Telecommunication Sector Grows 18% yoy.

During the first two months of 2006 the telecommunication sector’s total revenue reached USD 1.05 bln (18% growth yoy). Again, the growth rate leaders were the mobile (46% yoy growth) and long-distance (13% yoy) sectors. Growth in the internet and data segment decreased to 3% yoy. Concorde Capital: Growth is slowing down in all the telecommunication sectors. Still, we expect higher growth rates in fixed telecommunication revenues (LD and local) if regulators allow Ukrtelecom (UTEL: BUY) to set its tariffs independently, (as is planned to do by the government, refer to yesterday’s news).

  Growth Rate, yoy

                         2004      2005    2M06

Local                   0%      10%        5%

LD                     27%      14%      13%

PC                    47%       41%      3%

Mobile             123%        64%     46%

  Source: State Statistics Committee