Ukrainian Court Refuses to Grant 3G Licenses
http://www.cellular-news.com/story/32496.php [2008-7-21]
Tag : Cellular Phone Holder
The only 3G license holder in Ukraine is state-owned fixed-linemonopoly Ukrtelecom, which received the license without an auctionin late 2005, ostensibly to boost the value of the firm prior toprivatisation. Ukraine's two top cellular operators, Kyivstar andUMC wrote to the President, Viktor Yushchenko protesting at how thelicense was awarded and demanding an open tender be carried out.
"We appreciate the importance of privatizing Ukrtelekom assoon as possible, but would call for clear and even rules for allmarket players, no matter what their ownership as the basis foreffective economic development," the companies said in theletter.
In late 2006, Kyivstar, as well as four other Ukrainian mobileoperators, UMC, Astelit and URS, filed applications to get 3Glicenses, but they were rejected by the regulator - even though itwas expected that an auction for the licenses could raise upwardsof US$1 billion for the government. The regulator has previouslysaid that it needs at least 24 million hryvnas (US$5.3 million) toclear the military radio spectrum for use by the mobile operators -a tiny fraction of the potential income from releasing the spectrumfor 3G services.
Kyivstar filed another application in January 2007 to getfrequencies for 3G services in all 27 Ukrainian regions. Theregulator refused to give the company the license, citing a lack offree frequencies, and it was this which lead to the legal appeal.
According to statistics from the Mobile World subscriber database, the country ended Q1 '08 with an estimated54.7 million mobile phone subscribers, representing a populationpenetration level of 118%. Kyivstar is the market leader with 43%of the customer base.
The only 3G license holder in Ukraine is state-owned fixed-linemonopoly Ukrtelecom, which received the license without an auctionin late 2005, ostensibly to boost the value of the firm prior toprivatisation. Ukraine's two top cellular operators, Kyivstar andUMC wrote to the President, Viktor Yushchenko protesting at how thelicense was awarded and demanding an open tender be carried out.
"We appreciate the importance of privatizing Ukrtelekom assoon as possible, but would call for clear and even rules for allmarket players, no matter what their ownership as the basis foreffective economic development," the companies said in theletter.
In late 2006, Kyivstar, as well as four other Ukrainian mobileoperators, UMC, Astelit and URS, filed applications to get 3Glicenses, but they were rejected by the regulator - even though itwas expected that an auction for the licenses could raise upwardsof US$1 billion for the government. The regulator has previouslysaid that it needs at least 24 million hryvnas (US$5.3 million) toclear the military radio spectrum for use by the mobile operators -a tiny fraction of the potential income from releasing the spectrumfor 3G services.
Kyivstar filed another application in January 2007 to getfrequencies for 3G services in all 27 Ukrainian regions. Theregulator refused to give the company the license, citing a lack offree frequencies, and it was this which lead to the legal appeal.
According to statistics from the Mobile World subscriber database, the country ended Q1 '08 with an estimated54.7 million mobile phone subscribers, representing a populationpenetration level of 118%. Kyivstar is the market leader with 43%of the customer base.
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