Ukraine's Antitrust Body Eyes Abolishing Mobile Connection Fee

KIEV, Oct 28 (Prime-Tass) -- Ukraine's Antimonopoly Committee is proposing that the country's major mobile operators UMC and Kyivstar consider abolishing connection fee within 30 days, Alexei Kostusev, the committee's chairman, told reporters Friday following a meeting of the committee.

In 2001, UMC and Kyivstar, which together control about 95% of the market, each introduced connection fees of 0.27 hryvnas, while other mobile operators do not have connection fees.

UMC's and Kyivstar's subscribers have to pay the fee for every call they connect, in addition to the prices they pay according to their tariff plans.

The committee found that the mobile operators violate antimonopoly legislation by setting connection fees.

Kostusev said that the mobile operators may suggest ways to solve the problem and that the committee is ready to consider them. If the committee and the operators do not reach an agreement, the committee might initiate a case against the mobile operators for abusing their dominant market position.

In December 2004, the antimonopoly committee did not rule that UMC and Kyivstar are monopolies. Thus, the committee cannot set prices for their services and its recommendations are not obligatory. (5.05 hryvnas - U.S. $1)

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Posted to the site on 28th October 2005