Ukrtelecom’s fixed line charges get 20% increase starting October 1

The National Communication Regulation Commission (NCRC) announced on Friday it decided to increase monthly charges for the use of fixed line telephones by 20%. The tariff changes will be effective on October 1. As before, 200 free minutes of local calls are included in the fixed charge. Tariffs for minutes in excess of the free limit will not grow. Alexander Paraschiy: The news is positive for Ukrtelecom (UTEL: HOLD), which applied to increase fixed line tariffs back in 2007. We expect another 10% increase in fixed line tariffs soon (probably effective January 2009): Ukrtelecom applied for a two-stage raise with +20% in the first stage and another +10% during the second. We estimate the two-stage increase will allow Ukrtelecom to generate additional revenue of USD 110 mln (or +8% to total sales) in 2009.