Kyivstar balances the books: offsetting forced reduction of tariffs by raising others

29 Jan 2013

Ukrainian cellular market leader Kyivstar has made increases to a wide range of its tariffs. Effective from the first week of February, 16 post-paid tariff plans will increase their monthly fee by 15%-30% while certain prices for services under 29 pre-paid tariff plans will be affected, writes newspaper Kommersant. For example, for tariff plans without a regular fee, such as ‘One price’ and ‘Better with us’, February will see a 15%-25% increase in the cost of on-net calls, while in a number of tariff plans the minimum cost of purchasing a block of SMS messages will increase by 50% (although the number of SMS included will increase accordingly). Kyivstar’s director of corporate communications, Jeanne Parkhomenko, pointed out that price rises applied only to ‘old’ tariff plans, while users on newer tariffs were experiencing price reductions. She went on to say that from the first week of February the cellco was also reducing the cost of sending SMS and MMS by 50% for ‘80% of the subscriber base’, and claimed that ‘around three million customers’ will be transferred to the company’s ‘economic’ tariff plan and incur charges only for services used. Mrs Parkhomenko also indicated that the selected price increases were part of a company strategy to offset losses stemming from certain tariff reductions implemented following sustained pressure from Ukraine’s anti-monopoly agency. The LigaBusinessInform news agency adds that Mrs Parkhomenko will be leaving next week to take up a post in Kazakhstan.

Ukraine, Kyivstar,

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