Draft law to renationalise Ukrtelecom registered; NCCIR’s new licensee requirements enacted

10 Jan 2013

On 8 January 2013 a draft law was registered in Ukraine which proposes a return to state ownership of the 92.79% stake in Ukrtelecom privatised in March 2011. The details of the draft bill, initiated by the People’s Deputy Serhiy Vlasenko, are reportedly being scrutinised by the management of the incumbent fixed line network operator, according to local news site ProIT. Austrian investment fund Epic paid UAH10.58 billion (USD1.32 billion) for its controlling stake in Ukrtelecom, but the market capitalisation of the company has since halved to around UAH5.2 billion. TeleGeography notes that Ukrtelecom transferred its 3G mobile network assets into the TriMob unit at the start of 2012 but failed to find a buyer for the division, while in October that year Ukrainian conglomerate SCM was rumoured to have reached agreement in principle with Epic to take a minority stake and management role at Ukrtelecom, potentially as a precursor to a future takeover once necessary conditions have elapsed, although reports have not been confirmed.

Also on 8 January 2013 new regulations which enforce the main requirements of licensed providers of telecoms services stipulated by the National Commission for the State Regulation of Communications and Informatization (NCCIR, or NKRZI) took effect in Ukraine, ProIT reported. The NCCIR’s updated regulations were approved on 29 November 2012 and registered with the Ministry of Justice of Ukraine, and the legislation was published on 8 January in the Official Gazette of Ukraine No. 100.

Ukraine, National Commission for Comms/Info. Regulation (NCCIR/NKRZI), Ukrtelecom (incl. TriMob)