History of the Company

After declaring the independence of Ukraine in August 1991, the telecommunication network of the former USSR on the territory of Ukraine has fully come within the jurisdiction of the Ministry of Communications of Ukraine

The telecommunication sub-industry in Ukraine as well as throughout the former USSR was significantly behind of the developed countries both by the level of technologies and the level of meeting demands for telecommunication services.   

Almost all communication lines were analogue and based on the metal cable.

Telecommunication facilities were out-of-date and lagged behind of the actual state of technical equipment for several tens of years.  According to main indicators of the telecommunication development, Ukraine took sixth place among Republics of the former USSR.

Communication of Ukrainian subscribers with foreign countries was carried out only through switched telephone and telegraph exchanges of Moscow.

In 1991 the total number of telephone numbers constituted 7,630 ths, i.e. 14.6 number per 100 inhabitants (presently, 19.8 telephone sets fall to 100 Ukrainians). 

In 1993 there was developed the Concept of Telecommunication Development in Ukraine, on which basis the Government approved the Complex Program for the creation of the Unified National Communication System of Ukraine.

Later it was reorganized with the purpose of more effective management of telecommunication industry.  The Ministry of Communications took the radical decision to divide the communication system into two sub-industries – postal service and telecommunication – and to found two associations based on the state communication enterprises, i.e. Ukrainian Association of Postal Service UKRPOSHTA and Ukrainian Telecommunication Corporation UKRTELECOM (till 1994 – UKRELEKTROZVIAZOK) entrusted with the functions and powers of the national telecommunication carrier in Ukraine. 

As of the date of foundation, the Ukrtelecom Corporation included only seven enterprises and organizations, in particular: Ukrainian Enterprise of International and Long-distance Communication UKRTEK, Kyiv Telegraph, Kyiv City Radio Broadcasting Network, Center of Information Technologies, State Institute on Telecommunication Facilities Searching and Designing UKRZVIAZOKPROEKT, State Institute on Telecommunication Facilities Designing DNIPROZVIAZOK and Zakarpattelecom.

Accession of 22 oblast, Crimea Republican and Sevastopol City telecommunication enterprises in January 1995 became the next significant step. 

At the end of 1995, the Ukrainian State Enterprise of Satellite Communication UKRZVIAZOKSUPUTNYK was established and included in the Corporation.

Dniprotelecom was the last that was included in Ukrtelecom in January 1996.

During 1994-1997 Ukrtelecom became a universally recognized state telecommunication carrier on a national and international scale.  However, in the course of time there appeared the problems hampering development of the corporation that included 35 operating telecommunication enterprises and organizations with the right of a legal entity and 738 branches.  This resulted in the irregular development of communication in separate regions within an integrated from technical viewpoint company.  Imperfection of Ukrtelecom’s organizational structure and its incompliance with the conditions of the market economy became a hampering factor. 

In this connection, the decision was taken to reorganize the Ukrtelecom Corporation into the uniform state enterprise.  Early in 1998, the Cabinet of Ministers of Ukraine approved the Program of Ukrtelecom Restructuring, which envisaged a complex of organizational and economic, financial, legal and technical actions.  Restructuring was planned to be made by two stages: the 1^st stage – reorganization of the Association of State Telecommunication Enterprises UKRTELECOM into the unified state enterprise (1998); and the 2^nd stage – converting the State Telecommunication Enterprise UKRTELECOM into the Joint Stock Company (1999-2000). 

In April 1998 the Association UKRTELECOM was reorganized into the unified enterprise with two-level vertical management structure.  State telecommunication enterprises included in the Association have got the status of branches of the Ukrainian State Telecommunication Enterprise UKRTELECOM.

On June 10, 1999, according to the general scheme of converting state enterprises into joint stock companies, the corporatization of Ukrtelecom started.  This process was completed on December 27, 1999 by signing the Appraisal Report for Integral Property Complex of the Ukrainian State Telecommunication Enterprise UKRTELECOM and the Order of the State Committee for Communication and Informatization of Ukraine on converting the State Enterprise UKRTELECOM into the Joint Stock Company.

On January 2000 the Ukrtelecom Joint Stock Company was registered.  On July 13, 2000 Verkhovna Rada of Ukraine passed the Law of Ukraine On Aspects of Ukrtelecom Joint Stock Company Privatization, and on November 16, 2000 the Cabinet of Ministers of Ukraine approved the decision to begin Ukrtelecom privatization. 

On January 18, 2001 the Commission on Ukrtelecom JSC Privatization was founded.  During the period from October 1, 2001 to February 1, 2002 the main stage of the privileged sale of Ukrtelecom’s shares took place.  For today, the enterprise includes 32 branches (among them 27 regional branches) with 373 detached structural divisions.