Power International Holding and Tele2: Investing in Telecom as the Foundation of a Sovereign AI Ecosystem
October 2, 2025In Kazakhstan’s capital, the international technology forum Digital Bridge 2025 – the largest event in Central Asia dedicated to digital technologies and artificial intelligence – has come to a close. The forum took place from October 2 to 4 at the EXPO International Exhibition Center.
This year’s central theme “Generative Nation” reflects Kazakhstan’s strategic vision of building a knowledge-based society driven by advanced AI technologies and the development of human capital.
A highlight of Digital Bridge 2025 was the address by Mr. Mikhail Gerchuk, CEO of TMT at Power International Holding (PIH) – one of the largest investment groups in the Middle East.
In January 2025 Power International Holding entered Kazakhstan’s telecommunications market through the acquisition of Tele2/Altel. The deal became the most significant private investment project in the country’s telecom sector in recent years marking a new stage in Kazakhstan’s digital development.
In his remarks, Mr. Gerchuk emphasized the strategic importance of these investments:
“We see in Kazakhstan not just a market, but a partner in building the region’s AI ecosystem. This country has the energy, expertise, and ambition needed to become a leader of the digital era.”
Following the transaction Power International Holding focused on expanding 5G infrastructure and implementing customer-centric digital solutions. The priorities are clear: broadening Tele2/Altel’s network coverage, launching new services to improve internet accessibility from major cities to small towns, and scaling AI-driven systems that enhance customer service. The company is also deploying artificial intelligence to plan, manage, and optimize 5G networks and traffic through Self-Optimizing Network (SON) technologies — while strengthening cooperation with the government to accelerate digital transformation.
AI + 5G: The Infrastructure of the Future
To develop artificial intelligence, it takes more than algorithms and data solid technological foundation is essential: energy infrastructure, computing power, and, above all, telecommunications. Without robust 5G networks, AI-driven industries which rely on instant data exchange, simply cannot operate effectively. This is why Power International Holding and Tele2/Altel view the development of telecom infrastructure as the cornerstone of Kazakhstan’s entire AI ecosystem.
The synergy between 5G and AI opens up an opportunity for Kazakhstan to become a regional hub for digital solutions. Today, Tele2 has already been recognized as the country’s best 5G network by Ookla, which assessed not just data transfer speed, but the quality of real user experience – from smooth video streaming and lag-free online gaming to instant access to cloud services.
Public-Private Partnership as an Innovation Driver
Kazakhstan is shaping a favorable regulatory environment for investment in the digital economy. The Ministry of Artificial Intelligence and Digital Development is improving the framework for frequency spectrum allocation and advancing national programs aimed at expanding connectivity in rural areas.
“The presence of three strong operators ensures healthy competition, driving technological progress and service quality. Coordination between the government and business is becoming a key condition for sustainable growth in the digital sector. For us, this is not merely an investment – it’s a contribution to the region’s future. Together, business and regulators are addressing two strategic priorities: freeing up spectrum for new technologies and ensuring the return on infrastructure investments made by telecom operators. This is not just an industry issue – it’s a matter of national technological sovereignty,” – concluded Mr. Mikhail Gerchuk.
Power International Holding (PIH) – one of the largest conglomerates in the Middle East, with a diversified portfolio spanning construction, energy, agriculture, healthcare, and telecommunications.
Tele2/Altel – an innovative mobile operator and Kazakhstan’s leader in 5G network quality, according to Ookla. The company is recognized for its customer-centric approach, advanced technological solutions, and social initiatives aimed at expanding digital accessibility across the country.