Recent Study: Ukraine Telecommunications Report Q3 2012

Recently published research from Business Monitor International, "Ukraine Telecommunications Report Q3 2012", is now available at Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 21 October 2012

BMI's Q312 report on the Ukrainian Telecommunications Market analyses the latest trends and developments in the sector, as well as data released by operators in the fixed-line, broadband and mobile markets. Additionally, the report contains an update to regulatory issues affecting the sector. The update also contains our revised five-year forecasts to 2016 for mobile, fixed-line and broadband subscriptions, as well as mobile ARPU.

Ukraine continues to be a relatively undeveloped market in the regional context. There is limited penetration of fixed broadband services, and, with licensing delays persisting for 3G spectrum, wireless data markets are far behind regional peers. With the collapse of the sale of Ukrtelecom's mobile subsidiary Utel, which has held the only 3G licence since 2005, the prospect of 3G licensing may face further delays. BMI believes there to be significant growth potential in wireless data services; however, there are no encouraging signs for the short-term creation of a competitive 3G market. Traditional mobile services thus continue to dominate and provide a source of growth to operators - even as the market surpassed 126% penetration. BMI forecasts continued growth in the mobile sector, albeit at a declining rate, through to 2016 - but we maintain a cautious view of 3G development in our forecast period.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/451402_ukraine_telecommunications_report_q3_2012.aspx) (http://www.fastmr.com/prod/451402_ukraine_telecommunications_report_q3_2012.aspx)

While commercial 3G development has been hampered by the lack of licensing on the part of the government and regulator, recent announcements indicate a public service LTE network could be operational by 2016. In April 2012 Ukrainian ISPs Ukrtelecom, Datagroup and Intertelecom signed a cooperative MoU on the 'Open World' Ukraine broadband to schools programme. The operators have committed to providing infrastructure for broadband services for 2,000 schools, with the operators dividing service provision geographically depending on their network coverage. The Open World project is designed to build a single national educational network using 4G technology that also includes the creation of an educational portal and the installation of ICT hardware in schools. The Open World project brief states that the 4G LTE network will require an investment of US$350mn, with a further US$20mn required for investment in the educational portal and US$80mn for investment in computer technology in schools. No further details regarding the spectrum for the network were available at the time of writing but BMI believes there is potential for the project to act as a catalyst for broader development of Ukraine's broadband sector.

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