Kiev Expects 100% Fixed-Line Penetration By 2006

Olexandr Omelchenko, head of the Kiev City Council, said that all Kiev’s households will have fixed-line telephones by the beginning of 2006. At present, 6% of households in Kiev have no fixed-line phones.Concorde Capital: It is unclear, who is responsible for fulfilling Omelchenko’s plan. The Kiev regional office of Ukrtelecom (UTEL:HOLD) has not announced plans to complete phone line penetration in the city. About 80,000 new telephones would need to be installed to fulfill the plan, or 20% of Ukrtelecom’s annual installation plan for all of Ukraine. There is a possibility that another provider could help meet this goal. Regardless, the announcement seems unrealistic, as the cost of new installations would be too high for any operator.