Kazakhstan Investigates Mobile Operators Over Possible Price Collusion

Kazakhstan’s Agency for the Protection and Development of Competition (APDC) has launched an investigation into mobile operators over synchronized rate increases, Orda.kz reports.

We have found that telecom operators have simultaneously begun to increase rates rapidly. In the antimonopoly sphere, such actions are considered coordinated, and we are currently studying the situation in detail,said Deputy Chairman of APDC, Bolat Sambetov. 

Kazakhstanis have frequently complained about rising mobile service prices, and a market analysis suggests possible collusion among providers.

Sambetov noted that efforts were made last year to increase competition in the telecom sector, including the sale of a major telecom provider to foreign investors (likely referring to Mobile Telecom-Service LLC’s sale to a Qatari company). The APDC continues to monitor market developments following the arrival of a new player.

Despite these changes, most telecom operators have raised their prices over the past two years.

We analyze the market and see that rates are growing. This raises questions, especially in the context of increasing competition,Sambetov emphasized. 

The APDC also suspects that one of the major telecom companies may be setting monopolistically high prices, with a separate investigation likely to follow.

Rising communication costs have become such a pressing issue that in December, the Ministry of Digital Development had to publicly assure consumers that prices would not increase until the end of the year.

However, at that time, only 24 days remained until New Year’s Eve, making the promise seem largely symbolic.

Original Author: Artyom Volkov