Volume 30 (2007) / Issue 2
Mobile communications has been the most dynamic sector in the Ukrainian telecommunications industry. The number of customers and revenues of operators have been growing rapidly. The market experienced the recent entry of a new firm and currently there are six active mobile operators. The mobile telecommunications market was once monopolistic, and its concentration is still rather high, since two main players, UMC and Kyivstar, cover most of the market.
The fact that these two major companies have been so far ahead of all other operators since 2000, has attracted the attention of the competition authorities. In September 2004, the Antimonopoly Committee of the Ukraine (AMC) announced it was ready to recognise UMC and Kyivstar as jointly dominant firms. These allegations, if proven, could have dramatic consequences for the two operators, including possible fines and price regulation. The analysis in this article shows the accusations to be groundless and proves there exists intense competition in the marketplace for mobile communications. However, there are competition concerns that should attract the attention of the AMC. After a series of public hearings, the AMC finally decided that the operators are not monopolists.
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