New Fixed Networks research report from Business Monitor International is now available from Fast Market Research

Boston, MA -- (SBWire) -- 11/20/2013 --The sale of incumbent Ukrtelecom was approved by Ukraine's competition and regulatory authorities in September 2013. The new owner, SCM, already owns one of the largest alternative fixed-line and broadband operators as well as a large stake in the country's third largest operator. Although SCM's plans for Ukrtelecom remain shrouded in mystery, SCM's track record in delivering affordable and reliable services bode well for a much-needed turnaround in Ukrtelecom's fortunes. The divestiture of the mobile unit, TriMob, seems likely to be restarted and there is no shortage of interest in the business, which holds Ukraine's only 3G W-CDMA licence. Sadly, no progress is reported in clearing additional spectrum for other 3G operators, dampening BMI's outlook for mobile broadband growth. New figures from the regulator concerning the size of the fixed broadband market suggest it is not as well developed as previously reported. Nevertheless, despite the somewhat opaque business and regulatory systems, Ukraine continues to offer tantalising prospects for the braver investors.

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Key Data

- The uptake of broadband services is low, with penetration estimated to have reached just 14.8% at the end of 2012.
- Particularly significant is the lack of 3G service development, with 3G subscriptions accounting for just 2.3% of the mobile market at the end of 2012, by far the lowest in the region.
- Ukraine's mobile market is expected to expand by 5.5% in 2013, down from the strong 9.2% in 2012, due to market saturation and the possibility of inactive subscription deduction.

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