Telesystems of Ukraine (cancelled)

cancelled

Telesystems of Ukraine was awarded a license for the use of the 800 MHz band to deploy a CDMA (IS-95) fixed radio-telecommunications network by the Ministry of Communications in April 1997. The owners of the company were Qualcomm (49%), Rhuta-Farm (41.1%), and state-owned Ukrtelecom (9.9%) by 1999. Telesystems of Ukraine paid US$8.5 million for a frequency license and had planned to invest around US$580 million during its first five-years. The license was awarded to allow the country to adopt an international standard for its telecommunications development. Qualcomm had evaluated the feasibility of a nation-wide CDMA network in Ukraine for almost two years, completing frequency research and performing preparatory work in order to introduce Ukraine to CDMA technology. Qualcomm had also committed to establishing a joint venture with leading Ukrainian enterprises for the manufacturing of telecom equipment. The launching of this network in Kiev was expected by end 1998. Qualcomm said the firm had invested about US$8.8 million for the 49 percent ownership and in 1998 had invested US$2 million more and provided a working capital loan of US$8.9 million. In 1999, the Ministry of Communications denied Qualcomm certification for its CDMA equipment. The network was dismantled due to a resolution of the State Committee on Communication and Informatization, which forbade utilization of equipment produced by Qualcomm company (USA) since the latter did not meet technical requirements adopted in Ukraine. In June 1999, Qualcomm pulled out of the company, which then became controlled by national operator Ukrtelecom.