Ukraine to fund cable expansion
July 9, 2012 09.06 Europe/London By Chris Dziadul

Ukraine has approved a new bill that introduces a 3.5% surcharge on the fees charged by operators.

According to Kommersant, proceeds from this surcharge are likely to amount to UAH1.6 billion (157.6 million) a year and will be used for the development of cable, internet and telephony services in remote parts of the country.

Operators have expressed concerns that the majority of the funds, which will be managed by the National Commission for the State Regulation of Communications and Informatisation (NCCIR), will find their way to Ukrtelecom, the incumbent telco, which has strong presence in rural areas.