Business news from Ukraine

UKRAINE TO DEVELOP HIGH-SPEED INTERNET ACCESS ON ROADS

The Ministry of Infrastructure of Ukraine, the Ministry of Digital Transformation, the State Automobile Roads Agency of Ukraine (Ukravtodor), the National Commission for the State Regulation of Communications and Informatization (NCCIR) and Ukrainian Internet associations signed a memorandum of cooperation in the development of broadband Internet access on roads.
As reported on the website of the Ministry of Infrastructure on Friday, with the memorandum, all of its parties will cooperate in the implementation of smart transport systems and their arrangement on public roads of national importance.
In particular, Ukravtodor, when conducting procurement for the overhaul of these roads, will include provisions for the development of broadband Internet access in the customer’s requirements, as well as the infrastructure necessary for the cable telecommunication lines.
“We want that during the overhaul of these roads, one of the requirements for the customer is the development of the required infrastructure for the cable telecommunication lines, so that there is broadband access to the Internet. This will allow the introduction of smart transport systems, which are very important to increase transport safety and prevent possible accidents, traffic monitoring and efficient management of traffic flows,” the press service of the Ministry of Infrastructure said, citing minister Vladyslav Krykliy.

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KYIVSTAR CONNECTS 1,046 SETTLEMENTS TO 4G INTERNET

The Kyivstar mobile communications operator has expanded the territory of coverage with 4G technology in 21 regions in Ukraine and connected 1,046 settlements to the new technologies, providing another 830,000 residents of Ukraine with access to high-speed Internet, the company has said in a report.
So, high-speed mobile Internet appeared in the cities and towns of Baturyn, Berdychiv, Bilovodsk, Varash, Volochysk, Volnyansk, Zolotonosha, Konotop, Manevychi, Mena, Radomyshl, Rubizhne, Sambir, Smila, Starokostiantyniv, Stryi, Khotyn, Schastia, Yampil, as well as several hundreds of villages.
To date, the Kyivstar 4G network operates in 7,885 settlements, 90% of which are located in rural areas. This is the territory where over 29.8 million people or 72% of the population of Ukraine live.
The operator has already installed about 7,500 towers for 4G communications.
The company also said that the operator supported a general plan of action aimed at implementing the decree of President of Ukraine Volodymyr Zelensky on ensuring nationwide coverage of 4G/LTE in the 900 MHz band.
Kyivstar is considering the possibility of becoming a “donor” of frequencies for other mobile operators, provided that the state takes measures to increase the efficiency of the radio frequency spectrum that Kyivstar may receive as a result of redistribution, the company said.

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NUMBER OF REGULAR INTERNET USERS IN UKRAINE INCREASES BY 7% TO 22.96 MLN

The number of regular Internet users in Ukraine by the end of the third quarter of 2019 (Q3) increased by 7% to 22.96 million, the Ukrainian Internet Association (UIA) reported on its website with a link to the results of a study by Factum Group Ukraine.
The Association notes this indicator for the first time in the past few years has grown significantly. The main reasons for the growth in the association are called ‘smartphoneization’ of the population and an increase in the number of network users in villages and small towns.
So, by the end of September, Internet penetration increased from 71% to 74% in towns whose population exceeds 100,000 inhabitants, from 63% to 70% in towns whose population is lower than 100,000 inhabitants, and from 53% to 58% in villages.
“Alignment of the structure of Internet users in accordance with the structure of the population continues. This process has actually been completed by gender, and continues by other indicators: regional, professional, educational, income, age. Almost all Ukrainians younger than 35 are Internet users,” the Association said when commenting on the findings of the survey.
The most active users are Ukrainians aged 15-24 years (97% of Internet users), they are followed by people aged 25 to 34 years (96%). Users over 65 years old account for 29% (only 14% a year ago). The share of women in the total number of Internet users is still 52%.
Some 44% of Ukrainian Internet users have an average income level, 48% are below average. Some 40% have secondary specialized education, 36% have complete higher education.
The first place among Internet devices is a smartphone (66%), the second is a home laptop (40%), and the third is a PC (36%).
The share of users using exclusively mobile devices for access to the Internet in Q3 was 22%.

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UKRAINIAN MEDIA INTERNET ADVERTISING MARKET EXPANDS BY 82% IN H1 2019 – UIA ASSOCIATION

The Ukrainian media Internet advertising market expands by 82% in H1 2019, to UAH 1.987 billion, the Ukrainian Internet Association (UIA) has said.
The share of direct sales on this market over the period came to 61.41%.
The segments of media Internet advertising are the following: banner advertising with 34% of the market share, in-stream video (pre-roll, mid-roll, post-roll, pause-roll, overlay-advertisement, picture-in-pause) was – 41%, in-page video advertising (content-roll) – 11%, other non-standard solutions (pop-up and pop-up pop-ups, catfish and screen-glide formats, synchronous banners, frontlines, full-screen advertising, sound advertisement in a digital audio stream and other types) – 9% and sponsorship – 5%.
The share of mobile media Internet advertising (targeted at mobile device users) of the total turnover of media Internet advertising was the following: 20.7% for banner advertising, 22% for in-stream video, 0.7% for in-page video (content-roll), 2.5% – for non-standard solutions and 1.1% for sponsorship.
The share of Programmatic (automated advertising) was 34.6% for purchases by agencies and 50.8% for platforms.
The share of social media and instant messengers (FB, Instagram, Twitter, YouTube, Skype, Viber and other applications) was also determined in advertising – 36.64%.
The methodology for measuring the volume of media Internet advertising was based on a cross-sectional analysis of survey data from the largest advertising agencies, websites and sales houses.
“The survey involved leading online advertising agencies: ADINDEX, AdWork, Dentsu Aegis Network Ukraine, DIEVO, Havas Digital, Maxus Sigma, MediaHead, Netpeak, newage, Publicis One, razom communications, TMGU, WebPromo, and representatives of the largest sites, holdings and sales-houses: 1+1, Adpartner, Edipresse Media, FISH, Go2Ne, Online.ua, Programmatic Media Group, RBC, RIA, Rontar, RST, StarLight Digital Sales, Treeum, Ukr.net, UMH, Autocentre, Lux (24 Channel) Novoye Vremia,” the association said.

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UKRAINIAN MEDIA INTERNET ADVERTISING MARKET EXPANDS BY 40% IN 2018

The Ukrainian media Internet advertising market expands by 39.9% in 2018, to UAH 3.511 billion, the Ukrainian Internet Association (UIA) has said.
The share of direct sales on this market over the period came to 56%. The segments of media Internet advertising are the following: banner advertising with 37% of the market share (a decline by 12.6 percentage points (p.p.) on 2017), in-stream video (pre-roll, mid-roll, post-roll, pause-roll, overlay-advertisement, picture-in-pause) was – 42% (growth of 15.8 p.p.), in-page video advertising (content-roll) – 9% (a rise by 6.8 p.p.), other non-standard solutions (pop-up and pop-up pop-ups, catfish and screen-glide formats, synchronous banners, frontlines, full-screen advertising, sound advertisement in a digital audio stream and other types) – 7% (a decline by 5 p.p.) and sponsorship – 5% (a fall by 4.8 p.p.).
The share of mobile media Internet advertising (targeted at mobile device users) of the total turnover of media Internet advertising was the following: 30% for banner advertising (a rise by 16 p.p.), 29% for in-stream video (a rise by 18 p.p.), 14% for in-page video (content-roll, a rise by 8.5 p.p.), 14% – for non-standard solutions (growth by 10.5 p.p.) and 13% for sponsorship (a rise by 12 p.p.).
The share of Programmatic (automated advertising) was 25.91% for purchases by agencies and 50.35% for platforms.
The share of social media and instant messengers (FB, Instagram, Twitter, YouTube, Skype, Viber and other applications) was also determined in advertising – 34.45% (a rise by 8 p.p.).
The methodology for measuring the volume of media Internet advertising was based on a cross-sectional analysis of survey data from the largest advertising agencies, websites and sales houses.
“The survey involved leading online advertising agencies: Dentsu Aegis Network Ukraine, razom communications, Sigma, ITCG, Havas Digital, Publicis One, TMGU, AdWork, DIEVO, MediaHead, Netpeak, newage, and representatives of the largest sites, holdings and sales-houses: Autocentre, Edipress, Lux (24 channel), RBC, RIA, Ukr.net, UMH, Go2Net, FISH, Adpartner, Rontar, Online.ua, Novoye Vremia, RST and Obozrevatel,” the association said.

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