Almaty. May 4. KazTAG - Since May 1 "Kazakhtelecom" escalated monthly fee for fixed telephone communication. At the same time, the fees for legal entities have not been changed. Batyr Makanbetazhiyev, chief director for strategic management of "Kazakhtelecom" told KazTAG about the reason for the escalation and why the tariffs for legal entities remained unchanged.
-What is the reason for subscription fees’ escalation by 20% since May 1?
-The new tariffs for universal services of telecommunications were introduced within the next stage of tariffs’ rebalancing for universal telecommunication services. It is an integral part of the liberalization of the communications branch and it is stipulated by the law.
As a whole, I should mark that the services of local telephone communications are presented by "Kazakhtelecom" on the tariffs which are factually lower their cost price, while the level of monthly subscription fees in Kazakhstan are one of the lowest in the world. For comparison, the subscription fees in calculation into our currency reach 3500 tenge in the US and Australia, 2500 tenge in Great Britain, 1 896 tenge in Russia. In all these states city dwellers and people living in rural areas pay on the uniform tariff. In Russia village dwellers pay the fees which are 3.5 times higher than in Kazakhstan, the fees are twice higher in the cities.
The cost of the telephone communication in relation to the gross national revenue per capita in Kazakhstan is also one of the lowest in the world- 0.38%.
This situation does not promote competition development at the market of telephone communication, including in rural area. Insufficient financing may result in degradation and destruction of the local telephone networks that will affect the quality of the services.
If the tariffs of the operator remain unchanged, the legislation on competition protection will be violated, which bans the dominating companies set the tariffs lower their cost price. Due to this, the government takes measures for tariffs rebalancing for universal services, reaching the level of the cost price.
-Why escalation of fees did not concern the legal entities?
-Historically in Kazakhstan and other Post Soviet states there was stipulated tariffs' differentiation for basic services on the categories of subscribers: low tariffs for population and higher tariffs for organizations. Such situation was possible in the conditions, when there was only one telecommunications operator at the market and more expensive services subsidized socially important services, in the conditions of the market liberalization of the telecommunications and growing competition the government is taking measures to equalize the tariffs between the categories of subscribers.
-Won't it result in refusal to use the fixed telephones in favor of mobile communication by subscribers? The tariffs for cellular communication constantly decrease…
-Currently the tendencies of the world telecommunications market showed gradual replacement of fixed communication by mobile one, so called "effect of mobile replacement". This tendency has been observed at our telecommunications market, in the nearest three years the situation will be compounded, independently from tariffs rebalancing.
I agree, the process of traffic cross flow from the fixed networks to the mobile ones is objective. At the same time, it is worth remembering that only "Kazakhtelecom" provides this service in all the inhabited points both in the cities and villages (as known, the company provided phone communications to all the perspective inhabited zones with 20 residents and higher). At the same time, the presentation of services originates big exploitation expenses for maintenance of the local telecommunication networks. As known, the communication within the territory of one district is considered as local, while "Kazakhtelecom" provides communication for fixed subscription fees within rural areas within 300 km.
I should mark, presentation of the services of local communication has been unprofitable for "Kazakhtelecom". Even taking in account the tariffs’ escalation since May 1, exploitation expenses of the company will be repaid by 44% for the city communication and by 29% in rural area.
-Which volume of monthly profit will the company get after the fees’ escalation?
-The fees will compensate only a part of exploitation expenses for the maintenance of the local networks. Thus, there is no question about additional profits.
-When was the last time when the company escalated the subscription fee?
-According to the order of the agency for information and communication dated from November 13, 2009№463, within the tariffs rebalancing the fees were escalated by 18% for city dwellers and by 30% for rural inhabitants since January 1, 2010.
The fee was also escalated for individual entrepreneurs in the city and rural area by 10%.
At the same time I'd like to remind that in 2011 "Kazakhtelecom" held a number of arrangements for the tariffs reduction and improvement of service.
-When will the fees be escalated the next time and how much?
-According to the article 32 of the law "On communication" the plan of tariffs' rebalancing and the tariffs for universal telecommunication services are ratified by an authorized body. There are no plans to hold the next stage of rebalancing and increase the fees this year.
-How will you comment the request of deputy Mukhtar Tanikeyev concerning the salaries of top-managers in the company?
-According to the agency on statistics, the monthly salary in the branch made up 128 100 tenge in 2011. According to the audited report, the average monthly salary in “Kazakhtelecom” was equal to 118 900 tenge.
-Thank you for the interview!