Ukraine - Telecoms, Mobile and Broadband

Despite the Ukraine government announcing grand plans in November 2020 to enable the commercial launch of 5G mobile services by the end of 2021 (including a spectrum auction slated for October), there has been remarkably little evidence of any progress being made towards putting those plans into action. That includes near-radio silence on the details of the supposed forthcoming tender. Growth in the mobile sector is likely to remain stagnant for more time to come, while the market waits for the regulator and the three dominant MNOs to crawl towards making faster and more powerful services available for public consumption.

Most of the action with Ukraine's telecom market has instead taken place behind the lines, with a range of M&A activity resulting in more consolidation or, in the case of Vodafone Ukraine, a role-reversal.

First up was telecommunications service provider Datagroup, which completed its acquisition of cableco Volia in June 2021. The combined entity now operates one of the largest fibre networks in the country, with a reach of more than four million households. Then in August 2021, Vodafone Ukraine reversed its position from 2015 when it had sold its fixed internet and fixed telephony operations in Odessa and Kyiv to Vega. The mobile operator instead acquired 99.9% of Vega, as well as the cableco Cable TV-Finance. In doing so, Vodafone Ukraine broadcast a clear intention to become a quadruple-play provider rather than solely one of the country's three major MNOs.

This report includes the regulator's market data reports and telcos' financial and operating data updates to June 2021, Telecom Maturity Index charts and analyses, an assessment of the global impact of Covid-19 on the telecoms sector, and other recent market developments.

Key developments:

The Ukrainian telecoms regulator NCCR reduced the MTR from UAH0.12 per minute to UAH0.08 per minute, effective from October 2020.

Kyivstar and Huawei trialled LTE using tri-band Carrier Aggregation (CA) technology in the 900MHz, 1800MHz, and 2600MHz bands, achieving data speeds over 800Mb/s.

Vodafone Ukraine launched NB-IoT services in partnership with Danube Freight Company, Liana, and BTK-Tsent Komplekt.

All three MNOs (Lifecell, Kyivstar, and Vodafone Ukraine) joined together in an infrastructure sharing agreement to accelerate the deployment of LTE networks into rural areas. All three MNOs are expanding their LTE networks using newly available 900MHz spectrum.

Intertelecom has started closing down its CDMA-based wireless services due to its inability to meet the cost of LTE license fees required to proceed with a nationwide deployment.

Datagroup announced a $20 million network modernisation program in partnership with Cisco.

Companies mentioned in this report:

Ukrtelecom, Kyivstar, Vodafone Ukraine, Lifecell, Intertelecom, Datagroup, Eurotranstelecom, Vega, Volia Cable, TriMob, Triolan, PEOPLEnet.

Key statistics

Regional European Market Comparison

Europe Telecom Maturity Index by tier
- Market Leaders
- Market Challengers
- Market Emergents
TMI versus GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview

Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Regulatory environment

Law of Ukraine on Telecommunications
Regulatory authority
Fixed-line developments
- Privatisation
- Network access
- European Electronic Communications Code
Mobile network developments
- Licences
- Mobile Number Portability (MNP)
- Mobile Termination Rate (MTR)

Mobile market

Mobile infrastructure
- 5G
- 4G (LTE)
- 3G
- GSM
- Other infrastructure developments
- Mobile broadband
Major mobile operators
- Vodafone Ukraine
- Kyivstar
- Lifecell
- Ukrtelecom (Utel/TriMob)
- Mobile Virtual Network Operators (MVNOs)
Mobile content and applications

Fixed-line broadband market

Broadband statistics
- Hybrid Fibre Coax (HFC) networks
- Digital Subscriber Line (DSL) networks
- Fibre-to-the-Premises (FttP) networks
Other fixed broadband services
- Fixed wireless (Wi-Fi and WiMAX)

Fixed network market

Ukrtelecom
Datagroup
Kyivstar
Vega
Wireless Local Loop (WLL) operators
- Velton Telecom
- Intertelecom
- International Telecommunication Company (ITC)/CDMA Ukraine
- Telesystems of Ukraine/PEOPLEnet

Telecommunications infrastructure

Overview of the national telecom network
- Ukrtelecom
- Datagroup
- Eurotranstelecom
- Kyivstar
- Vega
International infrastructure

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

Table 1 - Top Level Country Statistics and Telco Authorities - Ukraine - 2021 (e)
Table 2 - Telecom services revenue by sector (UAH billion) - 2011 - 2021
Table 3 - Growth in the number of mobile subscribers and penetration rate - 2011 - 2026
Table 4 - Development of mobile market revenue - 2011 - 2021
Table 5 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Table 6 - Change in the number of Vodafone Ukraine's mobile subscribers - 2011 - 2021
Table 7 - Development of Vodafone Ukraine's revenue (UAH billion) - 2011 - 2021
Table 8 - Development of Vodafone Ukraine's capex - 2015 - 2021
Table 9 - Development of Vodafone Ukraine's annualised mobile ARPU - 2015 - 2021
Table 10 - Change in the number of Kyivstar's mobile subscribers - 2010 - 2021
Table 11 - Development of Kyivstar's mobile revenue (UAH million) - 2012 - 2021
Table 12 - Development of Kyivstar's mobile revenue ($million) - 2011 - 2021
Table 13 - Change in Kyivstar's mobile ARPU - 2011 - 2021
Table 14 - Change in the number of Lifecell's mobile subscribers - 2011 - 2021
Table 15 - Development of Lifecell's financial data (UAH million) - 2013 - 2021
Table 16 - Growth in the number of fixed-line broadband and penetration - 2011 - 2026
Table 17 - Change in the number of Ukrtelecom's broadband subscribers - 2011 - 2020
Table 18 - Change in the number of Kyivstar's broadband subscribers - 2011 - 2021
Table 19 - Development of Kyivstar's broadband revenue - 2012 - 2021
Table 20 - Change in Kyivstar's broadband ARPU - 2010 - 2021
Table 21 - Change in the number of cable broadband subscribers - 2009 - 2019
Table 22 - Change in the number of DSL subscribers - 2009 - 2019
Table 23 - Growth in the number of fibre broadband subscribers - 2009 - 2019
Table 24 - Development of Ukrtelecom's financial data (UAH billion) - 2008 - 2021
Table 25 - Ukrtelecom broadband and fixed-line subscribers - 2012 - 2020
Table 26 - Development of Kyivstar's financial data (UAH million) - 2010 - 2021
Table 27 - Development of Kyivstar's revenue by sector (UAH million) - 2012 - 2021
Table 28 - Change in the number of Kyivstar's subscribers by sector (million) - 2011 - 2021
Table 29 - Decline in the number of fixed lines in service and teledensity - 2011 - 2021
Table 30 - Historic - Telecom services revenue by sector (UAH billion) - 2006 - 2010
Table 31 - Historic - Mobile subscribers and penetration rate - 1995 - 2010
Table 32 - Historic - Vodafone Ukraine Value Added Service revenue (UAH million) - 2007 - 2015
Table 33 - Historic - Vodafone Ukraine subscribers - 2004 - 2010
Table 34 - Historic - Vodafone Ukraine revenue (UAH billion) - 2004 - 2010
Table 35 - Historic - Vodafone Ukraine annualised ARPU - 2004 - 2010
Table 36 - Historic - Kyivstar mobile revenue ($) - 2007 - 2010
Table 37 - Historic - Kyivstar ARPU - 2007 - 2010
Table 38 - Historic - Kyivstar subscribers - 2007 - 2010
Table 39 - Historic - Lifecell subscribers - 2008 - 2010
Table 40 - Historic - Lifecell financial data ($ million) - 2007 - 2010
Table 41 - Historic - TriMob subscribers - 2010 - 2013
Table 42 - Historic - Internet users and penetration rate - 1999 - 2010
Table 43 - Historic - Fixed-line broadband subscribers and penetration rate - 2005 - 2010
Table 44 - Historic - Kyivstar FttB subscribers - 2010 - 2012
Table 45 - Historic - Kyivstar FttB revenue - 2011 - 2013
Table 46 - Historic - Datagroup subscribers by type - 2010 - 2012
Table 47 - Historic - Datagroup financial data (historic) - 2009 - 2012
Table 48 - Historic - Kyivstar financial data - 2007 - 2010
Table 49 - Historic - Kyivstar financial data by sector - 2007 - 2010
Table 50 - Historic - Kyivstar subscribers by sector - 2007 - 2010
Table 51 - Historic - International bandwidth - 2004 - 2017
Table 52 - Historic - Fixed lines in service - 1995 - 2010

List of Charts

Chart 1 - Europe Telecoms Maturity Index - Market Leaders (top tier)
Chart 2 - Europe Telecoms Maturity Index - Market Challengers (middle tier)
Chart 3 - Europe Telecoms Maturity Index - Market Emergents (bottom tier)
Chart 4 - Overall view - Telecoms Maturity Index vs GDP per Capita
Chart 5 - Europe - mobile subscriber penetration vs mobile broadband penetration
Chart 6 - Scandinavia and Baltics - mobile subscriber penetration vs mobile broadband penetration
Chart 7 - Northern Europe - mobile subscriber penetration vs mobile broadband penetration
Chart 8 - Southern Europe mobile subscriber penetration vs mobile broadband penetration
Chart 9 - Eastern Europe mobile subscriber penetration vs mobile broadband penetration
Chart 10 - Scandinavia and Baltics fixed and mobile broadband penetration
Chart 11 - Northern Europe fixed and mobile broadband penetration
Chart 12 - Southern Europe fixed and mobile broadband penetration
Chart 13 - Eastern Europe fixed and mobile broadband penetration
Chart 14 - Telecom revenue by sector - 2011 - 2021
Chart 15 - Growth in the number of mobile subscribers and penetration rate - 2011 - 2026
Chart 16 - Development of mobile market revenue - 2011 - 2021
Chart 17 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Chart 18 - Change in the number of Vodafone Ukraine's mobile subscribers - 2011 - 2021
Chart 19 - Development of Vodafone Ukraine's revenue (UAH billion) - 2011 - 2021
Chart 20 - Development of Vodafone Ukraine's capex - 2015 - 2021
Chart 21 - Development of Vodafone Ukraine's annualised mobile ARPU - 2015 - 2021
Chart 22 - Change in the number of Kyivstar's mobile subscribers - 2010 - 2021
Chart 23 - Development of Kyivstar's mobile revenue (UAH million) - 2012 - 2021
Chart 24 - Development of Kyivstar's mobile revenue ($) - 2011 - 2021
Chart 25 - Lifecell financial data (UAH million) - 2013 - 2021
Chart 26 - Growth in the number of fixed-line broadband and penetration - 2011 - 2026
Chart 27 - Change in the number of Kyivstar's broadband subscribers - 2011 - 2021
Chart 28 - Development of Ukrtelecom's financial data (UAH billion) - 2008 - 2021
Chart 29 - Development of Kyivstar's financial data (UAH million) - 2010 - 2021
Chart 30 - Development of Kyivstar's revenue by sector (UAH million) - 2012 - 2021
Chart 31 - Change in the number of Kyivstar's subscribers by sector - 2011 - 2021
Chart 32 - Decline in the number of fixed lines in service and teledensity - 2011 - 2021

List of Exhibits

Exhibit 1 - Generalised Market Characteristics by Market Segment

Ukraine - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

Ukraine's telecom sector settles on back-office dealings to jolt the market

Key developments:

Companies mentioned in this report:

Table of Contents

Key statistics

Regional European Market Comparison

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network market

Telecommunications infrastructure

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

List of Charts

List of Exhibits