Kyivstar Says It Might Not Use In Full Radio Frequencies Obtained As Result Of Merger With Beeline

telecomThe Kyivstar communication operator says it may not use in full radio frequencies obtained as a result of the merger with the Beeline operator (the Ukrainian Radiosystems and Golden Telecom companies).

Kyivstar President Ihor Litovchenko announced this at a press conference.

“This amount of frequencies we are obtaining today we won’t use in full. The cost of radio frequencies has been increased by five times. The question is whether it is appropriate to hold radio frequencies if you do not use them,” he said.

He said the company is ready to have a dialogue with the National Commission for Regulating Communications and other operators concerning the re-distribution of radio frequencies.

“It is rather possible that we will speak with the regulator and other companies who need the frequencies more than we do,” said the president of Kyivstar.

Andrii Osadchuk, the head of the department for regulatory and legal provision of Kyivstar, said the spectrum of radio frequencies is not distributed effectively.

Kyivstar President Litovchenko also professes the principle of technological neutrality which envisages the introduction of new technologies by operators without additional licensing.

As Ukrainian News earlier reported, the Antimonopoly Committee suspended its permission for the merger of VimpelCom and the Kyivstar on April 22 after Astelit provided additional facts in support of its request to delay the merger. Astelit said the two operators after their merger will accounts for 58% of the GSM-900 radio frequencies and over 50% of the GSM-1800 radio frequencies.

Astelit later withdrew its request.

On October 19, 2010, the Antimonopoly Committee of Ukraine renewed its consent given in March 2010 to the merger of VimpelCom (Russia) and the Kyivstar, as the Committee has not found enough grounds to cancel its decision concerning the merger.

Despite the withdrawal, the Antimonopoly Committee decided to review its March decision to approve the merger of the companies without additional conditions.

On October 5, 2009, the Altimo company (Russia) and the Telenor telecommunications company (Norway) agreed to merge Kyivstar and VimpelCom to create a new cellular communications operator, VimpelCom Ltd. (Bermuda islands), to provide integrated cellular communications services in Russia, Ukraine, and other member-countries of the Commonwealth of Independent States, as well as in Georgia, Vietnam, Cambodia, and Laos.

Kyivstar and Beeline communications operators (Ukrainian RadioSystems and Golden Telecom companies) plan to close the merger deal before 2014. However, they plan to stop using the brand Beeline on the Ukrainian market from 2012.

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