2013 Ukraine - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

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.

Key developments:

Epic Services Ukraine planning sale of TriMob; Kyivstar sells redundant Beeline mobile infrastructure; government and military finalise plan to release a 100MHz block of spectrum in the 2.1GHz band for auction; ITC/Velton Telecom close down mobile service; Astelit awarded 800MHz licenses in all 27 regions; CDMA refarming leads to MNO moves to share infrastructure; more operators apply for CDMA-450 licenses; First Investment Alliance licensed in the 1980MHz-2000MHz band; Volia launches 150Mb/s cable broadband service and bundled TV package; UBG secures capacity on ASTRA satellite for DTH pay-TV offering; two new satellite platforms prepare to launch; Kyivstar’s ‘Home Internet’ fibre network extended to 70 cities; Ukrtelecom registers trade names for FttH offerings; Russian DTH platform Tricolor TV set to launch in Ukraine; regulator subsidises up to one million STBs to encourage DTTV take-up; telecom revenue grows 10% in 2012; legal amendments to Telecoms Law widens regulator’s powers; legislation approved to encourage network sharing; regulator finalising number portability conditions; NP close to implementation; regulator market data for 2011; State Statistics data to October 2012; telcos’ operating and financial data to September 2012; market developments to February 2012..

Companies covered in this report include:

Ukrtelecom, Datagroup, Eurotranstelecom, Beeline Ukraine, Vega, Velton Telecom, Intertelecom, ITC, Telesystems, Kievstar, Ukrainian Radio Systems, Astelit, MTS Ukraine, Golden Telecom, PAN Wireless, Volia Cable, VimpelCom.

Researcher:- Henry Lancaster
Current publication date:- February 2013 (11th Edition)

Executive Summary

Growing Ukrainian telecom investment concentrates on FttH

BuddeComm’s annual publication, Ukraine - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors in one of Eastern Europe’s more mature markets. The report includes the regulator’s market data to the end of 2011, telcos’ financial and operating data to September 2012, State Statistical data to November 2012 and market developments to February 2013.

Telecom market overview

Ukraine’s sizeable telecom market is among the more developed in Eastern Europe. Sector revenue has also shown robust growth in recent years, in contrast to the situation in most Western countries where revenue decline has resulted from competition and regulatory measures compounded by poor economies. Ukraine’s comparatively less mature market, particularly in the broadband and data sectors, has thus provided comparatively steady returns and consequently continues to attract investment. Mobile broadband services present a considerable growth opportunity given the saturated mobile voice market though operators are hampered by a poor licensing regime. Opportunities therefore exist for CDMA operators, which initially offered fixed-line services but have since moved into the mobile market, launching mobile broadband services.

Broadband market

FttH/C development has thus far been impeded by cost, resulting in the continuing dominance of the DSL platform though this is also being challenged by cablecos which continue to invest in network upgrades. Operators such as Vega and Beeline have responded by increasing investment in fibre, expanding beyond high-density areas. The incumbent operator Ukrtelecom is developing an extensive GPON FttH network, having suspended plans to deploy FttB as insufficiently future-proof. The move was in the context of a four-fold increase in the company’s fixed broadband network investment in 2012. The fibre sector thus shows great promise for coming years, enabling the nascent IPTV sector and other high-end data services to develop.

Key telecom parameters – 2010; 2013

Sector

2010

2013 (e)

Subscribers by sector (million):

Fixed broadband subscribers

3.66

6.12

Mobile broadband

2.3

4.1

Mobile phone

53.9

63.4

Fixed-line telephony

12.2

11.9%

Penetration by sector:

Fixed broadband

10%

13%

Mobile

112%

123%

Fixed-line

26%

24%

(Source: BuddeComm)

Market Highlights

  • The regulator is expected to finalise its decision on number portability later in 2013, facilitating the competition in the fixed-line market.
  • Epic still plans to sell Ukrtelecom’s mobile unit TriMob despite strong growth in the operator’s subscriber base, and some UAH80 million invested in its 3G mobile network in 2012 alone.
  • The mobile sector saw ITC in late 2012 shut down and transfer subscribers to Intertelecom. The decision followed the revocation of its licence and also affected its subsidiaries Velton Telecom and Ukrainian Wave.
  • Investment from the cableco Volia has enabled the company to extend its 150Mb/s service, among the fastest in Europe.
  • IPTV has emerged as a key service for broadband operators to reduce churn and increase revenue from consumers. Though take-up is very low, a number of new licences together with network upgrades should see take-up increase rapidly in coming years.
  • Ukrtelecom has registered three trade marks for its FttH-based services in anticipation of a commercial launch later in 2013.

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 and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

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

Table of Contents

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Overview of Ukraine’s telecom 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 Telecom sector liberalisation in Ukraine
      • 3.3.1 Privatisation
      • 3.3.2 Interconnection
      • 3.3.3 Carrier selection and carrier preselection
      • 3.3.4 Number Portability (NP)
  • 4. Fixed Network Market
    • 4.1 Overview of operators
    • 4.2 Ukrtelecom
    • 4.3 Datagroup
    • 4.4 Eurotranstelecom
    • 4.5 Beeline Ukraine (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 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. Broadband Market
    • 6.1 Overview
      • 6.1.1 Ukraine’s emerging internet economy
      • 6.1.2 Fixed broadband statistics
    • 6.2 Asymmetric Digital Subscriber Line (ADSL)
    • 6.3 Cable modems
    • 6.4 Fibre-to-the-Home (FttH)
    • 6.5 Wireless broadband
      • 6.5.1 WiFi
      • 6.5.2 WiMAX
  • 7. Digital Media
    • 7.1 Overview of broadcasting market
    • 7.2 Digital Terrestrial TV (DTTV)
    • 7.3 Cable TV
      • 7.3.1 Volia Cable
    • 7.4 Satellite-based digital pay TV developments
    • 7.5 Digital TV
    • 7.6 Broadband TV (IPTV)
    • 7.7 E-Health
  • 8. Mobile Communications
    • 8.1 Overview of Ukraine’s mobile market
      • 8.1.1 Mobile statistics
    • 8.2 Regulatory issues
      • 8.2.1 GSM licences awards
      • 8.2.2 CDMA licence awards
      • 8.2.3 Third Generation (3G) mobile licences
      • 8.2.4 Spectrum auctions
    • 8.3 Mobile technologies
      • 8.3.1 Digital
      • 8.3.2 Third Generation (3G) mobile
    • 8.4 Major mobile operators
      • 8.4.1 MTS Ukraine
      • 8.4.2 Kyivstar (VimpelCom)
      • 8.4.3 Astelit/Life:)
      • 8.4.4 Ukrtelecom (Utel/TriMob)
      • 8.4.5 Mobile Virtual Network Operators (MVNOs)
    • 8.5 Mobile voice services
      • 8.5.1 Prepaid
    • 8.6 Mobile data services
      • 8.6.1 Short Messaging Service (SMS)/Multimedia Messaging Service (MMS)
      • 8.6.2 Push-to-Talk (PTT)
      • 8.6.3 Enhanced Data for GSM Evolution (EDGE)
      • 8.6.4 Unlicensed Mobile Access (UMA)
      • 8.6.5 Smartphones
      • 8.6.6 Mobile TV
    • 8.7 Mobile content and applications
  • 9. Forecasts
    • 9.1 Forecasts – fixed broadband market – 2010 - 2013; 2020
      • 9.1.1 Scenario 1 – higher fixed broadband subscriber growth
      • 9.1.2 Scenario 2 – lower fixed broadband subscriber growth
    • 9.2 Forecast - mobile broadband subscribers – 2007 - 2015
      • 9.2.1 Notes on scenario forecasts
  • 10. Glossary of Abbreviations
  • Table 1 – Country statistics – 2012 (e)
  • Table 2 – Telephone network statistics – 2012 (e)
  • Table 3 – Internet user statistics – 2012 (e)
  • Table 4 – Broadband statistics – 2012 (e)
  • Table 5 – Mobile statistics –2012 (e)
  • Table 6 – National telecommunications authority
  • Table 7 – Telecom revenue by sector – 2006 - 2012
  • Table 8 – Ukrtelecom financial data – 2008 - 2012
  • Table 9 – Datagroup subscribers by type – 2010 - 2012
  • Table 10 – Datagroup financial data – 2010 - 2011
  • Table 11 – VimpelCom (Ukraine) financial data – 2007 - 2012
  • Table 12 – VimpelCom (Ukraine) financial data by sector – 2007 - 2012
  • Table 13 – VimpelCom (Ukraine) subscribers by sector– 2007 - 2012
  • Table 14 – Intertelecom subscribers – 2005; 2007 - 2009; 2011 - 2012
  • Table 15 – PEOPLEnet subscribers – 2007 - 2009
  • Table 16 – Fixed lines in service - 1995 - 2013
  • Table 17 – Internet users and penetration rate – 1999 - 2013
  • Table 18 – Internet subscribers and penetration rate – 2005 - 2013
  • Table 19 – VimpelCom broadband subscribers – 2008 - 2012
  • Table 20 – VimpelCom broadband ARPU – 2011 - 2012
  • Table 21 – Kyivstar FttH subscribers – 2010 - 2012
  • Table 22 – Broadcasting revenue – 2006 - 2012
  • Table 23 – Cable TV revenue – 2006 - 2012
  • Table 24 – Cable TV subscribers – 2007 - 2012
  • Table 25 – Mobile subscribers and penetration rate – 1995 - 2013
  • Table 26 – Total mobile market revenue – 2006 - 2015
  • Table 27 – MTS subscribers – 2004 - 2012
  • Table 28 – MTS revenue – 2004 - 2012
  • Table 29 – MTS ARPU – 2004 - 2012
  • Table 30 – VimpelCom (Ukraine) mobile revenue – 2007 - 2012
  • Table 31 – VimpelCom (Ukraine) ARPU – 2007 - 2012
  • Table 32 – VimpelCom (Ukraine) subscribers – 2007 - 2012
  • Table 33 – Astelit subscribers – 2008 - 2012
  • Table 34 – Astelit revenue – 2007 - 2012
  • Table 35 – TriMob subscribers – 2010 - 2012
  • Table 36 – MTS Value Added Service revenue – 2007 - 2012
  • Table 37 – Forecast fixed broadband subscribers – higher growth scenario – 2010 - 2013; 2020
  • Table 38 – Forecast fixed broadband subscribers – lower growth scenario – 2010 - 2013; 2020
  • Table 39 – Mobile broadband subscribers – 2007 - 2015
  • Chart 1 – Telecom revenue by sector– 2006 - 2012
  • Chart 2 – Ukrtelecom financial data – 2008 - 2012
  • Chart 3 – VimpelCom (Ukraine) financial data – 2007 - 2012
  • Chart 4 – Internet users and penetration rate – 2002 - 2013
  • Chart 5 – Internet subscribers and penetration rate – 2005 - 2013
  • Chart 6 – Mobile subscribers and penetration rate – 2002 - 2013
  • Chart 7 – MTS revenue – 2004 - 2012
  • Chart 8 – MTS value-added service revenue – 2007 - 2012

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