The Anti-Monopoly Committee to regulate telecoms’ interconnect rates

Yesterday the Anti-Monopoly Committee of Ukraine recognized eight major telecom operators as monopolists in providing access to their networks, which means that the state now has to regulate tariffs for access to their networks. Eight new “monopolists” are: two fixed-line operators Ukrtelecom (UTLM) and Golden Telecom; two CDMA operators: Inter-Telecom and Telesystems of Ukraine, as well as four GSM operators (MTS, Kyivstar, URS and Astelit). Alexander Paraschiy: Regulation of interconnect rates was initiated by Ukrtelecom, which complained about unfair fixed-to-mobile and mobile-to-fixed interconnection rates with major mobile operators (Kyivstar and MTS), and was unable to change the rates without invasion of the regulators. Now the regulators are to work out new rules for interconnection, which could increase Ukrtelecom’s operating profit by UAH ~140-300 mln p.a., by our estimates.