Three largest operators of mobile networks in Ukraine have acquired licenses for 3G communications

This morning the winners of the third generation Ukrainian communication contest became known. The competition was held in the form of an auction with three lots, where each lot represented a certain part of the frequency spectrum. At the same time, the quality of lots is different - according to the participants of the auction, the second lot is the most promising , since the frequency spectrum related to this lot is the clearest. The other two lots include a proposal for the extreme parts of the spectrum related to 3G, therefore they are less attractive and it will be more difficult to operate them.

“In the extreme ranges there is illumination from the side of the“ neighbors ”. Therefore, in order to build a network in these ranges, it is necessary to hang a band-pass filter on each transmitter, which, firstly, reduces the signal level, and secondly, blocks the illumination from other ranges. Such filters cost a lot of money. Therefore, the cost of building the network in the extreme lots will cost the potential owner much higher, ” said Ivan Zolochevsky, General Director of MTS Ukraine.


Parameters of operation of 3G frequencies in various countries of Europe ( image source )
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In Ukraine, the three largest mobile operators, and all operators were able to get one lot each. In this case, the winners were distributed as follows :

• The first lot went to the operator Astelit (TM life :)) with a proposal for a license of UAH 3.355 billion with a starting price of UAH 2.708 billion (the rate is now around UAH 30 for $ 1);
• The second lot was received by the operator “MTS Ukraine” with a starting price of UAH 2.715 billion;
• The third lot was received by Kyivstar, also having won with an offer equal to the starting value of the lot at 2.7 billion hryvnia.

Now the companies have to pay for the received lots, in addition, the operators have taken on a number of obligations. For example, mobile operators will have to bear the costs associated with the conversion, the total cost of which is estimated at 1.6 billion UAH. In this case, it is envisaged that the amount may vary depending on inflation. Also, companies will need to launch a third generation network in all regional centers of Ukraine within 18 months, and within 6 years in all regional centers and all settlements with a population of more than 10 thousand people.

As for the average data transfer rate for subscribers, it should be 42 Mbit / s under the condition of a clean spectrum (it seems that this speed will be relevant for the MTS Ukraine networks, this company, as mentioned above, got the most promising frequency range ).

Operators, in addition to the cost of deploying the appropriate network infrastructure, will have to carry out more conversion freeing the range of military users. The cost of such a conversion, with the current rate of national currency, will be approximately 1.7 billion UAH (recall, the rate is about 30 UAH for 1 dollar).

According to the general director of MTS Ukraine, the total amount of investment in 3G communications in the country will be approximately 1 billion US dollars. The company "MTS Ukraine" to invest about $ 600 million of this amount.