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Ukraine’s DTH joyride

May 22, 2008 18.48 Europe/London By Chris Dziadul

Ukraine is finally begun to catch up with the rest of Central and Eastern Europe in the area of DTH broadcasting.

If local reports are to be believed, the country will see the launch of a new platform named Poverkhnost Plus within a matter of days. Operated by Poverkhnost Satellite Communications, itself part of the Poverkhnost Group, it will initially offer 60 channels in a single package costing UAH100 (€13.4) a month. Some, including the proprietary Sport HD, will be in HD, and the total number is likely to rise to 75 by July or August.

Poverkhnost Plus’s entry into the marketplace is long overdue – it was expected to launch half a year ago, and has been undertaking tests on Eutelsat W4 at 36 degrees East for much longer – and should be welcomed.

However, once up and running it will face competition from Viasat Ukraine. A joint venture between MTG and Strong Media Group, it made its debut at this April and currently offers subscribers a total of 60 channels, none as yet in HD, in three packages ranging in price from UAH48 to UAH135 a month.

Poverkhnost Plus will also have to contend with competition from Russia’s NTV-Plus, which has been present in Ukraine since 2006 and, in due course, a new platform operated by a joint stock company named DataGroup.

Assessing the prospects for DTH in Ukraine is not straightforward. Although some predict that take-up will be high – Poverkhnost Plus alone believes it could have up to 2 million subscribers within five years – it should be borne in mind that the country already has a large cable industry. Though served by several hundred operators, it is dominated by Volia Cable, a triple play company with a presence in the cities of Lviv, Alchesvsk, Chernivtsi and capital, Kiev.

Ukraine also has a small though growing IPTV sector, with the Comstar-UTS subsidiary Comstar-Ukraina have launched a service in March this year and incumbent telco Ukrtelecom due to give a debut to one shortly.

While there is certainly room for up to three or even four DTH operations in Ukraine, they will have to compete strongly not only with each other but also other distribution platforms in a market where pay-TV is still relatively undeveloped.

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Filed Under: Chris Dziadul Reports Edited: 22 May 2008 18:56

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