• Description

    IT & Telecommunications

    The informational technologies and telecommunications sphere in Ukraine is regulated by a number of legislative acts that set forth the key principles of media, broadcasting and telecommunications.

    The effective legislation of Ukraine in this sphere mainly consists of the following acts:

    • the Law of Ukraine “On Telecommunications” dated 18 November 2003;
    • the Law of Ukraine “On Radiofrequency Resource of Ukraine” dated 1 June 2000;
    • the Law of Ukraine “On Television and Broadcasting” dated 21 December 1993;
    • the Law of Ukraine “On Information” dated 2 October 1992.

    The Law of Ukraine “On Telecommunications” regulates the legal status of consumers and service providers, their legal capacities, and stipulates the competence and power of the Ukrainian state authorities in this sphere. The Ministry of Transportation and Communications of Ukraine and the National Commission for Communication Regulation (the “NCCR”) are the main regulatory bodies, which are responsible for the registration and licensing of telecommunication organisations, the allocation of radio frequencies and numbering resources, tariff regulation, regulation of telecommunication agreements, and the resolution of disputes regarding telecommunication agreements. The National Council of Ukraine on Television and Broadcasting (the “Council”) provides licensing in the sphere of television and broadcasting.

    Radiofrequency resource

    Provisions of the Law of Ukraine “On Radiofrequency Resource of Ukraine” define the legal grounds for the radiofrequency resource usage in Ukraine, determines the state authorities powers in this sphere with regard to setting the conditions of radiofrequency resource usage, the rights, obligations and responsibility of the state authorities, individuals, entrepreneurs and legal entities, which use or intend to use the radiofrequency resource. The Law of Ukraine “On Radiofrequency Resource of Ukraine” provides comprehensive scope of rules for the allocation, assignment, use and conversion of radio frequencies in Ukraine. The Law of Ukraine “On Radiofrequency Resource of Ukraine” also regulates the licensing issues in regard to using the radiofrequencies in Ukraine, as well as other issues regarding radiofrequency resource.

    The radiofrequency resource in Ukraine shall be used after obtaining:

    1)    license for the use of radiofrequency resource of Ukraine and permits on exploitation of the radiofrequency resource of Ukraine with a purpose to provide the telecommunication services;
    2)    broadcasting license issued by the Council and permits on exploitation of the radiofrequency resource of Ukraine with a purpose to broadcast the television programs.

    As the telecommunication activities which require use of radio frequencies are subject to the licensing, the telecommunication (broadcasting) company which intends to conduct such activities shall obtain the license, as required by the Law of Ukraine “On Telecommunications” and the Law of Ukraine “On Radiofrequency Resource of Ukraine”.

    In order to obtain the license, the telecommunication company shall submit an application to the NCCR, along with the set of required documents and pay the fee for issuance of the license.

    Specific Requirements to Broadcasting Activity

    The Law of Ukraine “On Television and Broadcasting” defines the requirements for the broadcasting companies willing to obtain licenses and the rules according to which the broadcasting shall be conducted.

    It is provided that in order to protect consumers’ interests and national broadcasting production, the volume of national audio-video production should amount to at least 50% of the total air time of a broadcasting company. There are also some other language and broadcasting content requirements imposed by the legislation.

    Any individual or legal entity is prohibited to control or influence in any way (through managerial or supervisory bodies of broadcasting company) more than 35% of common scope of respective television and broadcasting market, whether national or local.

    In order to conduct the broadcasting activity on the territory of Ukraine, a broadcasting company shall obtain the respective license.

    Broadcasting licenses are issued by the Council. A broadcasting company willing to apply for license, shall submit an application along with required documentation to the Council.

    The licensing of foreign broadcasting companies is prohibited.

    On a competitive basis the licenses are granted for:

    • On-air broadcasting;
    • Multichannel broadcasting using the radiofrequency resource.
    • On a non-competitive basis the licenses are granted for:
    • Satellite broadcasting
    • Cable broadcasting;
    • Wired broadcasting;
    • On-air broadcasting (in separate cases defined by the Law “On Television and Broadcasting”).

    The broadcasting license issued by the Council is the document authorizing the licensee to conduct broadcasting and to use the broadcasting channels.

    The broadcasting license is issued for the term defined by the Council according to the application of the licensee, but not less than for 7 years in relation to on-air broadcasting in multichannel networks, and not less than for 10 years in relation to satellite, cable and wired broadcasting.