“Zeonbud” is Recognized to be a Monopolist

December 25, 2014

On December, 23 digitaltelevision provider “Zeonbud” LLC was recognized by Antimonopoly Committee as amonopolist.


According to the AntimonopolyCommittee’s notification, recognition of Zeonbud’s monopoly is based on theinformation that was gathered during investigation from state bodies, expertorganizations, subjects of economic development (broadcasters, television andradio organizations) that consume telecommunication services of “Zeonbud” andother market participants.


Antimonopoly Committee’sinvestigation found out that there are no alternatives to telecommunicationservices provided by “Zeonbud” LLC.


Taking this intoconsideration, AMCU adopted Regulation on recognition of “Zeonbud” LLC as suchthat enjoys monopoly (dominate position) at the national market oftelecommunication services in television programs’ digital format spreading (DVB-T2 (MPEG-4) standard) whatresulted from its activity during September 2011 – October, 2014.


Currently this decision meansthat “Zeonbud” is going to be strongly supervised by the State. However, sanctionscould be used against it only if Antimonopoly Committee finds out aboutcompany’s monopoly abuses.


We remind that on the 8thof December, 2010, “Zeonbud” LLC obtained provider’s license on-airbroadcasting multiplexes МХ-1, МХ-2, МХ-3, МХ-5 as a resultof non-transparent quasi-competition. In addition, the company could provide 1billion UAH Ukreximbank’s state bank guarantee. At the same time, company’sproperty scheme is hidden in offshores completely and is still undisclosed. Media,experts and civic organizations criticized company’s activity many times. Particularly,the subject of critics was implementation of codded signal that increasedconsumer’s expenses, including state budget, on the purchase of receiving digitalair-signal sets as well as inconsistency of signal spreading tariffs thatmarket participants considered as overpriced.


There is no data regardingactual signal digital air cover of Ukraine’s territory in the context ofState’s liabilities implementation according to the InternationalTelecommunication Unit’s Agreement regarding analog signal’s occurrence on June17 2015, known as “Geneva-2006”.