STUDY OF THE CURRENT TELECOMMUNICATIONS SERVICES MARKET IN UKRAINE

Keywords: telecommunications, digital transformation, fixed Internet market, fiber-optic technologies, market concentration, digital inequality, post-war recovery

Abstract

This article explores the current state and development trends of the telecommunications services market in Ukraine, focusing on the context of digital transformation and wartime conditions. The relevance of the study is driven by the strategic role of telecommunications in supporting the economy, governance, education, and public safety, especially during crises. The research provides a detailed analysis of both quantitative and qualitative indicators of the industry, including revenue structure, ARPU dynamics (Average Revenue Per User), regional disparities in Internet access, and market concentration levels. The authors analyze the technological foundations of the sector, emphasizing the growing dominance of modern fiber-optic access technologies such as FTTx and xPON, which now account for over 88% of all fixed Internet access connections. Empirical data from 2021–2023 demonstrates a steady increase in income from telecommunications services, with fixed Internet access contributing 21.2 billion UAH in 2023 — a 33.3% rise from 2022. The study highlights the high level of market concentration in major regional centers, with the top ten telecom providers in Dnipro generating over 461 million UAH in revenue. This oligopolistic structure reflects challenges to market competitiveness and equitable service distribution. At the same time, the ARPU has shown a robust upward trend, increasing from 174.1 UAH in 2021 to 219 UAH in 2023, which suggests enhanced consumer willingness to pay for higher quality and faster digital services. The article concludes that the Ukrainian telecommunications industry has demonstrated notable resilience, adaptability, and innovation in response to current challenges. With proper support and strategic planning, particularly in rural infrastructure and small-to-medium enterprise development, the sector can become a driving force in Ukraine’s post-war recovery and digital integration into the European market. Recommendations are proposed for enhancing the effectiveness of national telecom policy, ensuring universal access, and stimulating competition and technological advancement.

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Published
2025-02-24
How to Cite
Myachin, V., & Myroshnychenko, O. (2025). STUDY OF THE CURRENT TELECOMMUNICATIONS SERVICES MARKET IN UKRAINE. Economy and Society, (72). https://doi.org/10.32782/2524-0072/2025-72-136
Section
ECONOMICS