Tashkent, Uzbekistan (UzDaily.com) -- USM Telecom and MegaFon, together with partners from Uzbekistan, have completed the formation of a joint venture Digital Holding. The parties signed the final package of documents on the establishment of the joint venture. Digital Holding will be headed by Vladimir Kravchenko, who previously held the position of CEO of Ucell.

Digital Holding aims to become the technology leader in Central Asia’s largest telecommunications market. The company’s activities will be aimed at expanding access and improving the quality of telecommunications services in the Republic of Uzbekistan, in particular, through the formation of a digital infrastructure in accordance with international standards, as well as the introduction of advanced technologies and systems in the fields of data storage and processing, digital marking and traffic control of individual types of goods.

The JV includes 100% of the authorized capital of the telecom operator Ucell, USM subsidiaries CRPT Turon and ICS Holding Uzbekistan. The Russian side will also invest US$100 million in the development of Digital Holding. The joint venture will be 51% owned by Digital Invest, a joint venture between MegaFon and USEM Telecom, and 49% by the State Assets Management Agency of Uzbekistan.

Andrey Shishkovsky, who previously held the position of Regional Development Director of MegaFon in Russia, has been appointed the new CEO of Ucell (COSCOM LLC). ICS Holding Uzbekistan will be headed by Andrey Maygur, Anatoly Bachikalov will retain the post of CRPT Turon CEO.

“The creation of the Digital Holding JV, the arrival of such a strong player as PJSC MegaFon on the market will contribute to the implementation of advanced technological solutions. The country’s leadership has set large tasks for the industry in the digital transformation of sectors of the economy, including the further development of mobile communications.

“The digital economy has been identified as the main driver of economic growth, therefore, it is necessary to improve the quality of mobile communications and the Internet, to accelerate the development of e-commerce systems, digital services and software products, ”says Olimjon Umarov, Advisor to the Prime Minister of the Republic of Uzbekistan.

“I am sure that the expertise of MegaFon and our partners IKS Holding and CRPT, as well as a professional team formed already at the stage of establishing the joint venture, will allow the holding to take leading positions in the country and offer the most advanced technologies to both subscribers and the business community. From MegaFon, we will provide our colleagues from Uzbekistan with full access to our experience, technologies and successful cases,” said Khachatur Pombukhchan, General Director of MegaFon.