13 December 2024

Ukraine’s telecoms regulator earned UAH2.8 billion during its recent spectrum auction with Vodafone, Kyivstar and Lifecell buying five lots of spectrum in the 2100, 2300, and 2600-MHz bands.

According to the National Commission for State Regulation of Electronic Communications, Radio Frequency Spectrum, and Postal Services (NCEC), Kyivstar bought two lots of spectrum in the 1940-1945/2130-2135MHz and 2355-2395MHz bands, while Vodafone Ukraine also bought two lots in the 1945-1950/2135-2140MHz and 2575-2610MHz bands. Lifecell took the 1935-1940/2125-2130MHz bands.

Under the new 15-year licences, the operators will install 1,500 new base stations within two years, including 500 in the first year, according to Ukrainian news site UNN.

They are also tasked with rapid restoration of communications in de-occupied territories within six months, as well as increasing mobile coverage on national and international highways.

Kyivstar’s parent company Veon said that the auction result boosts its total spectrum holding from 152MHz to 202MHz. Veon also said Kyivstar will invest UAH1.43 billion in the Ukrainian economy through the spectrum acquisition.

“We have consistently stated that the time to invest in Ukraine is now, and have committed US$1 billion in investments through 2027,” said Veon Group CEO Kaan Terzioglu. “We have an unwavering commitment to building Ukraine’s digital infrastructure, taking 4G connectivity across the nation, bolstering our network’s energy resilience to keep Ukraine connected, and investing in the digital services that Ukraine needs.”

The successful auction also signifies the Ukraine government’s determination to develop the country’s digital infrastructure even amid the ongoing war with Russia, which invaded Ukraine in February 2022. The Ukrainian government has set a target to increase 4G coverage from 65% to 91% over the next three years, despite repeated attacks on critical infrastructure.

“Developing an industry during wartime is a challenge, but not a reason to put life on hold,” said Kyivstar CEO Oleksandr Komarov. “The auction for obtaining licenses for the use of the radio frequency spectrum is an important step in the development of Ukraine’s electronic communications industry and evidence that the war does not stop investments in state assets, and their effective management can bring significant funds to the budget.”