06.12.2021

E-communications market reform

Reform objective

To protect subscribers’ rights and simplify licensing procedures for companies. 

Mechanism

Implementing the new EU Code, amending the legislation. 

Instruments

Law of Ukraine “On Electronic Communications”. 

Proposals

The Law provides for a legal basis for the following changes: 

1. For subscribers:

the state will ensure the Internet affordability and geographical coverage throughout Ukraine; 

subscribers will be able to choose a specific service provided separately from the “package” of services; 

operators will be required to report the minimum, average, and maximum speed of the Internet service so that subscribers can expect receiving a clear minimum service speed when choosing a service provider; 

there is a possibility of out-of-court settlement of disputes between subscribers and operators. This will allow subscribers to protect their rights more effectively and quickly. 

2. For businesses:

reducing bureaucratic barriers to the introduction of new technologies. From now on, if operators want to use new technology to provide services, there is no need to obtain a mandatory permit from the state. 

operators will be allowed to deploy low-power core networks under a simplified procedure without assigning radio frequencies to individual equipment. This, for example, will contribute to the faster 5G technology introduction; 

the Ukrainian telecom market will become more attractive to European investors, as the updated regulation is harmonized with the European legislation. 

deployment of fixed and mobile broadband Internet access networks will be cheaper. The law provides for the possibility of operators to access each other’s infrastructure; 

operators will be able to transfer their radio frequency resource for use to third parties subject to the consent of the National Commission for the State Regulation of Communications and Informatization (NCCIR). 

3. For the state and international partners:

the state will have objective information on Internet coverage in Ukraine to build networks in regions where it is not available. Operators will be required to conduct geographic surveys of networks and update data at least once a year; 

there will be a transparent electronic system for the interaction of all market players: it can be used to receive administrative services and access to registers and databases; 

the adopted Law fulfills obligations under the Association Agreement and is harmonized with the updated EU legislation. 

Why is this essential for Ukraine?

The Ukrainian telecom market will be more attractive to European investors. Until recently, Ukraine took almost no steps to implement EU telecommunications laws into existing legislation. By adopting the Law, Ukraine will implement the new EU regulation almost simultaneously with the EU members.