Why is this important
Privatization of Mobiuz for ~$300 million is the largest sale of a state asset, a signal for investors about the seriousness of reforms. 10 out of 16 applicants show high interest in Uzbekistan’s Telecom. The new owner will bring technology, investments ($500+ million in network development), and increase competition with UMS, Ucell, and Beeline. Revenue of 2.086 trillion ($173 million) with 7.8 million subscribers – growth potential through 5G, digital services.
What happened
- 10 companies advanced to the final stage — binding offers until December 19;
- Out of 16 applicants (USA, Europe, Middle East, Asia), 10 submitted non-binding offers;
- Mobiuz revenue in 2024 — 2.086 trillion soums ($173 million), subscribers — 7.8 million;
- Expected price — $300 million;
- Consultants — Rothschild & Co, KPMG.
Stages of privatization
- June: bidding begins, acceptance of interest applications (EoI) from 15 applicants.
- October: acceptance of non-binding offers (NBO) until October 15. 10 out of 16 applicants submitted proposals.
- November-December: Final stage — binding offers (BO) until December 19. Investors will have access to a virtual data room, analytical reports, and visit Mobiuz.
- January 2026: announcement of the winner, transaction.
Applicants
- 16 companies: USA, Europe, Middle East (Qatar, Saudi Arabia), Transcaucasia (Azerbaijan), Central Asia, local investors.
- 10 made it to the final: the names were not disclosed, but Bloomberg reported on the interest of Qatari, Saudi, Azerbaijani, and European investors.
Mobiuz
- Revenue 2024: 2.086 trillion soums ($173 million).
- Subscribers: 7.8 million – the third operator after UMS (10+ million), Ucell (9+ million), ahead of Beeline (6+ million).
- Market share: about 23%.
- Technologies: GSM, UMTS, 4G LTE. No 5G yet.
- History: created on the basis of MTS, in 2016 MTS sold a share, in 2018 transferred to the “Digital Trust” fund, in 2021 — to the Ministry of Information and Communications.
Expected price
- Bloomberg estimates $300 million. With a revenue of $173 million, this is 1.7 times the revenue — a reasonable price for a telecom operator with growth potential.
- Growth potential: the introduction of 5G, digital services (cloud, IoT, FinTech), and expansion of coverage in the regions can increase revenue to $250-300 million within 3-5 years.
Why privatization
- State efficiency: Mobiuz, managed by the Ministry of Information and Communications, lags behind private UMS and Ucell in innovation and service quality.
- Investments: The new owner invests $500+ million in network development (5G, coverage expansion), technology, and digital services.
- Competition: a private operator will intensify competition, reduce tariffs, and improve quality.
- Budget: $300 million from sales will go towards infrastructure development and social programs.
Consultants
- Rothschild & Co: one of the world’s leading investment banks, advises on M&A, privatization.
- KPMG is an international audit and consulting company that conducts due diligence and asset valuation.
Context
- Privatization is a priority: Mirziyoyev instructed to privatize UMS in 2022. April 2025 — a new decree on the sale of state assets, including Mobiuz.
- Uzbekistan’s telecom market: over 35 million subscribers, revenue of $1 billion annually. Four operators: UMS, Ucell, Mobiuz, Beeline. UMS (30%), Ucell (27%), Mobiuz (23%), Beeline (20%) are dominant.
- Investors’ interest: Qatar, Saudi Arabia, Azerbaijan are active in the Central Asian Telecom. European operators (Vodafone, Orange) are looking for new markets.
