MP: One third of Ukraine's Internet providers have ceased operations

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1316 entities were removed from the NKEC register and ceased to exist. Most providers closed down in Kyiv and its region, Cherkasy and Odesa regions after the taxation system was changed.

About a third of Internet providers have ceased operations. We are talking about 1316 entities. This was reported by Oleksandr Fediyenko, chairman of the subcommittee on cybersecurity of the Verkhovna Rada Committee on National Security and Defense, UNN reports.

Fediyenko said that he had asked the National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and Postal Services (NCCS) to provide statistics on how many entities that provided Internet access services will cease operations.  

"The NKEC is a regulator that deals specifically with the issues of providers and maintains a register of such entities.  The answer I received was not just stunning! 1316 entities have been removed from the regulator's register, i.e., ceased to exist.  I don't know where they went, we can assume that some of them closed down, some went into the shadows, and left the regulator's supervision. Some may be for sale," Fediyenko wrote. 

According to the NCCIR's response, published by the MP, in August-October 2024 (as of October 8, 2024), 487 business entities applied to the NCCIR with relevant applications for exclusion from the register of electronic communication networks and services providers, of which 386 applications were processed.

The largest number of entities ceased operations in Kyiv and Kyiv region - 156, in Cherkasy region - 108, and in Odesa region - 74. 

According to the NCCIR, 3443 operators reported on fixed-line Internet access services in the first half of 2024. 

Earlier, Fediyenko reportedthat on October 1, the State Tax Service of Ukraine transferred all Internet providers that were on the simplified form of taxation of the electronic communications industry to the general form by canceling the date of registration. 

Addendum

On October 6 , a petition on the website of the Cabinet of Ministers to prevent the abolition of the simplified taxation system for taxpayers in the electronic communications sector received the required number of votes for its consideration. 

Back in March, the Internet Association of Ukraine called on members of the Expert Council under the Ministry of Finance to stop the destructive initiative of the State Tax Service to abolish the simplified taxation system for small businesses in the field of Internet access. 

Anna Murashko Economy
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