Antimonopoly Committee Again Defines Eight Communication Operators Monopolies at Interconnect Market

The Committee members passed this decision unanimously at its meeting. This means the Committee left unchanged its decision it passed in May 2009.

Thus, it declared interconnect monopolists Ukrtelecom open joint-stock company, Kyivstar GSM closed joint-stock company, Ukrainian Mobile Communications closed joint-stock company (MTS brand), Golden Telecom limited liability company (Beeline brand), International Telecommunications limited liability company (Intertelecom brand), TeleSystems of Ukraine closed joint-stock company (PEOPLEnet brand), and Astelit limited liability company (life:) brand).

By this decision, the Committee allowed the National Communications Regulatory Commission to control interconnect rates, as long as chapter 9 from the Law On Telecommunications stipulates the Communications Commission to set the calculated rates for access to telecommunication networks of telecom operators who are market monopolies.

As Antimonopoly Committee Chairman Oleksii Kostusev notes, the Committee took this decision having studied the European telecommunication market experience, working together with the Communications Commission.

MTS and Kyivstar executives, present at the meeting, reacted negatively to this decision as they believed it not to solve the problems at the interconnect market.

An executive from Ukrtelecom, Ukraine’s largest telecommunications company, treats the decision positively in broad terms but joins the opinion that it will not solve all problems at the market.

Apart from this, Oleh Prozhyvalskyi, director of MTS corporate management and control department, proposed to start implementing this decision on July 1 for operators to terminate validity of old interconnect agreements and conclude agreements upon the new conditions.

In her turn, the Communications Commission member Liudmyla Artiushenko stressed that the existing interconnect rates had been effective since February 2010, so the Commission could not pass any decision to revise past years rates.

Kyivstar executive asked the Antimonopoly Committee that it together with the Communications Commission work out explanations for the operators as regards the order of implementation of this decision.

As Ukrainian News earlier reported, the Antimonopoly Committee in May 2009 found eight companies monopolising the interconnect market but in July decided to revise its decision and suspended its force.

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