In 2010, some Ukrainian providers were on the verge of negative profitability | Предприниматель

In 2010, some Ukrainian providers were on the verge of negative profitability

Almost a third of the adult population of Ukraine are now Internet users.

In 2010, according to providers, the price of Internet access noticeably subsided: in the III quarter prices of some companies dropped to a level of profitability. The editors asked the network provider, as prices change, “on line” in the new year.

Note: Data on the market

According to “iKS Consulting”, at the end of III quarter 2010, the total number of broadband subscribers (individual and corporate) in Ukraine was about 3.35 million, of which 2.87 million – home users.

The top ten providers of “fast” Internet in Ukraine include:

Company/Network The subscriber base, thousand
“Ukrtelekom” 1 048
“Volya” 420,5
“Kyivstar”, including URS, and “Golden Telecom” 226,2
“Vega” 122
“Triolan” 120
“Tenet” 63,2
“Freenet” 52,3
“Airbites” 51
“DataGroup” 43,8
“IPNet” 36,2
“Fregat” 35,1

According to “iKS Consulting”

2010 prices sagged

“Thanks,” including small local area networks and small service providers, in 2010, ARPU for the segment of high-speed Internet noticeably “dipped” (about 10% by some estimates). According to the president of “Freedom” by Sergey Boyko, in II quarter according to the “iKS Consulting” in the market average, the figure was around 60 USD. per month, and now it is 52-53 UAH. “Revenue per subscriber decreased by UAH 7. But it’s more than 10% fall in little more than a quarter,” – reported previously president of “Freedom.”

As explained by S. Boyko, on the one hand, Internet access – a growing market, with another – a highly competitive and this competition is often a manifestation of his dumping strategy. Their use of the company, which first entered the market domestic Internet, or vice versa – with him gone. “Dumping starts a chain reaction: the other competitors are looking at the most advantageous from the viewpoint of the customer at the price of the offer and try to do everything possible to find all the resources to meet him. And decreases the average level of market supply. In August and September we saw the most dangerous trend: in the III quarter of a quotation for the service, Internet access is already approaching a negative return, “- said the head of” Freedom. ”

2011: Next nowhere

The next year, according to some experts, the precipitous drop in prices will stop, because “there’s nowhere further.” “In 2011, prices for broadband Internet access for home users have to fall will not be for a maximum of 5-10%, because no economic sense in that no longer exists, and the financial strength of most of the ISP on this is not enough” – the director Business Development Telecom Group “Vega” Konstantin Kolesov.

According to him, in areas of high competition, more technically and financially prepared providers will try to give more services for the same money (higher speed, IPTV, other paid services), and at least prepared to lose share and will try to sell his business.
In addition, both predict providers, prices may even rise, as there is currently on the market is composed of broadband is not very favorable situation for growth: there is potential to further increase penetration, but no data is economically attractive for new investors to investprivlekatelnost, in particular, affects low ARPU.

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