Kazakhtelecom JSC

INTRODUCTION

Nowadays, with the development of IT technologies telecommunication plays important role in daily life in society. It is significant part of communication process between people. There are many types of companies which deal with this business. To illustrate, they are the world's largest telecommunications companies measured by total revenues: AT&T, Verizon Communication, Nippon Telegraph& Telephone, China Mobile Telecommunication, Deutsche Telecom and others.

Telecommunication does not depend on the square of territory, but it depends on number users. Therefore, we have chosen two national companies such as our national company Kazakhtelecom and Britishtelecom.

Kazakhtelecom JSC

Joint Stock Company Kazakhtelecom (hereinafter referred to as “The Company”) is the largest telecommunication operator of the Republic of Kazakhstan providing a wide range of info-communication services across the whole territory of the country.

The Company is the largest telecommunications operator of fixed telephony in Kazakhstan, the recognized leader in providing telecommunications services, including in rural area, and one of the largest operators of the National data communications network.

Samruk-Kazyna JSC is a major shareholder of Kazakhtelecom JSC with a 100% percent state participation in the authorized capital, and with the state holding 51 percent of the Company’s ordinary shares.

Kazakhtelecom JSC is a legal entity that has 23 affiliated branches and representation offices in the Russian Federation and the People’s Republic of China.

The Company’s central office is located in the city of Astana, the capital of Kazakhstan. There are about 30 thousand people working for the Company. JSC has got regional branches in each oblast of the country thereby ensuring provision of telecommunications services across the whole territory of the country.

On January 10, 2014, the international rating agency Fitch Ratings improved the outlook for the Kazakhtelecom JSC's long term Issuer Default Rating (“IDR”) from “Negative” to “Stable” and confirmed IDR at “BB” level. Fitch Ratings pointed out strong position of Kazakhtelecom JSC in the market for fixed communications as well as its leadership in the broadband data communications segment, including due to fast deployment of optical infrastructure in key regions.

The mission and vision of Kazakhtelecom is to grow and connect segment of the Kazakhstani economy. A nation-wide introduction of info-communication technologies is a necessary condition for increasing labor productivity and creating the basis for progressive development of national enterprises and their integration into the world economy. In today’s world, the telecommunications market structure is undergoing radical changes due to new technologies and products, new ideas and innovative solutions coming into service. The Kazakhtelecom JSC’s ability to quickly adapt to changing market conditions makes for its sustainability and possibility of further development.

The Board of Directors is comprised of 9 members each having the right for one vote. Transfer of votes by one member of the Board of Director to another member of the Board of Directors is prohibited. The Board of Directors of Kazakhtelecom JSC in the current composition was elected on May 8, 2012 at the annual General Shareholders’ Meeting of Kazakhtelecom JSC (Protocol № 47). The Board of Directors:

1. Baidauletov Nurzhan- Chairman of the Board of Directors, representative of Samruk -Kazyna JSC, the Company’s shareholder;

2. Esekeev Kuanishbek- Chairman of the Kazakhtelecom JSC’s Management Board;

3. Nuriyeva Aigul – representative of Bodam B.V, the companies shareholder;

4. Sarsenov Adilbek – representative of Bodam B.V, the companies shareholder, Chairman of the Committee for Strategic Planning;

5. Saudabayev Serik – representative of Samryk-Kazyna JSC, the companies shareholder, member of the Committee for Strategic Planning;

6. Akentiyeva Natalia- Independent Director, Chairwoman of the Committee Social Issues, member of the Committee For Audit, member of the Committee for Appointments and Remuneration;

7. Kuchura Vitaliy – Independent Director, member of the Committee for Appointments and Remuneration, member for the Committee for Strategic Planning, member of the Committee Social Issues;

8. Larionov Dmitriy – Independent director, chairman of the Committee for Audit, Member of the Committee for Appointments and Remunerations;

9. Okayev Ermek - Independent director, chairman of the Committee for Appointments and Remunerations.