Company profiles

When it comes to mobile network companies, there are three main players in the Ukrainian telecommunications market, therefore providing for an oligopoly in the respective sector. These include Kyivstar, Vodafone and Lifecell, all of which are private. They account for 25.3 million, 20.7 million and 9.7 million users respectively. A common feature of all three companies is a significant share of foreign capital investments. This is connected with the fact that the nature of the market sector itself demands extensive investments that cannot be provided by Ukrainian market players.

The situation is more diversified in the sector of fixed Internet access providers. The major players in the market are private in nature and include Ukrtelecom (together with its branch 3Mob), Intertelecom, Vega Telecommunications Group and Volya Group. While the market may be quite difficult to enter due to existence of disproportionately big companies, the situation in the fixed Internet sector cannot be characterised as an oligopoly but rather as a healthily developing market.

Although this has not always been the case, especially for mobile network companies, packages of services offered both by mobile network companies and Internet access providers have undergone a process of significant unification. For instance, between 2008 and 2013 Kyivstar used to have several different branches, each of them under a separate brand, that offered custom-tailored packages for different social groups, for instance for students and for elderly. As of now, Kyivstar operates under a single brand and has cut on the diversification of its packages.