The Vodafone Ukraine mobile operator expanded its 4G network in 18 Ukrainian regions in August 2020.
According to company’s press service, in particular, the operator has launched 4G coverage in 660 settlements of Vinnytsia, Volyn, Dnipropetrovsk, Donetsk, Zhytomyr, Zakarpattia, Ivano-Frankivsk, Kyiv, Kirovohrad, Lviv, Odesa, Poltava, Rivne, Ternopil, Kherson, Khmelnytsky, Cherkasy and Chernivtsi regions over the past month.
To date, according to the data given, Vodafone Ukraine provides 4G coverage to 80% of Ukrainians.
The memorandum of intent for the joint use of the passive and active infrastructure of their mobile networks has been signed by the mobile communications operators Kyivstar and Vodafone Ukraine.
According to a joint press release of the companies issued on Thursday, sharing telecommunications infrastructure will enable the parties to accelerate the deployment of 4G networks in rural areas and on highways.
The memorandum takes into account the use of not only communication channels, but also towers, as well as other equipment. Cooperation using telecom infrastructure will enable operators to avoid duplication in the process of building networks, which will accelerate the provision of access to 4G/LTE services for subscribers living in sparsely populated areas.
Now Kyivstar and Vodafone Ukraine are identifying mobile network sections and settlements for sharing infrastructure. The operators plan to begin practical implementation of the memorandum in November-December 2020 after the approval of the project by government bodies.
“Partnership and cooperation in the use of mobile networks will allow the operators to accelerate the bridging of the digital gap between megacities and villages, and to fulfill their investment plans despite the decrease in market income. We proposed that all mobile operators of Ukraine join the memorandum,” Kyivstar President Alexander Komarov said.
He said that the memorandum is open to all players who want to develop new mobile technologies on mutually beneficial conditions.
“Such unbiased and seemingly insurmountable circumstances as lockdown and the lack of roaming revenues could make adjustments to the implementation of coverage. But we understand the importance of building infrastructure as soon as possible to ensure equal access to digital services. Sharing networks will make our investment more effective,” CEO of Vodafone Ukraine Olha Ustinova said.
In her opinion, this will also give the operator the opportunity not only to adhere to the obligations assumed for coverage, but also to bring high-speed Internet to small villages with a population of less than 2,000 people.
For its part, the National Commission for Communications and Informatization Regulation (NCCR) also welcomes cooperation between operators in building networks.
“We are pleased that Vodafone Ukraine supported this idea of the NCCR. We welcome cooperation between operators, in particular in building networks,” Chairman of the commission Oleksandr Zhyvotovsky said, expressing the hope that other operators will also join the memorandum and the process of mutually beneficial cooperation.
According to him, active sharing is an effective way to optimize the costs of building and maintaining networks and quickly covering the territory of Ukraine with a high-quality signal and mobile Internet access and fulfilling licensing conditions in the 900 MHz band.
The signing of the memorandum was supported by the Ministry of Digital Transformation of Ukraine.
In accordance with the decree of the President of Ukraine on some measures to improve access to mobile Internet, mobile operators should provide 4G communications to settlements with a population of 2,000 or more, as well as major roads in the coming years.
The mobile operator Vodafone Ukraine in the first quarter of 2020 reached an income indicator of UAH 4.39 billion, which is 28% more than in the same period in 2019.
According to a press release, the operator’s OIBDA (operating income before depreciation of fixed assets and intangible assets) increased by 30% compared to the first quarter of 2019 and reached UAH 2.3 billion. OIBDA margin increased to 53.3%.
“In the first quarter, Vodafone Ukraine’s net loss amounted to UAH 744 million, which is connected with the exchange rate difference on the revaluation of eurobonds of $500 million issued by the company in February 2020 – the hryvnia devaluation at the end of the quarter compared to the rate on the date of receiving the loan amounted to 15%,” the company reports.
The mobile operator notes that, on average, according to the results of the first quarter, the Vodafone Ukraine data client used 4.6 GB of traffic per month. The growth in consumption became possible thanks to the active expansion of coverage of high-speed Internet networks.
Currently, according to the company, Vodafone’s 4G network is available to 71% of Ukrainians, 86% of the population can use 3G coverage. Over the year, the number of 4G base stations doubled, and the number of settlements with 4G network access tripled.
The company invested UAH 1.2 billion in the network in January-March of this year, including UAH 265 million of license cost in the 900 MHz band. The company’s total investment in the construction of high-speed mobile Internet networks amounted to UAH 26.6 billion.
Vodafone Ukraine (PrJSC VF Ukraine) in 2019 saw a 45% rise in net profit compared with 2018, to UAH 2.54 billion, explaining the figure by growth in expenses on active development of 4G and 3G networks.
Vodafone Ukraine CEO Olha Ustinova said that the company’s income last year grew by 25%, to UAH 15.98 billion and Operating Income Before Depreciation and Amortization (OIBDA) rose by 21% year-over-year, reaching UAH 8.3 billion.
Vodafone Ukraine CFO Natalia Shevchenko said that in 2019, the operator doubled the number of 4G towers to 7,200. On average, the Vodafone data client uses almost 5 GB of traffic per month.
In general, the company’s investment in infrastructure development since the start of construction of high-speed mobile Internet networks amounted to UAH 25.4 billion.
According to information released during the presentation, as of December 31, 2019, the Vodafone chain in Ukraine included 629 mono-brand stores, of which 249 are own and 380 are dealerships. Sales revenue in 2019 amounted to $17.7 million, which is 4.6 times more than in 2018.
In 2019, the number of Vodafone customers in the country amounted to 19.7 million. The operator’s 4G network covers 69% of the country’s territory, which is 1.5 times more than the previous indicator for 2018.
According to the results of 2018, Vodafone Ukraine, the second largest mobile operator in Ukraine, reduced its net profit by 18.1% compared to 2017, to UAH 1.777 billion with an 8% increase in revenue, to UAH 12.8 billion. The company explains this figure as an increase in expenses due to the active deployment of 4G and 3G networks.
Ookla (the United States), the developer of Speedtest service, has said that Kyivstar mobile communication operator is Ukraine’s Speedtest Awards Winner for mobile network speed, according to the Ookla Speedtest report posted on the Speedtest website.
According to the report, in 2019, the company made over 3.15 million test counts for subscribers of all mobile operators. In particular, the total number of test counts in the Kyivstar network was 1.53 million with average download speed of 22.02 Mbps (17.94 Mbps in 2018) and average upload speed of 12.88 Mbps (8.99 Mbps).
Some 0.973 million test counts were made in the Vodafone Ukraine network with average download speed of 19.37 Mbps and average upload speed of 11.16 Mbps (14 Mbps and 6.63 Mbps in 2018), and in the lifecell network 0.583 million test counts were made with average download speed of 19.42 Mbps and average upload speed of 9.24 Mbps (16.64 Mbps and 6.69 Mbps).
According to Ookla, Kyivstar’s Speed Score was 20.31, lifcell’s – 17.77 and Vodafone Ukraine’s – 17.93. Speed Score incorporates a measure of each provider’s download and upload speed to rank network speed performance.
A total of 566,300 unique devices launched the Speedtest application in Ukraine, including iPhone 7 (27,600 test counts), Redmi Note 5 Pro (25,700 test counts), Redmi Note 4 (20,700 test counts), iPhone 6s (20,500 test counts), and iPhone X (18,100 test counts).
At the same time, in Kharkiv, according to Ookla, the speed of mobile Internet is on average higher than in Kyiv. So, Kyivstar’s Speed Score in this city was 25.08, while in Kyiv it was 19.79. Speed Score of lifecell in Kharkiv was 22.17, and in Kyiv was 18.06.
At the same time, the Speed Score of Vodafone Ukraine in Kharkiv was 16.87, while in Kyiv it was 18.88.
The shareholders of PrJSC VF Ukraine (provides mobile services under the Vodafone-Ukraine brand) on January 20 decided to provide prior consent to raising funds of up to $1 billion, but the company plans to gradually raise up to $500 million from external sources for the implementation of the development strategy, the operator’s press service has told Interfax-Ukraine.
“At the moment, the company is considering its development strategy. In the near future, we are considering options for phased attraction of external financing in the range of $500 million,” Viktoria Ruban, the head of the public relations department of Vodafone-Ukraine, said.
According to her, attracting external financing on favorable terms is consistent with the company’s development strategy and is a common practice in business.
According to a company report in the information disclosure system of the National Commission for Securities and the Stock Market, the company was allowed to sign loan agreements, agreements on commissions, orders from other transactions related to raising funds. The limit amount of such transactions is $1 billion (or UAH 24.253 billion at the NBU rate as of January 20, 2020).
The value of the company’s assets as of 2018 stood at UAH 21.479 billion.
The ratio of the marginal aggregate of transaction value to the value of the issuer’s assets according to the latest annual financial statements is 112.91%.
