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Ukraine - Telecoms, Mobile, Broadband and Forecasts

  • Publication Date:February 2011
  • Publisher:BuddeComm
  • Product Type: Report
  • Pages:62
Ukraine - Telecoms, Mobile, Broadband and Forecasts

Ukraine - Telecoms, Mobile, Broadband and Forecasts

This report provides a comprehensive overview of trends and developments in Ukraine's telecommunications market. The report analyses the mobile, Internet, broadband, digital TV and converging media sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major players, revenues, subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile voice and data markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and digital media;
  • 3G subscriber and mobile ARPU forecasts to 2015;

Broadband market forecasts for selective years to 2020.This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Ukraine. It provides further information on:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators - privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of spectrum auctions and new license awards;
  • 3G developments, regulatory issues and technologies including HSPA;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.Researcher:- Henry LancasterCurrent publication date:- February 2011 (9th Edition)Next publication date:- February 2012

Ukrtelecom's sale implies overhaul of Ukraine's mobile sectorBuddeComm's annual publication, Ukraine - Telecoms, Mobile, Broadband and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of Europe's medium-sized and key telecom markets.

One of Eastern Europe's largest countries, Ukraine enjoyed strong economic growth in the early part of the century, though in common with its neighbours the country has been adversely impacted by the recent global economic turmoil. It was obliged to turn to the IMF for assistance in late 2008, and has since worked to restore economic health. The telecoms sector has not fared as badly as other areas, but since 2008 revenue growth has been minimal. This is likely to continue into 2012 at least, though thereafter the prospects are likely to improve as liquidity issues lessen and the economy as a whole improves. Although Ukraine has important economic ties with Russia, reflected in Russian investment in the country's telcos, it has sought an increasingly close relationship with the EU, and the government actively pursues a policy of EU integration. This would have significant implications for Ukraine's telecom sector, not only in terms of tighter regulation but also in its capacity to cope with competitive pressure and market forces within the Union.

Ukraine's large population supports a significant telecom market, worth about UAH47.4 billion in 2010. Market growth for the year was below the 5% rate forecast by the telecoms regulator, a fact attributed to saturation in the mobile market and low growth in fixed-line services. Growth for 2011 is predicted at 5%.

Considerable sector reform has been carried out since 2000, and while competition is improving the incumbent Ukrtelecom remains the dominant player. The regulatory environment is likely to improve following the company's sale, since this will also impact on the country's mobile telephony licence regime.

Fixed broadband uptake in Ukraine is growing quickly on the back of increased competition and the flexibility of cross-platform availability. FttB-based broadband services are increasingly available, though thus far restricted to the main towns. Kyivstar's fibre network connects over 20,000 apartment buildings serving more than 2.2 million units. During 2011 the company planned to double its broadband coverage area by adding fibre in additional towns as well as those within its existing footprint. Growth in broadband penetration has been reflected in sector revenue, which increased 25% in 2010 to reach almost UAH4 billion. A further 30% growth in the sector is expected for 2011.

Ukraine's mobile market is competitive due to a number of mobile operators and MVNOs offering services. Mobile broadband services present the next growth opportunity in the wake of operator investment in newer technologies such as HSPA which will enable consumer use of high-end data services. Demand for content is expected to grow significantly in coming years as falling mobile data tariffs lead to increased numbers of mobile Internet users. However, thus far the major GSM operators have been hampered by lack of licences to offer 3G services. However, the sale of Ukrtelecom has made it likely that as part of the company's restructure its unprofitable mobile unit may be offloaded: base stations other infrastructure may be distributed among other operators, which its 3G licence could also be reassigned.

  • Key telecom parameters - 2009 - 2011
  • Sector | 2009 | 2011 (e) |
  • Broadband: |
  • Fixed broadband subscribers (million) | 2.1 | 3.6 |
  • Fixed broadband penetration rate | 5% | 11.4% |
  • Mobile broadband (million) | 1.4 | 3.6 |
  • Subscribers to telecoms services: |
  • Fixed-line telephony (million) | 13.2 | 13.4 |
  • Mobile phone (million) | 50.1 | 47.1 |
  • Mobile SIM penetration (population) | 108% | 102% |
  • (Source: BuddeComm)

Market highlights:

Broadcasting revenue has increased steadily in recent years, from about UAH770 million in 2006 to UAH 1.92 billion in 2010. DTTV services are gradually expanding beyond Odessa and Kiev with the addition of regional transmission sites.Although there are some 2.9 million users of satellite antennae in Ukraine, the total number of homes paying to receive commercial DTH services is estimated at no more than about 80,000, such is the extent of piracy in the country. Poverkhost satellite TV had few legitimate subscribers before it ceased broadcasting at the end of 2010 and was reformed as a new DTH service in early 2011. The platform will migrate to a new Ukrainian satellite due to launch in 2012. A tender to award 3G frequencies has been stymied for years by the military retaining the necessary radio frequencies. However, the regulator expected that spectrum in the 2.1GHz band would be auctioned by the end of 2011, assuming the cooperation of the defence ministry and other government agencies involved. Ukrtelecom remains the sole W-CDMA/HSPA network operator in the country, although it does have 3G mobile broadband resale deals in place with other mobil operators.Data in this report is the latest available at the time of preparation and may not be for the current year.

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Overview of Ukraine's telecom market
  • 3. Regulatory Environment
    • 3.1 Law of Ukraine on Telecommunications 2003
    • 3.2 Regulatory authority
    • 3.2.1 National Commission for Communications Regulation (NCCR)
    • 3.3 Telecom sector liberalisation in Ukraine
    • 3.3.1 Privatisation
    • 3.3.2 Interconnection
    • 3.3.3 Carrier selection and carrier preselection
  • 4. Fixed Network Operators
    • 4.1 Overview of operators
    • 4.2 Ukrtelecom
    • 4.3 Datagroup
    • 4.4 Eurotranstelecom
    • 4.5 Beeline Ukraine
    • 4.6 Vega
    • 4.7 Wireless Local Loop (WLL) operators
    • 4.7.1 Velton Telecom
    • 4.7.2 Intertelecom
    • 4.7.3 International Telecommunication Company (ITC)/CDMA Ukraine
    • 4.7.4 Telesystems of Ukraine/PEOPLEnet
  • 5. Telecommunications Infrastructure
    • 5.1 National telecom network
    • 5.1.1 Ukrtelecom
    • 5.1.2 Datagroup
    • 5.1.3 Eurotranstelecom
    • 5.1.4 Beeline Ukraine
    • 5.1.5 Vega
    • 5.2 International infrastructure
    • 5.3 Telecoms and IT
  • 6. Internet Market
    • 6.1 Overview
    • 6.1.1 Ukraine's emerging Internet economy
    • 6.1.2 Internet statistics
  • 7. Fixed Broadband Market
    • 7.1 Overview
    • 7.1.1 Fixed broadband statistics
    • 7.2 Asymmetric Digital Subscriber Line (ADSL)
    • 7.3 Cable modems
    • 7.4 Fibre-to-the-Home (FttH)
    • 7.5 Wireless broadband
    • 7.5.1 WiFi
    • 7.5.2 WiMAX
  • 8. Digital Media - Broadcasting
    • 8.1 Overview of broadcasting market
    • 8.2 Digital Terrestrial TV (DTTV)
    • 8.3 Cable TV
    • 8.3.1 Volia Cable
    • 8.4 Satellite-based digital pay TV developments
    • 8.5 Digital TV
    • 8.6 Broadband TV (IPTV)
  • 9. Mobile Communications
    • 9.1 Overview of Ukraine's mobile market
    • 9.1.1 Mobile statistics
    • 9.2 Regulatory issues
    • 9.2.1 GSM licences awarded
    • 9.2.2 CDMA licence awarded
    • 9.2.3 Third Generation (3G) mobile licences
    • 9.2.4 Spectrum auctions
    • 9.3 Mobile technologies
    • 9.3.1 Digital
    • 9.3.2 Third Generation (3G) mobile
    • 9.4 Major mobile operators
    • 9.4.1 Ukrainian Mobile Communications (UMC)/MTS Ukraine
    • 9.4.2 Kievstar
    • 9.4.3 Ukrainian Radio Systems (URS)/Beeline Ukraine
    • 9.4.4 Astelit/Life
    • 9.4.5 Ukrtelecom (Utel)
    • 9.4.6 Mobile Virtual Network Operators (MVNOs)
    • 9.5 Mobile voice services
    • 9.5.1 Prepaid
    • 9.6 Mobile data services
    • 9.6.1 Short Messaging Service (SMS)/Multimedia Messaging Service (MMS)
    • 9.6.2 Push-to-Talk (PTT)
    • 9.6.3 Enhanced Data for GSM Evolution (EDGE)
    • 9.6.4 Mobile broadband
    • 9.6.5 Unlicensed Mobile Access (UMA)
    • 9.6.6 BlackBerry
    • 9.6.7 Mobile TV
    • 9.7 Mobile content and applications
  • 10. Forecasts
    • 10.1 Forecasts - fixed broadband market - 2010 - 2013; 2020
    • 10.1.1 Scenario 1 - higher fixed broadband subscriber growth
    • 10.1.2 Scenario 2 - lower fixed broadband subscriber growth
  • 11. Glossary of Abbreviations
    • Table 1 - Country statistics Ukraine - 2010
    • Table 2 - Telephone network statistics - 2010
    • Table 3 - Internet user statistics - June 2010
    • Table 4 - Internet subscriber statistics - 2010
    • Table 5 - Broadband statistics - 2010
    • Table 6 - Mobile statistics - 2010
    • Table 7 - National telecommunications authority
    • Table 8 - Prime time audience share by broadcaster - 2004 - 2009
    • Table 9 - All day audience share by broadcaster - 2004 - 2009
    • Table 10 - Total TV advertising spending - 2004 - 2011
    • Table 11 - Mobile operator operational data - September 2010
    • Table 12 - Kievstar financial data (€) - 2007 - 2009
    • Table 13 - Kievstar prepaid, postpaid and blended monthly ARPU (€) - 2007 - 2009
    • Table 14 - Mobile broadband subscribers - 2007 - 2012
    • Chart 1 - Telecom revenue by sector- 2006 - 2010
    • Chart 2 - Ukrtelecom financial data - 2008 - 2010
    • Chart 3 - Datagroup subscribers - 2008 - 2009
    • Chart 4 - VimpelCom financial data - 2007 - 2010
    • Chart 5 - VimpelCom subscribers by sector- 2007 - 2010
    • Chart 6 - Intertelecom subscribers - 2005; 2007 - 2009
    • Chart 7 - PEOPLEnet subscribers - 2007 - 2009
    • Chart 8 - Fixed lines in service - 2000 - 2011
    • Chart 9 - Internet users and penetration rate - 1999 - 2010
    • Chart 10 - Fixed broadband subscribers and penetration rate - 2005 - 2011
    • Chart 11 - VimpelCom broadband subscribers - 2008 - 2010
    • Chart 12 - Broadcasting revenue - 2006 - 2010
    • Chart 13 - Cable TV revenue - 2006 - 2010
    • Chart 14 - Mobile subscribers and penetration rate - 2000 - 2011
    • Chart 15 - Total mobile market revenue - 2006 - 2015
    • Chart 16 - UMC subscribers - 2004 - 2010
    • Chart 17 - UMC revenue - 2004 - 2010
    • Chart 18 - UMC ARPU - 2004 - 2010
    • Chart 19 - Kievstar financial data (UAH) - 2008 - 2010
    • Chart 20 - Kievstar ARPU (UAH) - 2009 - 2010
    • Chart 21 - Kievstar subscribers - 2004 - 2010
    • Chart 22 - URS mobile revenue - 2007 - 2010
    • Chart 23 - URS subscribers - 2005 - 2010
    • Chart 24 - URS monthly ARPU - 2007 - 2010
    • Chart 25 - Astelit subscribers - 2008 - 2010
    • Chart 26 - Astelit revenue - 2007 - 2010
    • Chart 27 - Kievstar prepaid subscribers - 2004 - 2010
    • Chart 28 - UMC value-added service revenue - 2007 - 2010
    • Chart 29 - Forecast fixed broadband subscribers - higher growth scenario - 2010 - 2013; 2020
    • Chart 30 - Forecast fixed broadband subscribers - lower growth scenario - 2010 - 2013; 2020
    • Exhibit 1 - The Economist Intelligence Unit (EIU) annual E-readiness criteria
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