Kyivstar Gets Access to Utel's Broadband Mobile Internet Services

Mobile operator Kyivstar signed a roaming agreement with Ukrtelecom (UTEL: HOLD), which will allow Kyivstar customers to use broadband mobile services in Ukrtelecom’s 3G mobile network. According to the President of Kyivstar, Ihor Lytovchenko, its customers are scheduled to start using 3G services in May 2008. Alexander Paraschiy: Servicing customers of the largest Ukrainian mobile operator, Kyivstar (which reports almost 24 mln mobile customers base or 1700 times larger than for Ukrtelecom), can become an important business direction for Ukrtelecom’s mobile segment. We treat this news as positive for Ukrtelecom, but without details of the agreement, it is hard to estimate the economic effect.