Kcell enters trilateral network sharing agreement
/KASE, May 5, 2020/ – Kcell (Almaty), whose shares are officially listed on
Kazakhstan Stock Exchange (KASE), has informed KASE about the following:
Kcell Joint Stock Company ("Kcell" or the "Company") (LSE, KASE, AIX: KCEL,
KCEL.Y), the leading provider of mobile telecommunications services in
Kazakhstan, notifies that its Board of Directors has approved the decision on
entering into a trilateral network sharing agreement between Kcell JSC, KaR-Tel
LLP and Mobile Telecom-Service LLP ("Parties"). The Agreement provides an
opportunity for the Parties to commence joint construction and operation of a
mobile broadband network that covers settlements with a population of 250 to
1000 people, national and regional highways and railways.
Each Party will independently build and operate the mobile broadband network
and will allow the other Parties to use its network infrastructure within their
coverage zone on the terms and conditions set forth in the Agreement.
The construction volume of the network infrastructure will be distributed
between KaR-Tel LLP and Kazakhtelecom Group of companies as follows:
35 percent – KaR-Tel LLP and 65 percent – Kazakhtelecom Group of companies.
The Agreement does not provide for the Parties' joint ownership or disposal of
the network infrastructure.
The Agreement is not intended to limit competition between the Parties in
wholesale or retail business and nor does it constitute a market sharing
arrangement. Each Party is fully entitled to continue to carry on its wholesale
and retail business as it may deem appropriate.