Ukraine raises UAH 5.4 bln from second sale of 4G mobile frequencies

Ukraine’s telecom sector regulator completed on March
6 its second tender to sell licenses for the 150 MHz frequency band to provide
4G (IMT) mobile communication service, raising a total of UAH 5.43 bln. This
was 36% higher than the starting price and 37% more than the initial appraisal
price of the licenses.

The frequencies in the range of 1,800 MHz were
tendered on March 6 among Ukraine’s three leading cellular operators: Lifecell
bought 30 MHz for UAH 795 mln, Kyivstar bought 70 MHz for UAH 2,837 mln and
Vodafone-Ukraine bought 50 MHz for UAH 1,802 mln. In addition to the tender
price, the operators will also have to pay a total of UAH 940 mln for the
frequencies’ conversion.

Recall, in January, the regulator sold the 80 MHz band
in the range of 2,600 MHz for UAH 2.46 bln to the same operators. With two
tenders completed, Ukraine has generated UAH 7.89 bln from 4G mobile license
sales this year, which is 26% higher than the regulator’s appraisal price.

Alexander Paraschiy: This will
be a significant addition to Ukraine’s 2018 budget proceeds. And the tenders
will save a lot of foreign direct investments onshore, as now mobile operators
will spend a lot for developing their 4G networks in Ukraine instead of paying
dividends to their parent companies. To a limited extent, the development of a
4G network will also be positive for Ukraine’s economic growth and investment
attractiveness.