Could Ukrtelecom privatisation subsidise UTS fund?

8 Jul 2010

During the consultations on the draft law for the creation of a fund for universal telecoms services (UTS), the Internet Association of Ukraine (IAU) has proposed that the new owner of Ukrtelecom be obliged to provide popular telecoms services for ten years to subscribers in some remote districts. The IAU has suggested that 10% of funds raised from the privatisation of Ukrtelecom, Ukraine’s largest telecommunication company, be directed to the fund.

The Cabinet of Ministers proposed in January 2009 that the parliament create a UTS fund, into which communications operators would contribute 3% of their annual revenues. However, parliament rejected the relevant draft bill. There has so far been no response to the IAU’s proposal. The tender for the sale of the full 92.79% of Ukrtelecom owned by the state is expected to be held in August.

Ukraine, Ukrtelecom (incl. TriMob)