Ukrtelecom targets 50% domestic market share by 2015

Ukrtelecom (UTEL: HOLD) plans to increase its share of the domestic telecommunications market to 50% by 2015, Deputy Chairman Ihor Sirotenko said yesterday. Currently, Ukrtelecom’s market share is ~30%. According to Sirotenko, the company plans to extend its mobile customer base to 9 mln from 12 ths currently, and boost mobile revenues to UAH 6 bln (USD 1.2 bln). Alexander Paraschiy: We forecast Ukrtelecom’s 2015 mobile revenues will be 1.5x lower than the company expects. Ukrtelecom positions its mobile operator Utel in the premium segment, which is highly competitive. A lack of marketing experience and state regulation on Ukrtelecom’s spending do not allow the company to efficiently compete with private operators.