$2.6 billion — losses of the Ukrainian telecom market as a result of the Russian invasion
Damages to the Ukrainian telecom market, which suffered significant destruction due to Russian aggression, have already reached $2.6 billion, the Ministry of Digital Transformation of Ukraine reports with reference to the World Bank assessment.
Until February 24, Ukraine had the largest high-speed Internet coverage in Europe — in 2021, more than 7,000 additional social facilities were connected, and more than 1 million Ukrainians in 3,000 villages got the opportunity to use high-speed Internet for the first time. As a result of Russian aggression, more than 720 Internet operators suffered significant losses — digital infrastructure, hundreds of kilometers of cable and tens of thousands of pieces of equipment were destroyed. In total, almost a quarter of all Internet networks in the country were destroyed, and this is more than 1.7 million fixed communication lines and more than 3,000 mobile base stations.
The biggest telecom losses are concentrated in the East of Ukraine. Operators that provide services in Kharkiv region suffered 22% losses, Zaporizhzhia — 18%, Donetsk region — 17%, Kherson region — 10%, Chernihiv region — 6%, Luhansk region — 7%.
As of July 2022:
- the quality of fixed Internet in Ukraine has returned to the pre-war level (it was 13% lower at the beginning of May), and mobile communication remains 19% lower;
- 12.2% of settlements completely lost access to mobile communication, and 3.1% – partially;
- 11% of base stations of mobile operators do not work.
According to the World Bank, in order to restore the telecom sphere of Ukraine, it is necessary to:
- $1.79 billion — to clear the territory of missile debris and the consequences of the invasion and to rebuild the destroyed and damaged infrastructure,
- $0.71 billion — to purchase towers, cables, fiber and equipment for construction,
- $0.1 billion — the number of losses of companies due to non-received subscription fees.
The World Bank estimated the economic losses of the telecom market at more than $0.1 billion. After all, companies provide 22% fewer services than before February 24, and continue to lose income.
The assessment of recovery needs is preliminary as the war continues. With each de-occupied city comes data on destroyed networks and a new need to quickly restore communications.
The assessment is based on the methodology for assessing damages from the consequences of cataclysms, developed by the World Bank (Damage, Loss, and Needs Assessment Guidance Notes, Volumes 1–3). It was carried out by the World Bank team in cooperation with the Ministry of Digital, NCEC, Kyiv School of Economics and central bodies of executive power and military-civilian administrations.
