A1 cuts investments in Belarus in 2020 due to adverse business developments
<p> MINSK, Feb 10 - PrimePress. A1, Belarusian provider of telecommunications, ICT and content services, reduced investments in Belarus in 2020 due adverse factors in the telecommunications industry, including the changed tax regulations, the company says in a comment. </p> <p> </p> <p> According to the quarterly report by parent A1 Group, capital investments in Belarus were reduced in 2020 by €78.3 million (by 74.5%) due to a combination of factors that had an adverse impact on the investment climate in Belarus. </p> <p> </p> <p> In 2020, the telecommunications and IT industries faced a number of unfavorable factors that have had a direct impact on the planned foreign investment, in particular, with regard to A1 Telekom Austria Group, this includes the Internet blackouts in August-November ordered by the authorities for reasons beyond the company’s control, uncertainty about licensing and frequency allocation for the 5G network, a temporary increase in the profit tax under the amended Tax Code. The company hopes that these factors are temporary, and, sooner or later, the investment climate will Improve. </p> <p> </p> <p> As previously reported, Belarus raised the profit tax for telecom operators in 2021 from 18% to 30%. </p> <p> </p> <p> Established in 1998, A1 unitary enterprise is now fully owned by A1 Telekom Austria Group. The mobile operator A1 started revenue service of its 3G network based on the HSPA/HSPA+ technology in March 2010. The operator made 4G mobile internet services available to customers in March 2019. Until Aug 1, 2019 the company had been operating under the velcom brand. End </p>
2021-02-11
Primepress
A1 cuts investments in Belarus in 2020 due to adverse business developments
MINSK, Feb 10 - PrimePress. A1, Belarusian provider of telecommunications, ICT and content services, reduced investments in Belarus in 2020 due adverse factors in the telecommunications industry, including the changed tax regulations, the company says in a comment.
According to the quarterly report by parent A1 Group, capital investments in Belarus were reduced in 2020 by €78.3 million (by 74.5%) due to a combination of factors that had an adverse impact on the investment climate in Belarus.
In 2020, the telecommunications and IT industries faced a number of unfavorable factors that have had a direct impact on the planned foreign investment, in particular, with regard to A1 Telekom Austria Group, this includes the Internet blackouts in August-November ordered by the authorities for reasons beyond the company’s control, uncertainty about licensing and frequency allocation for the 5G network, a temporary increase in the profit tax under the amended Tax Code. The company hopes that these factors are temporary, and, sooner or later, the investment climate will Improve.
As previously reported, Belarus raised the profit tax for telecom operators in 2021 from 18% to 30%.
Established in 1998, A1 unitary enterprise is now fully owned by A1 Telekom Austria Group. The mobile operator A1 started revenue service of its 3G network based on the HSPA/HSPA+ technology in March 2010. The operator made 4G mobile internet services available to customers in March 2019. Until Aug 1, 2019 the company had been operating under the velcom brand. End