Ukraine Rural ICT Study

Name of Client: The Government of Ukraine or CIDA
Location: Ukraine
Start Date: March 2004
Completion Date: June 2004

Description of Project:
SaskTel International (SI), with the support of the World Bank and funding from the Canadian International Development Agency (CIDA), initiated this study to assist the Government of Ukraine in the assessment of strategic options for the provision of access to information and communications technologies (ICT) 8 in rural and mountainous areas. The strategic options addressed the provision of access to ICT in locations that are unserved or underserved and that are unlikely to attract investment without some form of incentive. The final report discussed policy considerations concerning alternative business models, technology considerations, funding mechanisms and regulatory reforms required to enable comprehensive universal access to ICT in Ukraine.

Description of Services:
The team performed a comprehensive assessment of the current situation in Ukraine, with a focus on four areas; market activities, existing networks, the regulatory environment and rural telecommunications activities in other countries. The market was analyzed to determine what services were currently available and what services and applications were needed immediately and in the future. Significant attention was paid to the interests and strategies of existing businesses in the industry. Government policy objectives were also taken into account and combined with the market assessment to enable the team to identify the minimum service requirements. Existing fixed and mobile networks and back office systems were reviewed to determine potential synergies with the government objectives. Technical platforms deployed in other countries to serve high cost areas were reviewed. The current regulatory environment and known planned changes were reviewed to determine their impact on the government objectives. Subsidy requirements and funding mechanisms that are in place in the world were analyzed to determine applicability in Ukraine. The information gathered in this research was analyzed to determine an effective business model and potential technology platforms to deliver the required services. High level modeling was undertaken to anticipate the causes of any funding shortfall and the final report recommended the most appropriate funding mechanism.