VEON Doubles Down on Uzbekistan: Telecom Giant Opens New Cyber Hub and Launches AI Venture
VEON Ltd., the Amsterdam-based telecommunications group, is making a concerted push to expand its digital footprint in Uzbekistan. The company announced the opening of a new, advanced Network Operations Center (NOC) for its Beeline Uzbekistan subsidiary, aimed at bolstering network reliability and cybersecurity for its 7.7 million local users. In a parallel move, VEON has formally launched BuildX, a dedicated software development and artificial intelligence business unit headquartered in Tashkent.
These initiatives represent a significant step in VEON's broader strategy to evolve beyond its core connectivity business. By integrating cybersecurity oversight with homegrown AI and software capabilities, the group is positioning itself as a multifaceted digital player in a region ripe for technological adoption. The launch of BuildX follows a similar pattern established with its QazCode unit in Kazakhstan, suggesting a replicable model for leveraging large local user bases to foster tech ecosystems.
"This isn't just about maintaining cell towers anymore," said a Tashkent-based industry analyst. "VEON is betting that the future revenue growth in emerging markets will come from digital services and enterprise solutions. Controlling the underlying network security while building exportable software products creates a powerful synergy."
The strategic shift mirrors efforts by global peers like Vodafone and Orange, who have also diversified into adjacent tech services. For VEON, which has seen its share price (NasdaqGS: VEON) deliver substantial returns over a three-year horizon, the success of this pivot hinges on BuildX's ability to attract external clients and the new NOC's impact on measurable service quality improvements.
Investor & Analyst Reactions
David Chen, Portfolio Manager at Horizon Capital: "This is a logical and necessary evolution. The 'telco-to-techco' transition is the only path to sustainable margins in competitive markets. VEON's established brand and customer base in Uzbekistan give BuildX a formidable launchpad. The key metric to watch will be the percentage of BuildX's revenue originating from outside the VEON group within the next 18 months."
Anara Iskandarova, Tech Entrepreneur, Tashkent: "I'm cautiously optimistic. More high-tech investment and skilled jobs are desperately needed here. If BuildX truly engages with the local developer community and avoids operating in a silo, it could act as a catalyst for Uzbekistan's entire IT sector. My hope is they build with the ecosystem, not just within it."
Marcus Thorne, Editor at 'Emerging Markets Skeptic': "Here we go again—another legacy telco dressing up basic infrastructure spending as a 'digital transformation.' Launching an 'AI unit' is the corporate buzzword du jour. VEON's core challenge remains political and regulatory risk in its operating regions. A fancy new NOC doesn't change that. This feels more like a narrative for shareholders than a tangible game-changer for the market."
Sarah Lin, Senior Analyst at Berenberg: "The financial logic is sound. They are monetizing their operational expertise in cybersecurity and aiming to productize their software. It de-risks the revenue stream. However, execution is everything. The market will judge them on whether these units can achieve scale and profitability independently, not just as cost centers for the parent company."
This analysis is based on publicly available information and company announcements. It is for informational purposes only and does not constitute financial advice.