EASTERN AND CENTRAL EUROPE
Ukraine
We have a 56.5% ownership interest in Kyivstar, the largest mobile operator in Ukraine based on number of subscriptions.
In addition to voice telephony, Kyivstar provides a full range of 2.5 G telecommunications products and services.
GSM and EDGE network
Kyivstar currently owns a GSM 900 and a GSM 1800 license. Kyivstar’s GSM network had geographical coverage of approximately 95% and population coverage of approximately 99% at year-end 2006. Kyivstar’s network is fully GPRS upgraded. Kyivstar launched EDGE in 2005, which at the end of 2006 was operational in all major cities in Ukraine. In addition, Kyivstar continued to roll out its own fibre backbone network during 2006.
Kyivstar distributes its products and services through both indirect sales channels (dealers, retailers, wholesalers) and direct sales channels (telemarketing and direct contact).
Visitor centres
In order to attract and retain subscribers, Kyivstar focuses on providing a high level of customer service and care. At year-end 2006, Kyivstar had 117 visitor centres throughout Ukraine. Visitor centres are independent dealerships that have at least one dedicated Kyivstar employee on the staff. Kyivstar also operated 35 information centres in the main urban areas.
| Kyvistar | 2004 | 2005 | 2006 |
|---|---|---|---|
| No. of mobile susbscriptions (in millions) | 6.25 | 13.93 | 21.51 |
| - of witch prepaid | 5.53 | 12.90 | 20.28 |
| Av. traffic min. per subscription per month (AMPU) | 83 | 98 | 120 |
| Av. revenue per subscription per month (ARPU) | 85 | 61 | 54 |
| EBITDA/Total revenues (%) | 61.1 | 55.7 | 59.5 |
| Operating profit/Total revenues (%) | 47.8 | 38.9 | 44.7 |
| Capex | 2608 | 3650 | 3631 |
| Market share GSM (%) | 43 | ||
| Mobile penetration (%) | 29 | 64 | 104 |
> Regulatory matters
> Further discussion and analysis
> Legal proceedings
Market data
Ukraine- Population (2006, in million): 46.6
- Land area (sq KM): 603,700
- Population per sq KM: 77
- Population growth (%) av.2002-2006: -0.7
- GDP per head (US$): 2,205
- GDP per head (US$) purchasing power parity: 7,655
- Real GDP growth (%) av. 2002-2006: 8.4
- Inflation (%) av.2002-2006: 10.7
Market share
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Total Mobile Market
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