Alpha Megacom TV set

Assets

As of February, 2011 services 2.2 million subscribers.

Performance Indicators

Preliminary data of the management reporting, 2010:

• revenue – $130 million,
• Net profit – $30 million.

If it was talked of the company working in the normal political and economic environment, its fair assessment would make $400-500 million, the managing partner AC&M-Consulting Mikhail Alekseev (February, 2011) considers. But taking into account political instability and practice of repeated violation of the rights of foreign investors by Kyrgyzstan discount can reach 50%, he adds.

History

2020: MegaCom began to provide service of a video conferencing in Kyrgyzstan based on IVA MCU

On April 8, 2020 the IVA Technologies company reported that the large mobile telecom operator in the Kyrgyz Republic of MegaCom began to provide service of a video conferencing based on the IVA MCU platform. Read more here.

2017: Decided not to give to the Russian "tea queen" mobile operator

The fund for management of state property of Kyrgyzstan (FUGI) stopped negotiations with the Russian businesswoman Elena Nagorna on sale of the Alfa-telecom mobile operator, largest in the republic, by it (Megacom trademark). Achkabar stated it the director of FUGI Bolsunbek Kazakov^[1].

In September, 2017 Elena Nagornaya suggested to take 100% of the shares "Alpha TV set" for 13.5 billion som ($195 million). Taking into account the commission in 7% transaction amount had to be 14.5 billion som ($210 million). As Nagornaya was the only applicant for purchase by Alpha TV set, FUGI was ready to sign the agreement with it by direct negotiations.

However the transaction did not take place. As Kazakov explained, Mountain suggested to take Alpha telecom in trust management for three years, and only then to pay purchase of mobile operator. But the legislation of Kyrgyzstan of such form of sale of state property does not assume.

2016: Main sotovik Kyrgyzstan it is offered for sale

The government of Kyrgyzstan made in February, 2016 the decision on sale of 100% of stocks of Alfa-telecom mobile operator (Megacom trademark). The auction on sales of this asset will take place on May 4, 2016. The starting price - 19 billion som ($250 million)^[2].

Megacom revenue in 2014 made 8.5 billion som ($112.5 million), dividends paid by the operator in the state budget - 1.43 billion som ($19 million). For the end of 2015. "Alpha telecom" serviced 2.8 million subscribers, at the closest competitor - entering into the Vimpelcom group Sky Mobile company - were 2.7 million subscribers.

2014: Complete nationalization of the company

In July, 2014 the Interdistrict court of Bishkek (the capital of Kyrgyzstan) made the decision on nationalization of 51% of stocks of the Alfa-telecom mobile operator, largest in the republic. The representative of Fund for management of state property of the republic (FUGUE) reported about it to the Interfax agency. Actions are withdrawn from the former director of the EBRD from Kyrgyzstan Alexey Yeliseyev who was one of Maxim Bakiev's confidants - the son of the president of the republic Kurmanbek Bakiev overthrown in 2010.

Earlier complete nationalization did not happen as the Cyprus offshore with the Russian roots Eventis Telecom Holdings (ETH) which is considered as close to "the St. Petersburg group of operators" fights for the rights to control over Megacom.

However, the representative of ETH says that the present decision on complete nationalization by Alpha TV set will not prevent the company in fight for Megacom return.

"The state made that, as had to make - took away an asset from swindlers, we continue fight for receiving a kompensaktion from the raider attack, and this solution even in something simplifies to us our task"^[3].

2013: The court agreed to reconsider case

At the end of 2013 - i.e. in two and a half years after submission of the claim - the Interdistrict court of Bishkek agreed with arguments about reconsideration of the case on again opened circumstances. Meanwhile, lately Babanov was raised to the prime minister's post, and then - in 2012 - is dismissed. People whom he delivered to run Alpha telecom, including the ex-CEO Azamat Murtazaliyev, were taken into custody. But it is all the same did not help to return to Russians an asset.

2011: Criminal case against the Russian top managers

In 2011 Russians had a conflict with the prime minister of Kyrgyzstan of that time Omurbek Babanov then managers of ETH were discharged of the management of Alpha TV set, and the operator turned into management of FUGI.

On February 7, 2011 it became known that the Eventis Telecom investment fund of the former managing director of Trigon Capital Gleb Ognyannikov lost not only joint-stock, but also operational control over the largest mobile operator of Kyrgyzstan. Against his Russian top managers criminal case is opened.

Azamat Murzaliyev, the former head of Fund for management of the nationalized property at Mingosimuschestvo of Kyrgyzstan became the acting as the CEO of Alpha Telecom company since 2009 owning assets of Bimokom mobile operator (Megacom brand). Alpha Telecom reported about it yesterday. Still it (and before — Bimokom) the native of MegaFon Andrey Silich who was recommended in the Kyrgyz company by the Russian co-owner of Bimokom — Eventis Telecom investment company directed.

Silich and the First Deputy CEO "A telecom alpha" Alexander Borozdin "are suspended from positions" by the resolution of the senior investigator of financial police of Kyrgyzstan, reported the other day the Kyrgyz agency "Akipress" with reference to the director of Fund for management of the nationalized property of Kyrgyzstan of Dair Kenekeev. According to it, the financial police notified fund that Silich and Borozdin "performed illegal business activity and charges are brought to them". The employee of the receiving head of the Kyrgyz financial police confirmed that one of her investigators processes "case on "An alpha to a telecom"; the investigator refused to comment on a situation. It is about stealing of $10 million, both investigation, and resignation of the management is connected with it, the representative of Mingosimuschestvo of Kyrgyzstan explained to Vedomosti.

Silich calls charges slander. Allegedly stolen $10 million are a difference between the forecast for revenue made once by the company and the actual indicator, and for the different periods, he explains: "If invited the auditor, he would understand it in 10 minutes".

Management change "A telecom alpha" legally does not infringe upon the interests of Eventis, but creates risk of legitimization of actions on an output of assets from Bimokom, the representative of Eventis is afraid. The representative of Eventis considers the charges brought to Silich "improbable", and criminal case "fabricated".

• On March 14, 2011 it became known that the State Office of Public Prosecutor of Kyrgyzstan brought criminal case concerning the head of department of security of Alfa-telecom mobile operator (Megacom trademark) Tilen-Aaly Kyzalakov and the adviser to the CEO Emilbek Hudoyarov^[4]. The prosecutor's office established that in April, 2010 they gained the confidence of the CEO of operator Andrey Silich, misinformed him about racketing from the third parties and convinced to transfer them 9.8 million som ($206 thousand).

The specified events took place during the last year's revolution in Kyrgyzstan and overthrow of the regime of the president of the republic Kurmanbek Bakiev which son Maxim controlled Alpha telecom. After the revolution control over the operator recovered the Cyprus offshore with the Russian roots Eventis Telecom Holding (ETH), and Hudoyarov left Alpha telecom.

However at the end of January, 2011. The financial police carried out searches to Alpha telecom according to the statement of the head of the Fund of Management of the Nationalized Property (FMNP) Dair Kenekeev suspecting the operator guide of plunder of $10 million. After this control over Alpha TV set de facto passed from ETH to FUNI.

Finpol discharged of the management of the operator of proteges of ETH – Andrey Silich and his deputy Alexander Borozdin (both are citizens of Russia), having brought them charges of work of the republic without the permission. The Ministry of Property appointed the acting CEO by Alpha TV set the former head of FUNI Azamat Murzaliyev who dismissed almost all top management of the operator on the same day and returned to Hudoyarov's company.

On March 11, 2011, the State Office of Public Prosecutor requested from Finpol the documents withdrawn during searches at office "Alfa-telecom". Actions of the State Office of Public Prosecutor followed a visit to Kyrgyzstan last week to delegation of members of the State Duma headed by the head of committee on affairs of the CIS and to communications with compatriots by Alexey Ostrovsky. The delegation paid attention to violation of the rights of the Russian investors in the history about Alpha telecom, and the deputy Semyon Bogdasarov directly said that behind the events there is a Deputy Prime Minister of Kyrgyzstan Omurbek Babanov who was allegedly extorting from Russians of $50 million for an election campaign.

After that the head of the oppositional government Alikbek Dzhekshenkulov urged Babanov to resign. In turn, the Deputy Prime Minister claims that thanks to actions for replacement of the leadership by Alpha TV set taken by him in the company plunders for the amount of $28 million were detected and now "millions of dollars will go to the budget". At the request of Babanov the speaker of the Kyrgyz parliament Akhmatbek Keldibekov created the commission which will investigate a situation Alpha telecom and charges to the Deputy Prime Minister around.

March 11, 2011. The State Office of Public Prosecutor of Kyrgyzstan closed case in the relation by Alpha TV set and sealed up an office in which the Financial police store the documents withdrawn during searches from the operator. As Amankulov explained the Rope, proceedings were initiated by the Financial floor on suspicion of funds withdrawal, but charge is brought only in connection with violation of the labor law which, according to prosecutors, were not. The State Office of Public Prosecutor also did not find confirmation of the charges brought by Murzaliyev to Silich but concerning him brought criminal case in connection with wrongful dismissal of top managers of Alpha telecom.

The State Office of Public Prosecutor considered illegal the dismissal of top managers by Alpha TV set performed by Murzaliyev: Deputy CEOs - Ayura Dorzhiyeva (the citizen of Russia), Elmira Kenzhebayeva, Zhyldyz Karatalov, Evgeny Volkov and the chief accountant Aynagul Bazarbayevoy. Change of the owner of property of the enterprise, however, according to prosecutor's office became a formal occasion, no change of the owner happened.

After such succession of events Silich considered that he has the right to return to fulfillment of duties of the head by Alpha TV set. However Murzaliyev and Kenekeev did not agree with it as the order of the Ministry of Property on Murzaliyev's appointment was not repealed.

• On March 15, around 11 hours on the Bishkek time the citizen of Russia Andrey Silich heading the Kyrgyz Megacom cellular network from the moment of its start in 2006 tried to return to a chair of the CEO this network^[4] owning now^[4]. He together with group of security guards and several Russian colleagues came to office of the operator and held in it a press conference, having promised not to arrange dismissals after discharge of heads by Alpha TV set. However, not all employees began to follow its instructions.

At this time Azamat Murzaliyev, since February, 2011 the acting as the CEO Alpha telecom, was on interrogation in prosecutor's office. Having returned to office, he detected the CEO's office busy. Having moved to other premises, Murzaliyev called police squad, having announced the armed occupation of the company. The chief of the Municipal Department of Internal Affairs of Bishkek Kapar Batyrkanov who arrived to the place in the middle of the day (around 4 p.m.) suggested Silich to pass in May Day the District Department of Internal Affairs for evidence and to replace private protection by Alpha TV set with police officers.

Having been refused, the head of the Municipal Department of Internal Affairs exposed around the operator's building a cordon from OMON, at the same time militiamen searched the Russian top managers and blocked them in office. His lawyer Sergey Slesarev and the deputy for legal issues Ayur Dorzhiyev who were with Silich told the 24.kg edition about it. Batyrkanov explained the events with need of "protection of the nationalized property" (a year ago 49% of the stocks "Alpha TV set" were nationalized by the government).

Citizens of Russia Ayur Dorzhiyev and Andrey Silich were locked at office of the operator headed by them by the Alpha TV set

Even the prosecutor's office did not manage to get out Silich. As the chief of Main Office of the General Prosecutor on anti-corruption told the Rope Amankulov, representatives of department tried to bring him for interrogation, however militiamen did not pass them, having referred to the order not to let out the Russian CEO. The staff of the Municipal Department of Internal Affairs, many of which was in masks and with automatic machines, also blocked access for journalists to the building, and at one film crew the video camera was broken.

Alpha telecom and the head of committee Zhogorka Kenesh (parliament of Kyrgyzstan) on human rights Dastan Bekeshev whom Russians called to the aid could not get to the building. According to Bekeshev, he was not even helped by the promise given by phone personally by the Minister of Internal Affairs Zarylbek Rysaliyev to pass the deputy. At the same time the office of the operator was visited by other deputy – the head of committee on communications and to transport Iskhak Pirmatov who was called by Azamat Murzaliyev.

The situation began to be heated. Around office "Alfa-telecom" gathered to suit about 250 employees of the company who promised on Wednesday together with subscribers of the operator an action in protection of Russian government. Late at night - at 10 p.m. – the Kyrgyz online edition "Bulak" reported that Silich managed it to one, without maintenance to leave office of the operator.

• Azamat Murzaliyev occupying till the evening on March 16, 2011 a post of the acting CEO of the Kyrgyz mobile operator "Alfa-telecom" accused the Cyprus offshore with the Russian roots Eventis Telecom Holdings (ETH) of attempt of bribery of the Prosecutor General of the republic Kubatbek Baybolov^[4]. Murzaliyev showed documents according to which the CEO Alpha telecom Andrey Silich (the protege of ETH) as payment of the land plot gave 18.2 million som (about $400 thousand) to Saramzhal Trans company registered on his bodyguard. On these means the firm purchased the real estate at the Broodmaster-Bishkek company belonging to the Prosecutor General wife Nurzhamal Baybolovoy.

The spouse of the Prosecutor General confirmed the transaction fact, however assured that violations of the law at the same time were not. According to her, the production premises sold to it in the center of Bishkek are much more expensive of the realized sum. Baybolov in an interview to the Bulak edition advised Murzaliyev "hold horses". After such exchange of views late at night in March 16, 2011 Murzaliyev announced on air of the Kyrgyz "5th channel" that he sent to the Ministry of Property a request for the time discharge, however, it did not help Russians to return control over Alpha TV set.

On March 16 at office "Alfa-telecom" the meeting of the staff of operator in support of the Russian management holding the posters "We — Silich's Team, Murzaliyeva in Resignation", etc. took place. Protesters also collected signatures under the address to the president of Kyrgyzstan Roza Otunbayeva with a request to interfere with a situation. Murzaliyev's team, in turn, also appealed to the president to deal with frauds of the Russian top managers.

Otunbayeva at a meeting with security officers charged to create interdepartmental group at the State committee of national security for investigation of a situation.

• On March 17, 2011 in the morning the situation specularly exchanged. Having accepted Azamat Murzaliyev's resignation, the Ministry of Property appointed new and. about the CEO Alpha telecom of his deputy for Almazbek Abekov's IT. The new head of the operator replaced the head of the security service and made the list of employees to which the input in office is prohibited, including Andrey Silich, reports the Aki-Press agency with reference to sources in Alpha telecom. Karypbekov says that his command really managed to go back to the work whereas Silich and his people "just did not come to work".

Fight around by Alpha TV set turns into opposition of different political groups, notes the 24.kg edition. On the one hand it is batches of SDPK of the prime minister Almazbek Atambayev and Republic of the Deputy Prime Minister Omurbek Babanov (supervised discharge of Russians from the management of Alpha TV set), with another - a batch Ata Meken in whom the Prosecutor General Kubatbek Baybolov consisted.

The Supreme Court of Kyrgyzstan in 2011 confirmed the requirement about return of property by Alpha TV set in Bimoky. But execution of this solution was suspended in the summer of 2011 upon the demand of FUGI, insisting on new trial of this case.

2010

Change of the power in the country, nationalization of 49% and arrest of 51% of the company

After change of the power in the country of 49% "A telecom alpha" were nationalized, and 51% — are arrested (in February, 2011 on safe custody in Mingosimuschestvo).

After Bakiyev's overthrow Russians began fight for return of an asset: courts recognized illegal bankruptcy of Bimokom and deprivation of Russians of a share in the company and also obliged to return property from Alpha telecom in Bimoky. At this ETH received 51% of the shares "Alpha TV set" in management.

After 51% of stocks were arrested by the State Office of Public Prosecutor and ETH are transferred to the control. In compliance with the decision of the parliamentary commission, the property Alpha TV set should be transferred to the new company from 100% by state participation which controlling stake then can be given to the Russian investors.

It, in particular, will save the state from payment of "a dummy debt" "A telecom alpha" to Bakiyev's structures for $80 million and from legal risks, he notes.

Purchase of the Russian filter of Internet traffic

In 2010 Megacom purchased the solution for filtering of Internet traffic from the company of Proteas.

2009: Dummy bankruptcy, Bakiyev takes a share of Russians

As the State Office of Public Prosecutor of Kyrgyzstan set later, in 2008-09 people from Bakiyev Jr. environment illegally deprived of Russians of their share in Bimokom, performed dummy bankruptcy of the company, and all property of the operator, including a brand, transferred subscribers and employees to new structure - Alpha telecom. The Kyrgyz partners of Eventis assured that they follow the agreement of founders (afterwards it is nullified by court). But Eventis regarded it as "raider capture" and took legal action.

2006: Creation of the company: Eventis Telecom has 51%, the son of the president of Kyrgyzstan has 49%

Bimoky it was created at the beginning of 2006 as the second GSM operator of Kyrgyzstan. Eventis Telecom (then the ex-CEO of AVK investment company Dmitry Ivanter and the former adviser to the CEO of Svyazinvest Vladimir Androsik were considered as its owners) became the main founder (51%), and 49% were received by "the Kyrgyz partners". Afterwards the court established that it were structures of Maxim Bakiyev, the son of the then president of Kyrgyzstan.

Notes