Kaan Terzioglu, CEO of VEON Ltd., (VEON) met with Julie Gillespie of TipRanks to discuss his company and its growing investment opportunities. Kaan explained that VEON is much greater than its company description as a “global digital operator offering converged connectivity and online services.” Actually, VEON is a consumer and enterprise services company which happens to have a telephone license. Operating in frontier markets with young, large populations that it acquires at low costs, VEON has massive expansion opportunities.
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Bringing Digital Services to New Frontiers
In Ukraine, Pakistan, Bangladesh, Uzbekistan, and Kazakhstan, VEON provides a panoply of digital services to the severely underserved. VEON provides a large portion of those populations with the internet services that people usually seek: finance, entertainment, healthcare, education and enterprise. The company’s drive for growth and its determination to improve the lives of millions are key to its success. Indeed, VEON’s strong Q2 results showed 5.9% topline U.S. dollar growth, with more than 16% of its total revenues coming from digital services.
It’s interesting to note that VEON calls its strategy “1440.” That’s because the company aims to provide services during all 1440 minutes there are in a day. That’s in contrast to most telecom companies, which sell their services by numbers of minutes, gigabytes or SMS messages. In the countries where it operates, VEON is quickly becoming the one provider of all the services people typically use when connecting to the internet.
In fact, Kaan predicts that three years from now, the company will earn more than half of its revenues from digital services. In several of the countries where it operates, one out of two people still don’t have smartphones, but worldwide smartphone ownership is expected to grow rapidly. Thus, VEON’s 50 million customers who are currently using only voice services will likely turn into digital service customers in the future, thereby increasing their amount of data consumption by 13 times.
Additionally, VEON is turning around the lives of the unbanked, the two-thirds of the world’s population who lack access to financial services. In Pakistan alone, VEON has 22 million customers using its digital financial services. VEON grants 140,000 nano-loans per day – small loans to help householders and business owner progress.
VEON also partners with local governments to develop large language models (LLM) to strengthen the lives and careers of people who do not speak English, German, or other languages commonly used by large LLMs. Through these initiatives, VEON aims to provide learning opportunities to business owners, parents, and anyone else who seeks to improve their know-how.
Managing Risk with Aplomb
Another important distinction between VEON and other companies operating in developing countries is its strong risk management. VEON has successfully maneuvered through geopolitical uncertainty and tough macroeconomic conditions, having established a model that can serve customers even in the most difficult conditions. For example, four years ago, when the war between Russia and Ukraine began, the company made the decision to exit Russia and operate only in Ukraine.
That has proven a propitious choice, as VEON deepened its business relationships in Ukraine to the point that it is is facilitating the listing of its Ukrainian subsidiary, Kyivstar, on the Nasdaq through a business combination with Cohen Circle Acquisition Corp. I, a special purpose acquisition company (SPAC). The transaction, expected to close in the third quarter of 2025, will result in Kyivstar Group Ltd. trading on Nasdaq under the ticker symbol “CCIR.”
$1 Billion Push to Rebuild Ukraine
One of VEON’s most ambitious projects is its $1 billion commitment to rebuilding Ukraine’s digital infrastructure. Despite the ongoing conflict, VEON has managed to keep its network running 99% of the time, even in the most challenging areas. This achievement is particularly impressive, given the landmine risks and other obstacles.
In addition to its telecom services, VEON has partnered with Starlink to implement direct-to-cell services, ensuring that Ukrainians—no matter where they are—can stay connected, whether they’re in conflict zones or remote areas with destroyed infrastructure. This partnership is an example of VEON’s commitment to maintaining connectivity even in the most difficult circumstances.
VEON’s commitment to Ukraine extends beyond telecom. Through its healthcare division, Healthsit, VEON has provided online consultations to 24 million Ukrainians, while its ride-hailing service, Uklon, holds a dominant 70% market share in Ukraine, helping people get around in challenging times.
Satellite Tech: The Future of Connectivity
VEON is also leveraging satellite technology to enhance its service offerings, particularly in regions where traditional telecom infrastructure is limited. Through its partnership with Starlink, VEON can offer satellite-powered services that ensure connectivity even in remote or disaster-stricken areas.
In countries like Kazakhstan, where vast distances make traditional networks challenging to implement, satellite technology is essential. In regions like Bangladesh and Pakistan, which are prone to cyclones, floods, and other natural disasters, satellite connectivity helps VEON maintain reliable service. As regulations evolve, VEON plans to expand satellite services to more countries, further enhancing its ability to reach underserved populations.
Offering Unlimited Opportunity to Investors
VEON’s shift from a telecom company to a diversified digital services provider is reshaping its business and positioning it for long-term success. With a strong presence in key emerging markets like Ukraine, Pakistan, Kazakhstan, and Bangladesh, VEON is expanding its digital footprint through healthcare, education, financial services, and AI. The company’s Nasdaq listing for Kyivstar, along with its focus on satellite technology and AI, underscores its strategic vision to create a more connected, digitally empowered world. Investors should keep an eye on VEON as it continues to drive growth and innovation.