Ukraine raises UAH 5.4 bln from second sale of 4G mobile frequencies

2018/3/8 22:01:14

With two tenders completed, Ukraine has generated UAH 7.89 bln from 4G mobile license sales this year, which is 26% higher than the regulator’s appraisal price.

 


KYIV, Mar 8, 2018 - Ukraine's telecom sector regulator completed on March 6 its second tender to sell licenses for the 150 MHz frequency band to provide 4G (IMT) mobile communication service, raising a total of UAH 5.43 bln, Concorde Capital informed its clients in an online advisory. This was 36% higher than the starting price and 37% more than the initial appraisal price of the licenses.

 

The frequencies in the range of 1,800 MHz were tendered on March 6 among Ukraine’s three leading cellular operators: Lifecell bought 30 MHz for UAH 795 mln, Kyivstar bought 70 MHz for UAH 2,837 mln and Vodafone-Ukraine bought 50 MHz for UAH 1,802 mln. In addition to the tender price, the operators will also have to pay a total of UAH 940 mln for the frequencies’ conversion.

 

Recall, in January, the regulator sold the 80 MHz band in the range of 2,600 MHz for UAH 2.46 bln to the same operators. With two tenders completed, Ukraine has generated UAH 7.89 bln from 4G mobile license sales this year, which is 26% higher than the regulator’s appraisal price.

 

Concorde analyst Alexander Paraschiy: This will be a significant addition to Ukraine’s 2018 budget proceeds. And the tenders will save a lot of foreign direct investments onshore, as now mobile operators will spend a lot for developing their 4G networks in Ukraine instead of paying dividends to their parent companies. To a limited extent, the development of a 4G network will also be positive for Ukraine’s economic growth and investment attractiveness.

 

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For more information, link here: www.concorde.ua 

 

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