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Veon Expands Satellite Service to Kazakhstan After Ukraine Deal
ByAinvest
Thursday, Aug 7, 2025 6:33 am ET1min read
Veon Ltd. is considering expanding its satellite-powered mobile services to Kazakhstan, its second market after Ukraine. The company aims to provide connectivity in remote areas where terrestrial networks are not available. Veon's Ukrainian subsidiary, Kyivstar, plans to offer space-based connectivity starting with satellite-to-mobile text messages in Q4. The company also plans to offer fintech services in Kazakhstan and is monitoring the regulator's plan to simplify procedures.
Veon Ltd., a major telecom operator, is exploring the possibility of expanding its satellite-powered mobile services to Kazakhstan. This move comes after the company successfully partnered with Elon Musk's Starlink Inc. in Ukraine to provide satellite-based connectivity in remote areas where terrestrial networks are unavailable [1].Kazakhstan, the ninth-largest country by area, presents significant challenges for terrestrial network coverage due to its vast territory and sparse population. Veon's Chief Executive Officer, Kaan Terzioglu, highlighted the need for satellite-based services in such regions, stating that "it's literally impossible to use terrestrial networks to reach every single point" [1].
Veon's Ukrainian subsidiary, Kyivstar PJSC, plans to offer space-based connectivity starting with satellite-to-mobile text messages in the fourth quarter. The service will be offered at no additional cost for the duration of the war in Ukraine [1]. The company is also considering partnerships with other satellite operators such as Eutelsat SA’s OneWeb for future expansions [1].
In addition to connectivity services, Veon is planning to offer fintech services in Kazakhstan. The company is monitoring the regulator's plan to simplify procedures to secure a banking license and compete with the country's dominant mobile banking provider, Kaspi.Kz JSC [1].
Veon's Beeline service is currently the second-largest mobile operator in Kazakhstan, after Kcell JSC. The company aims to capture a significant share of the market, which Terzioglu described as "big enough for a second player" [1].
The expansion into Kazakhstan aligns with Veon's broader strategy to leverage satellite technology to bridge coverage gaps in remote areas. The company is also in discussions with other satellite operators such as Amazon's Project Kuiper, AST SpaceMobile, and Eutelsat OneWeb to expand its satellite services beyond Ukraine [2].
Veon's recent financial performance has been strong, with the company raising its annual outlook for revenue and core profit after posting strong second-quarter earnings. The company expects total revenue to grow between 13% and 15% and earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise in a range of 14% to 16% this year [2].
References:
[1] https://www.bloomberg.com/news/articles/2025-08-07/veon-eyes-kazakh-satellite-service-after-ukraine-starlink-deal
[2] https://www.globalbankingandfinance.com/VEON-RESULTS-c0ff64d3-d381-43dc-9c0c-7f3f3c7a2e94
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