Ukrtelecom To Appreciate 1.8-2 Times?

Yesterday Transportation and Communications Minister, Viktor Bondar, said that though Ukrtelecom (UTEL: HOLD) is currently “only” worth about 3-4 bln it may be sold for USD 7 bln in few years. In addition, UTEL announced an aggressive mobile segment development plan, according to which the company will occupy 35% of mobile market (ousting Kyivstar and UMC), and service 9 mln mobile customers in 2010. Revenues from data and mobile telephony services will grow by USD 1.4-1.5 bln by 2010. Concorde Capital: Given the whipping UTEL is receiving in the fixed line sector – flexible alternative providers are attracting more and more of UTEL’s corporate customers, it is hard to imagine how UTEL will win the battle for customers in the hostile mobile market. However with the state’s support anything is possible, as UTEL’s obtaining a G3 license without a tender showed. It may be that Bondar’s initiatives put UTEL’s privatization plans on the back burner.