Tashkent, Uzbekistan (UzDaily.com) -- USM Telecom and MegaFon, together with partners from Uzbekistan, are creating a joint venture - Digital Holding, which is designed to become the technological leader of the largest telecommunications market in Central Asia. The created joint venture will include the country's telecommunications market leader Ucell, as well as the Uzbek assets of USM - CRPT Turon and ICS Holding Uzbekistan.

The Government of Uzbekistan, through the Agency for State Assets Management (AUGA), will transfer to the JV a share in the amount of 100% of the authorized capital of the telecom operator Ucell. The Russian side will invest US$100 million in development investments into Digital Holding, as well as USM subsidiaries - CRPT Turon and ICS Holding Uzbekistan.

USM Telecom and MegaFon created the Digital Invest company, the shares in which were distributed by 50% on both sides. The share of Digital Invest in the new joint venture will be 51%, AUGA - 49%.

The finalization of the transaction will take place during 2021. Digital Holding will focus on the formation of telecommunications infrastructure in accordance with international standards to expand access to communication services in the Republic of Uzbekistan and improve their quality, the introduction of advanced technologies and systems in the areas of information security and data storage, labeling and control of the movement of certain types of goods.

“The creation of a leading player in the digital services market in Uzbekistan is in line with the strategy of both MegaFon and USEM Telecom, which is building a technology leader in the CIS and Eastern Europe. We are confident that the long-term expertise in the implementation of digital projects, which MegaFon, CRPT and IKS Holding have, will help develop the largest industry player in Uzbekistan," says Ivan Streshinsky, General Director of USM Telecom.

“From the point of view of consumption of digital services, Uzbekistan is one of the most promising markets in the CIS, which over the past 10 years has shown more than threefold growth in mobile subscribers, but at the same time it is still far from saturation. We are not planning major structural changes within Ucell in 2021, but rather focus on finding synergies and implementing best practices in Ucell for the growth of its business,” says Gevorg Vermishyan, MegaFon CEO.

“I am sure that the creation of a new joint venture will give a new impetus to the rapidly developing market of digital services in Uzbekistan in recent years and will open up new opportunities for Ucell and its subscribers,” said Olimjon Umarov, Advisor to the Prime Minister of the Republic of Uzbekistan.