Oleksandr Kozhukhar
AVELLUM, Kyiv
okozhukhar@avellum.com

Mykhailo Petrenko
AVELLUM, Kyiv
mpetrenko@avellum.com

A general overview

The regulation of the electronic communications sector in Ukraine is primarily governed by the Law of Ukraine No 1089-IX on Electronic Communications (the 'Law'), which entered into force on 1 January 2022. This fundamental legislative act modernised the sector by replacing the outdated laws on telecommunications and on the radio frequency resource of Ukraine, establishing a single, comprehensive regulatory framework.

A primary objective of this framework is to align Ukrainian legislation with the European Electronic Communications Code. The regulation is designed to stimulate competition, encourage investment in next-generation networks, ensure the efficient use of the radio frequency spectrum and enhance the protection of end-user rights. The framework introduces key EU principles such as technological neutrality, a general authorisation for market entry and ex ante regulation for operators with significant market power.

Scope of application

The Law governs relationships within electronic communications and radio frequency spectrum domains. Its scope is broad, covering key areas, including:

• the provision and receipt of electronic communications services;
• the supply of and access to electronic communications networks and their associated infrastructure;
• the promotion of effective competition in the marketplace;
• the use of the radio frequency spectrum and numbering resources; and
• the protection of the rights and interests of the end users of such services.

Exemptions

Consistent with the EU approach, the Law’s application does not apply to several specific areas, including:

• electronic communications networks that are not interconnected with the public network, except in matters concerning the radio frequency spectrum;
• the regulation of content transmitted over networks, such as audiovisual policy and editorial control; and
• relationships concerning interconnection and traffic routing on the internet that are governed by the documents of international organisations, with an exception for organisations linked to aggressor states.

The key regulatory pillars

The regulatory framework is built on several foundational pillars that define the market’s operation.

General authorisation and market entry

A significant reform was the shift from a licensing-based system to one government by general authorisation. Business entities intending to provide electronic communications services are now only required to notify the national regulatory body within one month of commencing their activities in Ukraine. This requirement does not apply to the provision of interpersonal communications services that do not use numbering, such as online messenger services.

Access and interconnection

The framework imposes a duty on service providers to negotiate the interconnection of their networks between themselves. This creates an obligation for market participants to ensure end-to-end connectivity for the subscribers of different networks. If parties fail to reach an agreement in regard to the interconnectivity of their services, the regulator is empowered to intervene and compel them to conclude a contract on fair terms. Special emphasis is placed on access to physical infrastructure (eg, cable ducts, poles) to facilitate network deployment, particularly for high-speed networks.

Radio frequency spectrum management

Spectrum management operates according to the National Plan for the Distribution and Use of the Radio Frequency Spectrum. The use of this spectrum is permitted according to two bases:

• general authorisation for unlicensed bands, which does not require an individual permit; and
• individual rights based on licenses, which are to be issued on a competitive or auction basis if demand for the resource exceeds supply.

The framework establishes the principle of technological neutrality, allowing licensees to use any compatible technology within their assigned band. It also provides for the possibility of transferring rights to use the spectrum (spectrum trading) between providers, subject to the regulator’s approval.

Consumer rights and universal service

The Law strengthens end-user protection through two key mechanisms. Firstly, it establishes the concept of universal services, which must be available throughout Ukraine at an affordable price, and include broadband internet access and voice communications at a fixed location. Secondly, the Law significantly strengthens consumer rights, including:

• the right to receive comprehensive information before entering into a contract;
• the right to retain a phone number when changing service providers (number portability);
• protection from unsolicited messages (spam); and
• clear terms for modifying and terminating a service contract.

Special regulatory regime under martial law

The functioning of Ukraine’s electronic communications framework is fundamentally shaped by a special legal regime enacted for the duration of martial law, which has been in effect since 24 February 2022. Under these conditions, the National Centre for Operations and Technology Management of Telecommunications Networks (NTNOC) functions as the key operational body, with extensive control over all public networks. The NTNOC is vested with broad powers, chief among them is the authority to issue legally binding orders to all providers, including orders to request necessary information on network resources, restrict access to internet resources, curtail services or prioritise network access for defence and security needs.

Sanctions and enforcement

The regulator is authorised to conduct state supervision (control) of the market and impose administrative economic sanctions for violations. The severity of these sanctions varies depending on the infringement. For instance:

• operating without notification or a required spectrum license may result in the confiscation of revenue derived from such activities or a fine of approximately $4,100;
• a failure to adhere to the relevant reporting or information requirements may be subject to fines ranging from approximately $410 to $4,100, depending on the size of the company and whether the violation is repeated;
• the violation of traffic routing rules may result in a fine of approximately $4,100;
• non-compliance with the regulatory obligations by a provider with significant market power may result in a fine of up to one per cent of the revenue from the relevant market for a repeated violation; and
• a failure to comply with the regulator’s orders or the obstruction of an inspection may result in a fine of up to 0.3 per cent of the service provider’s revenue.

Future outlook and key developments

The Law has laid the groundwork for the market’s continued evolution. A central instrument in this regard is the electronic regulatory platform, an automated system that will facilitate interactions between the market and the regulator, maintaining public registers and providing administrative services electronically.

Furthermore, the regulator is mandated to conduct periodic market analyses (every three to five years) to identify providers with significant market power and impose specific obligations on them to prevent the abuse of a dominant position. This cyclical process ensures that the regulation remains adaptive to market dynamics and is a cornerstone of modern EU practice.

Another key development is the recent adoption of Law No 4345-IX, which paves the way for full integration into the EU’s common roaming area and grants the regulator new powers to mandate network access and interconnection, with its implementation awaiting a final decision by the EU–Ukraine Association Committee.