large cities.” Given the growing number of talking about developing mobile commerce. This technology how consumers make purchases whether on the net or in have a positive impact on many industries. By 2020, there will cars, Bill Ford suggested merging the vehicle computer systems makes it possible to exchange information between devices real life, says President and CEO of eBay John Donahoe. He be 24 billion connected devices worldwide (about 9 billion by from various manufacturers into a single system that will allow located within 10 cm of one another. Thanks to this, telephones says that consumers use these services to purchase goods, the end of 2011), which will bring new sources of revenue, new cars to “talk to one another.” Data about traffic conditions, could, for example, be used as credit cards. During the congress, compare prices, learn more about product availability and business models, etc. The largest number of connected devices number of available parking spaces, and public transportation however, several comments critical of the technology potential read reviews. will come thanks to M2M solutions, which are expected to expand routes will be entered into the system. All modern cars are already were voiced. “Mobile devices are blurring the lines between to approximately 12 billion devices by 2020 compared with 1.5 equipped with on-board computers and it's time to tie them all In particular, experts from PayPal consider that Google e-commerce and retail. They are making the boundary billion last year. The quantity of other connected devices (mobile together. and other fans of the touchless NFC payment technology irrelevant,” observes Donahoe. He predicts that consumer telephones and smartphones, tablets, laptops) will grow 1.5—2 “Cars are becoming mobile communications platforms might be already too late to introduce a mass product on the behavior will change more in the next three to five years than times. The greatest impact, according to researchers, will come and as such, they are a great untapped opportunity for the market. The general feeling in the company is that as soon as has occurred in the past ten to twenty years: “Making mobile from connected life which will affect 10 industries. Among these, telecommunications industry. Right now, there are a billion the infrastructure necessary for NFC payments is completed, device transactions is only one part of the story whereas there are the automotive industry (connected car), the health computing devices in the form of individual vehicles out on our the market will drastically change. Putting infrastructure in another large area is concerned with changing the shopping sector (remote monitoring), safety in buildings, and Smart Meters. roads,” Ford said. place takes a long time because of the need to develop special and payment experience. Large retailers are now able to In particular, information in the GSMA materials notes that by equipment for stores as well as smartphones with NFC chips. provide comprehensive and interactive shopping possibilities. 2020, more than 90 percent of all cars should have connections Telephone vs. Credit Card People will have gotten rid of their credit cards by then anyhow, Barriers limiting purchases to certain products on the built-in. All of this is part of a new market for telecommunication With the widespread prevalence of smartphones and increased but mankind will have chosen a different technology for making Internet are being broken down. We’ll be able to feel products companies. data transfer speeds, apps and services for telephones are payments. PayPal is not the only one who doubts the future of and try on clothes with the help of smartphones. There is “Naturally, in the future no one will drive cars themselves,” becoming more and more popular. And their creators are more this technology. Apple, for example, decided not to equip their augmented reality technology, there is figure projection predicts Bill Ford, Executive Chairman of Ford Motor Company. and more often thinking about the possibility of cashing in on latest iPhones with NFC chips, demonstrating their preference technology. For some types of goods, stores built only of brick “They will be connected in a single network and will be able to their products, raising the question of developing payment for alternatives. and mortar will simply die off.” move about the city by themselves. Before your trip you can options via cell phone and providing new and interesting ways to In any case, mobile telephones are already impacting retail. In 2011, eBay’s mobile commerce turnover reached $5 reserve a seat for yourself at the parking lot. Your car will park earn money. Half of American consumers use mobile Internet when going billion with projections increasing that figure to $8 billion for

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2012. More than 70 million users worldwide have the eBay app on their smartphones.

A Call for Internet Freedom Among telephone operating systems at the exhibition, Android was the clear leader. Every day, 850,000 units are activated with this operating system while the total number of devices worldwide running the Android OS well exceeds 300 million. Eric Schmidt, Executive Chairman of Google, says that the company hopes Android devices will be in every pocket within 12 years: “In 12 years, doing the math — Moore's Law — phones that cost $400 will cost $20 and if Google does it right there'll be an Android in every pocket.” The head of Google highlighted the most important issue today inhibiting the mobile industry’s development as being the exceedingly high cost of network traffic, congested cellular networks, and devices that are too expensive. He thinks that the next evolutionary leap will bring wide-spread LTE — broadband mobile Internet that will provide the conditions for completely new types of applications and other once- impossible capabilities. Eric Schmidt was very optimistic in his speech. “In the near future, people will visit a variety of events without leaving the comfort of their home. Robots will be able to create the conditions so that we can see, hear and even feel what is happening in a remote location,” assured Schmidt. “Imagine that every person has their own personal robot that serves as an assistant and makes holographic telepresence of reality — a kind of avatar or surrogate who broadcasts video in 3D to the operator. We can see into the future, assuming there will be unlimited speed and capacity. The Internet will be like electricity, which seems to have just always been there. Tiny, powerful sensors will be embedded in everything. It should be noted that not all high-tech devices will be available to all potential users in some equal world, but there will be a digital the near future, caste system. The elite will be able to acquire gadgets from developers who are limited only by imagination and legislation. people will visit Dividing people into these castes won’t have so much to do with their financial situation as much as it will with their willingness to adopt new technologies and resources.” Ina variety of events He called on industry representatives to create the infrastructure to allow 5 billion people who have never done without leaving the a Google search to connect to the Internet. According to Eric Schmidt, the digital gap will widen further if the opportunities comfort of their home and freedoms that the Internet brings aren’t made available to all inhabitants of the planet. He noted that the threat to the is against censorship, Schmidt had to admit that in this case there optimistic future he depicts is censorship and overregulation. were certain restrictions imposed by U.S. law. “I’m on your side, “Today, in one way or another, over 40 countries carry out but when threatened with prison, we must plead that there is a lack online censorship compared with just 4 countries ten years of channel carrying capacity,” shrugged the head of the Internet ago. Even in the U.S., over the past couple months, we’re corporation. seeing dangerous legislation and regulatory initiatives,” said However, one could readily admit that mobile data transfers Schmidt. An Iranian journalist asked why Google blocks access open many untapped markets both in terms of users and in terms of to some of its products in Iran, though it claims the company services. ● Digest 18 19

Antique The FBI Fails to Hack Android's Security Features Apple Offers to Accept Device An interesting case was recently reported in the Payment for Every USA. During an investigation in San Diego, FBI agents A very unusual lot has come up for sale on an found an important piece of material evidence — an Android Device Sold online auction site. One user by the name of Android-powered Samsung Exhibit II (known here russel400 is selling an Apple WALT (Wizzy as Samsung Galaxy W). Upon confiscation, it was Active Lifestyle Telephone) for “only” $8,000. The discovered that the phone was protected with a Apple has decided to take the first step device consists of a console that is hooked up pattern-lock. After repeated attempts to circumvent toward ending the ceaseless patent wars with to a landline phone and increases greatly its it, the workers at the Federal Bureau of Investigation Samsung and Motorola. The conflicts will be capabilities. had to concede defeat. resolved if the latter two companies agree to The device, developed back in 1993, has a set Of course, there is a different way to unlock a pay a fee for each Android device sold for the of functions that was incredibly advanced at the phone even if you don't know the pattern-lock key, use of Apple's patents. time it was launched. WALT has a touch screen, but to do so you have to know the password to the It is known that Apple made an offer to stylus and supports handwriting recognition. The user's Google account. However, if you've forgotten Samsung and Motorola that they pay it from $5 device can be used as a fax machine, call identifier, both the pattern and the password, then you can to $15 for each Android device sold that uses speakerphone and address book. It also gives the bid farewell to any data that might be saved in the technologies patented by the company. Various user access to a variety of banking services and smartphone's memory. Now the FBI has to make a estimates put these costs at approximately customizable ring tones for calls and faxes. request to Google through court to get the password 1-2.5% of the cost of each device. The device uses a modified version of Mac to the accursed account. This is a serious step taken by Apple's new OS that was produced from 1988 to 1991. The This situation demonstrated that in some cases, management. In the past, Steve Jobs never company introduced the device in 1993 at cell phones can be more secure than the most espoused a policy of licensing patents owned MacWorld Boston exposition, but nothing has advanced protected computers, which can be hacked by the company, and even claimed he was been heard of it since. For some reason the device using special software and tools to which the FBI and ready to “destroy Android”, referring to it as did not go into mass production. A number of other special services undoubtedly have access. “massive theft”. prototypes were made, though, one of which is the It should be said that, as it turned out, Android- Nokia: Single-Core Chips Suffice for Smartphones one now up for auction. based smartphones may be safe from the FBI, but they are helpless against the viruses, more of which which Microsoft suffers constant criticism. We are appearing on the platform all the time. will remind you that this limitation will only be There is No Longer Any Need removed in the fall when Windows Phone 8 is to Learn Foreign Languages released. Stephen Elop, Chief Executive Officer of It has become known that the Microsoft Samsung Brand Shop Nokia, decided to stand up for his partners Company is currently working on a We were informed by Samsung's official representative and announced that dual- and quad-core chips revolutionary translation system that office in Kazakhstan, that an official Brand Shop opened only waste battery life, and multiple cores is of recognizes the user’s voice and then “speaks” its doors in Almaty during the Nauryz. Not only will absolutely no use to the user. the translation in the same voice. the shop sell all of the company's newest products, but This is proved by Microsoft's “Smoked by It should be noted that similar software what's more, all of the products are guaranteed genuine, Windows Phone” initiative, which was a hot item at already exists, but every program up until now and the prices are lower than retail. MWC 2012 as well. During the marketing campaign, uses an artificial-sounding computer voice. owners of various smartphones were invited to In the new software a 3D avatar of the user, compare the productivity of their phones with that with his or her own voice, will be used. So of models running Windows Phone. If the user's users will be able to “speak” other languages Apparently, Nokia has its own viewpoint on how phone proved to be faster, he won 100 Euros. without studying them. Currently, the system a modern smartphone should look. In the past, the As a result of the contest, held during the already “knows” 26 languages, including Finnish company had claimed that large screens on MWC, single-core smartphones running Windows English, Chinese and Spanish. The avatar smartphone are pointless. Now they are talking about Phone claimed victory in 80% of cases, beat only principle, by the way, can also be used not the number of cores in the smart devices. by the fantastic Nokia 808 PureView in terms of only for peaceful ends. If last year was the year of dual-core phones, then, picture-taking speed, and a couple of HTC phones Above all, this software will be popular judging from the MWC trade-show, 2012 will be the in terms of text translation. among travelers and businessmen working year of the quad-core. We should remind you that Sony also recently with foreign partners. The question is: when At the same time, Windows Phone-running made a statement about the lack of any real need are they finally going to develop a polyglot smartphones are still limited to single-core chips, for for phones to go quad core. microchip that can be implanted in the brain?

january – march / №1[21] 20 21

interview — Several years ago, the company underwent some changes. What are the reasons for the new ones? — There are several stages in the life of a company. And the The 20th century and the first decade past three years can be characterized as a phase when Kcell of the 21st century have proven that was returning to its former market position. We weren’t just the sustainability of any business is Everything responding to various competitors’ actions as much as we were based in its commitment to innovation. setting our own rhythm, dynamics, and trends by launching we have This means not only creating new new products and tariff plans, changing traditional policies and products and services, but also means reformatting how we conducted business in general. And now being able to systematically transform we’re facing the question of what’s next? How do we want to differ been doing business-altering ideas into reality. from our competitors and other companies in the industry? Today, companies like Procter & Last summer, I took part in the Driving Innovation training Gamble, Apple, DuPont and General for Kcell’s top managers. Throughout the training, the topic of Electric are choosing the innovative recently is innovation’s overall role in business turned out to be extremely path in developing their businesses. relevant for both me and my colleagues. Indeed, the 20th century Mobile phone operator Kcell is has shown time and time again how important innovation is for a among the Kazakhstan companies focused on company’s ability not just to stay alive in the market, but also to willing to engage in conversation show consistent results in business. about the need for an innovative After this training, top managers embarked on a course approach. In an interview with VOX. in innovation, figuratively speaking, where another question our clients com, GSM Kazakhstan/Kcell’s Director presented itself almost immediately: How ready is the company’s example, innovation could be defined as the ability to introduce of Business Development Nurlan internal environment for supporting innovation? Do Kcell new methods and ways of working that give concrete results. Sargaskayev shared some of his employees feel that their voices matter? We all went through a Creativity without a result is hard to call innovation. Innovation thoughts on the subject time of strengthening our administration discipline usually built is a company’s ability to use new methods and ways of conducting up by some tough measures. Now our company is well-managed business, technology, or anything that produces a concrete output. and carries out various decisions in an effective manner. But Why do we consider that innovation can be applied to every job how much can a culture of tough executive discipline foster position? For the simple fact that if a person doesn’t believe s/he innovation? can improve anything at their workplace or around them, then If we are to expect innovational skills and trainings to there isn’t room for innovation. bear fruit and if we want to create a company that encourages innovation, we must carefully look in the mirror and see things as — Is it because of the individual or because everything is they are. We must understand how we live and how we look from working fine? the outside, asking how well our policies and business culture — It’s impossible to say that everything works great and nothing coincide with the criteria required to run a company capable of needs improvement. We all know perfectly well that something and receptive to innovation. can be improved; free up time, develop your creative potential, learn what routine things take up the most time and what slows — Tell us about the features of Kcell’s current corporate down the entire business in general. We shall start just with culture. How does corporate culture and innovation such small things. Innovation should begin from simple changes, affect business? freeing up time and energy to take the next steps in a newer and — The corporate culture at big corporations need some revisions more interesting way. and improvements once in a while. And we want to improve the effectiveness without losing the positive aspects that we had — What effect do innovation projects have on the previously. That is to say we want to keep the good parts that we company’s clients? have and leave the rest behind without regret. In order to do that, — Everything we have been doing recently is focused on our we need to give our employees the chance to open up. Right now, clients. So our innovation transformation project will naturally we have a very interesting and ambitious goal before us, which is be relevant for our customers. How much we can change our to create the conditions that will allow our company to become a perspective and approach towards clients in terms of what more interesting and desired workplace in order to employ people products we offer and in terms of what needs we can fulfill is also who are the most promising, ambitious and talented specialists an integral part of the innovative changes happening. not just in word, but in action. — Can customers offer their own suggestions? — Where does innovation start? — Customers can do anything! Our goal is to create a perfect tool — There are many different definitions of innovation. For for receiving feedback. ●

january – march / №1[21] 22 23

business

How often have you gone outside with just your smartphone in your hand only to realize that you need to go to the store or somewhere else right away, forcing you to return home for your wallet? In the near future, you’ll be able to run away from this running around by using smartphones with NFC chips. This technology is anything but new and the application capabilities today have been well-thought out with most functions aimed at speeding up payments and improving their convenience. So what is NFC and what kind of prospects are there for this technology?

Prospects for the Future Ivan Gluschenko

The acronym NFC stands for Near Field Communication. Such NFC standards, approved in December 2003, have a and others are actively developing and implementing this a short explanation naturally reveals very little about the essence maximum data transfer speed of 0.8 MB/s with devices that technology in their products. of technology, so let’s delve a bit deeper into the terminology take no more than 0.1 seconds to connect. The maximum Experts predict that by 2014, every fifth smartphone and the theory. NFC is a technology for wireless communication distance achievable between devices is 20 cm, but usual will support NFC technology. NXP Semiconductors earlier devices located within a close range of one another. The NFC distance is no more than 10 cm. Development and promotion this year announced that at least 15 large OEMs are already flow chart is very similar to and traces its roots back to the more of NFC in home electronic devices has been happening developing 130 phone models and tablets that support famous RFID technology (Radio Frequency Identification), a since March 18, 2004 and is still the main focus of the non- these standards and in 2011 about 40 million smartphones method which automatically identifies objects via radio signals, commercial NFC Forum. This forum was established by NXP equipped with NFC chips were shipped out — about 10% of retrieving or recording data from tags. We often see RFID tags on Semiconductors, Sony, and Nokia and in March 2011, Google, the total supply. Many of you may not even realize that the different products in music or video stores which, together with Inc. joined as a principle member. Today, companies like smartphones in your pockets are NFC-ready. Here is a list internal security systems, help prevent theft. Samsung, MasterCard, Philips, HTC, VivoTech, DeviceFidelity, of the more popular equipped smartphone models sold in

january – march / №1[21] 24

Kazakhstan: Google Galaxy Nexus, Google Nexus S, HTC chips is only a matter of time. NFC tags are in use almost Incredible, HTC Ruby, Nokia 603, Nokia 700, Nokia 701, everywhere as each tag can hold a variety of information Nokia С7, Nokia N9, Nokia Oro, LG Prada, Samsung Galaxy about the item to which it is attached. It could be a Note, Samsung Galaxy SII, and the Sony Xperia S. If you monument with more information about its construction have one of these smartphones, you can already be taking or it could be an advertising panel at a bus stop with the advantage of the technology. For example, owners of NFC- public transport schedule or an offer from an advertiser. In equipped Nokia smartphones can synchronize their devices order to receive this information, you would only need to with a Nokia headset or speakers with just one touch. place your phone near the tag without waiting for a tour Software giant Microsoft announced the introduction of guide, asking someone for the route, or carrying around NFC chips into smartphones and tablets running Windows some unwanted advertisement flier. With the help of NFC, Phone 7, Windows Phone 8, and Windows 8. things will be simple, quick and reliable. But for now it’s What other applications can NFC-equipped just a future plan. smartphone owners expect? Smartphones that have NFC technology is currently not widespread, though corresponding built-in operator’s SIM cards or microSD certain steps have been taken in this direction. Large cards can effectively be used like electronic wallets and payment systems like MasterCard and Visa are gradually hold information about various bonus programs, discounts introducing NFC chips into their credit cards. MasterCard and promotions. While on the one hand the user no PayPass is using perhaps the most famous Google Wallet longer has to carry around dozens of cards from various project, a mobile payment system that allows users to make institutions, on the other hand such payments require purchases in stores like Google Play apps and in regular communicating with processing centers, which can fail stores by simply placing your mobile phone close to a often and thereby create inconvenience. Indeed, paying for special payment terminal. Visa is also in the testing phase goods and services with the help of smartphones with NFC with its own system, payWave. ● 26 27

Mauborgne researched why some organizations can sustain It is understandable that most high growth and profits while others don’t and found that one of our businessmen need to of the most important qualities for companies is logic of value innovation. In their article "Value Innovation: the strategic logic invest money and make a of high growth," the authors note that companies with high growth rates don’t try to catch up to and surpass competitors, but return on it quickly. This is the remove them from the game, providing a fundamentally new type harsh reality of today of service or goods. In order to provide consumers with innovation, we should simply abandon traditional notions about what goods or products Economies transitioning into leaders of innovation must should be offered. According to W. Chan Kim and Renée fulfill three conditions. The first is that there should be an Mauborgne, the differences between traditional logic and the applied scientific enterprise for when a company has just logic of value innovation can be identified in five aspects: invented something but doesn’t set their idea into motion • Industry Stereotypes. Many companies accept current through production and sales. They will get added value industry conditions as a given. Innovation companies, regardless with the help of intermediaries who then turn the goods of other industry representatives’ situations, are always looking out onto the market. The second condition is that there for unexpected and enchanting ideas in an effort to achieve a should be a developed new technologies market instead of quantum jump in value. the 2—3 individual proposals like now. For that to happen, • Strategic Dominance. When strategizing, many companies private-public partnerships need to be developed as does a are guided by their competitors with traditional logic encouraging new kind of business education. The third is that, based on struggling companies to fight for increased market share. As The Logic new technologies, new industries should also arise that are innovation companies aren’t focused on rivalry, they are able ready to realize the innovations. I would like to note that to stand out those factors that have exceptional value for the Kazakhstan currently has none of these. consumer. Kazakhstan’s real sector, which has plunged into the • Consumers. Many companies see a pledge to growth as second wave of the crisis, having never emerged from the first the way to maintain and grow their customer base. With value of Value one, has clearly not grabbed onto the innovation fad: “Gas innovation, most people agree to give up personal preference for resale or car washes bring in more profits in the short-term, the sake of getting a much larger consumer value. which are then used to cover the cost of the loans my main • Assets and Capabilities. Many companies consider possible company, a concrete plant, is eating up. This image quite strategies through the lens of their existing assets and capabilities. Innovation clearly outlines my priorities,” says Director of Khalykbeton They ask themselves “what can we do, taking into account what business Serik Koshkinbayev. “And then they tell me they’ll cut my we already have?” while value innovators ask “what if we start taxes, just please invest money in modernizing projects. from scratch?” My financial standing is typical for a Kazakhstan business • Offering Goods and Services. As a rule, competition Larisa Mukhamedzhanova operating today, so for me this means one thing: kissing my between market participants is limited to the usual boundaries of PhD, Director of Marketing for the Regional business goodbye. The only thing I’m interested in now is a the traditional industry supply of goods and services. Innovation Financial Center of Almaty’s Academy bank.” companies often go beyond those borders, striving to offer It is understandable that most of our businessmen need consumers a complete solution to problems and trying to to invest money and make a return on it quickly. This is the eliminate inconveniences they previously faced. Ever since accelerated industrialization was announced as the country’s harsh reality of today and the grounds are not even being laid What methods are used, what qualities should managers and for a new culture of doing innovative business. entrepreneurs have in order to make breakthroughs with the help main economic priority and domestic businesses were gently but firmly Experience from innovative societies (the Americans, of these strategies and to even change the market? Japanese, Koreans) has show that the innovation burst has Business trainings which provoke an innovative and creative asked to modernize, only the lazy haven’t been writing or talking about a certain material and intellectual foundation. In order to way of thinking should give answers to these questions! For us, innovation in Kazakhstan business naturally stimulate development, there should be a decisive one such benchmark in this approach is the INSEAD business business situation and accelerated economic integration as school (an international business school and research institute well as a creative element and private initiative. These don’t recognized among the top business schools in the world as one of Indeed, there has been a positive shift as statistics are now showing. According to official data, nearly 400 innovative just happen in a vacuum, but are connected with the level of the most innovative and influential). That’s why we are putting companies in Kazakhstan opened in 2011, and funding for science, in comparison with 2007 numbers, has almost tripled. Today, the education and entrepreneurial knowledge. together an interesting master class about future client-oriented country’s innovation system has seen five development institutes, nine tech parks and two design offices (traffic engineering and It goes without saying that innovation, which is an marketing with one of the leading teachers from this business mining and metallurgy equipment) put into operation. Three more design offices are expected to be launched this year. It is becoming unconventional view on conventional things, often gives school for our students and entrepreneurs in Almaty, where clear — innovation is the future. What isn’t clear is whether or not it is in the foreseeable future. entrepreneurs and companies a competitive advantage. participants will be asked to go beyond the usual boundaries and INSEAD Business School professors W. Chan Kim and Renée reflect on what client-oriented means in theory and in practice. ●

january – march / №1[21] 28 29

product Are you sick of your scotch-tape-wrapped phone? We have an offer for you! Dinara Sheriyeva Once I happened to be at a party. I’m not talking about something That is my slightly lengthy introduction to how I finally had Bohemian or involving celebrities, no — it was much simpler than that, to get a new phone. I knew exactly what I needed: it had to look though still quite pretentious. I wanted to escape from that boring party nice, it had to be functionally advanced and it had to be a step up and I felt like my Friday was fading fast and it was going to waste. As from the phone that wretched woman at the table had. So I started looking for a new “personal assistant”. I scoured the Internet, I we are prone to do in such cases, I started looking through my contact searched through forums, I harassed my friends on all the different list. I called up my buddies and soon was presented with a number of social networks I’m signed up for, and finally, I’d picked out a options for saving the evening; all I had to do was to wait for a call. To model. The price turned out to be substantial — close to a thousand make sure I did not miss it, I put my cell on the table. The girl sitting dollars. next to me, breaking into a smile of curiosity, asked me: “Mmmm, what I’d figured out what model I wanted, but, as is always the case model is that? Are they still making it?” in these situations, I didn’t have the cash on hand. So I needed, urgently, to find a way to come into possession of this fantastic It was a smartphone, but one of the first models ever. So the back smartphone at the lowest possible cost to my budget. panel was attached with scotch tape, the letters and numbers had been The simplest and most obvious option when you don’t have expunged from the keys, the edges were chipped and scratched. But cash is, of course, to buy on credit. And there are myriad ways of these things added to rather than detracted from my affection for the doing this. But my two attempts to get a loan served only to make phone: we went through a lot together, (literally) through fire, water me wary of getting one. and copper pipes. It put up with my constant discourtesies: I even lost I needed 120,000 tenge. At the first bank I went to I was it several times, but it always made its way back home to me. Long offered a 17% annual interest rate, plus a 5% loan fee with a story short, it was a devoted, unfailing friend. I heard someone call monthly service charge of 0.3% of the sum given. At the second my name, I turned, and somehow the tablecloth scrunched up, then bank, I was quoted an annual interest rate of 27% without a flatted out, and my phone lay limp and lifeless on the floor. I looked commission but with a monthly service charge of 0.59%. up, trying to get some consolation from someone, anyone. But the first I’m a woman and I found it hard to count such a lot of figures thing I saw was the half-smile of the girl next to me, who said, “On the in head, so I made my calculations relaxing with a cup of coffee at floor lies tiny Teddy, half a paw is gone already .” home. I came up with this interesting table.

Amount paid over Credit Credit term, Monthly service No. Credit fee Credit interest rate Final amount original loan amount amount months charges for two years 17%= Bank 1 120,000 24 0.3% =8,640 tenge 5%=6,000 tenge 175,440 tenge 55,440 tenge 40,800 tenge Bank 2 120,000 24 0.59%=16,992 tenge N/A 27%= 64,800 tenge 201,792 tenge 81,792 tenge

1 Poem by Agnia Barto (Translator’s note) january – march / №1[21] 30

Thus, the first bank offered me 120,000 tenge, which would With a “New Phone from Kcell”, I reduce my costs by cost 175,440 tenge over the two years, so I would be charged 1,500 tenge a month, in other words I keep at 15,000 tenge, 6,000 tenge every month, 0.3% (360 tenge) would be charged without any changes in activity or length of calls. Plus, I monthly, plus the interest on the loan itself. I would be paying become the grinning owner of a new phone — the coolest 7,310 tenge a month. And in the end I would pay an extra 55,440 model out there! The phone of my dreams! tenge over the two years. Not a paltry sum! So that’s why I became the happy owner of my favourite The second bank took it further. Sure the money is given mobile phone, Samsung Galaxy S II. Ask me how I reduced without any commission fee, but I would have to pay 708 tenge costs? I stopped using my landline to make national long- in service fees every month during two years. Thus, I would distance calls, I don’t even need it anymore, because I can pay 8,400 tenge to the bank every month, amounting to nearly make calls from my phone twenty-four seven and as much as 82,000 tenge in interest and fees over the two years. I could buy a I want, anywhere in Kazakhstan. I also cancelled my home second smartphone for that! Internet, and now I tether my phone to my home computers I might have just made do with my “tiny Teddy, half a paw and surf at 3G speeds. is gone already”, if I hadn’t come across “New Phone from Kcell” There is one inconvenience: people who know I have promotion. Its essence is simple: you select the phone you’re unlimited outgoing calls don’t wait for me to pick up when interested in, you sign the contract, and you have a new phone in they call and I have to call them back. :-) ● your pocket plus a great rate plan. Now don’t accuse me of stupidly buying into advertising. Having learned from the situation with the banks, I took the brochure home and grabbed my calculator again. First I figured out how much I pay every month for telecom, including domestic long-distance, home Internet and my cell. This is what I got: 4,500 tenge go to my home Internet, I pay approximately 8,000 tenge for my cell phone, and I spend 4,000 tenge to talk to my friends and loved ones in different parts of Kazakhstan. All told, I pay about 16,500 tenge for telecom every month. Next, I carefully looked over what “New Telephone from Kcell” promotion has to offer. I decided to look at the highest rate you would pay on all-inclusive basis. This amounted to a monthly payment of 15,000 tenge. It worked out that for this amount, not only would I become the proud owner of the mobile phone of my dreams, but I would also cover all my monthly phone and data needs — unlimited calling in Kazakhstan, unlimited national texting and 10 gigs of data.

Credit term, Monthly No. Phone model months payment New Phone Samsung 24 15,000 P.S. from Kcell Galaxy S II Sure I know that not everyone is as phone-chatty as I am, but usually prefer to meet face-to-face. There’s Commission Minutes in Texting in Internet a convenient tariff for them too — 4000 tenge per fee Kazakhstan Kazakhstan traffic month gets you 400 minutes (that’s almost 7 hours) of free calls, 100 text messages and 150 MB of data. 3,000 tenge Unlimited Unlimited 10 GB The selection of phone models, as well as of rates, is plentiful — there are really fancy ones, and ones for those on a budget. Only two brands are available, but My logic was that I was spending 16,500 tenge every they are the most popular ones. You can find out all the month for my phone. If I were to get bank loan to buy a phone, details at the website www.kcell.kz; or just type “New then my monthly payment would increase those costs by 7,310 Phone from Kcell” into any search engine. You’ll pay to 8,400 tenge per month, and my monthly phone bills would the same amount for telecom, but you’ll also get a new approach 30,000 tenge. phone! 32 33

маrкет consists of four buttons on the screen: zoom to do is to take a picture of the text and owners of phones running iOS, Android in, zoom out, back a page and forward a a word-by-word translation will appear and Symbian. page. You can open any file from a web link, on the screen! We also recommend apps from App Discovery for Smartphones your email or stored on the device. mobile operators to smartphone FB Browser is currently the best free users. For example, GSM Kazakhstan Ivan Gluschenko Cool Tools is a free collection of several mobile client providing access to the subscribers (Activ, Kcell and Vegaline) useful tools in one compact program. These most popular social network. Using the have access to several such apps: Kcell include a stopwatch, timer, flashlight, ruler, browser, not only can you view your 3G Test, Kcell Trends, My Roaming and accelerometer, sound tester, measurement news feed, add comments and push the SA Kcell. We will wrap up this overview converter, tip calculator and random “like” button, but you can manage pages, discussing these capabilities. number generator where the range is set by lists, view groups and use Facebook the user. apps. The application is very fast and The app SA Kcell is an assistant easily scalable. for Kcell subscribers, and it contains Evernote is a popular service for text information on all operator codes, rates and voice memos, pictures and absolutely Lang Switch is a panacea for people and services, which makes calling the any other files (although there is a size who experience discomfort when call-centre superfluous. limit). This app gives the smartphone user switching languages following the the ability, wherever there is Internet, to method provided by the pre-installed The app Kcell 3G Test allows connect to the memo server, to view, edit software (using a key combination you to measure the current Internet and add entries. At the same time, all the or several nested menus on sensor connection speed. The results of the changes will be automatically synced with displays). Using this application, speed measurement are saved in the the online-data base. which can launch automatically, you app's history with different locations can assign a physical button as the shown on the map, so you can see where Top 3 for Android language switcher, for example the your 3G connection is the best. For Very soon, the number of mobile phones on the planet will exceed the number of people. Everybody uses cell phones, young Tweetdeck is a client for Facebook and volume up or down button. The all subscribers to the Activ, Kcell and and old one: at school, at work, during downtime and at home. Many prefer to leave their wallet at home, but nowadays very few people would risk Twitter, that replaces the standard apps language-switching procedure Vegaline brands, data traffic spent when stepping out the door without their cell phone. We are so dependent on cell phones and we want them to have as many capabilities as possible. for using these social networks. Events are becomes much faster, and writing in measuring speed in Kazakhstan is not Smartphone makers, of course, try to make any applications we might need available to us, but oftentimes there simply are not enough apps out conveniently divided into the columns. One more than one language becomes easy billed. The results of the measurements there to satisfy every user. That is why mobile apps have enjoyed huge demand in recent years is general, the second lists events relating to peasy. will also allow the operator to improve you (retweets and mentions), and the third its 3G coverage area, because all the Each phone maker has its own app stores: there is the AppStore for iPhone owners, and Android Market for those using Android-based contains personal messages. Kazakhstan Chart results are saved for further analysis. devices; there's Nokia Store for Nokia Symbian phones and Windows Marketplace for phones running Windows Phone 7. Each of these stores We’ve made a special category for apps is home to thousands of apps for every taste, but how can one pick out what is really needed and useful? In this article we will try to help you ThinkFree Office is an app for viewing that have been especially developed The app Kcell Trends is useful for choose, and will recommend what we consider to be the most interesting and useful apps. and editing MS Office files. It's complicated for Kazakhstan users by Kazakhstan people who want to keep up to date on A word of advice to do this on a phone, but when you need to developers and ordered by Kazakhstani all the newest online trends, as well as In order to find the app you need out of the thousands available in the stores, and not to waste hours scrolling through pages, it is best to use the built-in search features. All you have to do is to type in the name of the app in the search box in the app store on your smartphone, and a quickly open and view a file sent to you by companies. One of the applications to set these trends. The app allows you page will open with a button you can click to install it. email, this app is indispensible. that will be useful to every single one of to find out the results of various social Now let’s get to the recommendations. We decided to structure our overview in such a way so it contains both free and paid applications, us is ATM Point. It enables Android surveys and to take part in them yourself. both entertainment (games) and work-related applications, which add new functionality to smartphones running iOS, Windows Phone, Android CamCard is a free business card scanner. and iOS users find on the Map bank and Symbian. We will give the top 3 apps for each of these. The program recognizes text on the card machines and branches of the majority My Roaming provides information and transfers the information into the of banks working in Kazakhstan. The on roaming rates, promotional device's contact list. This is much more application is very convenient and free. offers, service terms and news Top-3 for iOS convenient than doing it manually. To work Keeping to the topic of banking about GSM Kazakhstan. But you Super 8 is a very useful app for working desktop version, but is great for things out completely different words than what properly, though, you need a good camera applications developed in Kazakhstan, mustn’t forget that it is free to with video. You can use it to shoot video like cropping, straightening, rotating, you were trying to type. This iPhone app with autofocus. we can’t forget to mention the update the information if only and add effects (for instance, you can make regulating brightness, contrast and allows you to easily add words to your innovative application for mobile you are in Kazakhstan. If you are your video look like a shaky and scratchy much more. personal dictionary, avoiding future errors Top 3 for Symbian payments called Mypay.kz. Using it, abroad, then the updates will cost old film). It also has a unique video when typing. ABBYY FotoTranslate En-Ru is a very you can link a bank card from any bank you in accordance with the roaming playback interface. Auto Corrector is an app that costs useful business app that allows you to get to it, and pay for various services, the rates depending on the country only 99¢ and makes it possible to save a Top 3 for Windows Phone 7 instant translations of words when you’re list of which is constantly updated. The and operator selected. All three Adobe Photoshop Express is a free mass of nerve cells and time when you’re Adobe Reader is a useful app for many travelling, whether for business or pleasure. application is not only universal in applications are free of charge and mobile version of the famous image editor. typing text. After all, there is nothing users allowing to view PDF files. The No longer you have to enter the words in terms of supporting cards from various available for owners of smartphones Of course, it is not as powerful as the worse than when your autocorrect gives program is extremely simple. The interface the foreign language manually, all you have banks, but it can also be installed by based on Android and iOS. ●

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Thinking aloud A Guest from Astana Thinks Out Loud About air, people in yellow vests, and not being indifferent Saken Nigmashev

Very recently I came to Almaty from the capital of our motherland, Astana, having left the southern capital in the late 90s. And as any guest to the city, two things just killed me — the polluted air and the insane number of cars. Captain Obvious tells me the second is the result of the first. But I digress. With a spike in the number of cars around Almaty comes the colossal problem of parking all of these iron horses. Cars are literally parked on every corner, in every nook and cranny, between trees and on lawns. Driving up onto the curb has become a completely normal practice. Our courtyards are overcrowded with cars. Our streets have been taken over by guys in vests, who sell the streets where I grew up for 100 tenge! Offices and cafés are putting out signs along the road that read “Parking for Restaurant Guests Only,” not even thinking about the fact that they’re seizing government land. Vehicle owners can only dream of stand-alone, paid, multi-floor parking garages throughout the business center of Almaty. Though obvious to car owners, this truth has managed to escape the minds of the municipal officers of the country’s largest metropolis, even though this would most certainly lessen the burden on the streets where cars are already beginning to double-park. The problem with parking in Almaty is only going to grow and worsen if together we don’t take steps towards resolving it. Think about it. It is time to stop declaring that our city’s quality of life is one of the best and take real steps to assure that our beloved Almaty becomes such. ●

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PHOTO REPORT

In early February, 2012, in Ilansay area located 140 kilometers from Almaty, a major hunting competition involving golden eagles and falcons was held in memory of the outstanding falconer Aben Toktasynuly. Close to 40 hunters from 10 of Kazakhstan's oblasts participated in this event Great Hunters

Saken Nigmashev Berkutchijanuary – march / №1[21] 39

Hunting with birds of prey is one of the most time-honoured These magnificent birds were honoured for the help they gave Golden eagles cannot be called by name, but they are been cause for celebration. There is a belief that the brighter traditions of the Kazakh nation. The hunters, as a rule, hand to people in hard times, and in pagan times they were even good at differentiating between voices and intonation, and so the fire sparkling in the depth of the eagle's eyes, the braver their knowledge and experience down from generation to worshipped. It was no accident that the remains of a trained they easily identify their owners. There is a plethora of training and stronger the bird is. The colour of the fire in the eyes of a generation, which have been accumulated by the falconers over golden eagle were found at a Saka archaeological dig. Since secrets and each falconer has his own techniques. The hunter hunting eagle changes depending on the type of prey it puts the centuries, passed from father to son in secrecy. Golden ancient times, owning a golden eagle has been a thing of must spend a long time with his bird to get in tune with it its sights on. It seems as though the golden eagle lets its owner eagles and falcons are trained to hunt. With their sharp vision, prestige. Only rich and distinguished people could afford such and build understanding. Slowly the bird will get closer to its know what it is going to catch. they can easily spot and catch rabbits, foxes and partridges. a pleasure. Experienced and lucky falconers and berkutchi falconer and embrace him as one of its own kind. The hunter's During the competition, rabbits and foxes were hunted. Falconry has now become a national sport. Its rebirth enjoyed great authority and respect among the people. In the hand must be hard but kind. The eagle must never be beaten The latter fight for their lives more desperately, and quickly find has enabled the new generation to absorb the customs and past there were many falconers, but in our days, these people and strict feeding techniques are followed. After all, the bird a safe path through the steppe. But the golden eagle still catches traditions of their ancestors. At the competition, you can meet a are unfortunately encountered less and less. The art of falconer, is practically an athlete for which correct training and diet are the fox in most cases. The laws of nature dictate that an animal lot of younger hunters, even children. called berkutchi in Kazakh is in high demand among companies incredibly important. can and must resist, fight or even kill the eagle. In years of hunger, when there was a huge loss of stock that organize ethnic tours for foreigners who want to learn more The golden eagle is a beautiful and strong bird. Killing one In addition to the competition there were also various (jute), one golden eagle could feed several families in a village. about the Kazakh customs and way of life. has always been a great sin, and seeing one land has always demonstrations given by hunters on horseback of how the

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golden eagle obeys its commands. Breaking into a gallop, the been a permanent partner to the foundation for a number of hunter, with a piercing cry calls the soaring eagle who has to years. Many competitions have been held with the support land perfectly on the arm of the galloping rider. of the company. In addition Kcell has helped in training It was especially pleasant to see the serious interest young berkutchi at the National Academy of Tourism and expressed by the participants to the national clothing and Sport. colour attributes. And despite the slightly theatrical air at the Over the period of Kyran Federation activity, the event, the participants came here not for the money, but to number of people involved in hunting using birds of prey fulfill their national duty. The hunters have managed to keep has increased many times over. Special schools for hunters a tradition that others only have museum exhibits for. But exist in all regions of the country for training these proud the spirit of the thing is more important than the objects. and beautiful birds. Today there are over 100 falconers The tournament honouring Aben Toktasynuly was in Kazakhstan. Their work is not limited to hunting. In organized by Zhalair Shora Centre and Kyran Federation. cooperation with environmental service workers, the These non-profit organizations have worked hard for over hunters take part in survey programs and monitoring a decade on getting the unique experience of hunting with golden eagle populations in distinct regions of Central Asian. birds of prey passed from experienced falconers to the next In the future, the Federation and the Centre plan to open a generation. The GSM Kazakhstan/Kcell mobile operator has scientific centre studying national hunting practices. ●