11M05 Telecom Revenue Results Announced.

Revenues for the telecom sector increased 30% yoy in 11M05. The leaders are the mobile sector (53% growth) and long-distance fixed telecommunications (11% yoy). Local telephony revenues had a zero growth rate yoy, while data and internet access revenue growth rates dropped from 45% yoy a year ago to 9.5%. Concorde Capital: Overall, growth rates are down in all the segments of Ukrainian telecommunication sector. Currently the mobile segment with its double digit growth rate is pushing all other related sectors (fixed LD and data). Although the data and internet sector has a great deal of potential in Ukraine (if access to VoIP technology becomes nation-wide), this potential is not being realized now.

  Telecommunications Sector Revenue Growth, yoy

                               11M05 / 11M04                11M04 / 11M03

Total Telecom               30%                               60%

Local Fixed                      0%                                 3%

LD Fixed                         11%                               31%

Internet and data            10%                               44%

Mobile                            53%                               148%

  Source: State Statistics Committee