ZTE has been selected by Icon Private Equity for the construction of a WiMAX network for its Ukrainian unit, Ukrainian High Technologies (UHT). The deal will see ZTE construct a network covering the capital, Kiev, and surrounding areas, providing 250 WiMAX base stations, 6,000 WiMAX terminal products, and core network equipment to support the network. The network is scheduled for completion by the fourth quarter of 2009, with plans in place to make it the largest in Ukraine. No financial details of the deal have been revealed.
A range of technologies are being used to compete with incumbent operator and broadband market leader Ukrtelecom, which is able to rely on its legacy fixed-line infrastructure. The country's second-largest broadband player, Volia, is Ukraine's leading cable-TV operator, and offers Internet services across its network, and UHT's use of wireless network will allow it to sidestep the problem of leasing Ukrtelecom's network. UHT's decision to focus initially upon Kiev makes sense, as this will be the most lucrative area of the country, as its capital. However, alternative operators in Ukraine have generally struggled to challenge Ukrtelecom because they lack nationwide coverage, and it appears this will also be a long-term issue for UHT.
