Ukraine raises UAH 2.5 bln from first 4G frequency sale

Ukraine’s telecom sector regulator completed on Jan.
31 its first tender to sell licenses for 80 MHz frequency band to provide 4G
(IMT) mobile communication service, raising a total of UAH 2.46 bln (from the
starting price of UAH 2.29 bln). The frequency was tendered among Ukraine’s
three leading cellular operators: Lifecell bought 30 MHz for UAH 909 mln,
Kyivstar bought 30 MHz for UAH 916 mln and Vodafone-Ukraine bought 20 MHz for
UAH 631 mln. In addition to the tender price, the operators will also have to
pay total UAH 500 mln for frequencies’ conversion.

Another tender to sell licenses for 150 MHz frequency
band (at a starting price of UAH 3.98 bln) will be convened in February-March.

Alexander Paraschiy: Assuming
both tenders will be successful, Ukraine will raise about UAH 6.5 bln from
selling access to its radio frequencies this year, which will be a significant
addition to 2018 budget proceeds.

The purchase of the licenses will stimulate mobile
operators’ investments into new technologies and may have an overall positive
effect on Ukraine’s economy in the mid-term. This also may improve the
country’s investment attractiveness. But the effect of all the changes related
to the 4G frequency sale won’t be significant for the economy.