KT Eyes GSM Network Launch By The End Of 2013
News: Kazakhtelecom (KT) intends to introduce a GSM network under the Altel brand currently harnessed by its CDMA2000/LTE unit, TeleGeography reports. The network is expected to be launched in six or seven major cities, including Almaty and Astana. KT's previous association with GSM technology, via the ill-fated NEO, drew short on its goals, with its already small user base falling to 217,000 by mid-2010. However, since Swedish Tele2 took over in March 2010, the cellular unit has witnessed users climb to 3,162mn users by mid-2013.
BMI View: Our assumptions about market dynamics remain unchanged and growth in the quarter was in line with our expectations. We expect slowing growth over the duration of our forecast period, and, additionally, we highlight the potential for the discounting of inactive subscriptions to result in a downward revision to operator subscription totals at some point in the coming years.