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News 4 TeliaSonera News 8 Kcell News 14 TOP 10 Kcell Achievements

Event TeliaSonera in January-September: 6 Media Days at TeliaSonera Constant Growth in Profits and Sustainable Cash Flow Interview 10 Veysel Aral. He Is a Dangerous Man to Work With TeliaSonera has reported its business results of our customers, keeping in mind the best rela- have full control over the management of the 22 Mikhail Lomtadze. The Money Shop for the first nine months of 2011. Thus, the tionship between the models utilized and monthly companies. That is why I was very happy when 39 company's net sales volume in local currency, payments. In May, we lowered rates for data we signed the Memorandum of Understanding not including amounts from the attraction of new transmission when roaming in Northern Europe with Kazakhtelecom on increasing Kcell's inte- 24 Thoughts Aloud clients increased by 2.7%. Commenting on the and the Baltics by a total of 90%. As well, starting rest share in Kazakhstan by 24 percent plus results of the company's business over these nine in May data transmission volumes in roaming one share in connection with the planned IPO. Person months, the president and CEO of TeliaSonera more than doubled. With time, similar offers will Our first priority in the implementation 26 The Internet Bourgeois on Kaznet, a Start-Up and More… Lars Nyberg noted, “We are pleased to once again be available in other markets. of the agreement with Altimo is to resolve the announce the successes we've achieved, and that We have seen intensive growth in the legal conflicts related to Turkcell. Thus, the re- Photo Reportage despite the current macroeconomic uncertain- Eurasian region over the third quarter: in cent final ruling in our favour announced by the 18 Tbilisi—City of Hot Springs page ties, we continue to maintain growth in all areas. Kazakhstan and Nepal we have 10 million and 6 International Chamber of Commerce in Geneva Our cost reduction initiatives came to a dramatic million subscribers, respectively. In addition, it is and the resolution of the court of the British 16 Digest close during the third quarter, and after the great to watch interest grow toward mobile data Virgin Islands in favour of Altimo are important growth in expenditure seen over four quarters, transmission in these countries, and we have steps in the right direction. The new decree of Business we saw a decrease in the targeted base cost. Our made up our minds to take up leading positions the Securities Market Committee in relation to 36 What a Person Cannot Do Without EBITDA indicators improved 12 quarters in a row in data transmission in the regions where we pro- corporate management principles, which states on a constant basis, and the profitability index vide these services. Ncell is already the leading that the number of independent members of the Board of Directors of Turkcell must be Market (margin) at 36.8% became the highest indicator Internet service provider in Nepal, and currently, in the third quarter, starting in 2006. 25% of Ucell's profits come from supplementary increased to three, is positive and in complete 39 Samsung Note. It Is a Smartphone! The demand for our services is greater than services. harmony with the solution we have been trying ever, and our objective now consists in trans- One of the cornerstones in our strategy to achieve for a long time. The increase in the 16 forming this into monetary funds. At the end of is to increase the interest share of our main number of independent members will resolve 8 the summer we launched a number of new offers companies. In some countries, mostly in the the dead-end situation and will serve as an in relation to the mobile data transfer system in Eurasian Region, we possess a fairly low volume obstacle for the minority blocking decisions order to completely satisfy the various demands of economic ownership rights, even though we made by the majority.

october – december / №8 [20] 4

TeliaSonera Eurasia Announces Its Work Results in Q3

The company has reported that the the majority of the markets in the Eurasian company's branches in the Eurasian Re- Region. The winners in the long term will be gion have once again met the goals set those operators that are highly valued by and for them and have provided convincing make the best impression on their customers. proof that they have achieved success Gaining experience in the area of positive and in the third quarter of 2011, considering stable service quality for customers is not the double digit growth in net sales vo- only important for the company's branches lumes and the EBITDA index, amounting in the Eurasia Region, but likewise occupies to over 50%. The number of subscribers a visible position in the plans of the entire in all the company’s of the group in the TeliaSonera group.” Eurasia region has grown by 1.2 million, In Kazakhstan, the net sales volume in reaching 32.8 million in the third quarter. local currency increased by 16.4%, which Nepal, Kazakhstan and Tajikistan have was caused by a growth in the number of shown the highest growth in subscriber subscribers and the high rate of growth numbers, increasing by 0.6 million, 0.4 in the mobile data transmission volumes. million and 0.1 million, respectively. During the third quarter, the number of Kcell Commenting on the results of the subscribers exceeded 10 million and the activities of the branch, the president company remains the undisputed leader in of TeliaSonera Eurasia Terro Kivisaari the area of mobile data transmission. Kcell's noted, “In the third quarter, we still earnings from mobile data transmission more faced the problem of an aggressive than doubled compared with the same period campaign of attracting new clients last year, and now equals around 8% of and price wars with our competitors in Kcell's overall revenue.

TeliaSonera increases its ownership in Kcell and prepares for IPO

Teliasonera has signed an agreement Presently, GSM Kazakhstan LLP is owned with Kazakhtelecom to acquire 49 per- by Fintur Holdings (51%) and Kazakhtele- cent of the shares in GSM Kazakhstan com (49%). Fintur Holdings B.V. is owned by LLP, operating under the brand Kcell. TeliaSonera (58.55%) and Turkcell (41.45%). The purchase price is USD 1.519 billion. Once both steps of the transaction have been The transaction, which is subject to completed, TeliaSonera’s effective ownership in regulatory approvals, is expected to Kcell will be 61,74%. be finalized during the first quarter of “This transaction is another step in the 2012. execution of our strategy of increasing ownership TeliaSonera has further agreed, in core holdings. Through this transaction Telia- subject to certain conditions, to sell Sonera increases its ownership in Kcell, a com- 25 percent of the shares minus one pany where we already have management and share in Kcell in an Initial Public Offer- operational control. Kcell is a clear market leader ing (IPO). The IPO is expected to be in Kazakhstan, the largest market in Central Asia, completed during 2012. Depending on and has shown remarkable growth over the years. the share price development after the The fact that part of the company will be sold in IPO, TeliaSonera may have to make an an IPO will make it even more attractive”, said additional payment to Kazakhtelecom. Tero Kivisaari, President, TeliaSonera Eurasia. 6 7

proximately 16 billion dollars,” noted Senior Vice President tense battle continues in the lower price segment, which is Media Days at TeliaSonera for Corporate Communications Cecilia Edstrom. totally natural for this segment. At the same time, Kcell's rates look very attractive in comparison to those offered In November 2011, journalists covering telecommunications from different corners of the “Multiplying values to create by our main competitors. But unlike our colleagues in the a world with new opportunities” market, we offer better quality and coverage. I would like Eurasian Region gathered in Stockholm. The press representatives were invited to meet This is the main work principle of the whole TeliaSonera to especially stress the fact that the company does not family. This can be seen in the fact that the company was the plan to initiate price wars. The most important to us is with the top management of TeliaSonera. This invitation was of interest to us because the first operator in the world to commercially launch the fourth that Kcell is of value to our subscribers. It is an interes- company is the main owner of the Kazakhstan mobile operator Kcell generation network, providing people with the capabilities ting fact that the most recent market research showed of an absolutely new network technology based on fast data that from time to time, Kcell subscribers try, I should say transfer. “In reality, if you count up all the generations of “test out”, the services of our competitors, after which they networks since voice connections were done manually by the decide to stay with us. As long as we continue to provide event telephonists, then today we are not using the fourth network good quality and good service, our market share will generation but the seventh,” shared Tommy Ljunggren, Telia- remain stable in terms of revenue. We continue to invest Sonera's Vice President for Mobile Services Development. in technologies and we don't make mistakes, so we are He was the second speaker to address the journalists and confident in our positions. The market tests our strength give us his personal opinion of how mobile networks have every day, and we have stood strong and held onto the evolved over the generations. “Currently, all operators in leading positions. I know that Kcell is the best operator Sweden offer 4G, but if you look at coverage area, Telia- and will remain such. Ordinary users of our services prove Sonera is the obvious choice. Because coverage area is the that every time they press the call button.” main criterion based on which people in any country of the world choose their operator. We offer high quality at an af- Telecom Sightseeing fordable price. That is what makes us unique,” Ljunggren said. The second day was dedicated to a cultural program. In Tеlia Store, Telia's flagship store in Stockholm, we were Eurasian scale shown the newest mobile technologies integrated into the Despite the fact that it operates in 20 countries around the life of everyman. For this, the interior of a modern apart- world, TeliaSonera does not consider itself a global company. ment was recreated in the store, where the appliances “We want to be a company with world-class features and ser- were operated using a mobile phone, or more specifically, vices in every market where we work, regardless of whether high-speed mobile Internet. In our opinion we cannot it is Nepal, Georgia or Kazakhstan. Even now, the operators expect these wonders to be available here for ten years, at in the TS family have access to the innovative experience of least. the international group, and to the technological leadership We also went to the Telecom Museum. It is amazing and financial strength of the international company, which that voice communication technology is only 150 years enables us to introduce technologies early in each country old, but there is already a museum. And don't think that where we operate,” noted Cecilia Edstrom, giving the floor to the museum is one of those “Do not touch” places. On Mr. Terro Kivisaari, the President of TeliaSonera Eurasia. the contrary, everything is as accessible as possible, and In the Eurasia region, the company controls shares in you can even touch some of the exhibits. There is even a the leading mobile operators in Kazakhstan (Kcell), Azer- children's media lab here, where schoolchildren create baijan (Azercell), Moldova (Moldcell), Georgia (Geocell), programmes and broadcast them over the television We were invited for two days, because the Telia- Telia's development in the 20th century is no less Tajikistan (Tcell), Uzbekistan (Ucell) and Nepal (Ncell). or radio waves. And we, being journalists with major Sonera's Eurasian Media Days program was intense. To start impressive. Starting in the fifties, the company became one These companies serve more than 32 million subscribers. experience working in television studios, did not hold with, we were told about the history of the company by the of the pioneers in mobile communications, and gained the TeliaSonera is also one of the largest minority shareholders back and also tried our hand at being cameramen and Senior Vice President for Corporate Communications Cecilia right to be called a trailblazer in the mobile telecommunica- in Russia's MegaPhone and Turkcell in Turkey. show hosts. Edstrom. tions industry. Starting in the late 1970s, this operator has Talking about the company's plans for the future in this But more than anything, I was surprised by the focused on a number of areas, including both fixed-line and region, Terro Kivisaari noted, “We are striving to increase visitors to the museum: not tourists, but local residents, A bit of history mobile networking. our share in local companies. For example, in Uzbekistan schoolchildren, and even the heads of households drag- TeliaSonera is a company with an interesting and rich his- The history of TeliaSonera begins in 2002, when Telia we increased our share to 94%, as in Nepal. In addition, we ging three- to five-year-old toddlers behind them and tory. It takes its origins in the distant year 1853 with the royal in Sweden and Sonera (the Finnish mobile operator) united intend to increase our share in Kcell. I hope that in the near pushing a stroller with a baby in it too small to walk! telegraph agency Telia, which subsequently became a landline to create one of the largest telecom companies in Europe. future we will be able to make a few more additions to our The overall impression in Stockholm is that it is a operator before becoming a mobile operator in the twentieth Based on data as of November 2011, TeliaSonera is the fifth portfolio.” city of bicycles, of open curtains, of museums and restau- century. Telia hooked up its first phone in 1877, becoming the largest European mobile operator. “We provide our services With regard to the development of TS's business in Ka- rants full of visitors. It is the hometown of new first fixed-line operator in Sweden. By 1890, it served close to to more than 160 million clients, we have nearly 30,000 zakhstan, the President of TeliaSonera Eurasia noted that at telecommunication technologies. It is a city where I most 20,000 telephone numbers across the country. people working for us, in 2010 our sales were worth ap- the current time this is a highly competitive market. “An in- certainly will return. ●

october – december / №8 [20] 8 9 News

will also be able to get in touch with the Kcell and Activ Continue kz Financial conquerors of the South Pole over the The Kcell MyPay to Lead in Kazakhstan Support mobile network. Moreover, GSM Kazakhstan/Kcell Mobile App Is up and Running Consumer Satisfaction Provided developed an SMS news service, free of charge, in order to communicate with The Kcell MyPaykz service allows well as on the wap.kcell.kz and wap. by Kcell for its participants. And today, Kazakhstanis Kcell and Activ subscribers to activ.kz portals. In three simple steps, the First can read notes on the trip sent by the purchase goods and services using you can link your Visa International members of the expedition by SMS, and their mobile phone, using funds in and MasterCard International cards Kazakhstan even ask them questions. To do so, all you their bank account, whether in Ka- from any bank in Kazakhstan. South Pole need to do is send a free text reading zakhstan or beyond (when roaming). This service is a joint venture +@pole2011 to the number 1140. For In order to use the service, you will between GSM Kazakhstan/Kcell and Expedition example: @pole2011 What do you do for need to install the Kcell MyPaykz Intervale Kazakhstan, LLP (www. recreation? It's free to send and receive app on your phone. You can intervale.kz). The app in three lan- In early December the first Kazakhstan the texts. download the application from wap. guages, Kazakh, Russian and English, vehicle-based South Pole expedition set off from Novolazarevskaya Polar The authors of the best questions, mypay.kz or from the official Kcell is available for regular cell phones, Station. Financial support for this which will be chosen by the participants MyPaykz website, links to which are as well as for smartphones running project was provided by the country's in the expedition themselves, will receive available on www.kcell.kz and www. Java, Symbian, Windows Mobile and largest mobile operator, GSM a prize from GSM Kazakhstan/Kcell. activ.kz in the Services section, as Android. According to the study conducted and mobile operators is based on five Kazakhstan/Kcell Aida Dossayeva, the Director of in 2011 by the EPSI (European satisfaction aspects: image, product Corporate Communications at GSM Performance Satisfaction) European quality, customer expectations from A team of Kazakhstan scientists, Kazakhstan/Kcell, commented on the “Unlimited Internet”: Stop Worrying — Get Downloading! Agency, Kcell and Activ customers are the company, service quality and the including Nurlan Abduov, Ordenbek company's participation in this project, How many megabytes? Which rate is “Unlimited Internet” promotional service, listen to music, and download audio and video the most satisfied in the work done by relationship between price and quality. Mazbayev, Berik Baimagambetov, “It is a great honour for us to provide the cheapest? How much traffic do I Active and Kcell subscribers can keep in clips without thinking about the cost of traffic. their operator and have the highest An in-depth analysis of 2011 average Konstantin Orlov and Sergei Bodrov, Kazakhstanis with the opportunity need today? Now you don't have to find touch with their friends on social networks, “Unlimited Internet” comes in three varieties: levels of customer loyalty. data for the industry as a whole has will cover 2,308 km by automobile to become direct participants in the answers to these questions. With the new read emails, watch online broadcasts, “Smartphone”, “Tablet” and “Modem”. Despite the overall drop in shown that customers perceived an and will reach the South Pole on expedition and get these gripping customer satisfaction and loyalty improvement in service quality and the December 16, the date of the 20th and true accounts of the conquest of indices in the industry back down to quality of provided services. Anniversary since the Republic of Antarctica first hand. The most exciting Type of Monthly Included Access speed How to sign up 2009 levels, loyalty indices to Kcell and EPSI ratings are also set for the Kazakhstan became independent. moment, both for the travelers as well as service subscription traffic at after included Activ have not suffered. corporate segment in the client base Along the way, the scientists will have for those cheering them on back in the fee maximum traffic the unique opportunity to conduct motherland will come on December 16, speed has been Brands Satisfaction index Loyalty practical research on the natural on Kazakhstan's Independence Day. In exceeded 2009 2010 2011 2009 2010 2011 and climatic conditions of the White honour of this date, our country's flag will “Smartphone” 990 tenge 1 Gb Up to 32 • *444*2*1*1#OK Kbit/s • Text “smart” or Kcell 74,5 82,7 79,1 75,2 83,4 81,1 Continent. be hoisted on the South Pole on this day. Thanks to the financial support of We are especially pleased, because Kcell's (= up to 4 “smartphone” or “смартфон” Activ 77,9 81,8 80,6 78,9 83,7 81,7 GSM Kazakhstan/Kcell all Kazakhstanis flag will be held next to it. We are proud Kbyte/s) or “990” to the number 2002 Average are able to keep track of this historic of our rich history of cooperation on and indicator 76,9 81 77,5 78,5 82,2 78,6 event, receiving information directly support for projects in the fields of science, “Tablet” 1 990 tenge 4 Gb • *444*2*1*2#OK for the from the participants in the expedition art and sport in the country. Through these • Text “tablet” or “планшет- industry ник” or “таблетка” or “1990” through the Web page, Facebook efforts we aim to do our best to contribute to the number 2002 The EPSI study also noted that over the of Kazakhstan's mobile network (http://www.facebook.com/#!/ to the development of genuine feelings past three years, consumer behaviour operators. The 2011 study showed kazgeokz) and on Twitter @kazge. of patriotism and pride for their country Modem 3 990 tenge 10 Gb • *444*2*1*3#OK • Text “modem” or in Kazakhstan has changed slowly. that Kcell remains the leader in kz. The organizers of the expedition among Kazakhstan youth. ” “модем” or “3990” to the An intensification of competition and terms of customer satisfaction and number 2002 growth in the level of penetration of loyalty, and also leads in terms of cellular networks, as well as the great service quality. As in the mass market variety of offers have slowly made segment, customer satisfaction has it more and more difficult to retain a direct impact on the selection or customers through anything except replacement of a corporate operator. The first monthly subscription payment is charged at the moment you set up. The next subscription charge comes 30 days after signup. levels of satisfaction. You can learn more about the In the event that funds in the account are insufficient to cover the subscription fee, it is charged within three days. The analysis of the history of results of the study on the EPSI If the subscription fee cannot be paid within three days, the service is disconnected. relationships between consumers website: http://www.epsi-russia.org/. You can sign up for the promotional “Unlimited Internet” service up until March 15, 2012. For more details, visit www.kcell.kz and www.activ.kz

october – december / №8 [20] 10 11

interview Interview with the Chief Executive Officer of GSM Kazakhstan/Kcell for Forbes Kazakhstan, issue 4 (4) 2011 Veysel Aral He's a dangerous company in order to be the best outside. And we did this for the sake of our customers. After all, they are our company's pri- man to work with mary asset. I might add that this internal revolution was quite a difficult ordeal for me. But if you don't give up, if you truly believe in success and at the same time can convince others Natalia Eskova that it's possible, than you will achieve your goals sooner than you expect. Nearly all of Kcell's business procedures were re- constructed, the corporate culture changed and a new manage- ment team was formed over a period of three years. I was lucky He forgives mistakes only once, and is of the opinion that failure is not to find the right kind of people inside the company; all I had to an option in business. That being said, he advises his team not to ask for do was look. The managers did not immediately have faith in my ideas for transforming the company and creating a strong permission, but for forgiveness, and he is of the view that competing with the management team. But this had changed within a year. In the leader in an industry is simply not worth the effort. Nevertheless, despite all process, we were of course confronted by those who could not handle the new challenges and difficulties and we had to say these contradictory opinions, he is an unbelievably well-balanced person good bye to these people. Veysel Aral is convinced that the role of the head of a company is akin to that of the conductor of an orchestra made up of a large number of specialists with various abilities and talents. If the conductor keeps the various specialists “play- ing” together in perfect time, then the objective will of course be achieved. This is what large organizations require. Veysel Aral feels that the human factor is very important in business. Otherwise, company becomes dominated by cynics, whose hu- Leaders are remembered for their humanity and morality man qualities and moral values leave much to be desired. This Perhaps it is his multitude of contradictions that enable him to run of change: its market share shrank under pressure from a strong inevitably leads to total failure. a company with annual revenue of close to $1 billion. Today, Kcell competitor. The company had to act, and it had to act quickly and — Mr. Aral shared some of his management secrets, inclu- is clearly the mastodon of the industry, unthreatened by the con- decisively. ding: “What is dangerous about working with me is the emo- trivances of its competitors both old and new. But few are aware tional attachments that can arise. Of the many qualities that of the fact that Kcell's unbeatable position as the largest and most — From what did the fateful changes in Kcell start? enable me to manage the best professional team in the field, I'd successful cellular operator in Kazakhstan was established under — All change starts from within. It's impossible to be the best if the like to draw your attention to two. First, I ensure that anyone this particular top manager. One can just recall that in 2007, when company's internal processes are holding innovation back. That's who works with me becomes emotionally attached to the Veysel Aral became the head of Kcell, the business was in dire need why we set ourselves a difficult goal: to become the best inside the company making it difficult for them to simply up and leave.

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Second, I maintain an open policy of ‘positive discrimination’, I can forgive my colleagues for the chain of events just because you don't like it. Regardless of providing incentives to enthusiastic staff members.” insignificant mistakes, if there was no your position on the matter, the event has already occurred. I'm certain that in order to understand the future we must closely Failure is not an option intent to cause harm. But I can only study the past. At GSM Kazakhstan/Kcell, everyone knows their CEO’s business forgive a mistake once. If it repeats philosophy’s three key principles of their. The first is: Failure is itself, the person must leave — Can you say with certainty that you are a fully not an option. formed person? Can you tell us what success has taught you? — Isn't that too tough to accomplish? — most certainly help us achieve a certain level of success. How- — In some sense I've been very lucky. I had the opportunity to — In our business, we are always focused on success and we don't ever, in order to go further, we must have certain human quali- work with people whose names have become legendary in the think about failure. I can forgive my colleagues for insignificant ties, because, at the end of the day, a man is remembered for his sphere of mobile communications in Turkey. I learned a lot mistakes, if there was no intent to cause harm. But I can only values. from them. One's boss plays a key role in the career of any man- forgive a mistake once. If it repeats itself, the person must leave. ager. After all, you can spend your entire career unnoticed if you The second principle is just as simple: It is easier to ask In order to understand the future, lack managers oriented towards the future to guide you. forgiveness than permission. we must meticulously study the past — You know, you are unique as a CEO in your ability to Be as natural and imperceptible as the air. — But a person should nonetheless keep in mind that you combine aggression with compassion. What formed you — Not long ago, a memorandum was signed on GSM only forgive once? into this type of person? Kazakhstan/Kcell’s IPO. Can you tell us about this in — Of course (laughs). Taking initiative is always encouraged in — There were two stages in my life that helped me become the more detail? our company, regardless of where it's directed. I think that if you person I am today. These were my education in a specialized rail- — I can only give you a general picture. The idea came from believe in what you do, you should just go and do it! If something way school and the same in the Middle East Technical University. President Nursultan Nazarbayev, who wanted to see a company goes wrong, say: ‘I tried my best; forgive me.’ In business, some- I grew up in a small town on the western shore of the Black Sea. that could accelerate economic growth and at the same time times simply getting permission is not enough to make a great It was there that I finished high school, and then, having passed facilitate the development of Kazakhstan's stock market. From idea a reality. After all, there are a lot of people out there that you a few exams, I got enrolled in a professional railway-sponsored this perspective, the upcoming IPO is absolutely substantiated have to convince if you want their consent. But in the meantime, college. My father was totally opposed, because he had gone the and rational. After discussions and negotiations, on Septem- you might miss the crucial moment! So I allow my colleagues the same route and for various reasons did not want the same thing ber 21 our two shareholders, TeliaSonera and Kazakhtelecom chance to try things. Of course we don't always succeed at every- for me. This was a boarding school for boys and Turkish National JSC signed a memorandum of understanding, under which thing. And all our staff know that they won't get a second chance Railways paid all student costs, including food, clothing, shoes, TeliaSonera would own 75% plus one share of Kcell, while the to make a mistake. books and stationery supplies — absolutely everything. Accor- remaining 24% — plus of shares would be offered for trade. The The third principle: “It is not worthwhile competing with dingly, we were required to go to work on the railroad after memorandum of understanding is a legally binding document. the industry leader.” graduation. Veysel Aral's leadership qualities became apparent when — And the final question. Mr. Aral, what is your vision — In other words, you shouldn't allow yourself a glance he was still in school. Although small in stature, and not in the of Kazakhstan's future over the next five years? at the leader? least athletic, he earned everyone’s respect. His friends came — This is a serious issue about which many have concerns. Cur- — On the contrary, keep totally focused on the leader, and be from different groups, even those in conflict with each other. All rently, the country's economy is focused on the energy sector. Ka- especially attentive to what the leader can do to make you better. of them respected their fellow student for one important quality. zakhstan needs to diversify in order to overcome this dependence Maybe something will come in handy (smiles). It's true of any He collected and analyzed all kinds of information received on natural resources. President Nursultan Nazarbayev constantly business that by stepping on the leader, you risk everything. If from different sources and from all sides of a conflict. As a result talks about this. Bearing this in mind, Kazakhstan's future seems our competitors want to attain the lead, they will have to pay very he gained the ability to see the bigger picture. Furthermore he bright to me. Look at the global economic forecast for the next dearly, and I don't think they can afford it. Stable growth in the was unequalled at arguing. 15—20 years and you will see a growing role for such industries mobile operator business is directly dependent on investment. — To answer your question about what made me the person I as the food industry, food storage and transportation. Kazakh- Accordingly, investors are always oriented towards returns on am today, I can say that it was the school I attended. I was alone stan produces very high quality grain and has a huge potential for their investment. A business must be organized sufficiently well there but had to survive. Sometimes I had to fight, share my food exporting cereal crops, including wheat, and other food products. in order to satisfy both the market and its investors. Under these and tell those around me about my concerns and feelings. But In 15 years, Kazakhstan will occupy an important position in the conditions, the battle for leadership becomes all the more bitter. there is no other way to make true friends. — Given the choice, I probably would have studied history. I global economy, not only in terms of oil and gas production Competition with a large company is a costly affair, unless your Having worked for a time as a technical specialist on the consider it to be the foundation on which everything else is built. and the production of metals such as uranium, chrome and aim when you began working for the cellular operator was cha- railroad, Veysel Aral decided to continue his education and I also think that the teaching methods currently supported by aluminium, but also with regard to agricultural production. For rity. After all, in the end, all operators are commercial organiza- enrolled in the Middle East Technical University. Since he had governments of various countries unfortunately miss the mark our part, Kcell will continue to provide telecommunications tions which work to gain a profit. worked for Turkish National Railways, he was assigned to the with regard to what is required to foster the new generation’s services, which I like to compare to breathing. After all, we — Speaking of business philosophy, I'd like to stress that my Engineering Department, where he studied Engineering Physics. interest in this most fascinating subject. History is, after all, don't think about it until we lose access to it. It's the same with philosophy is inextricable from my moral values. For me, these This university is still considered one of the best in Turkey and not simply a list of dates. Physicists often say that everything in cellular service: we don't appreciate it until it's cut off. And it are fairness and honesty. Everything we achieve in life ‘on paper’ in the region as a whole. He was only twenty years old when he nature is constant and that everything has happened before. This is my hope that our presence in Kazakhstan remains just as — our diplomas, assessments, certificates and languages learned graduated from the institution. pertains to history as well: you cannot erase or skip any link in natural and imperceptible for you as air. ●

october – december / №8 [20] 14 15

3 Data Transfer Rates of up to 14 Mbit/Sec in the 3G Network Kcell is focused on improving data transmission speeds in its networks, the company is interested in launching the latest technologies in Kazakhstan. Therefore, Kcell’s 3G network is offered in the most recent version of the standard, 3.5G, also known as HSPA+. Data transfer speeds in HSPA+ reach a maximum of 21 Mbit/sec. 4 First Call Placed Using the LTE Standard The company continues its successful testing of LTE. The first tests were conducted in August 2009. In July 2010, an operational LTE station was launched in Astana in honour of Operator’s Day. In January 2011, a test demonstration of LTE technology was put on for Kazakhstan's Prime Minister Karim Masimov. In September of this year the first call was placed using the LTE standard. The Company is ready to put TeliaSonera's unique experience into practice in Kazakhstan. TeliaSonera was the first operator in the world to commercially launch of LTE two years ago, in Sweden. 5 10 Million Subscribers Choose Kcell and Activ's High Quality Network In 2011, the company has posted stable growth in the number of clients. Compared with 2010, the subscriber base of the company grew by close to 1.5 million subscribers, reaching 10 million in 2011. The company is striving to give Kcell and Activ subscribers the ability to use mobile network services to an even greater degree. Therefore all the company's proposals in 2011 were focused on two main directions: at reducing the average price per minute of talk and at increasing call duration. This approach has already brought results, and therefore the volume of consumption of the services of the company is constantly growing. 6 This means that the accessibility of mobile communication is becoming more and more Over 50% of Company Subscribers Use Mobile Internet apparent for all categories of consumers. The Company has brought a number of offers for mobile Internet to market, the majority of which have become real hits. In 2011, the trend of active growth in the consumption of data transmission services continues to grow. 7 0.05 Tenge per Minute of Talk Within the Network That is the price offered by the “Daytime unlimited” rate from Activ. From 01:00 to 18:00, subscribers have access to 17 hours of unlimited talk on their mobile phones within the network. And this 8 is including the most active time of the day! The rates have also Kcell and Activ Are Once Again the Leaders been lowered for Kcell subscribers, now they are 11 tenge anywhere in Kazakhstan in Terms of Subscriber Satisfaction in Kazakhstan under the “11” rate plan. This has been confirmed by a study done by the EPSI (European Performance Satisfaction Index) European Agency conducted in 2011. Kcell and Activ customers are the most satisfied with the work done by their operator and loyal toward it. Despite the overall drop in the level of customer satisfaction and loyalty in the industry back to the levels of these indicators recorded in 2009, the loyalty indices of 9 Kcell and Activ have not suffered. At the same time, as was stressed 1 94% of Populated Areas Now Covered by Kcell Network Signal in the EPSI report, the loyalty index directly correlates to future Kcell: Official Mobile Operator of the 7th Asian Winter Games In total 4901 towns and settlements are located within the consumption of services by customers. In accordance with the study, The company was the only mobile network operator in Kazakhstan that was selected as the supplier of coverage area of the network. To provide stable and quality approximately 20% of consumers of Kcell and Activ services are ready network services during the 7th Asian Winter Games on the basis of such criteria as quality and reliability, services to such a large territory, the company has set up to expand their use of the services provided by their operator. as well as the best supplier of corporate network services. Services were provided for 6,000 participants, almost 5,500 base stations. The total volume of investments guests and volunteers, including voice calls and 3G Internet. For the first time, during the Asiada, 56 security in the development of the network in 2011 amounted to cameras provided video surveillance at the sporting facilities in Almaty via the 3G network. close to $160 million.

2 10 3G Now Available in 31 of Kazakhstan's Municipalities 94% of Villages with a Population of 1,000 or More Have Access to the Kcell Network This number includes Astana and Almaty, as well as all the oblast centres, a number of cities with populations Under its licensing obligations, the company must provide all villages with a population of a close to 100,000 and some villages. To achieve this, the company has set up over 1,000 base stations, the process thousand people or more with network services by 2012. Currently, the Kcell and Activ network of the development of the 3G network is actively continuing. Next year, the third generation network will become is available in nearly all villages with a population of 5,000 or more, as well as in 98% of available in towns with populations of 50,000 or more. villages with residents numbering 2,000 people or more.

october — december / №8 [20] Digest 16 17

Syria Has it in for Apple Devices of the Moscow Underground Mobile Cardiology

Apple, which has recently If the document posted Of course, Kazakhstan's first subway amounts to an average of taken great pains to prevent on the site of the Lebanese has a long way to go before it 27.6%, while the majority of the sale of Samsung's Galaxy news channel el-Nashra is reaches the scale of the Moscow these are listening to MP3s Tab 10.1 wherever possible, genuine, it means that Syrian metropolitan. A survey from the (62.4%), smartphones and is now faced with a similar authorities are threatening SmartMarketing analytical group featured-phones make up lot. According to BBC reports, confiscation and criminal observed the user bases of mobile 32.0%, 17.5% are made up of Syria has banned the sale investigation of anyone electronics among passengers in wireless information devices of the iPhone at a national discovered using an iPhone. the Moscow metro to reveal the (WID), while e-readers make level. These measures were Presumably, importing the most useful ways of killing time up 32.4%. Other devices taken for the purposes of device into the country would periods when you are forced to be (notebooks, video players state security and to prevent also be forbidden. idle, for example when you are on and tablets) comprised 5.7%. sensitive information from Sources from the Syrian your way home. Added up, this comes to more leaking out of the country. opposition in Beirut confirmed In the view of the analysts, than 100% because each The BBC refers to Lebanese the ban to a German press the percentage of passengers passenger may have more and German media, which agency. It seems as though using mobile electronic devices than one device. One Russian operator, in cooperation makes it possible to quickly and were the first to find out the ban does not affect other with the Healthcare Department accurately diagnose the patient about the order from a smartphones, although other of Voronezh Oblast announced the and render quality emergency statement released by the devices also provide Internet implementation of an innovative assistance directly onsite. The customs section of the Syrian access. telecom project directed at ECG readings are sent from the Ministry of Finance, “National We should remind you that resolving the issues surrounding electrocardiograph over mobile authorities have warned the majority of international the prevention of cardio-vascular channels using machine-to- everyone not to use the media were banned in Syria disease. Up until the end of 2011, machine technology, and the iPhone in Syria.” when the uprising there began. the region's whole ambulance information is received by the fleet will be provided with mobile attendant on duty at the hospital. cardiographs equipped with SIM In each region, an average of cards. 1,000 cardiograms are sent each The Thinnest Camera Book About Jobs Using the innovative month, among which 100 cases telemedicine project, ambulance of disturbed cardiac activity are in a Smartphone Released in Russian paramedics are able to quickly discovered, and in 60 of them the send electrocardiograms to decision is made to hospitalize the cardiologists while still on the road person. What is most important, invention has a 12.1-megapixel The Russian translation of Walter we accelerated the process to Beware of Crooks! to get consultations and correctly though, is that behind this number sensor. Isaacson's book Steve Jobs has been save you from waiting for too long,” interpret the ECG readings. This stand thousands of lives saved. The 12.1-megapixel Japanese released. “We tried our best to make representatives of Corpus publishing To make sure the holidays are not sending a number of SMS messages, camera is equipped with a backlight, everything the best it could be, and reported. The original English- darkened by any cloud, let's take a each of which costs from 500 to 600 provides image stabilization and is language version of the book has moment to reflect upon mobile crooks, tenge (depending on the cellular the technicians, headed up by also capable of shooting 1080p Full already become a global bestseller. or to be more specific, to discuss a new operator). the Director of the Technical HD video. It is 640 pages long. The type of scam. Citizens' email addresses The principle behind the trickery Department are all on hand on The company plans to launch biography of the legendary figure are targeted by spam advertising resides in claiming to subscribers New Year's Eve, ensuring that our the mass production of the device in is based on conversations between “Keep connected on New Year's eve”, that all the leading cellular operators subscribers have network service. January 2012, but before that starts, Walter Isaacson and Steve Jobs, “Make it through to everyone” or “No shut off their main equipment over Over the first hour of 2011, Kcell Apparently Japan has once again Sharp plans to equip two Android his relatives, friends, enemies, network? Be a VIP” and so forth. You New Year's Eve, leaving only the and Activ subscribers placed over justified its position as a leader smartphones with the novelty: Sharp competitors and colleagues. The are asked to fill out a form where you back-up equipment on (supposedly 9.2 million calls and sent nearly in technical progress, having Aquos Phone SH-01D and Sharp Aquos book's author states that Apple's enter your telephone number to be for the aforementioned “white list” of 2.5 million texts. outpaced the whole world with Phone 102SH. This is expected to co-founder did not control him and added to a “white list” of sorts, which numbers). According to the press service Kcell asks its subscribers to its announcement that Sharp happen before the end of this year. answered all the questions honestly. supposedly provides the subscriber with of GSM Kazakhstan/Kcell, on holidays, be wary of texts received from has developed what they refer to We can only hope that the company If you recall, a particular excerpt a guaranteed connection to his or her and especially on New Year's Eve, all strangers, and to make sure to as the “thinnest optical camera will hand out licences to other from the book went viral, where Jobs relatives, friends and acquaintances on the company's technical resources double-check the details when for smartphones in the world”. smartphone manufacturers to use the states that he wanted to destroy New Year's Eve. Subscribers that take are mobilized to the maximum. It is information on operator services Despite its dimensions 11.0 × technology, which could lead to the Android, even if he had to spend all the bait have their numbers registered senseless to even talk about the main and offers from unofficial sources 11.0 × 5.47 mm, the Japanese production of even thinner devices. of Apple's money. through a specially created site by equipment being shut off. Moreover, is received.

october — december / №8 [20] 18 19

temple (Temple of the Holy Cross) Tbilisi — City of Hot Springs is located on a high mountain, therefore also giving a wonderful Photo Report There are places in the world to which a visit, despite one’s irresistible desire, seems view of Tbilisi and the junction of two magnificent rivers: the Aragua simply unreasonable. This is often because these locations are not included in the and the Koura. The complex was built very close to the edge of the Top–10 most visited places in the world and because these places are not featured in cliff, which is why the building can picturesque TV advertisements. More is the pity, however, because these places are be seen from all sides and from a great distance. It looks fantastically worth visiting for several reasons: the people, the music, the mountains, the sun, the beautiful. The temple appears as history, the cuisine… Of course, we are speaking of Georgia a continuation of the mountain on which it is situated, giving the impression of having been Natalya Eskova constructed many centuries ago. Text and photographs Tbilisi is spread across a mountainous area. Long ago, a My acquaintance with Georgia primeval forest — a favorite began in Tbilisi. I had for many destination for royal hunting trips years dreamed with all my heart — occupied this area. According of visiting this country. This to legend, during one of King was not by chance: It just so Vahtang Gorgasali’s trips a royal happened that my mother’s falcon was chasing a pheasant, grandmother had married and both the birds vanished in a a Georgian and lived her gorge. When the king descended whole life in this country. My the canyon, he saw that the falcon grandmother lived there until and the pheasant were both boiling the age of 18. Apparently my in a bubbling hot spring. This love for Georgia was inherited was one of the sulfur springs that from her. This explains the can now be visited at the famous immense pleasure I felt while Abanotubani sulfur bathhouses travelling. in Tbilisi. The king liked the place and ordered the establishment of Mountains and Sun a town. The town later became While flying to Tbilisi, you see known as Tbilisi, which means “the the majestic and monumental City of Hot Springs.” This name snow-covered peaks of the fits exactly the main feature of Caucasus. Seeing these, a pair this very warm and sunny city. of verses from the classics of Inclement weather does not linger Russian poetry, learned at here more than a couple of days, school, sprang to mind. By the or at least that is how it seemed to way, the Lermontov monument me. We arrived in Tbilisi while it is still located along one of was raining heavily and the wind highways connecting Tbilisi to was blowing, but the next morning the Black Sea coast, but it is no welcomed us with sun shining longer identified by a plaque. through all the windows and a In Tbilisi, the mountains heavenly clear blue sky. surround you on all sides. In the town of Mzhet, the History sightseeing platform near the In general, this is an area with a 6th century Javari church offers rich history. This is true too of a very beautiful panoramic Tbilisi and its suburbs, which mountain view. The Javari have preserved the pages

october – december / №8 [20] 20 21

public relations. The wine, the Borjomi water, the cuisine, and, lastly, the men!” I would add to this well-articulated list Georgian music. The day before my departure, I dropped in at one small boutique. I have a habit of purchasing albums as souvenirs from the different countries I visit. The vendor was quick to fetch me a CD of the Rustavi Chorus. We spent the next one and a half hours for listening to music, sharing impressions and discussing the modern classics, jazz, ethno-jazz and film scores. Of course, we also discussed the excellent Georgian music. I learned from this man that the play “The Battle of Stalingrad” was showing of their history. Walking along at the Rizo Gabriadze Theatre, and I was very the city streets, you feel the lucky to watch this. I also discovered that historical spirit, particularly in many of his talented countrymen create art- the fascinating and charming house movies in France, Italy and Germany old city. Even those buildings and that their most famous actor — according in need of restoration look to my interlocutor an outstanding King Lear — like they are taking a graceful, had died the day before. Thousands of people 19th century welcoming bow. accompanied him, applauding, on his last At the same time, luxurious journey. Furthermore, the vendor revealed modern cars rush nearby himself to be a filmmaker and an actor. Thus at crazy speeds…. I was we spoke about Georgia using a shared and particularly struck by the mutually-understood language. Later, when harmonic synergies between we asked our minibus driver where we could the centuries-old history and sample Georgian cuisine, he — a man we the present. For instance, the had never met before — asked: “Hey, are famous Shota Rustaveli Avenue you from Kazakhstan? How great that you've hosts modern five-star hotels come here! Come again with friends and in 20th century buildings, yet is relatives. We will be more than happy to see within a five-minute walk from you!” Finally, he generously presented us with the 19th century Opera Theatre, a bottle of wine. itself surrounded by trees. Near the theatre you will find Bond with the Motherland the Contemporary Art Gallery A direct flight between Almaty and Tbilisi and a square housing modern takes four-hours on a new Embrier sculptures; a little further is aircraft, fitted with everything necessary an ancient temple, and, on the for comfortable travel. Moreover, one of 20 opposite side of the street, the mobile operators incorporated under the Georgian parliament building. TeliaSonera group of companies operates in Moreover, everywhere you look Georgia. It is called Geocell (like our domestic small, modern-style sculptures Kcell). It was particularly pleasant that there will catch your eye. was a special offer for outgoing calls to Kazakhstan for 50 tenge. All one needed to Music and People do was to dial *135*7 and enter the mobile One acquaintance, who was telephone number. Incoming calls to Georgia flying to Georgia with his wife also cost only 50 tenge. Thanks to a timely for a friend’s wedding, told SMS message received from Kcell, I learned me before boarding the plane: that I needed to switch off data transfer to “Georgia is a country which owes avoid unnecessary fees. Thus I enjoyed a very its popularity mainly to good pleasant stay in Georgia. ●

october — december / №8 [20] 22 23

interview — Who are the Clientele of your Bank? clientele to save time by preventing them from having to — They are ordinary people who go shopping, who want to live search for the nearest mobile services payment terminals. In well and improve the quality of their lives. That’s why they make the process of developing and introducing this concept we deposits, take out loans and use the services that we offer. discovered another great advantage. It appeared that the clients of mobile communications are paying significant fees — As a rule, all banks look alike. What is a unique feature from each payment for communication services. In result of Kaspi Bank? of getting set up with this option clients will be able to pay — Our main objective is retail as I mentioned earlier. Focusing less and talk more. Another big benefit of the Auto-Payment This autumn on this sector helps us better see the best means and methods option is that it is absolutely free for our Clients. of providing these services. Take a look at our subsidiaries. As a the people of matter of fact they are MONEY SHOPS with good show-cases, a — Why Kcell? bright environment and friendly service. We do not strive for — We contacted with all mobile operators. Kcell adequately Kazakhstan were pomposity and sumptuousness with marble staircases and carpet estimated the benefit of this service for their customers. offered for the first runners. We are prone to be extremely democratic and open. Besides that Kcell proved to be the most dynamic team, There is one more distinctive feature. It is our recruiting policy of which was the fastest in organizing the launch and the time a unique free- the Bank. We intentionally do not hire staff people with extensive operation of the Auto-Payment service. The success of any of-charge Automatic banking experience and expertise. We prefer to employ final-year new joint project is conditioned by the proficiency of the students immediately after their graduation from the University. workforce and by the thoroughness of the top manager in Payment Service. We believe that teaching young people is much easier than re- terms of objective setting. We constantly received updates educating and correcting what they learned and assimilated in and all problems were solved jointly. It was a positive The service is a joint other organizations. experience. project between The first rule of credit is to evaluate creditworthiness. We need to always keep equilibrium between The Money Shop the benefits and the risks

— How do you manage to preserve a balance of providing — How does this service look from the technical GSM Kazakhstan/ loans without increasing your portfolio of bad debt? standpoint? — The first rule of credit is to evaluate creditworthiness. We need — Upon having signed up for the service, the Kaspi Bank refills the Kcell and Kaspi to always keep equilibrium between the benefits and the risks. balance for the amount you’ve specified as soon as the balance Bank, the leading The specifics of our business is that there will always be many available on your mobile phone drops below 100 Tengues, and you purchasers of the products we are offering. We need to adequately immediately receive an SMS message confirming the balance refill. retail bank of the evaluate the creditworthiness of the Client. Risk assessment is At the end of the month the Kaspi bank sends you an SMS indicating country. Below we scrupulous work with in-house databases and with credit histories the amount of payments made in the Auto-Payment mode for the of clients in other banks. previous month. This amount needs to be compensated within 30 offer an interview days. Any number of subscribers can be registered for one account, — Your bank is often an initiator of new product which is very comfortable for a family. It is possible to set a specific with the Chairman launches. Which products do you plan to launch in amount of money for one month, which can be increased when of the Board the future and which proposals have already been necessary. introduced? How did you come up with an idea of the of Directors of automatic account refill? — In launching a new product, forecasts are typically made the Kaspi Bank — The Auto-Payment idea was prompted by common consumer on the number of clients that will be attracted. How many experience. We turned our attention to the fact that the money people will use Auto-payment in the future? JSC, Mr. Mikhail available in a mobile phone balance runs out at the most — For each subscriber it is a convenient, free-of-charge, and simple inappropriate moment. Remember how badly we worry when product. Our estimations are quite simple: the current clientele of Lomtadze the mobile phones of our children become inaccessible. Putting Kaspi Bank is around 1.5 million people, plus we additionally provide it mildly, it is very unpleasant when your balance is finished our services to 150,000 people every month. Talking about Kcell, a in the full swing of the office day while you indispensably need minimum of 50 percent of our customers are the current subscribers to make calls to your partners! After having analyzed this of Kcell. Over 60 percent of them will subscribe to this service, which experience we decided to provide our Clients with an opportunity will amount to almost 500,000 people. I am sure that this is not the to continuously stay connected. Auto-Payment will enable our limit, it’s only a start of our fruitful partnership with Kcell. ●

october – december / №8 [20] 24 25

thoughts aloud Kanat Ibragimov

The young rocker chick made an unexpected scene, first she burst still had Mom's strawberry jam and the hot lips of that Irony of Fate or Communicator 2012 into tears, and next starting kissing his cat. rocker girl. He also has this December snow, that also “I will never understand those free women,” the painter thought. dumped down on the day he was born. But his wife caught on. She came home and suddenly started A group of old friends has gathered to ring in 2012. She and I kissed in the park next to Old Square. screaming, “Who was here? Why is there milk on the stove? You P.S. They converse around the table. One warm autumn night we took a bottle of Portuguese port wine never get up this early!” And again, “Who was here? The cat won't The painter picks up the receiver, and without thinking, he None of them is young. They recall the past and make plans. and climbed inside the cage holding Almaty's old she-elephant. look me in the eye!” dials her country code from memory: I can remember well how I jerked when her warm trunk touched It was true, Miska the cat turned away his sparkling eyes and “It's me, do you remember?” ***** me.” planted his gaze on the floor. The puss blew the painter 's cover. A long silence passes before she finally says, A painter looks at the snow falling outside the window and wonders “This is rather unexpected.” if love exists. ***** ***** “But it is New Year!” • They are showing Ryazonov's old film “Irony of Fate…” on the The painter continues to dig within himself, trying to remember the Out of the nighttime Old-Year sky, the snow is being dumped in big At the other end of the line he can hear children's voices. tube. painters' workshops, the electric teapot, his mother's strawberry clumps. A group of happy and noisy friends came out to watch the “Are they yours?” • Other channels show infomercials, news and pre-holiday fuss. jam, a girl's bashful lips, the New Year disco. fireworks. “A daughter and a son.” The thundering show throws sparks, the lights glisten… “I see.” ***** ***** She pauses again, then says, “So what was it?” the painter thinks, “What did I have in my life There was a night of love. And in the morning the birds started ***** “Do you have Skype?” that was warm and real?” chirping. He needed to quickly get his girlfriend on her way. Being It's the New Year. “I have it on my iPad. I'm walking down our street right He recalls falling in love with a beautiful rocker girl: a practical guy, along the way he grabbed the milk can: “What? I The painter, smiling happily, deafened by the barrage, starts to now.” “She was a young fatalist, red-hot, a stray loose cat that was clearly should use my chance to get some fresh milk; and the wife will be understand that after all these years, and different lives lived, he “Add me, I'm waiting.” ● lucky to be in that love-hate relationship with me. happy.”

october — december / №8 [20] 26 27

— Why “Bourgeois”? any of the other negotiators and just said, is money in the country. It will, inevitably, The Internet Bourgeois on Kaznet, — It is my personal brand. About four years “Get me the bourgeois.” The problem with start trickling into the Web. ago, when we were developing our marke- a personal brand is that if you are not the ting strategy, at first we considered taking owner of the company, then the person — In your view, is 16 million enough? a Start-Up and More… a traditional brand and strengthening its the company has been named after, can — Finland has 5 million. It is a small country position. All of the sudden, we remem- leave at any point. If we are talking about that is generating tons of money. It is Anna Latynina bered that there is such a thing as personal the relationship between personal invest- pointless making comparisons with Russia. branding. This technique had not been ment and personal gains, then of course You have to understand that there are only Kazakhstan Internet Week, which was held in mid October in Almaty, used in Russia, not in your market, anyway. a personal brand is better. There is one two or three countries in the world that are Although personification is very common in other advantage: with a personal brand, comparable in terms of territory or popula- helped me make a number of important personal discoveries western business. For example McDonalds you always have your audience's undivided tion. attention. Take for example lawyers you The first among them was that I calculated how many days I have left of active work (around 30 years, or 11,000 days). The second was that you can is the last name of an actual person, that know with personal brands, you can prob- — During your presentation, I was make money online even with a budget of zero. The third was that there is no such thing as Kaznet. It was Andrei Ryabykh who enabled me to make eventually grew into its own brand. So we ably count them with fingers of your two especially fascinated by the slide these discoveries at his training course during KIW–2011 started looking for something voluminous that would reflect what it is that we are hands. showing the algorithm for business doing – making money online. Quite the success. Can you tell us more about person discovery awaited us: as it turns out, in — Is it because it is not worth it? it? Russian (and I have heard it is the same — It is worth it. If we are a young company — The goal of any business is the incessant in Kazakh), there are very few words with with a small budget, it is easier to develop pursuit of an idea. It happens very rarely Ryabykh is a leading expert in positive connotations that can be used to a personal brand. Promoting a company is that an idea really starts working at the Russia on monetization in the refer to business. Russian has words like expensive, just because the environment is start-up stage. Usually what happens is that Web, and author of the book hustler, speculator and marketeer. The fairly crowded. we come up with something and launch Online Shop. Under the manage- word “businessman” itself, is somewhat it. We are given feed back about where we ment of the Internet Bourgeois vague, while “Internet Entrepreneur” is — When it comes to social networks, I were wrong, we make improvements and Andrei Ryabykh over 313 simply too long. It was at that moment have noticed that well-known brands re-launch the idea. After, the users send us projects have been implemented, that the word ‘bourgeois’ came to mind. In prefer to promote agents of influence more feedback. During the process of im- including popular online media projects and major shopping reality it is a really good word, if you look and publicize personalities… provement, we finally create something that websites at the western subtext. It refers to the class — This is because social networks are all people are willing to pay money for. It often of landed craftsmen which made up the personal. Brands find it hard to communi- happens that you depart from the original bourgeoisie. To us, it included those in the cate with people. idea in a completely new direction during lower classes that eventually also joined course of the improvement. the upper ranks. Upon deeper analysis, it — Your training seminar dealt with became clear to us that this word has very the question of how to make money — Is it possible to start up with no good associations among those involved online. Is it possible to make money budget in Kaznet? in business. Thus, we chose this name. On in Kaznet? — It is, but I don't want to focus too much on a side note, a certain Internet Proletariat — I don't know. The question is how much. Kaznet. You can “start up” wherever you'd immediately appeared afterwards. These The advertising service “Begoon” can help like. Don't think about Kaznet and Runet, Source: Delovoi Kazakhstan newspaper, 21 October 2011, No.40 people did not rest until their sites were us answer that question. At first we need to but about the Internet as a whole. There created and they had attacked our position find out how much money flows through is no reason to isolate yourself from the in every possible way. I can see now that Kaznet. The purpose of my visit was to find world. Have you ever heard anyone even this PR move resulted in much more for us out what is going on here, and whether your mention Amerinet or Frenchnet? That is that all those that preceded it. market has good prospects. Although I can why when we talk about start-ups in Kaznet, already tell that the market is fairly promis- what we are really talking about is start- — What makes more sense? To deve- ing, and we can start making forays into it ups on a global scale. I would recommend lop a personal brand, or is it, after all, both this year and during the next year. We that all those starting new companies in better to develop a company brand? will start seeing major gains in 2013—2014. Kazakhstan think on a global scale. That is — As the English would say, “It depends.” The Kazakhstan Internet market is a little to say you can create a model, and test it Take the case of my experience with my behind ours. But usually you see rapid out in your beloved Almaty, and immedi- personal brand. Once we had a long run of development as the experience of leaders ately scale it up to a global level. Remember negotiations with potential venture inves- in the area becomes accessible. This can be Chatroulette. The project was launched by a tors. Of course, we were not the only candi- seen in the example of Runet. In Kazakh- boy. The idea behind the project is connect- dates for capital investment. The investor, stan you have a market that is nearing the ing people with a random chat partner from being the boss, couldn't really remember critical 50% mark, and it is clear that there anywhere in the world. Eventually, the site

october – december / №8 [20] 28

hit 50 million users. What is important on even gave me an adapter in case I wanted to and my rates jump by three or five times. the Internet is your idea, not the money. use it in a regular phone. In this regard, there is a big debate I like Kcell. As soon as we arrived in ongoing in Russia, where the authorities — As a side note, much was said at Astana, I went looking for a mobile Internet want to forbid operators within a single KIW about the development of mo- SIM card. I explained that I needed fast network from billing roaming charges. bile Internet? Do you use it yourself, Internet and Kcell was what they recom- In Russia, roaming charges can equal up and what can you say about your mended. Of course I asked why. The sales- to seven times the normal rates. So I was experience in our country? man replied, ‘Their Internet is...’ and put very surprised to learn that it is different — I certainly do use it myself. Especially his thumb up. I kept asking questions: “If here. when I am on business trips. I really liked I buy it in Astana, what will the cost be for using it here. In Astana, the speeds were roaming in Almaty?” For three minutes, — One last question: Have you truly out of this world: I reached 4000 KB they could not understand at all what I was already added Kazakhstan to your per second! In Almaty, the story is slightly saying. And when they finally figured it out, business plan? different, especially in the mountains. I they told me that you have the same rates — We want to try to deploy one of our really liked the services as well. In Astana, I anywhere in the country! This was really financial projects in the area of credit, was at a market. I could add minutes to my surprising to me. In Russia, if I go to Mos- deposits and banking. This will most phone, change the rates to make browsing cow with my St. Petersburg Megaphone, I likely consist of accepting applications cheaper, get a micro-SIM card and they am immediately switched over to roaming, and helping people get loans. ● 30

Photo Report Altyn Kalam Discovers New Names in Kazakh Literature On the 6th of October the results of the National Literary Contest Altyn Kalam were summarized. The General Sponsor of the contest was GSM Kazakhstan/Kcell

Altyn Kalam is a very young literary contest, the first themselves, namely Mr. Dosym Satpayev, Mr. Kenje Jumanuly, awards from which were presented last year. Though Altyn Kalam Mr. Rasul Jumaly, Mr. Kuat Dombai and Mr. Aidos Syrym. The is only one year old, it has become quite well-known among young songs of Kazakh composers were performed during intermissions literary people. Yelena Klepikova, the winner of the Altyn Kalam between awards, and were sung by the Rodina Korean chorus, the contest comments, “It is great that the names of young Kazakhstani Roksonaki group, friends of Altyn Kalam, and singer Akikat. writers are becoming known in our country. Many participants in Mr. Dosym Satpayev, one of the founders of Altyn Kalam noted, this contest are already well known; they have already gained a “Today we are awarding prizes to young talents. I think it is a certain prestige and they are actively published abroad. I am very remarkable moment since at the same time the award of the Nobel grateful to the organizers of Altyn Kalam for providing us with Prize for accomplishments in literature is taking place in Sweden. an opportunity of being acknowledged, and for publishing our I hope that our Kazakhstani literary people will soon become the writings in our mother county.” It is notable this year that writers’ merited holders of this prize as the highest acknowledgement of applications for participating in the contest were received from their creative work.” Moldova, Ukraine, Kyrgyzstan and Russia. A total of 200 essays A peculiarity of this literary contest is its openness. Any author were entered in the contest. writing essays in Kazakh or in Russian (this condition was added The awards ceremony was conducted in a democratic during the current year) can become a participant in Altyn Kalam. way. The announcers were the organizers of the literary prize To take part in the contest, all that is necessary is to send a prose, 32

a poetry, or a drama written either for grownups or for children to the www.arzu.kz website. The winner is defined by the results of readers’ voting. Any person can enter the site and vote for the writing he likes. “A key factor for us is to ensure a transparent and an impartial judging. It is the only way for young talented writers to trust Altyn Kalam. That’s why we have intentionally selected a principle of public competition when the readers themselves choose the winners”, explains Mr. Kuat Dombai, one of the creators of Altyn Kalam. He continues, ”Our aim is not only to discover new names in Kazakh literature. We want these new names to become

Our aim is not only to discover new names in Kazakh literature. We want these new names to become familiar to a wide range of readers

familiar to a wide range of readers. That’s why we made our choice particular gratitude to the initiators and the inspirers of the concept for the Internet as a resource via which we could promote our for this contest. She remarked, “As a matter of fact these people contest.” did something more than a simple competition. Altyn Kalam has The Kcell cellular communications company provides appeared and is being developed only due to their enthusiasm and sponsorship to the Altyn Kalam contest for the second consecutive unselfishness.” year. A special Kcell Certificate was awarded to The Altyn Kalam Literary Award provides more than moral Ms. Maira Suleimenova for the children’s story titled “Jouna.” support and recognition to beginning writers — the main prize of this Ms. Suleimenova shared her impressions, “I have to confess that I contest will be publication of an album consisting of the writings of feel myself as if I were present at the Oscar award ceremony! I want the nominees, which will be sold in the Meloman network of stores. to express my sincere gratitude to the organizers of the contest and What can be better for a writer? This will open a wide path to future to all those who supported the contest. I want to thank them for readers. their altruism since this event is very significant for everyone who Once again the Altyn Kalam contest has opened new names in took part in it!” Kazakh literature, and, what is the most important, these names were When granting the special Certificate from the General discovered for all of us, for all who love reading. Sponsor, Ms. Aida Dossayeva — Director for Corporate A full list of names of the laureates of the Altyn Kalam contest Communications of GSM Kazakhstan/Kcell expressed her can be seen at www.arzu.kz. ● 34

Stanislav Osadchy, Altyn Kalam Literary Competition, Special Award in the Poetry Category

We're Torn Apart, We're Losing our Mind

*** “You promised us gardens In a cheerfully far away land.” Nikolai Klyuev, Russian Poet

“I don't see the road. Backward here means forward” William Jay Smith, American Indian Poet

“Japan's economic success has become its spiritual failure” Junsei Terasawa, renowned Buddhist monk (Japan)

We're torn apart, Hundreds of wars To crawl still We are like exoskeletons, We're losing our mind Ran over us, Three miles more Beaten into vanity. That bitter phrase – We don't remember Through the desert. We walk, The beggar's purse. The burning of Vietnam, Wind in nostrils – We're afraid of falling, We go and We have forgotten Blasting the loopholes: We carry our power We give up our cities, The schism of the Jungars, We are the camp Like a banner. To never remember them We braid flowers For incomprehensible books. So what again To break the wind. We are like worms, If the tracks form a circle? Ever. Forty moons – Being tied into knots, When we fall asleep We leave, Of wound-covered faces – We are stubborn and cruel Gardens await. Without looking back, We poured water And chop them in pieces. Who cares We are concerned with Over hospital windows. We wail, If the circle is shrinking? An impossible garden. Forty villages Holding our stomachs, If the smell of sweat The shadow people... Hurriedly mourned over We give birth, Reeks from the struggle? But what are they to us? The cathedral held the funeral We crawl ahead. Who cares We've been granted At new moon. We crawl If the river is under ice? The moment we've bought. Forty lamas And don't look for reasons, We walk. We don't wait for the fallen. Mountains of bodies, Accepted into eternity Temujin cast us We will be broken, Populating our dreams, Cut off the road Like lots. And slide under the ice Their lot is to To tears. Liberty and honour By that loud word – Never see the spring. We may have Don't stick to us, Onward.

Stanislav Osadchy Born in 1964 in Aktyubinsk Oblast, although he did not complete his higher education at the Al-Farabi Kazakh National University Faculty of Journalism, now works in the profession, residing in Aktobe, Kazakhstan. Publishing his poems at the local press, he has authored two collections of poetry, which he self-published in Aktobe, printing small runs at various times: Age of Fallen Leaves, 2001; There is but Liberty, 2007. He is not a member of the Writers' Guild, PEN Club or literary movements. Сontact address: 2 Appt., 12 Prigorodny, 030016, Aktobe city, Republic of Kazakhstan Tel.: 8 (7132) 98 40 72 e-mail: [email protected] 36 37

an age of cellular revolution which has communication would quickly become and providing world-class opportunities completely overhauled people's economic more than just a means of communication for those living in the country. Therefore, and social lives. Based on data from between two people. Kcell works on improving the quality of Internet sources, in 2011 approximately Today, Kcell has been selected by life not only of its staff members but of there were 6 billion mobile subscriptions millions subscribers across the country. everyone in Kazakhstan. Every year, the registered in the world. In the opinion of This operator helps people build their company implements around 40 social some experts, by 2016 this number may business and has facilitated dialogue projects. Under the support of Kcell, well equal the population of our planet. On between 4,901 cities and villages sporting competitions and national a side note, in Kazakhstan the number of throughout the country. It is an immense contests for hunting bird trainers are mobile subscriptions has long ago exceeded achievement — providing residents of organized, as well as artistic competitions. the number of residents in our country. nearly all corners of Kazakhstan with the Over its history, the company has Based on data from the RoK Statistics ability to communicate with others all over invested about 2 billion KZT in the social Agency, there are already 18 million of the world, and all of these 12 years. Over sphere. Education, sports, supporting them. Of these, over 10 million are with this time, Kcell has not only created one of people with disabilities and the revival GSM Kazakhstan/Kcell. the most popular brands in the country, but of our national cultural heritage are This year, Kazakhstan reached the has also earned an image as an innovative priority areas in GSM Kazakhstan/Kcell 20-year mark since its independence. Kcell mobile operator. corporate social responsibility programs. has been with independent Kazakhstan Over the years, Kcell has been and The company is among the top taxpayers for more than half of this journey. 12 remains the trendsetter of the most current in the country, and the largest in Almaty, years ago, cellular communications began trends in the development of the mobile having contributed around $2 billion to their development in our country under communications market. To mainly, it was the national budget over the past 12 years. quite complicated circumstances. The thanks to the efforts of this operator that Job positions, tax contributions, the infrastructure was poor and power outages November 2010 saw the launch of 3G in staff training and development program, were common in many oblasts. You could Kazakhstan. Active work is underway in and fantastic benefits – all of these say Kcell and Kazakhstan overcame preparation of the launch of LTE. Already, qualities have made Kcell one of the best the difficulties of growth and economic the company is proud of the fact that it is employers in Kazakhstan. improvement together. meeting the objectives of the government of Kcell shows no signs of slowing Kcell started developing its network Kazakhstan on providing rural areas with down, because this operator is committed in 1999 in the oblast centres. Gradually, it telephone access, providing cellular service to making Kazakhstan the best country expanded to include small towns, villages to practically all villages with a population in the world — for self-actualization, for and the tiniest of auls. Highways and other of 2,000 or more. Kcell has made a massive business, for life. ● roads got coverage, and this is something contribution to the country's economic the company is especially proud of. Now, development. After all, where mobile if you are someplace in the mountains or service is available, information exchange What a Person the steppe and you cannot get a network, it is accelerated and modern, effective comes as a surprise. Subscribers are certain instruments for business development that Kcell should be available everywhere become more accessible. Kcell has a vested Cannot Do Without by default! It is great that over the past interest in the long-term sustainable dozen years we have already forgotten development of the country. After all, the business If you try to remember what a normal centre-of-the-bell-curve Kazakhstani could not do without twenty about the time when you were certain to telecom industry is a reflection of the level get a signal only in the cities and a small of competitiveness of a state. By investing years ago, the list would not have included a computer, modem or mobile phone. Now, the first item handful of villages. Talking to your family in telecommunications infrastructure, Kcell on this list would be a mobile device of some kind, easily pushing televisions, computers and even when you were on a road trip was like is playing a part in Kazakhstan's becoming cars into the background something out of a dream. Now subscribers one of the 50 most competitive countries of are concerned about when mobile Internet the world. Over the history of its existence, Think about it, all of 12 years or so have check our mail, read the news, find out came to letters, we were willing to wait for will become even faster and when 4G will the company's investments have exceeded transpired, and mobile communication the weather forecast or view events months. Now we immediately begin loosing be rolled out, even though just a decade 1.5 billion. has turned our lives upside down. It has schedules, or send our friends and relatives patience if we have to wait for more than ago, the word Internet was familiar to only Currently, Kcell is Kazakhstan's been accompanied by a feeling of liberty photographs and videos from far away two minutes. Cellular networks connect our a few thousand Kazakhstanis. And it was leading operator. But within this context, and limitless opportunities. You can now travels. Our lives have truly changed in hearts regardless of where we live, what probably only staff at cellular companies the company does much more than simply hear your loved one's voice from practically their momentum and rhythm! In the past, our social status is, what language we speak, that were aware that the Internet could provides features and services of the best anywhere across the globe. we would calmly wait for weeks to get which religion we confess, what profession be mobile. During those years, not many quality. The company's goal is to make a Using our mobile phones we can the information we needed, and when it we have or our viewpoints. We live in in Kazakhstan could imagine that mobile contribution to community improvements

october — december / №8 [20] 39

It is a Smartphone!

Looking at Samsung's new device, it is hard to decide whether it is a tablet or a smartphone: in its luxurious маrкет leather case, the device looks more like a tablet, but Super Amoled Plus display, with a resolution of 1280½800 pixels and measuring 5.3 inches diagonally, even though it is big, falls short of a tablet's dimensions. Another new development that is immediately apparent is that the Note expands Super Amoled technology to HD format, and that means that you can easily watch movie clips not only on your PC, but on your TV as well. Running ahead, I should note that in the end, my decision to classify the Galaxy Note as a smartphone was affected by the fact that you can place calls, a feature lacking in the majority of tablets, and the device's thinness: 9.65 mm. Let's take a look at the capabilities of the gigantic smartphone. The Samsung Galaxy Note is equipped with a dual core processor running at 1.4 GHz, with 1 GB of RAM and 16 GB of built in storage capacity, and thanks to these features it is automatically one of the most powerful smartphones currently available. The device october — december / №8 [20] 40

supports all the required GSM and 3G standards, and also has Bluetooth v3.0 НS, Wi-Fi 802.11b/g/n, Wi-Fi Direct, schedule. Not only is it easy GPS, A-GPS, GLONASS and to view and plan current tasks USB 2.0 Host technology. The with a specific deadline (today, smartphone runs on Android this week or this month), you 2.3.5 and has all the expected can adjust your plans in real pros and cons and the exact time. same settings, capabilities and S Choice is an app store pre-installed applications (Social devoted to applications Hub, Polaris Office, video and developed especially for Galaxy photo editors, AllShare, Kies air, Note. etc.) as the flagship Samsung The smartphone's outer Galaxy S II. A couple of the key casing is made of plastic, features of Galaxy Note are the while the grooved back panel, software (S Memo, S Planner and pleasant to the touch, is flexible S Choice) and the stylus (S Pen). but strong. Behind it there is The stylus has the optimum size an increased-capacity 2500 and shape making it comfortable mAh battery, which lasts for both right- and left-handed around two days, and two people to use, while two apps, non-hot-swappable slots, one S Memo and S Planner are for the SIM card, and the other perfect for taking notes and for microSD cards. For video planning your days. Using the calling, the front panel sports S Pen, you can make notations, the aperture of a 2-MP camera, draw, leave comments on photos, while the main 8-megapixel and send the results of your work camera on the back is equipped for immediate printing, or send with an LED flash. The flash files to your friends on social can be used as a torch, and the networks. The Galaxy Note has a camera shoots 1080p HD video. HD Super Amoled display. Overall, the device is very S Memo is not simply a well made: it has impressive notebook or dayminder, it truly technical characteristics, a has unique functions. S Memo unique combination of makes it possible to easily and quickly record your thoughts on smartphone and tablet features the screen and save them in the built-in memory. The notebook and a convenient toolkit for not only accepts text information, but also voice commentary handwriting input. It is a sort and drawings that you can even edit if the need should that you can also use to keep in touchof smart with people.dayminder, A couple with disadvantages are the unremarkable design of the device arise. Screenshots can be saved to memory and then text (without a case) and the slightly gratuitous price point. It is comments can be added to them. good, but perhaps not for everyone. I think it is perfect S Planner is an intelligent calendar with a user for people whose work week begins with meetings friendly interface – the perfect tool for managing and task assignment. Would I buy one myself? complex task schedules. No longer do you Without a doubt, this intelligent planner is a have to enter reminders in your notebook real catch. ● at every turn. All you have to do is enter handwritten text using S Pen and the note is transformed into electronic format and added to the