Ukrtelecom`s tariffs for local voice to rise by 15.5% in 2011

The National Communication Regulatory Committee is planning to raise regulated tariffs for local voice calls by 10% and then by another 5% in 2011, said Committee`s head Volodymyrr Oliynik yesterday, according to the daily Kommersant. Yegor Samusenko: The rise in tariffs will affect Ukrtelecom (UX: UTLM UK), which gets 38% of its revenues from the local voice segment. We estimate that this hike will lead to an increase of company’s revenues and profit by USD 38 mln (4% of 2010E revenues) in 2011 and allow it to break even in 2011. We anticipate another tariff hike in 2012 by 15% and further tariffs growth in line with the CPI. We expect a positive market reaction to the news.