Telecommunications industry challenges in 2023, prospects for 2024: key players discussed industry and regulatory issues at the NCEC Annual Conference        

Kyiv, April 12, 2024 – National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and the Provision of Postal Services (NCEC), hosted its annual conference “Keeping Ukraine Connected’24”. The event was organized within the Digital Policy Support to Ukraine project funded by the European Union.

In his opening address, Oleksandr Zhyvotovsky, Chairman of the NCEC, stated: "The trials endured during the second year of Russia's full-scale war against Ukraine have only served to strengthen us. We have adapted to daily challenges, as citizens, businesses, and a state. The electronic communications sector is undergoing through transformation and adaptation and is showing good results. In 2023, we celebrated victories, yet regrettably, we also mourned losses - loss of infrastructure and, most tragically, loss of lives. Nevertheless, the industry persists in its development and growth. Mobile operators continue to develop their networks and increase capital investments. Substantial strides towards Ukraine's integration into the EU Digital Single Market, notably Ukraine's accession to the EU Roaming Zone "Roam like at home". These achievements and milestones stand as a collective success of the industry. We extend our gratitude to all market participants and partners for their unwavering support and hard work, for their contributions to the advancement of electronic communications and postal services, and to the enduring victory and prosperity of Ukraine."

Oleksandr Zhyvotovskyi presented an overview of the key trends and achievements in the field of electronic communications and postal services in 2023:

• Total revenues from the provision of communication services in 2023 amounted to UAH 130.5 billion, of which revenues from the provision of electronic communication services amounted to UAH 97.3 billion, which is almost 17% more than in 2022; revenues from the provision of postal and courier services amounted to UAH 33.2 billion;
• The number of active mobile network identification cards as of 31 December 2023 was 50.3 million, which is 1 million more than at the end of 2022, but 5.6 million less than at the end of 2021;
• The total number of active mobile network identification cards used to access the Internet reached 36.9 million as of 31 December 2023, up 4.2% year-on-year;
• Capital investments in the electronic communications sector in 2023 totalled UAH 19 billion, or 50% more than in 2022;
• Revenues from fixed-line Internet access services totalled UAH 21 billion in 2023, up 33% compared to 2022.

The full Report on the activities of the NKEC in 2013 is available on LINK.

Ukraine's integration into the EU's Digital Single Market, key priorities, needs and potential risks of the telecoms sector in 2024, as well as the development of the regulatory environment for

2024-2026 were the focus of the discussion of national and international experts at the Conference.

Stefan Schleuning, Head of Cooperation at the EU Delegation to Ukraine, noted the importance of the Regulator for the functioning of the telecommunications and digital markets in Ukraine, and for further integration in these crucial areas with the EU. “Further cooperation between the EU and Ukraine is discussed now and additional steps for future integration of Ukraine into the EU Digital Single Market are envisaged. The EU will continue to provide support to enhance capacities and to further develop the competencies of the Regulator in key areas such as market regulation, monitoring of the quality of services, roaming and overall digital regulation”, he said.

Liliia Malon, NCEC Commissioner, and representatives of international regulators and partners Kamila Kloc, Director, Digital Decade and Connectivity, DG Connect, European Commission, Tonko Obuljen, Chair, Body of European Regulators for Electronic Communications (BEREC) discussed the progress of Ukraine's integration into the EU's Digital Single Market and membership in BEREC. In the context of discussing the bilateral cooperation of the NCEC with partners and the unique experience gained by Ukraine in providing communications amidst Russia's full-scale invasion of Ukraine, the following speakers also spoke Jessica Rosenworcel, Chairwoman, Federal Communications (FCC), discussed the progress of Ukraine's integration into the EU Digital Single Market and Lindsey Fussell, Group Director for Networks and Communications, Ofcom.

The central session of the Conference featured a panel discussion comprising the CEOs of the leading mobile and fixed-line operators: Olga Ustinova, CEO of Vodafone Ukraine; Oleksandr Komarov, President of Kyivstar; İsmet Yazıcı, CEO of lifecell; Mykhailo Shelemba, CEO of Datagroup and Volia; Yuriy Kurmaz, CEO of Ukrtelecom; and Victoria Troshchenko, NCEC member. Alongside NCEC Chairman Oleksandr Zhyvotovsky, these industry leaders discussed the primary priorities, requirements, and potential challenges for 2024, as well as reflecting on the key conclusions and achievements of the preceding year, 2023. They discussed the best solutions for communication sustainability in times of war, industry challenges and shared their plans for investment and development in the near future. The panelists named the following priorities:

• Rebuilding infrastructure, ensuring energy resilience and energy independence of networks by installing batteries and generators to ensure communication amidst blackouts;
• Ensuring connectivity on the transport networks and building electronic communications networks, especially in rural areas;
• Modernising networks, including the development of GPON technology;
• Investing in 4G technology and launching new services for consumers;
• Countering cyber-attacks on the communications industry;
• Humanitarian support and assistance: free services for consumers, especially in the frontline areas, and charity programmes.

At the conference, discussions centered around effective regulation to facilitate integration into the Digital Single Market, safeguarding consumer interests regarding service quality, the deployment of Gigabit infrastructure, as well as the restoration of infrastructure damaged due to Russia's full-scale war against Ukraine, and ensuring robust competition. The final session of the Conference addressed these pertinent issues, featuring the participation of Liliia Malon, NCEC Commissioner; Veronica Bacarova, Cullen International and Inga Popovici, key expert, EU-funded project «Digital Policy Support to Ukraine"

Liliia Malon presented the vision for the development of the regulatory environment and the key objectives of the NCEC for 2024-2026.

• Adaptation (harmonisation) of sectoral legislation with EU legislation for integration into the EU Digital Single Market;
• Restoration of the infrastructure of electronic communication networks and deployment of sustainable "Gigabit" communications;
• Positioning and promotion of Ukraine as a role model for ensuring the sustainability of electronic communications under the most adverse circumstances in war.

“Keeping Ukraine Connected’24” serves as a platform for addressing critical issues concerning the development of electronic communications and postal services. The conference traditionally focuses on presenting industry and regulatory achievements from the previous year, as well as discussing the ongoing operation of electronic communications and postal services amidst Russia's full-scale invasion of Ukraine. Moreover, it delves into the progress made and future objectives towards Ukraine's integration into the EU's Digital Single Market, and the establishment of a regulatory framework conducive to transparent competition, benefiting consumers, businesses, and the state. The event brought together 18 speakers and over 200 participants from the industry, government officials, foreign partners, guests, and media representatives.

Regulator’s Annual Report for 2023 is available at the following links press-release  and  Report.

The event is organized with the financial support of the European Union. Its contents are the sole responsibility of NCEC and do not necessarily reflect the views of the European Union.

About NCEC

National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and the Provision of Postal Services (NCEC) is a central executive body with a special status established by the Cabinet of Ministers of Ukraine. Detailed information on the regulations, tasks, functions, powers and the procedure for their implementation is available at https://nkrzi.gov.ua  NCEC FB, YouTube.

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