Performance of the telecom Sector in Ukraine: Ken Research
Ken Research announced recent publication titled “Ukraine: Telecom Service Revenue to Decline Through 2021, due to Pressure on the Voice Segment and Slow Data Growth”, discuss Ukraine telecommunications sector performance. The report includes pay-TV markets, service providers and key opportunities. Also discuss major drives supporting mobile communications, fixed telephony/VoIP, broadband and pay-TV markets.
Ukraine, a sovereign state situated in Eastern Europe is the 46th largest country in the world, with a population of 44.5 million and is the 32nd most populous country. Ukraine is a diversified economy having a large heavy industry sector specifically in aerospace and industrial equipment.
Ukraine is a country that has travelled through the transition process where in day to day life of an individual had become troublesome to a country where information technology (IT) topped all other Central and Eastern European countries in 2007.
Ukrainian telecom market developed gradually from a state-controlled monopoly to a competitive sector imbibing a population of 46 million. Over the recent years, Ukrainian telecom policy makers and regulator have been striving to establish pro-competitive regulations aimed at liberalizing the telecom market and investmenting in both the mobile and fixed-broadband sectors. The telecom market attracts investors from Turkey and Russia. The continuing political and military difficulties in the country’s eastern provinces have rendered it difficult for telcos to maintain network upgrades and services.
As discussed in the report the telecommunications market in Ukraine is expected to generate revenue of USD 1.6 billion in 2016 at a CAGR of -0.7%. By 2021 market revenue is expected to decline. There will be a change in Mobile data revenue which is expected to grow at a CAGR of 3.7% in local currency to reach UAH 7.2bn in 2021, with contribution to overall ARPS increasing from 21.0% in 2016 to 26.1% in 2021. It has been figured out that Fixed VoIP will witness strong growth in next five years registering a CAGR growth of 8.2% in UAH, while fixed broadband will register a growth rate of CAGR 3.9%, in LCU. Mobile data and fixed broadband segments still holds opportunities which can be utilized by the service providers. The overall telecom service revenue in Ukraine is estimated to decline by 2.1% in next five years.
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