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Ukraine’s Telecom Market, Defined

Because of the ongoing battle, Ukrainian operators are struggling cyberattacks and bodily community injury.

Beneath, we check out who these operators are and their relative positions within the nation’s telecom market.

Cellular Sector Ups and Downs

Previous to the Russian invasion, Ukraine’s cellular sector was already experiencing:

  • Widespread financial decline. Financial restoration was continuing at a sluggish tempo in 2018 and 2019 earlier than being hit by COVID-19 in 2020.
  • Russia’s takeover of Crimea. All Ukrainian operators ceased operations within the peninsula by February 2015.
  • Operational disruption. This started again in 2014, as a result of navy actions in japanese Ukraine.

Altering Image

Ukraine Cellular Subscriptions, 2010–2021

Ukraine Mobile Subscriptions, 2010-2021

On the finish of 2021, there have been an estimated 54.8 million cellular subscriptions in Ukraine. This quantity was up from the earlier 12 monthss 53.9 million, however under the market peak of 60.8 million, reached in 2013.

The market was rising quickly previous to 2014, when pro-Russia forces took management in Crimea and a separatist rebellion happened within the japanese areas of Donetsk and Luhansk.

Quantity-One Kyivstar

On the finish of 2021, the cellular market’s largest supplier by subscriptions was Kyivstar, with nearly 48% of all customers. The agency is a wholly-owned subsidiary of Amsterdam-based, Russian-backed VEON (previously VimpelCom).

Kyivstar was awarded a GSM concession in March 1997 and launched industrial cellular companies in December the identical 12 months. Its early years have been served within the shadow of Ukrainian Cellular Communications (UMC, subsequently MTS, now Vodafone Ukraine), and the rivals swapped number-one and number-two market positions a number of instances all through 2001–2005.

For the reason that finish of 2005, Kyivstar has clung to the lead by way of subscriptions.

Aggressive Market

Ukraine Cellular Operators, Dec 2021

Ukrainian Mobile Operators, Dec 2021

Second-place UMC launched the nation’s first cellular community—primarily based on analogue NMT—in 1993. Its digital GSM 900MHz and 1800MHz companies adopted in September 1997 and July 2000, respectively.

The MTS model of Russia’s Cellular TeleSystems was established in Ukraine in 2007, however in October 2015, the cellco expanded a non-equity strategic partnership with the UK’s Vodafone Group—in impact since 2008—by rebranding as Vodafone Ukraine.

MTS exited towards the tip of 2019, when Vodafone Ukraine was purchased by Azerbaijani firm Bakcell, which is itself owned by Neqsol Holding.

The third-largest participant is Lifecell, a subsidiary of Turkcell. The market is rounded out by Ukrtelecom and Intertelecom, which solely claimed round 0.6% of all subscriptions mixed on December 31, 2021.

Fastened Broadband

In contrast to the cellular market, Ukraine’s fastened broadband section has seen pretty regular development over the previous few years, increasing from 3.66 million subscriptions on the finish of 2010 to an estimated 6.79 million by the tip of 2021.

Current Development

Ukraine Fastened Broadband Subscriptions, 2010–2021

Ukrainian Fixed Broadband Subscriptions, 2010-2021

The market witnessed sturdy take-up previous to the occasions of 2014 in Crimea and japanese Ukraine, however development has resumed since then.

Whereas the sector is dominated by a number of huge gamers, it is extremely fragmented, with regional and native ISPs numbering within the hundreds.

Whereas the sector is dominated by a number of huge gamers, it is extremely fragmented, with regional and native ISPs numbering within the hundreds.

Former state-owned monopoly PSTN supplier Ukrtelecom was the biggest fastened broadband supplier by subscriptions till the second half of 2020, when Kyivstar overtook it. On the finish of 2021, Kyivstar claimed nearly 18% of the retail market in person phrases, forward of Ukrtelecom’s 15%.

Quantity-one cellular supplier Kyivstar has been providing DSL-based web entry since 2003 and fiber-based companies since 2010. The agency has additionally deployed fiber infrastructure in 125 cities.

Ukrtelecom was privatized in 2011, with a 92.9% stake acquired by Austrian-owned agency Epic Telecom Make investments. It offered its curiosity two years later to System Capital Administration (SCM), a conglomerate belonging to Ukraine’s richest citizen, Rinat Akhmetov.

Ukrtelecom has provided DSL connectivity since 2005 and fiber entry since 2015. On the finish of 2021, it had deployed fastened broadband infrastructure in additional than 3,400 villages, cities, suburbs, and concrete areas.

The third-largest fastened ISP—with roughly 13% of retail subscriptions on the finish of 2021—is cableco Volia.

Volia underwent a change of possession in 2021 when acquired by smaller rival Datagroup, which is backed by native personal fairness group Horizon Capital. In the intervening time, the 2 firms proceed to function below their separate manufacturers.

Sandwiched between Volia and Datagroup by way of market share is Triolan, which was created in 2008 by a bunch of Ukrainian businessmen. It operates broadband cable TV networks in 11 cities.

Rounding out the bigger gamers within the fastened broadband section is Vodafone Ukraine, which acquired ISP Vega from SCM in September 2021. On the time of the acquisition, Vodafone claimed that it was seeking to create a fully-converged fastened and cellular operation. 


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