The business community calls to avoid increasing administrative pressure on mobile operators

29/ 10/ 2024

Listen to online Stop   The business community, represented by the European Business Association, the American Chamber of Commerce in Ukraine, and the Union of Ukrainian Entrepreneurs, urges Parliament not to support Draft Law No. 11431 On Amendments to Certain Legislative Acts of Ukraine to Regulate State Oversight in the Field of Electronic Communications and Ensure the Operational Stability of Electronic Communication Networks and to withdraw it for further revision. This week, the Verkhovna Rada of Ukraine is set to consider Draft Law No. 11431, which proposes substantial changes to the inspection procedures and the imposition of additional fines on telecom operators during martial law. These measures follow increased requirements for mobile providers to ensure the operation of base stations for 10 hours in the absence of a central power supply. Such conditions are outlined in amendments to the decree of the National Centre for Operations and Technology Management of Telecommunications Networks. The business community notes that, firstly, the adoption of the draft law may create negative preconditions for enhancing sectoral state oversight, shifting its main objective from prevention of violations to punitive measures – namely, increasing fines and inflows to the State Budget. Secondly, such an approach, atypical for sectoral regulation, could negatively impact the industry’s investment appeal, render planned and previously announced investments in electronic communications network development impossible, and hinder the achievement of goals set in Ukraines Electronic Communications Development Strategy until 2030. Thirdly, the draft law lacks a clear definition of the regulatory authority’s rights and obligations, creating a basis for opaque administrative procedures and potential corruption, as highlighted by the National Agency on Corruption Prevention in its report. The business community believes that these issues cannot be resolved within the legal framework defined by the draft law and urges the Verkhovna Rada to withdraw it. The business community is ready to engage in broad discussions and the development of a qualitatively new document that will balance state interests, societal needs, and the conditions for conducting business and developing the electronic communications sector during martial law.

The business community, represented by the European Business Association, the American Chamber of Commerce in Ukraine, and the Union of Ukrainian Entrepreneurs, urges Parliament not to support Draft Law No. 11431 “On Amendments to Certain Legislative Acts of Ukraine to Regulate State Oversight in the Field of Electronic Communications and Ensure the Operational Stability of Electronic Communication Networks” and to withdraw it for further revision.

This week, the Verkhovna Rada of Ukraine is set to consider Draft Law No. 11431, which proposes substantial changes to the inspection procedures and the imposition of additional fines on telecom operators during martial law.

These measures follow increased requirements for mobile providers to ensure the operation of base stations for 10 hours in the absence of a central power supply. Such conditions are outlined in amendments to the decree of the National Centre for Operations and Technology Management of Telecommunications Networks.

The business community notes that, firstly, the adoption of the draft law may create negative preconditions for enhancing sectoral state oversight, shifting its main objective from prevention of violations to punitive measures – namely, increasing fines and inflows to the State Budget.

Secondly, such an approach, atypical for sectoral regulation, could negatively impact the industry’s investment appeal, render planned and previously announced investments in electronic communications network development impossible, and hinder the achievement of goals set in Ukraine’s Electronic Communications Development Strategy until 2030.

Thirdly, the draft law lacks a clear definition of the regulatory authority’s rights and obligations, creating a basis for opaque administrative procedures and potential corruption, as highlighted by the National Agency on Corruption Prevention in its report.

The business community believes that these issues cannot be resolved within the legal framework defined by the draft law and urges the Verkhovna Rada to withdraw it.

The business community is ready to engage in broad discussions and the development of a qualitatively new document that will balance state interests, societal needs, and the conditions for conducting business and developing the electronic communications sector during martial law.