Sustainability Report: Aspect G

Innovative technologies play an important role in achieving the strategic goals of the Company and contribute to the creation of high-quality and user-friendly services for millions of people in Kazakhstan.

The implementation of innovative projects and the digital transformation of the Company help enhance management efficiency, minimize risks, and support alignment with ESG principles and the achievement of the UN Sustainable Development Goals.

Modernization of Backbone Data Transmission Network (BDTN)

In 2024, the implementation of the project “Expansion of Port Capacity for Operator Connections” was completed. During the 2020–2024 period, the following measures were carried out:

• Expansion/installation of ASBR (Autonomous System Border Routers) of the backbone data transmission network;
• Expansion of external Internet channels on ASBR routers of the backbone data transmission network;
• Expansion of port capacity on MX-PE routers of the backbone data transmission network;
• Expansion of port capacity on MASG routers of the Mobile Backhaul network;
• Expansion/modernization of core P-routers (PTX) of the backbone data transmission network;
• Expansion/installation of DWDM backbone channels;
• Expansion/installation of SpeedTest servers to monitor the quality of data transmission services across the backbone data transmission network.

In 2024, service edge routers were upgraded. As a result of installation and commissioning works, telecommunications operators can now connect to 100 Gbps ports in the cities of Astana, Almaty, Aktobe, Shymkent, Karaganda, Atyrau, Taraz, Pavlodar, Kyzylorda, Semey, Uralsk, Kostanay, Aktau, and Ust-Kamenogorsk.

Expansion of Network Infrastructure (Peering) and Caching Servers to Optimize Content Access

In 2024, new caching servers were launched for VK, CloudFlare, Baishan, Microsoft, and others. The total volume of localized traffic throughput exceeded 5 Tbps. A cluster of high-performance servers was deployed in Pavlodar to support the launch of various services.

Significant investments were made in the data center in Astana to improve power supply, cooling systems, data transmission equipment, racks, and other infrastructure components. These improvements will enable the hosting of a substantial number of caching servers in the coming years.

In 2024, successful negotiations were held with Telegram, resulting in the establishment of a direct peering connection at one of the Company’s points of presence (POP) with a total capacity of 100G. A commercial contract was also successfully implemented with MTS for access to Telegram peering.

DNS Service Improvement

In cooperation with ISC and Netnod, root DNS servers F.ROOT and I.ROOT were commissioned on the Company’s data network in Pavlodar. This significantly enhances DNS reliability, reduces latency, and improves network security for millions of users in the region. The development of DNS infrastructure contributes to the resilience of the global Internet system by providing more stable connectivity for users in Central Asia.

This project is part of Kazakhtelecom JSC’s broader effort to strengthen the region’s digital infrastructure. The local deployment of additional root DNS servers accelerates query processing and reduces DNS response times.

5G Project

In 2024, Tele2 and Kcell successfully deployed 5G base stations in 20 cities across the Republic of Kazakhstan, fully meeting and even exceeding their licensing obligations to the government. In addition, Kazakhtelecom successfully implemented its plans to build a 5G MBH (Mobile Backhaul) network for mobile operators.

The total cost of the project amounted to KZT 536.9 billion.

Construction of a Submarine FOCL across the Caspian Sea project

The following activities were carried out under the project in 2024:

• As part of the “Construction of the FOCL along the bottom of the Caspian Sea” project, in 2024 the joint venture Caspinet B.V. (50% — Kazakhtelecom JSC, 50% — Azertelecom Int. LLC) prepared tender documentation and held a tender to select an EPC contractor for the design and construction of the submarine FOCL along the Caspian Sea, as well as a contractor for supervision services. Following the tender process, a contract was signed with a qualified EPC contractor for the design and construction of the submarine FOCL along the route from Aktau (Kazakhstan) to Sumgait (Azerbaijan). A separate contract was also signed with a company responsible for technical supervision of the works.
• Simultaneously, preparations began for the construction of the required onshore infrastructure. Design and construction works are underway for the beach manhole and cable landing stations in the city of Aktau. These facilities will serve as key nodes for integrating the submarine cable into the terrestrial networks.
• At present, the project is in the active preparatory phase for marine operations, including seabed surveys and route planning.

The total project cost amounted to KZT 23.0 billion.

Development of Fixed Wireless Access (FWA) in Rural Areas

The subsidiary Auyl Telecom LLP is implementing pilot projects to develop fixed wireless access (FWA) in rural areas, providing high-speed internet in locations where the construction of fibre-optic communication lines (FOCL) or GPON networks is economically unfeasible. This initiative helps reduce the digital divide and deliver modern connectivity to residents of remote regions.

As part of the pilot projects, solutions based on Open RAN and 5G FWA have already been tested. In the village of Sarybay, the average connection speed increased 85-fold — from 5 Mbps to 427 Mbps — significantly improving the quality of online education, telemedicine, and remote work. Thus, FWA not only modernises outdated technologies (WiFi, ADSL, CDMA EVDO) but also becomes a key tool in bridging the digital gap between urban and rural areas.

Auyl Telecom continues to actively expand its FWA network, with 5G being a strategic focus for the company. However, a 4G network is also being developed in parallel. A successful example of implementation is the village of Karatala in the Aktobe region, where 79 out of 120 households have been connected. The average connection speed is 46 Mbps, and the average internet traffic consumption per household over a three-week period reached 191 GB. For 10 subscribers, the data usage exceeded 450 GB during the same period.

Testing of various network functions and technical solutions

• The technical feasibility and readiness of the hardware and software complex based on Open RAN 5G Fronthaul for providing Internet access via fixed wireless access were tested. The operability of the Open RAN 5G Fronthaul solution was confirmed with some limitations.
• The invGUARD AS-SW software suite was tested to evaluate its capabilities in monitoring and analyzing network traffic statistics on the Kazakhtelecom JSC network within the TelcoCloud environment.
• The VOLTHA GPON technology was tested in the TelcoCloud environment in the city of Konaev. The main idea of this solution is disaggregation and avoidance of vendor lock-in. In traditional GPON, OLT (stationary equipment), software, licenses, and ONT (customer premises equipment) are supplied by a single vendor and are “locked,” which prevents connecting ONTs from other manufacturers to an OLT of a different vendor or using software from other providers. The VOLTHA solution overcomes these restrictions by allowing the selection of white-box OLT hardware from one manufacturer, software and licenses from another, and using the openOMCI standard to connect ONTs from different vendors.
• The product is not yet fully ready, but the concept and implementation activity are already delivering results. The pilot broadband project based on VOLTHA is currently being implemented in Konaev.
• The service of providing access to cache servers for telecom operators in Kazakhstan and Central Asia was tested.
• Testing has begun on an indoor solution to provide mobile Internet access using PicoCell in locations with poor mobile/broadband signal quality (e.g., shops, cafes located in basements).