Ukraine’s telecom sector returns to revenue growthUkraine’s telecoms market is supported by a population of almost 46 million. National telecom infrastructure continues to be modernised through considerable investment in fibre infrastructure. Competition is provided from a number of alternative operators, though each sector is dominated by only a few players. The sector has attracted foreign investors, including SCM Group acquiring Ukrtelecom and Turkcell now owning 100% of the mobile operator lifecell. The telecom market returned to revenue growth in 2015, though the ongoing economic crisis has caused considerable difficulties for operators as subscriber scale down spending on services. The annexation of Crimea by Russia, compounded by the difficult operating conditions in parts of eastern Ukraine, has further exacerbated these problems, and telcos have had to write down substantial losses.
Ukraine’s sizeable broadband market enjoys effective cross-platform competition. DSL remains the dominant access platform, though cable is also widely available and there has been considerable investment in FttP and FttB infrastructure in recent years.
The competitive mobile market is dominated by the three network operators Vodafone Ukraine (formerly MTS Ukraine before being rebranded in late 2015), VimpelCom’s Kyivstar and Turkcell’s lifecell. Some market consolidation is likely later in 2016, with Vodafone Ukraine having made a bid for Ukrtelecom’s mobile subsidiary TriMob at the beginning of the year.
The MNOs have held back the development of the MVNO sector by promoting their own low-cost subsidiaries. Mobile Number Portability has yet to make an impression, with the process to select the company to operate the facility, completed in early 2016, being reviewed by the Antimonopoly Committee. The mobile broadband sector has also been slow to develop. Partly due to economic uncertainties, operators delayed launching 3G services until mid-2015, while commercial LTE services will not be available until after the auction of suitable spectrum in 2017.
This report provides an overview of Ukraine’s telecom market, including profiles of the major operators, a review of telecom network infrastructure, regulatory measures, and emerging network developments. It also covers the broadband and digital media sectors, assessing market developments and the rollout of fibre infrastructure to support bundled services. In addition the report assesses Ukraine’s mobile voice and data markets, offering a range of statistics as well as profiles of the key players, and a review of services and an analysis of anticipated growth in the mobile broadband sector in coming years.
Key developments:
Astelit is rebranded as lifecell;
NCCIR prepares to auction spectrum in the 2.3GHz-2.4GHz and 2.5GHz-2.7GHz bands for LTE; Vodafone Ukraine makes bid for Ukrtelecom’s mobile unit TriMob;
MNP operator under scrutiny by the Antimonopoly Committee;
Modern Times Group agrees to sell the Viasat Ukraine pay-TV business;
Volia acquires the W-Fi operator Normatek;
Ukrtelecom launches fibre-based services for the SME market;
Volia expands 150Mb/s cable broadband service;
Kyivstar’s fibre network extended to 4.5 million premises;
Ukrtelecom begins three-year network upgrade project with Huawei, secures renewal of its local telephony licence;
Telecom revenue growth returns in 2015;
Legal amendments to Telecoms Law widens regulator’s powers;
Number of fixed lines dips below nine million;
Report update includes the regulator market data, State Statistics data to January 2016, telcos’ operating and financial data to Q4 2015, recent market developments.Companies mentioned in this report:
Kyivstar, Ukrainian Radio Systems, lifecell (Astelit), Vodafone Ukraine (MTS Ukraine), Ukrtelecom, VimpelCom (Beeline, Kyivstar), Golden Telecom, PAN Wireless, Volia Cable, Datagroup, Eurotranstelecom, , Velton Telecom, Intertelecom, ITC, Telesystems.
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1. Key statistics
1.1 Country overview
2. Telecommunications market
3. Regulatory environment
3.1 Law of Ukraine on Telecommunications
3.2 Regulatory authority
3.2.1 National Commission for Communications Regulation (NCCR)
3.3 Government policies
3.3.1 Privatisation
3.3.2 Interconnection
3.3.3 Carrier selection and carrier preselection
3.3.4 Number Portability (NP)
3.3.5 Licensing
4. Fixed network operators
4.1 Introduction
4.2 Ukrtelecom
4.3 Datagroup
4.4 Eurotranstelecom
4.5 Kyivstar (VimpelCom)
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 Overview of the national telecom network
5.1.1 Ukrtelecom
5.1.2 Datagroup
5.1.3 Eurotranstelecom
5.1.4 Kyivstar
5.1.5 Vega
5.2 International infrastructure
5.3 Data centres
5.4 Telecoms and IT
6. Broadband market
6.1 Introduction and statistical overview
6.1.1 Market analysis
6.1.2 Broadband statistics
6.1.3 Forecasts – fixed broadband market – 2016; 2018; 2021
6.2 Hybrid Fibre Coax (HFC) networks
6.3 Digital Subscriber Line (DSL) networks
6.4 Fibre-to-the-Premises (FttP) networks
6.5 Other fixed broadband services
6.5.1 Fixed wireless (Wi-Fi and WiMAX)
7. Digital media
7.1 Introduction
7.2 Videostreaming
7.3 Cable TV
7.3.1 Volia Cable
7.4 Satellite TV
7.5 Digital Terrestrial TV (DTTV)
8. Digital economy
8.1 E-Health
9. Mobile communications
9.1 Market analysis
9.2 Mobile statistics
9.2.1 General statistics
9.2.2 Mobile data
9.3 Regulatory issues
9.3.1 Licences
9.3.2 Mobile Number Portability (MNP)
9.4 Mobile infrastructure
9.4.1 Other infrastructure developments
9.4.2 Major mobile operators
9.5 Mobile content and applications
9.5.1 m-banking
9.5.2 Mobile TV
9.6 Handsets
Table 1 – Country statistics – 2015 (e)
Table 2 – Telephone network statistics – 2015 (e)
Table 3 – Internet user statistics – 2015
Table 4 – Broadband statistics – 2015 (e)
Table 5 – Mobile statistics –2015 (e)
Table 6 – National telecommunications authority
Table 7 – Telecom services revenue by sector – 2006 - 2015
Table 8 – Telecom revenue – 2013 - 2015
Table 9 – Ukrtelecom financial data – 2008 - 2015
Table 10 – Ukrtelecom broadband and fixed-line subscribers – 2012 - 2015
Table 11 – Datagroup subscribers by type (historic) – 2010 - 2012
Table 12 – Datagroup financial data (historic) – 2010 - 2012
Table 13 – VimpelCom (Ukraine) financial data – 2007 - 2015
Table 14 – VimpelCom (Ukraine) financial data by sector – 2007 - 2015
Table 15 – VimpelCom (Ukraine) revenue by sector (UAH) – 2012 - 2015
Table 16 – VimpelCom (Ukraine) financial data (UAH) – 2012 - 2015
Table 17 – VimpelCom (Ukraine) subscribers by sector– 2007 - 2015
Table 18 – Intertelecom subscribers (historic) – 2005; 2007 - 2009; 2011 - 2012
Table 19 – PEOPLEnet subscribers (historic) – 2007 - 2009
Table 20 – Historic - Fixed lines in service - 1995 - 2004
Table 21 – Fixed lines in service - 2010 - 2016
Table 22 – Internet access revenue – 2012 - 2016
Table 23 – Historic - Internet users and penetration rate – 1999 - 2009
Table 24 – Internet users and penetration rate – 2010 - 2017
Table 25 – Fixed-line internet subscribers – 2005 - 2015
Table 26 – Fixed-line broadband subscribers and penetration rate – 2005 - 2016
Table 27 – Forecast fixed broadband subscribers – 2016; 2018; 2021
Table 28 – Ukrtelecom broadband subscribers – 2011 - 2015
Table 29 – VimpelCom broadband subscribers – 2008 - 2015
Table 30 – VimpelCom broadband revenue – 2012 - 2015
Table 31 – VimpelCom broadband ARPU – 2011 - 2015
Table 32 – Kyivstar FttB subscribers – 2010 - 2013
Table 33 – Kyivstar FttB revenue – 2011 - 2013
Table 34 – Broadcasting revenue – 2006 - 2015
Table 35 – Cable TV revenue – 2006 - 2015
Table 36 – Cable TV subscribers – 2007 - 2015
Table 37 – Historic - Mobile subscribers and penetration rate – 1995 - 2009
Table 38 – Mobile subscribers and penetration rate – 2010 - 2016
Table 39 – Total mobile market revenue – 2006 - 2016
Table 40 – MTS Value Added Service revenue – 2007 - 2015
Table 41 – Vodafone Ukraine subscribers – 2004 - 2015
Table 42 – Vodafone Ukraine revenue – 2004 - 2015
Table 43 – Vodafone Ukraine mobile revenue by sector – 2014 - 2015
Table 44 – Vodafone Ukraine annualised ARPU – 2004 - 2015
Table 45 – VimpelCom (Ukraine) mobile revenue – 2007 - 2015
Table 46 – VimpelCom (Ukraine) ARPU – 2007 - 2015
Table 47 – VimpelCom (Ukraine) subscribers – 2007 - 2015
Table 48 – Lifecell subscribers – 2008 - 2015
Table 49 – Lifecell financial data ($) – 2007 - 2015
Table 50 – Lifecell revenue (Turkish Lira) – 2013 - 2015
Table 51 – Lifecell financial data (UAH) – 2014 - 2015
Table 52 – TriMob subscribers – 2010 - 2013
Chart 1 – Telecom revenue by sector– 2006 - 2015
Chart 2 – Ukrtelecom financial data – 2008 - 2014
Chart 3 – VimpelCom (Ukraine) financial data – 2007 – 2015
Chart 4 – VimpelCom (Ukraine) financial data – 2007 - 2015
Chart 5 – Internet users and penetration rate – 2002 - 2017
Chart 6 – Fixed-line broadband and penetration rate – 2005 - 2016
Chart 7 – Mobile subscribers and penetration rate – 2005 - 2016
Chart 8 – MTS value-added service revenue – 2007 - 2015
Chart 9 – Vodafone Ukraine revenue – 2004 - 2015
