Ukrainian telco Ukrtelecom’s mobile unit TriMob is reportedly back up for sale, with MTS Ukraine, Turkcell and Kyivstar all said to be interested.
The local unit of Russian giant MTS and the Turkish mobile operator are in separate talks about a…
Ukrainian telco Ukrtelecom’s mobile unit TriMob is reportedly back up for sale, with MTS Ukraine, Turkcell and Kyivstar all said to be interested.
The local unit of Russian giant MTS and the Turkish mobile operator are in separate talks about a potential purchase of Ukraine’s only 3G wireless operator, local newspaper Capital reported.
Ukrainian billionaire Rinat Akhmetov’s Systems Capital Management (SCM) won regulatory clearance yesterday to acquire a 92.79% indirect stake in Ukrtelecom, which includes TriMob. The purchase price has not been disclosed but analysts have estimated it at US$1.3bn. SCM and Turkcell are also the co-owners of local mobile operator Astelit, which operates under the brand name Life.
Meanwhile, a spokesperson for the country’s largest mobile operator Kyivstar told TelecomFinance the company is exploring options to offer customers 3G services, including buying or partnering with TriMob. The spokesperson pointed out that Kyivstar has already partnered with TriMob, entering into a contract two years ago that enabled the larger operator to provide its customers 3G internet access in exchange for allowing TriMob to access its national network in areas where it does not have coverage.
“The Ukrainian telecom market has almost zero possibilities for further growth and development without access to the 3G/LTE,” he said. “Kyivstar is deeply interested in the access to new technologies and currently technically ready to provide services in 3G/LTE in the shortest period of time after having regulatory permission.”
The potential sale of TriMob to a local operator could also help consolidate the Ukrainian mobile market, currently home to six operators.
In late 2011, Ukrtelcom announced plans to sell its mobile division, then operating under the Utel brand name. Utel was the only operator to receive a 3G licence in Ukraine’s 2005 spectrum auction and started offering 3G services in 2007.
TriMob is Ukraine’s fifth largest mobile operator after VimpelCom’s Kyivstar, MTS Ukraine, Life and Intertelecom.
TriMob and Turkcell were not immediately available for comment, while MTS Ukraine and Ukrtelecom declined to comment. An SCM spokesperson said the company has started finalising its acquisition of Ukrtelecom and believes it would be inappropriate to comment before it become’s the telco’s full owner.
