The Better Regulation Delivery Office (BRDO) has analysed Ukraine’s fixed-line internet market and found a 30% drop in revenues in the fourth quarter of 2024. This happened against the backdrop of the State Tax Service’s interpretation of the ban on the simplified taxation model for Internet providers. The results of the analysis are presented in the BRDO’s updated dashboard based on the regulatory reporting of the NCEC.
According to BRDO research, the fixed-line internet access market showed the following indicators at the end of 2024:
- Market revenues fell by 30% to UAH 4.3 billion compared to the third quarter of 2024. This is the lowest figure since the end of 2022. The drop in revenues followed the ban on the simplified taxation model in the State Tax Service’s explanations in spring and summer 2024, contrary to the Tax Code of Ukraine.
- The number of fixed-line internet users decreased by 3.5% to 8.2 million compared to the first half of 2024 (according to regulatory reports). At the same time, reporting on subscribers was record-breakingly incomplete in 2024: more than 40% of companies reporting on revenues did not provide data on their subscriber base. This is the first time since 2021 that such incomplete reporting has been recorded and is likely to be an indication of a regulatory shock in the fixed-line Internet market.
- The market concentration of the top 10 providers by revenue increased by several percentage points. As of the end of 2024, they accumulated 30.15% of total revenues. Despite the growth, this indicator still indicates relatively low concentration and competition in the fixed-line Internet market.
“The ban on the simplified taxation system has become a catalyst for changes in the fixed-line Internet market. We are already seeing a sharp drop in revenues, incomplete reporting and the first signs of market reformatting. These are alarming signals that threaten competition in the industry and Internet accessibility for the population,” commented
Ihor Samokhodskyi, Head of the IT and Telecom Sector at the BRDO.
As of the end of 2024, the composition of Ukraine’s leading fixed internet providers by revenue and subscriber base has shifted, with new entrants and changes in rankings.
As of the end of 2024, new players joined the list of top companies — Farlep-Invest PJSC and TENET NVP LLC, while Mega Link LLC and GigaTrans Ukraine LLC dropped out. The leaders by revenue in 2024 remained unchanged:
- Ukrtelecom JSC – ₴1.64 billion
- Kyivstar JSC – ₴1.54 billion
- Volia-Cable LLC – ₴0.83 billion
- Datagroup PJSC – ₴0.69 billion
At the same time, the leaders of the fixed-line Internet market in terms of subscriber base in 2024 were:
- Kyivstar JSC – 1.15 million subscribers
- Ukrtelecom JSC – 445,000 subscribers
- Volia-Cable LLC – 391,000 subscribers
- Home-Net NVP LLC – 209,000 subscribers
- Farlep-Invest PJSC – 149,000 subscribers
To recall, in 2024, the State Tax Service banned online suppliers from operating under the simplified taxation system. This practice contradicts the Tax Code of Ukraine and the Law on Electronic Communications. Earlier, BRDO experts warned of the risks of such actions for the fixed-line Internet market. Recently, the BRDO has requested the Ministry of Finance to provide a generalised tax consultation that will confirm the right of Internet providers – individual entrepreneurs and legal entities – to use the simplified taxation system.
The updated data of the fixed-line Internet access market dashboard is available here.