Ukraine’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.

For more information see – Ukraine - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses