Ukrtelecom
Encyclopedia
Ukrtelecom JSC was Ukraine
's monopolist government-owned telephone
company, also active in Internet service providing
and mobile
markets. The company was governed by the Ministry of Transportation and Communications of Ukraine with 92.9% shares belong to government.
Austrian investment firm EPIC bought a 92.79 percent stake in Ukraine's main fixed-line operator Ukrtelecom UTLM.PFT from the Ukrainian government for $1.3 billion.
It participates in ITUR, TEL/ТАЕ, and BSFOCS international cable systems. Until 1994, the company was known as Ukrelectrozvyazok .
The company was created from the Soviet network of communication only in 1993, however, the network itself came under the jurisdiction of the Ministry of Communications in 1991 after the dissolution of the Soviet Union
. According to the company's history, the phone-telegraph communication network in Ukraine prior to 1991 was only sixth within the Soviet Union
and was noticeably backward. All communications outside the Soviet Union was conducted through the Moscow's headquarters. In 1991 there were 7,630 thousands numbers listed, averaging 14.6 numbers for 100 residents.
In 1993 the government confirmed the complex program for creation the single national system of communication in Ukraine. For the purpose of more effective managing of the industry it was fully reorganized. Based on the government enterprises two main industrial unions were created: Ukrposhta and Ukrelektrozviazok. The latter was changed in 1994 to Ukrtelekom.
Ukrtelekom upon its creation consisted of seven enterprises and organizations: Ukrtek (Ukrainian enterprise of international and intercity communication and television), Kiev telegraph, Kiev city radio broadcasting network, Center of informational technologies, State Institutes "Ukrzviazokproekt", "Dniprozviazok", "Zakarpattelekom".
In January 1995 to Ukrtelekom were merged other 22 oblast networks as well as the Crimean republican and Sevastopol city communication enterprises. And by the end of the year "Ukrzviazoksuputnyk" was also added to the union. By January 1996 the union absorbed the last enterprise "Dniportelekom".
The union, however, was not as effective as it was thought it should have been and in 1998 Ukrtelekom was restructured to form a single entity out of the union of some 35 state enterprises. By the end of 1999 all the enterprises were reformed into stock associates of the Ukrtelekom company.
In 2009 Ukrtelecom changed its corporate logo. It was reported that the rebranding
cost an estimated $100,000 and was ordered in Britain
.
The Ukrainian government planned to privatize the company as early as March 2009. On October 12, 2010 Cabinet of Ministers of Ukraine
announced the date and starting price for selling Ukrtelecom. Bidding took place on December 28, 2010 with the starting price of all government shares at 10.5 billion hryvnias. Companies with over 25% of shares owned by government or government establishment were announced not eligible for the bidding. Also the companies whose market share in communications in the country exceeds 25% were announced non-eligible either.
The sole bidder at the auction was Ukrainian-registered ESU, a cellular network builder and subsidiary of EPIC Invest, an Austrian-based investment company, which offered to pay the starting price of 10.5 billion hryvnias.
, held on June 14, 2011, the new owners granted the board
the right to sell Utel
, Ukrtelecom’s mobile division, within a half year. The shareholders also reshuffled the supervisory board
, installing their representatives, and increased board responsibilities.
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
's monopolist government-owned telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
company, also active in Internet service providing
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
and mobile
Mobile telephony
Mobile telephony is the provision of telephone services to phones which may move around freely rather than stay fixed in one location. Mobile phones connect to a terrestrial cellular network of base stations , whereas satellite phones connect to orbiting satellites...
markets. The company was governed by the Ministry of Transportation and Communications of Ukraine with 92.9% shares belong to government.
Austrian investment firm EPIC bought a 92.79 percent stake in Ukraine's main fixed-line operator Ukrtelecom UTLM.PFT from the Ukrainian government for $1.3 billion.
It participates in ITUR, TEL/ТАЕ, and BSFOCS international cable systems. Until 1994, the company was known as Ukrelectrozvyazok .
History
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
. According to the company's history, the phone-telegraph communication network in Ukraine prior to 1991 was only sixth within the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
and was noticeably backward. All communications outside the Soviet Union was conducted through the Moscow's headquarters. In 1991 there were 7,630 thousands numbers listed, averaging 14.6 numbers for 100 residents.
In 1993 the government confirmed the complex program for creation the single national system of communication in Ukraine. For the purpose of more effective managing of the industry it was fully reorganized. Based on the government enterprises two main industrial unions were created: Ukrposhta and Ukrelektrozviazok. The latter was changed in 1994 to Ukrtelekom.
Ukrtelekom upon its creation consisted of seven enterprises and organizations: Ukrtek (Ukrainian enterprise of international and intercity communication and television), Kiev telegraph, Kiev city radio broadcasting network, Center of informational technologies, State Institutes "Ukrzviazokproekt", "Dniprozviazok", "Zakarpattelekom".
In January 1995 to Ukrtelekom were merged other 22 oblast networks as well as the Crimean republican and Sevastopol city communication enterprises. And by the end of the year "Ukrzviazoksuputnyk" was also added to the union. By January 1996 the union absorbed the last enterprise "Dniportelekom".
The union, however, was not as effective as it was thought it should have been and in 1998 Ukrtelekom was restructured to form a single entity out of the union of some 35 state enterprises. By the end of 1999 all the enterprises were reformed into stock associates of the Ukrtelekom company.
In 2009 Ukrtelecom changed its corporate logo. It was reported that the rebranding
Rebranding
Rebranding is the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors....
cost an estimated $100,000 and was ordered in Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
The Ukrainian government planned to privatize the company as early as March 2009. On October 12, 2010 Cabinet of Ministers of Ukraine
Cabinet of Ministers of Ukraine
The Cabinet of Ukraine is the highest body of state executive power in Ukraine also referred to as the Government of Ukraine...
announced the date and starting price for selling Ukrtelecom. Bidding took place on December 28, 2010 with the starting price of all government shares at 10.5 billion hryvnias. Companies with over 25% of shares owned by government or government establishment were announced not eligible for the bidding. Also the companies whose market share in communications in the country exceeds 25% were announced non-eligible either.
The sole bidder at the auction was Ukrainian-registered ESU, a cellular network builder and subsidiary of EPIC Invest, an Austrian-based investment company, which offered to pay the starting price of 10.5 billion hryvnias.
Post-privatisation
At their first annual general meetingAnnual general meeting
An annual general meeting is a meeting that official bodies, and associations involving the public , are often required by law to hold...
, held on June 14, 2011, the new owners granted the board
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
the right to sell Utel
Utel (Ukraine)
Utel is a telecommunications company in Ukraine. It is a subsidiary of Ukrtelecom, government-owned fixed phone operator. Utel launched country's first commercial 3G cellular network based on the UMTS/HSDPA standard on November 1, 2007....
, Ukrtelecom’s mobile division, within a half year. The shareholders also reshuffled the supervisory board
Supervisory board
A supervisory board or supervisory committee, often called board of directors, is a group of individuals chosen by the stockholders of a company to promote their interests through the governance of the company and to hire and supervise the executive directors and CEO.Corporate governance varies...
, installing their representatives, and increased board responsibilities.