MCI MARKETS PREPAID CALLING CARDS IN
UKRAINE
22 DECEMBER 1999
SOURCE: US EMBASSY KIEV
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INTERNATIONAL COPYRIGHT, U.S. AND FOREIGN
COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 1999
ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES.
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1. TWO COMPANIES DOMINATE THE NATIONAL AND LONG-
DISTANCE WIRE LINE NETWORKS IN UKRAINE: UKRTELECOM AND
UTEL. UKRAINE'S WIRE LINE NETWORK STILL REMAINS FAR
FROM OPTIMAL. ALMOST ALL LOCAL LOOPS REMAIN ANALOG
WITH OBSOLETE AND WORN-OUT EQUIPMENT; THIS PROHIBITS
THE INTRODUCTION OF A NEW BILLING SYSTEM. AS A RESULT,
ALMOST ALL LOCAL LOOPS ARE UNPROFITABLE. UKRTELECOM
SUBSIDIZES LOCAL LOOPS WITH REVENUES RECEIVED FROM
UNREALISTICALLY HIGH RATES FOR INTERNATIONAL CALLS,
LINE INSTALLATION, AND REGISTRATION.
2. MOST INTERNATIONAL OR UKRAINIAN LONG-DISTANCE CALLS
ARE HANDLED BY UTEL. LONG-DISTANCE AND INTERNATIONAL
CALLS ARE EXPENSIVE. RATES RUN AS HIGH AS US$ 2.45 PER
MINUTE TO CALL THE U.S.A. AND US$ 1.53 TO CALL WESTERN
EUROPE. AS CUSTOMERS HAVE LITTLE CHOICE, IT IS A "TAKE
IT OR LEAVE IT" SERVICE. PREPAID CALLING CARDS
CURRENTLY OFFERED BY A NUMBER OF MCI DISTRIBUTORS WILL
MAKE A DIFFERENCE.
3. LOCAL COMPANIES THAT DISTRIBUTE MCI CALLING CARDS
OFFER CUSTOMERS A BETTER DEAL BY CHARGING US$ 0.68 PER
ONE-MINUTE CALL TO THE U.S.A. AND US$ 0.71 FOR ONE-
MINUTE CALL TO MOST OF WESTERN EUROPE. THE NUMBER OF
UNITS COVERED BY THESE CARDS RANGE FROM 330 TO 6,000 AT
US$ 0.02 PER UNIT. FOR ADDITIONAL INFORMATION ON MCI
CALLING CARDS IN UKRAINE, PLEASE REFER TO THE WEB SITE:
WWW.MCI.COM.UA
4. FOR ADDITIONAL INFORMATION ON THIS INDUSTRIAL
SECTOR, PLEASE CONTACT YOUR NEAREST USDOC EXPORT
ASSISTANCE CENTER, WITH A COPY TO: DAVID HUNTER, CS
KIEV SENIOR COMMERCIAL OFFICER; AND RUBEN BELIAEV, CS
KIEV COMMERCIAL SPECIALIST,
E-MAIL: RUBEN BELIAEV@MAIL.DOC.GOV; THE COMMERCIAL
SERVICE, U.S. EMBASSY KIEV, 7, KUDRIAVSKY UZVIZ, KIEV
254053, UKRAINE, TEL: (380-44) 417-1413, 417-2669; FAX:
(380-44) 417-1419