3G licensing should be simultaneous for all mobile communications market players, say MTS Ukraine, Kyivstar
Kyiv, September 5 (Interfax-Ukraine) – Licensing of 3G communications should be simultaneous for all mobile communications market players, Director General of MTS Ukraine Ivan Zolochevsky and Kyivstar President Petro Chernyshov said at a press conference at Interfax-Ukraine.
According to a joint statement of the operators spread after the press conference, the issue of only one license and the postponement of the conversion until 2018 will result in non-receiving of at least UAH 2-3 billion as a fee for radio frequency bands by the national budget. In addition, the Ukrainian army will not receive funds for its re-equipping with newest radio communications devices. According to the document, the 3G standard is getting out of date and in a few years the country will not find an investor who will be ready to invest in this standard.
Chernyshov said that the normal development of the telecommunications market is possible only when all mobile communications subscribers will have access to 3G/4G technologies.
"It's impossible to quickly achieve the national coverage by forces of only one operator. If one license is issued, few residents will receive access to this communications, and the price on it will be higher due to monopoly than it could have been in the competitive environment," he said.
Zolochevsky added that in case when only one operator develops new technologies, there will not be investment in the sector.
The operators said that they do not understand logics of those who want to put only one license up for sale. This is not beneficial for the development of the sector and replenishment of the national budget.
"The difference in the investment in the sector and in the country during three years in case with only one player and three players is triple. If we are not obsessed only with the cost of the license, and we look at the whole money inflow of direct investment. The license is only the driving license to a car. Around 40% of investment is the cost of equipment, and around 60% of these funds is permits, tests, buildings of networks and all contractor works. Actually this is gross domestic product. The money needed for building the network are used and stay in the country," Zolochevsky said.
He said that if only one license is put up for sale, the operator concedes that the tender will be boycotted.
The operators said that the fair price of license is UAH 1 billion. In addition, UAH 600 million could be spent on conversion.