Lowest figure since late 2022: fixed internet market revenues collapsed due to ban on "simplified" taxes
Revenues in the fixed Internet market fell by 30% in the fourth quarter of 2024 after the ban on the simplified taxation system.
Revenues in the fixed Internet market fell by 30% in the fourth quarter of 2024 after the ban on the simplified taxation system.
This was reported by the Office of Effective Regulation (BRDO), after analyzing the fixed Internet market in Ukraine.
«The ban on „simplification“ has become a catalyst for changes in the fixed Internet market. We are already seeing a sharp drop in revenues, incomplete reporting, and the first signs of market reformatting. These are alarming signals that threaten competition in the industry and the availability of the Internet for the population,» commented Ihor Samokhodsky, head of the IT and Telecom sector at BRDO.
BRDO stated that market revenues during the indicated period fell by 30% to UAH 4.3 billion compared to the third quarter of 2024, which is the lowest figure since the end of 2022.
At the same time, according to analysts, the number of fixed Internet users decreased by 3,5% — to 8.2 million subscribers compared to the first half of 2024. However, BRDO added that subscriber reporting is record incomplete in 2024, as more than 40% of companies that reported revenues did not provide data on their subscriber base.
As of the end of 2024, new players have joined the list of the largest companies — PJSC «Farlep-Invest» and LLC «Tenet», while LLC «Mega Link» and LLC «Gigatrans Ukraine» have dropped out. The leaders in terms of revenue in 2024, according to BRDO analytics, remain unchanged:
- JSC «Ukrtelecom» — UAH 1.64 billion;
- PJSC «Kyivstar» — UAH 1.54 billion;
- «Volya-Kabel» LLC — UAH 0.83 billion;
- PJSC «Datagroup» — UAH 0.69 billion.
At the same time, the leaders of the fixed Internet market in terms of subscriber base size in 2024 were:
- Kyivstar PJSC — 1.15 million subscribers;
- JSC «Ukrtelecom» — 445 thousand subscribers;
- Volya-Kabel LLC — 391 thousand subscribers;
- LLC NVP «Home-Net» — 209 thousand subscribers;
- Farlep-Invest PJSC — 149 thousand subscribers.
Recall that in 2024, the State Tax Service banned Internet providers from operating on a simplified taxation system.
In early May, People’s Deputy Oleksandr Fedienko shared a clarification from the National Commission for Electronic Communications, according to which the specialized regulator of electronic communications outlined the restrictions that exist for Internet providers.
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