TAX NEWS - 2010

Kazakhstan Operator Calls for 3G License Allocation

Earlier this month, representatives of the Kazakhstan government stated the need to amend the Tax Code to be able to set the license fees for 3G services. However, the mobile network operator, GSM Kazakhstan (Kcell) has now stated that it believes that the current tax laws already allows the government to set the annual fee for the 3G licenses.

"Today our company is ready to invest tens of millions of dollars in building a third-generation network, and believes that the size of the annual fee should not delay the investment in the economy. Kcell proposes to amend the tax code and run parallel to the introduction of 3G , moreover, that the company had no objection to increasing the annual license fees to a reasonable rate" notes Veysel Aral, CEO of Kcell.

However, the company added that the license fees should take into account the cost of building the 3G networks and the existing tax burden on the companies.

TeliaSonera's CEO, Lars Nyberg recently held talks with the Kazakhstan President, Nursultan Nazarbayev on the issue. TeliaSonera has an indirect 25% holding in Kcell through its Fintur Holdings subsidiary.