Telephone Communications in Ukraine at Dead Halt

The number of new telephone subscribers this year will remain unchanged at the 1999 rate of 268,000 numbers, stated Ukrtelekom General Director Stanislav Dovhy at a press- conference in the hamlet of Lysianka (Cherkasy oblast), answering a question from Interfax-Ukraine.

Derzhkomzvyazok (State Communications Committee) Deputy Head Mykola Orlenko pointed out at the press conference that the year 2000 has been “the most difficult” for the telecommunications sector, since considerable funds have been spent on preparing for Ukrtelekom privatization. According to the experts, a declining tendency in setting up automated telephone exchanges was seen last year, when enterprises of all forms of ownership put into operation ATEs with a total capacity of 268,000 numbers, 94,000 less than in 1998.

The number of ATEs was reduced not only by Ukrtelekom but also by commercial operators — 48,000 numbers in 1999, 6,000 less than in 1998.

The specialist pointed out that commercial operators do not invest in the development of the telephone network in rural areas due to the unprofitability of investment in the countryside: investment is made only in the big cities, which can guarantee quick revenue. In 1999 the Ukrtelekom state-owned enterprise alone set up ATEs with a capacity of 45,000 numbers in rural areas.

In his opinion, the main reason for this decline in network development of the local phone communications is the gap between rates and actual outlays by the telecommunications sector, which causes the investment capabilities of communication operators to shrink. Moreover, the low rates of ATE installation in Ukraine can be attributed to the huge number of unused phone lines (no less than half a million) and frequent cases of telephone subscribers’ canceling their telephone accounts. The telephone network density in Ukraine is 20 phone numbers per 100 citizens, which is two to three times lower than in the developed countries. The telephone network density in Kyiv is reaches some 40 numbers per 100 citizens.

INCIDENTALLY

A fiber-optic telecommunications area of Kyiv will be put into operation in the fourth quarter of this year, Ukrtelekom General Director Stanislav DOVHY told Interfax-Ukraine.

Experts consider that even today Kyivans could take over 100,000 additional phone numbers, but for the time being it would be unwise to put into operation such a great number of additional phone lines without setting up an additional telecommunication route, for it would impact upon the quality of connections. Even now, because of the insufficient capacity of the existing network, at peak hours connection is hampered in some Kyiv districts.

According to experts, any Kyiv resident who wants to receive a telephone number can become a telephone subscriber, but once again not everyone can afford the connection fee. As a result, the number of subscribers wishing to cancel their telephone account is growing.