Development strategy

In January 2017, the Board of Directors adopted the Development Strategy of Transtelecom JSC until 2026 (Development Strategy), which is aimed at Company's market value (capitalization) increase.

The Company's Development Strategy determines the mission, vision, strategic goal and strategic directions of the Company’s development, which correspond to the current state and development prospects of the telecommunications industry. A special attention in the Development Strategy is devoted to the issues of sustainable development and performance improvement.

Mission, vision and values

Mission

Transtelecom JSC is engaged in telecommunications, digitalization and system integration in the field of IT, communications, automatics and energy.

Our MISSION is to bring Kazakhstan people to digital well-being.

Our MISSION is to bring Kazakhstan people to digital well-being.

Since the market environment will change in the next three years, resulting in a rapid increase in the use of the Internet and e-business, along with a rapid change in infocommunication technologies, with increasing customer demands for speed of connection/implementation of the product/service and their resiliency, speed of problems resolution upon services rendering and quality of service;

Based on our unique abilities: own fiber-optic backbone network, which unites all major cities of the country, international cross-border crossings, an accredited certification center with a legitimate electronic signature on the territory of the Republic of Kazakhstan and the Russian Federation, an information security center, experience in implementing unique ICT projects, and also our speed and flexibility in decision-making.

By 2021, we will be the first in the Central Asian region in data transit and Internet supply and the first IT integrator in the Republic of Kazakhstan

For this end we:

  • Are building a balanced duties-authorities-remuneration system, namely: we shape a flexible organizational structure corresponding to the mission, with the affiliation of the branches for profit; we ensure the adequacy of the branches' authority to conduct business and develop a fair and harmonious remuneration system that takes into account, inter alia, the reliability of the equipment and the quality of customer service;

  • Are developing digital strategies that take into account the rapid change of information and communication technologies; increase sales of content and increase the share of foreign exchange earnings;

  • Are increasing the borrowing capacity, looking for alternative sources of financing and hedging the currency risks;

  • Are entering into an alliance with a mobile carrier;

  • Are introducing independently new management tools, carry out separation of operational (run) and strategic (change) functions in management; we are implementing a corporate project management system, a single management reporting information system and a system for expertise control and preservation;

  • Are increasing the effectiveness of the marketing function, we are developing a unique positioning and sales proposition, and increasing the Company's awareness in the market;

  • Are strengthening the GR function, including to expansion of participation in the Digital Kazakhstan - 2020 program;

  • Are developing a partner network for services connection and implementation of solutions; we are introducing the automated application processing systems; ensuring the transparency of the work of linear engineers; we are introducing the integrated automated technical accounting system;

  • Are striving to achieve the best quality in customer service, including: a large number of entry points, efficient CRM, a system of standards and quality of service, paperless workflow with the client;

  • Are ensuring the infrastructure resiliency by means of the monitoring system improvement, introduction of an optimal system to ensure operation and development (including the supply of materials and spare parts), quality resource planning and cooperation only with quality vendors and contractors;

  • Are implementing the incident and technological risk management systems, online monitoring of application execution by the client; we are providing special equipment for quick response to accidents;

  • Are opening new junction points and transit routes with carriers with the route optimization to the client, open points of presence at traffic exchange centers in Southeast Asia and North America, provide loyalty and flexibility to partners/carriers;

  • Are monitoring and analyzing the trends in the field of ICT, including in other sectors; we are growing the Company's competence in system integration in shopping malls and IT; we are accelerating the creation and launch of new product lines on the market using advanced developments and technologies; we are introducing the specialized services for e-commerce and financial and technical sectors; we are increasing the data center capacity and the number of services for them; we are manufacturing the equipment under our own brand

  • Are introducing a system of SW developers attracting, including a co-working platform, the provision of containers and a CDN platform; we are providing high-quality infrastructure for the sale of their products and place them on our own cloud platform; we are receiving the exclusive rights to distribute products and services of developers;

  • Are designing a unified system of business process management and ensuring continuous integrated broadcasting of policies, procedures and news;

  • Are creating a corporate university; we are introducing mentoring and continuous staff training, including product training; we are introducing a system for service personnel assessment; we are increasing the level of emotional intelligence in management; we are practicing the rotation of managers;

  • Are creating partnerships with universities, conduct practical and laboratory classes on the principles of dual education.

In these activities implementation we rely on our core values:

  • We are respectful;

  • We are constantly improving;

  • We are a reliable Company, we value our reputation.

Company's vision and values

Company's Vision for 2023 is defined as follows:

Diversified carrier of a wide range of ICT services, which implements a large complex projects in the private and public sectors and provides a wide range of services to individuals and organizations.

The key evidences of this statement are the following:

  • Provision of services in all market segments;

  • Combination of service delivery and project implementation;

  • The presence of a large portfolio of services, that integrate traditional communication services, IT and cloud services.

The key values of the Company stated in the Mission are the following:

  • Respect. (We are respectful)

    Perception of clients, partners, competitors as equals, acceptance of their own values and goals, ability to listen and hear them, find common ground and build mutually beneficial relationships, unless this contradicts the values of the Company.

  • Perfection. (We are constantly improving).

    The Company continuously strives to both improve the quality of services provided and make their use comfortable for customer use. It also strives to improve its activities, the qualifications of employees and their involvement in Company's activities, the effectiveness of business processes and procedures, and the organizational structure of the Company.

  • Reliability and reputation (We are a reliable company. We care our reputation).

    The Company makes efforts to prove and keep the reputation of a reliable service provider and partner, socially responsible and law-abiding market player.

Assessment of the Company's position and prospects for its development

The Company is an active market player with a significant market share in all segments except a b2c one. A proactive approach to work with business clients and a high degree of customer focus, especially in terms of major customers, ensured the Company a good reputation and correct positioning. Experience in major IT projects and creation of cloud infrastructure for their implementation ensured a competitive position of the Company in the cloud services segment. However, business development in the private segment and the provision of services for small businesses was developing on a residual basis, due to the focus on large business, which led to a predominantly project-based approach to the provision of services by the Company and poor development of access networks, delayed actions to create and promote a passive brand, a passive branch positions in terms of securing the revenue side of the budget.

In the framework of the Development Strategy until 2023 the Company will focus on four key strategic areas:

  • b2c segment

    In which the Company will increase its share due to the acquisition of a large pay-TV operator and continue its expansion into this market due to additional sales on the combined subscriber base of double and triple-play services, as well as offering subscribers a new set of services - cloud services and non- ICT services of partners sold through the marketplace;

  • b2b/b2g segment

    In which the Company will strive to transform its business model towards offering a wide range of services to a wide range of clients in the format of packages formed according to industry characteristics and client size;

  • A segment of new solutions

    In which the Company will focus on the formation of a value proposition of services, in which, by improving the quality of services and customer service, it will be able to differentiate from competitors and keep prices for services provided in the context of continuing price competition in the segment

  • In which the Company will expand the range of cloud services offered for other strategic areas in terms of expanding the range of XaaS services in the direction of providing integrated services and packages from them, as well as mass offering of SaaS services and providing subscription software. As part of this segment, the Company will increase its competencies in new markets, such as information security, the Internet of Things, big data and digitalization of business.

Within these strategic directions, the Company sets the following strategic goals:

  • The growth of the Company's net profit;

  • Operational efficiency increase;

  • Expansion of the customer base in all segments, increase of the share of revenue from third-party customers, increase of the share of service revenue.

  • Expansion of the Company's product portfolio.

The key factors for successful movement of Transtelecom JSC into the formulated position are internal transformations that ensure the Company's operational efficiency, its adaptability to changing market conditions and the creation of a competitive advantage relative to key competitors.

These transformations are:

  • Building a partnership business model within the Company, when the Company retains strategic control over its business, attracting partners to form a product portfolio and perform service functions.

  • Transition to a mixed business model, when the project business model which the Company uses is complemented by a product business model oriented to the mass client, both individual and legal entity.

  • Arrangement of system of material incentives for all levels of employees of the Company, linked to the performance of the Company as a whole and of each employee as individual.

  • The transition to a system of multiple profit centers in the Company, making Company's branches and individual divisions of the central office working with individual clients or groups of clients responsible for financial result.

  • Expansion of the planning focus beyond operational and financial performance, introduction of both financial planning practices, but also longterm rolling planning on key non-financial resources of the company — infrastructure, product portfolio, competence set, improvement and automation of business processes.