2 3 18 22 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.