Updated Procedure For The Conversion Of Wireless Frequencies

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.