Following a heated debate in the government, on 11 November 2009 the Cabinet of Ministers of Ukraine (the "CMU") adopted a new procedure for the conversion of wireless frequencies in 2.1GHz band (the "Procedure"), which is vital to allow the distribution of third generation (3G) wireless communication licences to mobile operators. As a result of the Procedure being adopted, the Ministry of Defence will receive UAH 2.5 billion between 2010 and 2014 for the conversions.

Earlier this year, the CMU passed a resolution which (1) instructed the National Commission for Communications Regulation (the "NCCR") to open a bidding process to auction off the 3G licences to market players in line with International Mobile Telecommunications-2000 ("IMT-2000") standards (the global standards for 3G wireless communications) and (2) required the Ministry of Defence, the Ministry for Transport and Communications and the NCCR to convert radio frequencies in the relevant bands.

However, the President later vetoed this resolution. His rationale for this was that he considered the resolution to be illegitimate, and a threat to the national interests of Ukraine and he considered the Ministry of Defence's financial resources to be insufficient to carry out the required conversions.

Following the adoption of the Procedure,,it is likely that the bidding process for the 3G licences, which was cancelled when the President vetoed the resolution, will go ahead. The NCCR has scheduled the auction of 3G licences to market players for 30 November 2009.

Law:

  • The Resolution of the Cabinet of Ministers of Ukraine No.1119-p "On Certain Questions of Procedure for the Conversion of Frequencies" dated 16 September 2009.
  • The Decree of President No. 843/2009 "On the Suspension of the Resolution of the Cabinet of Ministers of Ukraine No.1119-p as of September 16, 2009" dated 20 October 2009.
  • The Decision of the National Commission for Communications Regulation No. 1684 dated 29 September 2009.

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The original publication date for this article was 20/11/2009.