The largest Ukrainian mobile operator Kyivstar considers the interconnect rates for 2024-2025 approved at a meeting on September 27 by the National Commission for the State Regulation of Electronic Communications, Radiofrequency Spectrum and the Provision of Postal Services (NCEC) to be justified and unbiased.

"We are deeply convinced that the interconnect rates proposed by NCEC are absolutely justified and unbiased," Director for Public Relations at Kyivstar Oleksandr Kohut said in response to a request from Interfax-Ukraine.

According to him, the approval of rates at the September meeting of the commission was preceded by a huge amount of work to determine the costs of an effective operator (LRIC method – long run incremental costs). The study for Ukraine was carried out by the world-famous independent consulting company Detecon, which has repeatedly carried out similar work for EU countries.

"As a result of calculations using the LRIC method, the consultants were able to determine rates for the coming years, depending on Ukraine's economic factors (optimistic and pessimistic scenarios). Based on the results prepared by Detecon, the regulator proposed for public consultation the appropriate rates for the termination of mobile and fixed traffic, for at least the next two years. Since the EU countries have long used the efficient operator model (LRIC) to determine rates in their countries (until uniform rates were established for EU countries), we believe that the step on the part of NCEC is absolutely consistent, pro-European and understandable on the path to a single digital market with the EU. In addition, we have no reason to doubt the competence of Detecon experts, who comprehensively studied and took into account the peculiarities of the Ukrainian electronic communications market in the results of their work," Kohut said, recalling that the next step on the path to the EU Digital Single Market should be the equalization of rates from April 23, 2026.

Ukraine has been reducing interconnect rates for a long time, bringing them as close as possible to the cost of this service. Already now, for mobile voice services the rate is 8 kopiikas per minute, which is even slightly lower than the level of rates in the EU (EUR0.002 = 9 kopiikas per minute), the director for public relations at Kyivstar said.

"The model of an effective operator, which was prepared for Ukraine, demonstrated that the current rate is almost no different from the rate at the cost of an effective operator (proposed 7.5 kopiikas per minute). (From January 1, 2024 to December 31, 2024, estimated fees for services termination of national voice traffic on mobile networks is set at 7.5 kopiikas per minute, and from January 1, 2025 - 7.6 kopiikas per minute (excluding VAT). Thus, Ukraine already has a reasonable rate for a level close to the cost. A slight reduction in the rate for mobile communications by 0.5 kopiikas per minute will not have a significant impact on the electronic communications market or our individual company," Kohut said.

In addition, in his opinion, a reduction in the termination rate for fixed-line communications (on fixed-line networks, settlement rates are set at 5.5 kopiikas per minute from January 1, 2024 to December 31, 2024, from January 1, 2025 – 5 kopiikas per minute excluding VAT) will also not have a significant impact on the market, since the volume of fixed-line calls is not as significant as mobile calls.

The agency's interlocutor said that Kyivstar has always advocated the principle of predictability in regulating rates, since this allows creating a horizon for business planning for several years. "We sincerely welcome the pro-European changes proposed by NCEC, since we clearly understand what will happen to rates in the next few years," Kohut said.

As reported, on September 27, 2023, NCEC approved the draft resolution "On the establishment of settlement rates for national traffic termination services (call termination tariff) for mobile and fixed-line voice communications."

From January 1, 2024 to December 31, 2024, settlement rates for termination services of national voice traffic on mobile networks are set at 7.5 kopiikas per minute, and from January 1, 2025 - 7.6 kopiikas per minute (without VAT). On fixed-line networks, settlement rates are set at 5.5 kopiikas per minute, from January 1, 2024 to December 31, 2024, and from January 1, 2025 - 5 kopiikas per minute (without VAT).

According to the NCEC decision dated August 30, 2016, settlement rates for traffic transit services are set at 8 kopiikas per minute.

Estimated fees for national traffic termination services for mobile and fixed-line voice communications are calculated according to the efficient operator model (LRIC).

The procedure for public discussions of the document will last until October 10.

The Ukrainian mobile operator lifecell called on NCEC to adjust interconnect rates for 2024-2025, taking into account the real situation on the market.