Kyivstar, the largest mobile operator in Ukraine, intends to invest UAH 1.43 billion in the 1940-1945/2130-2135 MHz and 2355-2395 MHz radio frequency spectrum, the company’s press service said on Tuesday.
It is also specified that the company’s receipt of additional radio frequency spectrum for use for 15 years will significantly enhance its ability to expand 4G coverage and improve the quality of services in all regions of the country.
The company noted the important role of Kyivstar in the development of the electronic communications industry in Ukraine, in particular in the implementation of 4G. The press service reminded that it was Kyivstar that offered the state an innovative approach to solving the problem of fragmented frequency spectrum: in 2018, the company supported the proposal of the national regulator, returning the 1800 MHz frequency band to the state. This made it possible to hold a transparent auction, which resulted in UAH 5.43 billion for the state budget and high-quality 4G coverage for consumers across the country.
In 2020, Kyivstar voluntarily returned the 900 MHz frequency band to the state free of charge for the second time.
“To further eliminate the digital divide between urban and rural areas, it was important to deploy 4G in the lower 900 MHz frequency band, which allows us to provide wider coverage, especially along roads and in remote areas. However, spectrum shortages and fragmentation in this band also slowed down the technological development of the market,” Kyivstar’s press service said.
The company’s CEO Oleksandr Komarov expressed gratitude to the National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and Postal Services (NCCS), the Ministry of Digital Transformation and the state for preparing and holding a transparent auction for the allocation of frequencies in the 2100-2300-2600MHz spectrum, which will allow to develop infrastructure and improve the quality of mobile services for subscribers.
“The auction for licenses to use the radio frequency spectrum is an important step in the development of Ukraine’s electronic communications industry and evidence that the war does not stop investments in state assets, and their effective management can bring significant funds to the budget,” Kyivstar’s press service quoted Komarov as saying.
The company also clarified that participation in the auction for licenses to use the radio frequency spectrum in the 2024 bands is part of the investment program of Kyivstar and its parent company VEON, according to which it is planned to attract $1 billion to the Ukrainian economy in 2023-2027.
Earlier it was reported that the National Commission held an auction for the use of mobile frequencies. “Kyivstar, Vodafone-Ukraine (VF-Ukraine) and lifecell (Lifecell) received new frequencies in the 2100, 2300 and 2600 MHz bands for 15 years, offering a total of UAH 2 billion 894.734 million for them at an initial total price of UAH 2 billion 871.531 million.
In accordance with the terms of the technology-neutral nationwide licenses established by the NCC, each of the winners undertook to ensure the use of the received frequency band at at least 1,500 base stations within 24 months from the date of the license’s commencement, and at least 500 base stations within the first 12 months.
“Kyivstar acquired the right to use the frequencies in the 1940-1945/2130-2135 MHz band (without Kyiv) for 15 years for UAH 448 million 500 thousand, and in the 2355-2395 MHz band for UAH 994 million 800 thousand.
