2014 Ukraine - Telecoms, IP Networks, Digital Media and Forecasts

Poor economic growth undermining telecom investments

Ukraine’s large telecoms market, supported by a population of almost 46 million, is being modernised through considerable investment in both the mobile and fixed-broadband sectors. Competition is improving as alternative operators engage in infrastructure-based competition. Wireless local loop and fibre operators have been most active in this area. Although the incumbent Ukrtelecom remains the dominant player, the regulatory environment is likely to improve further following the sale of Ukrtelecom to the local conglomerate SCM Group. In addition, Ukraine’s telecom market has attracted investors from Turkey and Russia. The political tension which erupted in late 2013 has brought focus to the vulnerability of the national telecom network, as parts of the infrastructure in Russian-dominated Crimea were vandalised in early 2014, leading to network disruption.

The 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 in recent years. LAN and wireless platforms such as WiFi and WiMAX exist on a smaller scale. Digital TV is accessible from the cable and satellite platforms, while DTTV has progressed, though not without controversy in the selection of broadcasters.

Ukraine’s mobile market is dominated by three network operators. Together, these retarded the development of the MVNO sector by promoting their own low-cost subsidiaries, though recently they have adopted a business model which has these subsidiaries brought under a single brand, and with less focus on market segmentation. The MVNO market as a result is in its infancy, and few have been licensed thus far. Yet a gap in the low-cost sector may provide the opportunity for MVNOs to thrive in coming years. Greater competition is also anticipated following the mid-2014 introduction of mobile number portability.

Mobile broadband services present the next growth opportunity, given the saturated voice market, though insufficient investment has been made thus far in 4G technologies. Into this market opportunity has stepped Ukraine’s CDMA operators, which initially offered fixed-line services but have since moved into the mobile market, launching mobile broadband services.

This report provides a concise overview of Ukraine’s telecom market, including profiles of the major operators, a review of telecom network infrastructure and emerging network developments. It also offers assesses the broadband and digital media sectors, covering major players, market developments and providing a wide range of statistics. In addition, it examines developments in the mobile market, profiling the key players, technologies and industry developments.

Data in this report is the latest available at the time of preparation and may not be for the current year