KIEV (WiMAX Day). The regulations for radio spectrum in Ukraine don’t explicitly contain any reference to “wireless” and they are highly restrictive on “mobility.” Despite this fact, the market for WiMAX in Ukraine is growing quickly, and the first ever “public auction” will take place next week.

Three Licenses…
The most curious of all spectrum licenses awarded in Ukraine occurred in March of this year when the National Commission for Communications Regulation of Ukraine (NKPC) awarded a national 45 MHz license in the 2.3–2.4 GHz range to a company named S-Line which was founded in the same month. The total price paid for the license was US$200,000. In September, the Ukraine subsidiary of Moscow-based Golden Telecom acquired S-Line for an official price of US$10 million.

In December 2005, NKPC awarded a license for 2.5 GHz spectrum to SCM Telecom. SCM is a subsidiary of System Capital Management, the sprawling holding company controlled by the Donetsk-based tycoon Rinat Akhmetov. The price paid for this license was $150,000, according to a spokesman for NKPC, and would seem to be a bargain price for a frequency that should support mobile WiMAX.

However, shortly after the 2.5 GHz license was awarded, it would seem that SCM read the fine print of the license. Not only was “mobility” not permitted under the terms of the license, it also did not permit point-to-multi-point transmission. SCM is now lobbying NKPC to have the license changed to allow full mobility and point-to-multi-point.

In 2005 a national license of 300 MHz in the 3.4–3.6 GHz spectrum range was awarded to Ukraine High Technologies (UHT), who paid US$115,000 for the license. The company shortly thereafter attracted investment from Intel. However UHT was unable to launch services due to discrepancies in its license. After a year of negotiation with the NKPC, and the restructuring of the company which replaced the original shareholders (except Intel) with Moscow-based Alfa Group, UHT has resurfaced as Alternet.

Like all other spectrum licenses in Ukraine, Alternet is not without its problems. It lost 100 MHz of its spectrum during its negotiations with NKPC and it continues to negotiate with NKPC to change the 200 MHz which remains, because its mobility is limited to 35 metres.

…and an Auction
As NKPC readies its first public auction of radio spectrum next week, it expects more than 100 bidders to compete for what an NKPC spokesman stated is an unknown quantity of licenses in 5.8 GHz frequency range. Furthermore, the NKPC spokesman added that it is not entirely clear to what extent the new licenses will explicitly permit the use of WiMAX.

Instead of rushing to fill its coffers with revenue from licenses, the NKPC should attempt to better understand WiMAX, and overhaul its regulations to permit the proper development of the WiMAX industry in Ukraine.