What’s Next for Tele2/Altel After Ownership Change?

In early 2025 the owner of Mobile Telecom-Service LLP which operates in Kazakhstan under the Tele2/Altel brands became the Qatari conglomerate Power International Holding (PIH). Previously the Kazakhstani mobile operator was owned by Kazakhtelecom. How will Tele2/Altel change under the management of the Qatari holding? In the latest edition of Forbes Q&A journalist Meruert Sarsenova spoke with Mikhail Gerchuk, CEO of PIH Telecom Group and Aleksandr Babichev, Chairman of the Board of Mobile Telecom-Service.

A Deal Secured at the Highest Level

According to Mikhail Gerchuk the deal was concluded in under a year—a notably quick turnaround for the industry. «The terms of the agreement involved approval from Kazakhstan’s regulatory authorities, including the antimonopoly body as well as the signing of an intergovernmental agreement between Kazakhstan and Qatar. This agreement was concluded at the highest level and offers robust protection for Power International Holding’s investments» he explains.

Mikhail emphasizes that the Qatari holding paid a fair price for Tele2/Altel. «Our task now is to develop it by investing hundreds of millions of dollars over the next few years» he adds. These investments will primarily be directed towards developing the 5G network (for which the company already holds a license) as well as improving mobile internet quality and expanding digital services.

Why Kazakhstan?

Power International Holding had not previously operated in the telecommunications sector but chose Kazakhstan for its debut in the industry. Mikhail cites several reasons for this decision: the transparency of the market and regulators, the high growth potential and the strong market position of the Tele2/Altel brands in Kazakhstan.

«Kazakhstan is an attractive investment platform and we are confident that the telecommunications sector here will grow alongside the economy», says Mikhail.

Management Change: A Focus on Leadership

A week after the deal closed a leadership change took place at Mobile Telecom-Service. Aleksandr Babichev formerly the company’s Commercial Director was appointed Chairman of the Board.

«The previous management focused on successfully closing the deal. Now it’s time for growth and development», says Mikhail, explaining the staffing changes.

Aleksandr Babichev’s appointment is no coincidence. He has extensive experience with Tele2, having spent 15 years working with the company in both Russia and Kazakhstan, where he grow from regional manager to CEO.

«I started my career at Tele2 right after university in Murmansk, then in St. Petersburg and Moscow. In 2017 I moved to Kazakhstan where I was responsible for product strategy and commercial development», says Aleksandr.

Will There Be a Rebranding? What Can Customers Expect?

Before any rebranding or significant changes can take place the company’s new strategy must first be approved. Which areas will be impacted and what will undergo a radical transformation? Aleksandr provides detailed answers to these questions during the discussion.

The journalist also inquires whether, following the change of ownership, there will be a rebranding or a merger of the two mobile operators under a single brand. Aleksandr addresses this topic as well.

What about potential price increases? «We will continue offering competitive tariffs, but our focus will now extend beyond mobile communications. We are expanding into fixed internet (Fixed Wireless Access) and digital services aimed at the business sector», says Mikhail.

Throughout the interview Mikhail also outlines the key trends in the telecommunications industry that will have the greatest impact on Tele2/Altel’s business in the near future.

For an in-depth look at all of this and much more, watch the latest release on theForbes Kazakhstan YouTube-channel.

Power International Holding (PIH) is one of the region’s most diversified and dynamic conglomerates, operating across seven key sectors including, energy, construction, real estate, healthcare, agriculture & food industries, lifestyle & entertainment and telecommunications & technology. Headquartered in Qatar and privately owned, PIH is the parent company of six powerful business groups: UCC Holding, Estithmar Holding, Baladna Food Industries, Aura Group, Assets Group and TMT Group.

With a portfolio spanning over 400 companies, a workforce of 65,000+ employees representing more than 100 nationalities, and a presence in 19 countries, PIH is recognized for its scale, agility, and unwavering commitment to sustainable value creation. It was ranked 12th among the Top 100 Arab Family Businesses by Forbes​.

Guided by its founders, Moutaz Al Khayyat (Chairman) and Ramez Al Khayyat (President & Group CEO), PIH continues to redefine excellence through multigenerational leadership and an inclusive, innovation-driven culture.