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Ukrainian Wireless Internet Operators Rating in III’2012

5 years ago

1494 words

This text was partly translated automatically by Google Translate…

During this year the consumption of mobile Internet in Ukraine has grown. Operators squeeze what they can from the allowed EGDE technology and CDMA, as in Ukraine, in contrast to many other countries, the mobile companies still can not provide full 3G services in GSM-networks. The license for the frequency of the third generation is still owned by Trimob (former Utel), a company that “Ukrtelecom” planned, but not yet sold any of the operators.

Active subscribers are switching to smart phones, which also affects the quality and quantity of consumption of the wireless Internet. According to operators, there are several million smartphones registered in their networks, and the number of users is constantly increasing. Prices for wireless unlimited access is also gradually declining.

The loudest event of the year, clearly, was the consolidation of networks “Intertelekom” and CDMA Ukraine (ITC). From September, subscribers of ITC (TM CDMA UA) transfered to Intertelecom. Assessment of this event is different. From the positive effects: increasing coverage and quality of service.

E&C consulting group (www.encint.com) and AIN.UA prepared the first rating of wireless Internet in Ukraine. Rating will be made quarterly. According to the estimate of E&C, rating * of wireless Internet access on the number of subscribers for the III quarter of 2012 is as follows:

Provider

The number of subscribers at the end of Q3 2012. (In thousands)

1

Kyivstar

8800

2

MTS

8250

3

life:)

2300

4

Intertelecom (including userbase of CDMA UA) **

860

5

PeopleNet

830

6

Trimob

550

7

Freshtel ***

41

8

Giraffe ****

6.5

* Rating is an estimate. E&C ( www.encint.com ) reserves the right to review the indicators of the rating.

** Considering the total subscriber base, information on incorporations was in IV quarter, and therefore, there could be some mistakes in the estimation.

*** The operator can change the system of accounting subscribers.

**** Included teh subscribers of fixed broadband Internet that use wireless access technologies.

E&C ( www.encint.com ) and AIN.UA interviewed key players, which were asked about the main events and trends in the market and give a forecast for the coming year:

KYIVSTAR

Key trends and market news in that period

News – a substantial increase in the number of users, consumption and income from the mobile internet. Especially considering the fact that Ukraine is unique in Europe and CIS countries, where for various reasons have not yet been issued 3G licenses. Mobile operators are “squeezed” out of the maximum speed that it can provide form the EDGE technology. Even so, the revenue from mobile Internet services are growing. In the 3rd quarter of 2012 the revenue of “Kyivstar” from this service has exceeded 216 million USD., Almost a 20% increase relative to the same quarter of 2011. And the number of customers using the mobile Internet has reached almost 9 million

As one of the trends of the market can mark the migration to a “batch” model of tariffs. The principle of “pay for every megabyte” is already out of date. Packages of “mobile date” is a supplement or a necessary condition of commercial offers of the operators. The most popular model among the clients of “Kyivstar” is unlimited use – the service “Internet without borders”, where the subscription for the fee of UAH 1 per day receives unlimited amount of traffic at no charge for megabytes. The audience for this service has highest growth for the quarter – about 50%.

The company’s plans for the next year

We will continue to work on the “content” services – the subscribers increasingly use mobile internet if they are sure that they can find something interesting for еруьыудмуы. Useful content, handy gadgets, package offers and speed will encourage customers to use the Internet.

Recommendations and wishes to market participants

The main wish – to industry regulators. Finally hold a competition for the license 3G, which the telecom market expects more than six years. It is in the interests of customers and the market. “Kyivstar” has 25 million mobile subscribers, and we are confident that the use of the mobile Internet can be not only 8.8 million, as of now, but much more. Question – only in getting mobile operators licenses, which is entirely dependent on the state.

MTS Ukraine

Key trends in the market in that period

Trend of the last few years for us – the high consumption of additional services. Revenues from VAS-services in the III quarter of 2012 was 26% of total revenues. Growth in revenues from additional services in the third quarter of 2012 was 8% compared to the second quarter of 2012 and 7% compared to the third quarter of 2011. The main catalyst are data services that demonstrate the two digit growth in both the quarterly and year on year – 11% and 12% respectively.

The company’s plans for the next year

Plans – to continue this trend, more specifically on the proposals can not say as it is confidential information.

LIFE:)

Key trends in the market in that period

The main trend of the market is actively growing consumption of mobile Internet: users are switching to “clever” phones – smartphones, which causes the demand for mobile Internet and vice versa. Operators therefore make more proposals in this field.

The company’s plans for the next year

First of all, it is the development of network capacity. Daily consumption for the year of mobile Internet users increased life:) actually twice, and that, despite this increase the load the network can provide high data rate, it is necessary to upgrade and introduce new technological solutions. At the same time, we plan to expand our tariff proposals, focusing on the needs of our subscribers.

Recommendations and wishes to market participants

I wish that in 2013 was decisive for the market to a certain period of stagnation has passed, and we all felt a qualitative improvement in the legal framework of the telecommunications market that will push fair competition, will be on the market to new technologies, new devices, new proposals will enhance the ability operators and subscribers.

PEOPLENET

Key trends in the market in that period

The main trend: the growth of smartphones and tablets, which stimulates an increase in mobile traffic. PEOPLEnet operator considering the needs of subscribers, launched the campaign “GIGAdrive”, in which a subscriber is provided the opportunity to order a double batch traffic. The number of users of this campaign is growing every month from 15% to 25%.

Also, PEOPLEnet in III quarter. 2012 introduced to the smartphone users the specially designed tariff “Smart Unlimited» with unlimited Internet traffic.

The company’s plans for the next year

PEOPLEnet in 2012 completes the testing of the innovation system DPI (Deep Package Inspection), the technology will allow subscribers to enjoy the benefits of mining the Internet, DPI will be launched in 2013 and new tariff plans specifically designed with a completely new possibilities for the subscriber. Implementation of the technology rev.B. on the entire network PEOPLEnet.

Recommendations and wishes to market participants

The main wish – the stabilization of the telecommunications market, maintaining a balanced pricing all industry players.

GIRAFFE

Key trends in the market in that period

The main news – the merger of Intertelekoma with CDMA.UA. Major trends – reducing the cost of connection and monthly fee and the approximation of the cost of a wired connection. If previously wireless unlimited access costs was 4-5 times more than the wired with the same speed, the difference is now reduced to 2-3 times. Contribute to this the increased competition and reduce of the cost of equipment. Also UCRF tend more active fight against illegal providers, although the situation is far from ideal and the complexity and duration of receipt of the necessary permits are not supportive.

In 2012, the trend of the development of the “private sector”, where the vast majority of cases or not wired, or the quality is very low.

The company’s plans for the next year

Develop further and explore new areas, to connect new customers, we are only at the beginning.

Recommendations and wishes to market participants

Wireless – is the connection with the use, including the common radio resource, which is so often lacking and there is a temptation to use the frequency resource “neighbor”, which causes problems to all participants, including customers from both sides. In this context, the market would like to wish good sense and respect for the law and his colleagues on the market, because the short-term benefits and the “chaos” when using frequencies in the end nothing good run out.

Source: Expert & Consulting (www.encint.com). Reference to the source is obligatory.