History of the Company

After declaring of independence of Ukraine in August 1991, the telecommunication network of the former USSR on the territory of Ukraine has fully fell 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 because of the level of technologies applied and poor satisfaction of demands for telecommunication services.   

Almost all communication lines were analogue with metal cable.

Telecommunication equipment was out-of-date and lagged behind of the actual state of technical equipment for several tens of years.  According to main indicators of the telecommunications 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 located in Moscow.

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

On the basis of the Concept of Telecommunication Development in Ukraine worked out in 1993, the Government approved the Complex Program for building 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 drastic decision to divide the communication system into two sub-industries – postal service and telecommunications – 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 entities, 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 operator on the national and international scale.  However, in the course of time the problems appeared 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 communications 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 5, 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 start the privatization of Ukrtelecom. 

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 33 branches (among them 27 regional branches).

On December 2005 Ukrtelecom JSC obtained a license for the delivery of mobile services with rights of engineering maintenance and telecommunication network operation and granting of UMTS/WCDMA communication channels. Utel, a subsidiary of Ukrtelecom, is responsible for project implementation of mobile service delivery based on the new standard. Since November 1, 2007 Ukrtelecom JSC has launched sales of 3G cellular network services. Mobile network of Ukrtelecom is built in accordance with licence provisions and is based on the UMTS/WCDMA standard. UMTS/WCDMA standard allows to provide virtually unobservable transfer from other operators’ networks to the mobile network of a new standard. Subscribers of the company receive all basic services, but of much higher quality, along with brand new services, including video call, multimedia videos, voice- and video-mail, broadband Internet access, and many other services. Mobile network code is 91.

As part of the resolution of the General Shareholders’ Meeting held on June 14, 2011 Ukrtelecom JSC established TriMob Ltd., to which all activities concerning mobile services delivery were transferred.

TriMob Ltd., whose sole founder and member is Ukrtelecom, obtained all tangible and intangible assets that are used for service arrangement and mobile service delivery, as well as the necessary qualified staff. TriMob Ltd. is a separate company that since January 1, 2012, has been providing mobile services based on the UMTS standard, which were previously provided on behalf of Ukrtelecom JSC.

In 2011, there were changes in ownership of the company. ЕSU LLC, owned by the Austrian investment fund EPIC, acquired 92.79 % shares of Ukrtelecom JSC, becoming the majority shareholder of the company.

On October 4, 2013 Ukrtelecom JSC became a part of SCM Group. As a result of acquisition of 100 % shares of UA TELECOMINVEST LIMITED (Cyprus), which owns the corporate rights of ЕSU LLC (which owned 92.79 % shares of Ukrtelecom JSC), SCM Group has become the majority shareholder of the company.