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Call for Reshaping of Ukraine Telecom Industry: Ken Research

Posted on 27 April 2017 by KenResearch Technology and Telecom,

Telecom industry consists of various telephone companies and internet service providers. Nowadays telecom industry is less about the calling and more about high speed internet accessibility and data growth. With a number of players in the market this sector depends totally upon revenue generation through effective reach ,coverage and efficient billing system.

The telecommunications market in Ukraine will generate revenue of $1.6bn (UAH 40.7bn) in 2016. CAGR in local currency will be -0.7%. Market revenue in USD is expected to decline through 2021. Mobile data revenue will grow at a CAGR of 3.7% in local currency to reach UAH 7.2bn ($256m) in 2021, with contribution to overall ARPS increasing from 21.0% in 2016 to 26.1% in 2021. Fixed VoIP will witness strong growth over 2016-2021 (CAGR of 8.2% in UAH), while fixed broadband will register a CAGR of 3.9%, in LCU. Going forward, operators should seize opportunities in mobile data and fixed broadband segments as the demand for data continues to grow, while vendors should position themselves to support operators" network expansion plans to address the demand of high data traffic. Thus due to the growing demand of high data the cost to establish the infrastructure like proper fiber optics and tools for seemingly stable coverage across the whole nation will cost plenty which will be covered through the high data charges and thus the revenue will experience a decline in 2021. The two important concerns during the 2021 journey would be establishing the proper infrastructure for high speed data and second is to ensure the coverage of the data. Thus the main focus will be on the players that can provide these services and what will be their potential combination of efficient billing that will make the difference to the market in 2021.

The main reason for such a huge drift is due to the availability of VoIP calls i.e. calls going through the internet or internet calling ,which is hugely making the population to shift from voice calls to high speed data so as they can use the data calls and also use the internet facilities in the same bucket. Thus there is a huge demand for high speed data facilitator and which will be done by reshaping the infrastructure and establishing new parameters such as new spectrums for the facilities.

The key players in the spice and seasoning industry are Kyivstar, Vodafone Ukraine (MTS), Ukrtelecom, lifecell, Vega, Volia, TriMob, Viasat, NTV Plus.

Therefore there will be a decline in the revenue in Ukraine telecom industry due to the huge demand for data services. Thus to cater to high demand of data services infrastructural reshaping is required which will require a good amount of revenue thus rising in the price of facilities from service provders.



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