Ukrtelecom May Lose 3G Monopoly In Ukraine

The government has approved a non-budget financed plan that will convert radio frequencies, which would make it possible to  prepare the 2.1-2.2 GHz frequencies for sale to mobile operators for the provision 3G mobile services. The National Communication Regulation Commission (NCRC) plans to sell three 3G licenses by the end of this year, the starting price for one license is set at about USD 120 mln. Alexander Paraschiy: The increase in the of number of 3G licensees will decrease the market power of Ukraine’s only current 3G license holder, Ukrtelecom (UTEL: HOLD). We expect Ukrtelecom stock price to dip on this news, though we see no fundamental reasons for this. Large mobile operators already provide mobile broadband services which are similar to 3G services, thus the purchase of a “real 3G” license is more promotional.