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VEON, the Nasdaq-listed telecom and digital services operator, aspires to be the Berkshire Hathaway of frontier markets, its chief executive officer said in an interview.
Run from Dubai, VEON operates in countries with fast-growing, underserved populations — including Bangladesh, Kazakhstan, Pakistan, Ukraine, and Uzbekistan — and reaches around 200 million customers in markets where revenue per user can be less than $3 a month. The company projects annual revenue of around $4.4 billion, with roughly 80% coming from core telecommunications and 20% from digital services such as banking, entertainment, ride-hailing services, and other platforms.
That digital slice is expanding quickly and could reach 50% of revenue in three years, giving CEO Kaan Terzioglu the confidence to make the comparison to the world’s most successful conglomerate.
“We will eventually become a consumer and enterprise services company, which happens to have a telecom license,” Terzioglu said in an interview. “There are very few opportunities for Western investors to participate in the growth opportunity of frontier markets. We are very proud to be … the Berkshire Hathaway of frontier markets.”
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Pakistan offers a case study for VEON’s strategy: Through a local payments platform there, VEON handles transactions equivalent to about 13% of Pakistan’s GDP, making the company critical for digital payments, entertainment, and enterprise services.
VEON is also planning to adopt stablecoins and establish a fintech holding company in Dubai to facilitate remittances from the Gulf, Terzioglu said. Workers from Pakistan and Bangladesh in the Gulf send around $7 billion home each month, with transaction costs reaching as high as 11%, he said. “With the right technologies, especially stablecoins, we can lower this cost.”
The company’s most extreme market is Ukraine, where power cuts and landmines make it impossible to maintain uninterrupted coverage. The solution is Starlink, Elon Musk’s satellite internet company that is part of SpaceX. VEON has become Starlink’s largest partner for direct-to-cell services, with users in Ukraine able to connect when towers are down, Terzioglu said. For now, the service includes messaging only, with data and voice expected to roll out this year.
Step Back
VEON’s relocation to Dubai from Amsterdam began as a practical decision. During the COVID-19 pandemic, Terzioglu said travel from Europe was inefficient, and visa restrictions made it difficult for staff to convene. “I figured out that in Dubai I could make day trips,” he said. “And more importantly, my people could travel here.”
Soon after, Terzioglu said he “fell in love with Dubai,” citing logistics, safety, access to capital and talent, and quality of life. The company now has about 80 staff permanently based in the city, with hundreds more passing through each year for meetings.
“Dubai offers an amazing platform for international companies to operate from,” Terzioglu said. “There is a government which listens and cares about businesses, its citizens, and residents.”
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