Ukrainian mobile operators to get compensation for LTE bands

Ukrainian mobile operators Kyivstar and Vodafone Ukraine could expect compensation for LTE spectrum if they reduce their frequency resource as a result of the tender for spectrum in the 1,800 MHz band, reports BizLigaNet.

The tender will be launched on 26 February. National telecom regulator NKRZI has already announced detailed conditions. The auction will be carried out in six lots, for the 1,710-1,725/1,805-1,820 МHz, 1,725-1,750/1,820-1,845 МHz, 1,750-1,770/1,845-1,865 МHz, 1,770-1,775/1,865-1,870 МHz, 1,780-1,785/1,875-1,880 МHz and 1,775-1,780/1,870-1,875 МHz bands. The initial price will total UAH 795 million under the first lot, UAH 1.325 billion under the second lot, UAH 1.06 billion under the third lot, and UAH 265 million for each subsequent lot. 

The operators must release currently used bands in the 1,800 MHz band in order to make the tender possible. The maximum compensation which could be received by operators totals UAH 484 million for Kyivstar, UAH 288 million for Vodafone Ukraine, and UAH 169 million for Lifecell. Nevertheless, real compensation will be lower depending on the amount of lots won by operators. The real compensation could total UAH 171 million for Kyivstar and UAH 62 million for Vodafone Ukraine.    

The licences will be valid across the country for 15 years. Operators will be obliged to provide LTE services for 90 percent of the population of all regional centres within a year, and for 90 percent of the population in all settlements having more than 10,000 residents within three years and six months.