Monday, December 31, 2012

TeliaSonera completes acquisition of Kazakh WiMax network


TeliaSonera has completed the acquisition of the WiMax operations of Kazakh company Alem Communications from Midas Telecom. TeliaSonera has also made an indirect minority investment in KazTransCom, through the purchase of shares from Alatau.
With the acquisition of a WiMax network in six cities, TeliaSonera also secures frequencies in the 2.5/2.6 GHz band. The frequencies are compatible for use with mobile data transmission technologies such as 4G.
Following completion of the transactions, Kcell, TeliaSonera’s subsidiary in Kazakhstan, will have full access to these businesses on commercial terms. It already deploys the backbone capacity of KazTransCom's national fiber optic network, and has started to prepare for the deployment of the frequencies of Alem Communications. TeliaSonera intends to transfer to Kcell the WiMax operations, including frequencies, and its investment in KazTransCom.
The total value of the transactions is $205 million (subject to any post completion accounting adjustments), of which the Wimax acquisition from Midas Telecom represents $170 million, and the minority investment and option rights related to KazTransCom represents $35 million.

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