The National Commission for State Regulation of Electronic Communications (NCEC) has developed a draft law on the institution’s transition to self-financing at the expense of the telecom market. The document obliges operators and Internet providers to pay a quarterly regulatory fee of up to 1,5% of their revenue.
The National Commission for State Regulation of Electronic Communications (NCEC) has developed a draft law on the institution’s transition to self-financing at the expense of the telecom market. The document obliges operators and Internet providers to pay a quarterly regulatory fee of up to 1,5% of their revenue.
This is stated in the material of the publication «Detector Media», which analyzed the legislative initiative and spoke with the head of the regulator and market representatives. Public discussion of the draft law ended in mid-May.
The document proposes to charge a contribution from the total income of companies for the provision of communication services for the reporting quarter. The rate, which will be determined by the regulator, cannot exceed 1,5% of the payer’s annual income for the previous year. These funds will be directed to the special fund of the State Budget as the main source of financing for the National Electricity and Gas Commission. For late payment, a fine of 5% of the debt amount and collection through the court are provided.
The requirements will not apply to companies whose annual income is less than 1,167 minimum wages (about UAH 10 million). However, analysts note that few players will fall under the benefit. With an average Internet bill of UAH 250, the limit of UAH 10 million will be exceeded by any local provider with more than 3,300 subscribers — this is the scale of several high-rise buildings or a single village.
Liliya Malyon, the head of the National Electronic Communications Commission, explains that the funding reform is part of Ukraine’s European integration commitments, in particular the European Electronic Communications Code (EECC). According to her, supporting the regulator solely from the state budget creates risks of political interference and prevents attracting staff due to low salaries. In contrast, more than 20 regulators in the EU cover at least $70% of their needs through market fees.
«The current model of financing the NCEC from the general fund of the state budget does not provide the proper institutional capacity of the body. In the conditions of martial law, digital transformation and integration into the EU Single Digital Market, this creates systemic risks, because the actual budget of the NCEC does not coincide with the real need,» Liliya Malyon noted.
Relevant telecom associations and operators are categorically against the initiative. Businesses emphasize that the additional financial burden during war and blackouts is untimely and critical for the industry.
The head of the Association of Copyright Owners and Content Providers (APPK), Nataliya Klitna, emphasizes that a fee of 1,5% of turnover (and not profit) is significant. According to the State Tax Service, the average tax burden in telecom today is about 3%, that is, the new contribution will increase it by one and a half times. This will be especially painful for operators in front-line areas, who are restoring networks and investing in energy independence on their own.
Tetyana Popova, Chairwoman of the Council of the Telecom Chamber of Ukraine, agrees that the independence of the regulator is necessary, but the NCEC proposal transfers the maintenance of the state body to business.
«Operators are restoring networks after shelling, purchasing generators, and maintaining communication in front-line regions. And it is at this moment in the market that they are offering a fee of up to 1,5% of turnover. It looks like a control shot to the head,» she comments.
The lifecell press service emphasized that EU legislation does not require regulators to be financed exclusively by market contributions — mixed and budget models are successfully operating there. According to the operator, the introduction of a mandatory payment from 2027 simply shifts costs to business, without guaranteeing the real independence of the NCEC.
Oleksandr Savchuk, Chairman of the Board of the Internet Association of Ukraine (InaU), added that the fixed-line market has historically developed without strict state regulation, which has resulted in unique competition and low prices. In his opinion, NKEK has previously demonstrated its inability to solve real problems in the industry (for example, access to cable ducts or dumping), and financial independence will only allow the regulator to avoid responsibility.
There is also the question of the selectivity of the new fee. Tatyana Popova notes that for some reason postal companies, which are also regulated by the National Commission for the Protection of Consumer Rights, will not pay the fee. In addition, only about 500 companies out of more than 5,000 included in the register will pay the fee.
Deputy and head of the relevant subcommittee of the Verkhovna Rada, Oleksandr Fedienko, predicts that the draft law in its current form will not pass the session hall.
«I assess this initiative as one that will not be voted on in parliament. But at the same time, I believe that the regulator needs more independence in financing. However, a combined story is needed: first, provide the regulator with the appropriate real powers and influence, and only then move on to economic support,» the MP concluded.
Recall that the Ministry of Digital Affairs is developing an order that will fix specific Internet speed figures that are mandatory for all operators, but quality indicators will increase gradually until 2030.
The National Commission for State Regulation of Electronic Communications (NCEC) will be responsible for monitoring compliance with the established standards. The regulator has the technical basis for independent monitoring of communication quality and has the authority to consider citizens' complaints about inadequate communication quality.
