On November 19, 2024, bidding took place in Kyiv as part of the Frequency Auction.
Kyivstar, Vodafone and lifecell mobile operators received an additional resource and declared their readiness to use it effectively for 15 years, providing services to their subscribers.
What frequencies
- PrJSC “Kyivstar” is the winner of the “voice” bidding for licenses for the use of radio frequency spectrum in the radio frequency bands 1940-1945/2130-2135 MHz and 2355-2395 MHz;
- PJSC “VF Ukraine” will receive licenses for radio frequencies 1945-1950/2135-2140 MHz; 2575-2610 MHz;
- Lifecell LLC is the winner of the bidding for one lot in the 1935-1940/2125-2130 bands
Did the operators come to an agreement?
While it was planned that the state would receive more than UAH 3 billion (USD 73 mln), the actual amount of revenue was slightly less – UAH 2,894,733,500. Based on the results of the auction, it seems that the operators decided among themselves who should get what. Therefore, all frequencies were sold for slightly more than the starting price:
- Vodafone received lot #1 for UAH 458,333,500 (starting price was UAH 458,333,250) and #5 for UAH 530,100,000 (UAH 530,005,000).
- Kyivstar received lots No. 3 for UAH 463 million (UAH 458,333,250) and No. 4 for UAH 994,800,000 (UAH 984,860,000).
- lifecell received lot #2, worth UAH 463 million at the initial price of UAH 458,333,250.
Of course, all operators are happy with their acquisitions and consider themselves winners.
“In this tender, the second lot was the most strategically important for us. Thanks to our existing advantage in the number of frequencies per subscriber, the acquisition of additional 2*5 MHz will allow lifecell to increase network capacity in a short time,” said Mykhailo Shelemba, CEO of DVL Group, which includes lifecell.
“We have fully realized our objectives at today’s auction – we have received an excellent resource to provide 4G services of decent quality,” commented Olga Ustinova, CEO of Vodafone Ukraine, on the results of the tender.
“The auction for licenses to use the radio frequency spectrum is an important step in the development of Ukraine’s electronic communications industry and a proof that the war does not stop investments in state assets, and their effective management can bring significant funds to the budget,” said Oleksandr Komarov, CEO of Kyivstar.
What’s next
In accordance with the terms of the technology-neutral nationwide licenses established by the NCC, each of the winners undertook to:
- Within 24 months from the date of the license’s commencement, ensure the use of the received frequency band at at least 1,500 base stations, and within the first 12 months – at at least 500 base stations.
- Ensure the possibility of receiving services using IMT radio technology
- : Within 12 months from the date of commencement of the license – in each settlement with a population of more than 2000 people, provided that the total number, together with other settlements, will be at least 90% of the population of Ukraine.
- Within 16 months – on international highways of the regions specified in the license.
- Within 24 months – on national highways of the regions specified in the license.
- Within 6 months, to ensure the gradual resumption of cellular radio services in the territories where military operations were conducted or temporarily occupied by the Russian Federation (under a set of conditions, i.e. in case of liberation).
- Ensure that at least 95% of the population in Ukraine can receive services using IMT radio technology in compliance with the requirements for the level of service quality approved by the central executive body in the areas of electronic communications and radio frequency spectrum by 2030.
After paying the cost of the licenses purchased at the auction to the State Budget of Ukraine, the winners of the auction will be able to start actively building their networks at new frequencies and expanding the capacity of communication channels, which will ensure higher quality services to their subscribers.
Why the auction is needed
The NCC says that the auction was preceded by lengthy preparations, including a study of demand, approval of the minimum price for spectrum, and development of conditions for using the spectrum for a certain period. All processes were transparent and included public consultations at each stage of preparation.
Spectrum auctions are the most effective tool for managing radio frequencies, allowing the regulator to maximize the efficient use of limited public resources, ensuring significant budget revenues.
This also contributes to business development and satisfaction of the population’s demand for high-quality communication services.
