Ukraine. State policy in informatization field (2007)

The main goal of Ukraine's state policy in informatization field is to contribute to building of state-of-art market economy in the state, increasing its competitiveness through introduction of modern and future information and communications technologies into all areas of society, as well as preparedness and capacities of citizens for introduction of these technologies.

The state informatization policy is fulfilled through the State Communications Committee as a General state contractor of the National informatization program – through events foreseen by the Law of Ukraine “On main principles of information society development in Ukraine for 2007-2015”.

The main principles should be implemented through the following mechanisms:

• planning of social and economic development of Ukraine considering the needs of information society development and determining the expected results of such development; drafting and adopting of corresponding programs to ensure fulfilling the task of information society development in Ukraine;
• ensuring community discussion about principles of information society formation in Ukraine – in order to raise population awareness about the efforts made by state bodies and local governments, private economic sector, and citizens’ associations, to develop information society as a determinant of economic and social development;
• active international cooperation upon information society issues;
• harmonious combination of capacities of state power bodies, local governments, and private economic sector;
• financing of national programs and state task programs, which provide for introduction of information and communication technologies (ICT), socially important projects, such as ensuring access to ICT in rural areas, and in hard-to-reach areas;
• coordinating development and fulfillment of national programs, state task programs, and business projects in order to reduce investment risks and cut down operational costs; and
• contributing to activities of specialized business incubators, technoparks, technopolises (techno-towns), high IT centers, and other innovation structures with ICT.

To fulfill implementing of the Main principles, determining role is given to the policy of Ukraine’s international cooperation and its involvement in global information society development. This cooperation should be maintained to reconcile strategies of information society development, contribute to applying of universal approach to joint steps, and reduce digital and information inequality.

State of development in communications and information fields

In January-November 2007, volume of profit in ICT industry by operators of all ownership forms amounted to UAH 47.4 bn, which was a 22.8% rise versus the respective period of last year.

The most dynamic growth was seen among informatization activities (163.6%), implementing of computer technologies and equipment (134.2%), and from communication services (118.7%).

Within informatization field, business entities provided services worth total UAH 2.1 bn, which is by 63.6% more than in the respective period of 2006; of these, services to population came to UAH 181.8 mn, a 25.7% increase as compared to the same period of 2006.

The highest growth tempos were related to services of software development and consulting (53%), which also contribute nearly a half to gross volume of informatization services. Another important increase was seen at activities related to databanks (43%) – 27% in gross volume.

The volume of communication services rendered by operators of all ownership forms came to UAH 35.9 bn, which was 18.7% more than in the respective period of the last year; and UAH 14.4. bn of services were provided to population. Per capita consumption of communication services added 20.2% and came to UAH 308.6.

Within aggregate volume of services provided, the highest growth rates were attributed to services in: local phone communication (133.7%), mobile connection (129.3%), transmitting and receiving of TV and radio programs, radio communication (129.5%), computer connection (120.7%), including providing of Internet access (120.3%).

The weightiest portions still belong to services of: mobile connection – 62.6%, long-distance and international phone communication – 14.9%, local phone communication – 9.7%, as well as computer connection – 4.0%, and mail communication – 3.6%.

The volume of computer technologies and equipment market outran UAH 9.4 bn, which was a rise by 34.2% versus corresponding period of 2006.

Gross sum of taxes, duties, and obligatory payments to budgets of all levels and Pension funds, which was paid in January-November 2007 by communication operators of all ownership forms, amounted to UAH 6.7 bn, a 21.8% rise versus corresponding period of 2006. Within this volume, state communication enterprises paid UAH 571.1 mn, which was 15.7% up versus volumes paid in January-November 2006.

As of December 1, 2007, there are no delayed arrears of wages reported by communication companies, which belong to administration area of the Ministry for transportation and communications of Ukraine and subordinate to the State Communications Committee. Average monthly salary (in full time equivalent) at main business enterprises increased in January-November 2006 by 21.8% and came to UAH 930.6. Average population of employees (in full time equivalent) at main business enterprises reduced by 2.2% to 92.2 ths. people.

Development of national segment of Internet network is one of the priority directions of state policy. As of December 1, 2007, the number of active Internet users was around 5.8 mn, or almost 126 users per 1,000 residents. The number of current domains in the Ukrainian segment of Internet was 85.7 ths., hosts – 203.8 ths., and web-sites – 40.7 ths.

Operators of all ownership forms applied nearly UAH 8 bn of capital investments, which was by 12.7% more than in the previous year. The largest portions of applied capital investments fell for CJSC UMC – 38.2%, CJSC Kyivstar GSM – 31.7%, and OJSC UkrTelecom – 17.6%. Financing of the industry’s development was mostly backed by communication operators’ own funds.

Production performance indicators