Telecom Investment Research Note
Synopsis
Ukraine possesses a significant telecoms market, supported by a large population. Competition is improving as alternative operators engage in infrastructure-based competition made necessary through the lack of an effective last mile network access regime. Wireless local loop and fibre operators have been most active in this area. However the incumbent, Ukrtelecom, remains the dominant player. The competitive environment is likely to improve once the privatisation of the incumbent is completed: the sole bidder for the company is an Austrian-based concern, confirming a trend in which Western European capital is being drawn eastwards to tap into and endeavour to develop these maturing markets. This is particularly true for the broadband and mobile sectors. Although in this region European operators still contend with lower per capita incomes, as well as comparatively slow and cumbersome regulatory regimes, in coming years their experience in providing first-rate converged services will help close the gap between Ukraine and the leading Western European nations.
