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ALMATY/WASHINGTON - Beeline Kazakhstan, a subsidiary of VEON Ltd. (NASDAQ:VEON), has signed an agreement with Starlink to provide Direct to Cell satellite connectivity across Kazakhstan, including in remote areas not covered by traditional networks. This strategic move comes as VEON's other key subsidiary, Kyivstar Group Ltd (NASDAQ:KYIV), has shown strong market performance with a 31.47% year-to-date price return according to InvestingPro data.
The partnership was formalized during a trilateral meeting held during Kazakh President Kassym-Jomart Tokayev's official visit to the United States, where Beeline Kazakhstan and the Ministry of Artificial Intelligence and Digital Development signed a memorandum of understanding.
Following a commercial agreement signed in September, Beeline Kazakhstan plans to launch messaging services in 2026, followed by data connectivity in a subsequent phase, according to a company press release.
Kazakhstan, the world's ninth-largest country by land area, presents unique connectivity challenges that the satellite service aims to address. The initiative builds on Beeline's previous efforts to expand mobile coverage to villages with populations of around 100 people.
"From the mountains to the steppe, our aim is to provide reliable communication, and integrating Starlink Direct to Cell satellite with terrestrial connectivity brings that vision closer," said Evgeniy Nastradin, CEO of Beeline Kazakhstan.
Zhaslan Madiyev, Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development, noted that the technology has "the potential to save lives" by enabling messaging from smartphones in areas without terrestrial coverage.
VEON has also signed a global framework agreement with Starlink that could extend similar services to its other operating markets. The company currently serves nearly 160 million customers across five countries.
The launch of Starlink Direct to Cell services in Kazakhstan remains subject to regulatory approvals. This marks the second VEON market to partner with Starlink, following Ukraine's Kyivstar Group Ltd (NASDAQ:KYIV), which demonstrated the technology earlier this year. With a market capitalization of $401.57 million and a PEG ratio of 0.25, Kyivstar appears potentially undervalued according to InvestingPro analysis. Investors tracking this sector should note Kyivstar's upcoming earnings release on August 19, 2025. InvestingPro offers 12 additional investment tips for KYIV and comprehensive financial health metrics beyond the P/E ratio of 83.66 currently observed.
In other recent news, Kyivstar Group has been the focus of several analyst firms initiating coverage with positive ratings. BTIG has given Kyivstar a Buy rating, setting a price target of $17.00, based on its strong mobile business and resilient earnings. Similarly, Cantor Fitzgerald has rated the stock as Overweight, also with a $17.00 price target, noting a recent pullback in its stock price since its Nasdaq debut. Northland has joined in with an Outperform rating, emphasizing Kyivstar's leading position in Ukraine's mobile market and its expanding digital services. Rothschild Redburn has also initiated coverage with a Buy rating, albeit with a slightly lower price target of $15.30, citing the company's robust market presence despite challenging operating conditions. Additionally, Kyivstar has entered into a partnership with Mastercard to enhance Ukraine's financial infrastructure, aiming to promote cashless payments and broaden access to financial services. These developments reflect a growing interest and confidence in Kyivstar's potential from various analyst firms.
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