Ukrainian operators will have to spend billions of UAH on 4G network

Ukrainian operators will have to spend billions of UAH on 4G network

The initial stage of 4G network deployment will cost Ukrainian telecoms operators from one to ten billions of UAH. Such valuation was announced to Innovation House by the representative person of one of the major mobile operators in Ukraine.

Operators’ expenditures for the network deployment will depend on which frequency bands will be put out to 4G tender first. The most favorable option for “Kyivstar”, “Vodafone Ukraine” and “lifecell” is the issuance of licenses to 1,800 MHz bands, because in this band 2G-network already operates.

According to calculations of the Minister of Economic Development and Trade Stepan Kubiv, the government will get at least 4 mln UAH from the issue of 4G licenses in 1,800 MHz band. Another 2,3 bln UAH will be raised through the sale of licenses in 2,600 MHz band.

In other words, a total of over 6 bln UAH, that will be credited to the state budget, will be spent by the mobile operators for 4G.

We recall that on August 09 the Cabinet of Ministers of Ukraine approved the conditions of tenders for fourth-generation (4G) communications within 1,800 MHz and 2,600 MHz bands.

As it appears from the statement of the National Commission for Regulation of Communications and Informatization, the government has supported its proposal to hold tender for 1800 MHz bands and to issue to the operators, that are currently working in these bands, licenses for up to 15 years at a price of UAH 981,481 per 1 MHz. This means that “Kyivstar”, “Vodafone Ukraine” and lifecell will get the priority right of repayment of licenses for 4G in this band.

According to the statement of NCCIR, the Cabinet of Ministers supported the regulator in terms of use of 1,800 MHz and 2,600 MHz bands for 4G. Therefore, NCCIR believes that Ukraine stands a good chance to announce open tenders for the issue of 4G-licenses within these bands by the end of the year.