«Kyivstar and Vodafone may merge

«Kyivstar and Vodafone may merge: the telecoms market is about to change

The largest mobile operators in Ukraine are «Kyivstar» і Vodafone Ukraine - may consider a merger, according to sources in the telecoms market.

It is also the third major operator, lifecell, does not support such an initiative. The company says that the potential merger could slow down the development of the Ukrainian telecoms market for years to come.

Possible effects on competition

The merger of the two largest players can significantly change the balance of power in the communications industry, The combined subscriber base and infrastructure will create a dominant operator.

Experts note that the key issues in the event of a deal will be:

• antitrust regulation and the position of the state;

• impact on mobile and internet prices;

• speed introduction of new technologies, including 5G;

• competitive conditions for smaller market players.

Position of market participants

Lifecell believes that consolidation can reduce investment dynamics and innovation, This will have a negative impact on consumers and the development of digital infrastructure.

No official confirmation of the possible merger has been made public by Kyivstar or Vodafone.

Context.

The Ukrainian telecoms market has traditionally been based on competition between the three major operators, This allowed us to keep prices down and stimulate the development of the mobile Internet.

Any consolidation of players can become the biggest industry transformation in decades and will require careful assessment by regulators.