Mobile operators Kyivstar, MTS and life:) have just released the first details of how they will roll out third-generation (3G) communications, the licenses for which they obtained in February for almost 9 billion hryvnias.
What will the internet speed be?
All three operators will launch 3G networks using the modern HSPA+ standard (rather than HSPA with its 14 Mbit/s), which has a maximum speed of 42 Mbit/s. But the real speed will be much lower: from 5 to 20 Mbit/s depending on network load (which is higher during the day and lower at night). In addition, speeds are usually lower in city centers (lots of interference and users) and higher on the outskirts. An interesting detail: the CEO of one of the operators claimed that his company had acquired a license for the most advantageous, interference-free frequencies. Representatives of the other operators deny this, saying that all three bidders received equivalent frequencies.
Where will 3G work?
High-speed internet will cover the entire territory of the country where GSM service is currently available. The only exception is the regions where fighting is currently under way: because of the risks to the lives of technical staff, operators will not install 3G equipment on communication towers there. In the liberated territories of Donbas, however, the network will be built.
How much will it cost?
None of the operators has yet named prices for the future internet services, but insider information has leaked online. For instance, the MTS website briefly published (probably deliberately) a table of tariffs showing 90 hryvnias a month for unlimited internet, excluding voice. Kyivstar CEO Peter Chernyshov let slip that a price of $4–6 a month (about 100 hryvnias) would suit them. An employee of life:) told Vesti anonymously that their tariff would not be higher than the existing 3G offers from the CDMA operators Intertelecom and TriMob, which charge 150–200 hryvnias a month (but that is for a full package including voice). So it is fair to conclude that the price will be on a par with home (fixed-line) internet.
When will 3G be available?
According to the operators' promises, high-speed internet will be available in Kyiv from the end of August 2015 (in practice, in all districts in September), and under the terms of the license, 3G must reach all regional centers within 18 months. And within two years, operator representatives say, it is realistic to roll out the service almost everywhere that ordinary mobile internet currently works.
Do you need special devices for 3G?
3G internet already exists in Ukraine, but to use it you have to buy either a special CDMA smartphone or tablet or a modem that distributes the internet over Wi-Fi. What sets 3G from the GSM operators — Kyivstar, MTS and life:) — apart is that ordinary smartphones and tablets with SIM cards will also be able to receive high-speed internet.
How will high-speed internet affect society?
Olena Minich, adviser to the Ministry of Economic Development, says high-speed internet is needed for business — it will increase employee productivity by making staff more mobile. It will also give a boost to both conventional commerce and e-commerce: you will be able to pay by card or smartphone anywhere. In addition, Internet of Things technology will develop: any device with a processor (watches, wristbands, glasses) can be connected to the Web, and by 2020 there will be about 50 billion "smart things" in the world.
It should be added that the 3G network rollout alone will create an additional 5,000–6,000 jobs: according to Oleh Prozhyvalsky, director of control at MTS, each operator will spend about $1 billion on upgrading its network. There will also be an effect from the growth in mobile traffic. A study by Deloitte and Cisco Systems states that after 3G was introduced in a country, traffic volume more than doubled every year, which led to GDP growth of 0.5%.
The military may delay the 3G rollout
The timelines planned by the operators may slip for technical reasons and because of bureaucracy: these frequencies are currently occupied by the military (they are used by air defense systems, special communications and so on), and all of the military's equipment has to be reflashed. The cost of this operation is about 1.5 billion hryvnias, but the money has not yet reached the Defense Ministry's accounts (the operators must first pay for the license to the budget, and then the military will receive the funds from the budget).
Yuriy Syvytsky, vice president of the IT Ukraine Association, says such payments are often delayed by several months. On top of that, the reflashing itself technically takes another 6–8 months. But nothing prevents mobile operators from installing equipment (additional antennas on cell towers) right now and then simply switching it on once the frequencies have been fully released. That means the next-generation service will start rolling out by spring 2016 at the latest.
Sources: Litsa, Obozrevatel