Ukrtelecom To Increase Tariffs For Internet Access.

Ukrtelecom (UTEL: HOLD) decided to increase its internet tariffs for individual customers, under pressure from alternative internet providers. In May 2005, UTEL reduced internet access tariffs for individuals, while leaving tariffs for internet providers, most of which use UTEL for data transfers, unchanged. Thus the tariff for access to the internet in households was lower than the tariff to access UTEL for data transfers by internet providers. Because of the threat of anti-dumping procedures, UTEL decided to change its tariffs. Concorde Capital: May?s tariff reduction by UTEL must have attracted additional customers, and increasing tariffs will hardly lessen the company’s internet customer base. Thus, UTEL will benefit from changing its tariffs.