Kyivstar

The combined Kyivstar is the Ukrainian business unit of VimpelCom Ltd. which includes the operators Kyivstar and Beeline-Ukraine (CJSC Ukrainian Radio Systems and Golden Telecom LLC). Kyivstar provides coverage of the territory where 99.9% of the population of Ukraine lives, covering with its network all large and small cities and over 28 thousand rural settlements, all the main national and regional routes, most of the sea and river coasts of Ukraine.

Performance indicators

2023: Increase in annual revenue by 8%, to UAH 33.58 billion

At the end of 2023, the largest Ukrainian mobile operator Kyivstar received revenue in the amount of 33.58 billion hryvnia (about $0.8 billion at the exchange rate as of December 4, 2024). This is 8% more compared to 2022. Such data are given in the materials with which TAdviser got acquainted in early December 2024.

It is noted that in 2023, Kyivstar's total operating income from the provision of mobile communications services increased by 8.2%, reaching UAH 31.39 billion (approximately $0.75 billion). Revenue from data transmission services amounted to 18.52 billion hryvnia ($0.44 billion), which is 10% more on an annualized basis. Kyivstar's income from the provision of fixed-line services in 2023 rose by 2.3% - to 1.92 billion hryvnia (about $45.92 million). Revenue from fixed broadband services amounted to 1.311 billion hryvnia ($31.35 million) against 1.127 billion hryvnia in 2022.

Kyivstar increased its annual revenue

The total number of Kyivstar mobile subscribers by the end of 2023 decreased by 3.4% compared to 2022 - to 23.9 million. This is also due to the migration of the population. At the same time, the number of mobile Internet subscribers rose by 0.9%, reaching 17.7 million people, including 4G subscribers - by 8.8%, to 14.3 million. It is emphasized that the consumption of mobile Internet services was influenced by the development of new mobile technologies and an increase in 4G network coverage. By the end of 2023, the number of subscribers to Kyivstar's high-speed home Internet decreased by 0.4% on an annualized basis, reaching 1.1 million users.

It is also said that Kyivstar's capital investments in 2023 reached the highest figure in three years - 6.34 billion hryvnia (approximately $0.15 billion). This is 6.8% more than in 2022.^[1]

2020: Revenue growth by 12.4%, to UAH 25.16 billion

In 2020, Kyivstar earned UAH 25.16 billion in revenue, which is 12.4% more than a year earlier. Most of the income came from mobile services - they brought UAH 23.42 billion to the largest Ukrainian telecom operator, which is 12% higher than a year ago. Revenue in the fixed-line services market in 2020 increased by 18.7% and reached UAH 1.6 billion.

Kyivstar's revenues from mobile Internet services at the end of 2020 amounted to UAH 13.19 billion, rising by 21.6% compared to 2019.

By the end of December 2020, the operator had 25.9 million cellular subscribers against 26.2 million a year earlier. Thus, the subscriber base of Kyivstar decreased by 1.3% over the year.

This was influenced by the partial suspension of sales in the dealer network due to the lockdown, as well as such market trends as a decrease in the number of customers using SIM cards from different operators, Kyivstar said in a statement.

At the same time, the number of mobile Internet users increased by the same 1.3%, to 17.1 million customers. The number of subscribers who use increased Internet 4G by 30% over the year. The average revenue per subscriber of Kyivstar increased by 16.9%, to UAH 80.

At the end of 2020, Kyivstar received a little more than UAH 1 billion in revenue from the provision of broadband access services (broadband broadband) on the Internet. This is 19.3% more than in 2019. The broadband access subscribers by the end of December 2020 reached 1.1 million against 1 million a year ago. The average revenue per such user for the company increased by 7.6%, to 81 UAH.

It also follows from the financial report that in 2020 Kyivstar invested about UAH 4.9 billion in the development of its telecommunications infrastructure. By the end of the year, 87% of the population of Ukraine lived in the coverage area of ​ ​ the operator's LTE network.^[2]

History

2024

A court in Kyiv lifted the arrest from Veon's corporate rights to Kyivstar

The Shevchenkovsky District Court of Kyiv decided to defrost 47.85% of Veon's corporate rights in Kyivstar and 100% of corporate rights in its other subsidiaries (Ukraine Tower Company, Kyvistar Tech and Helsi). The decision completely overrides the Veon corporate rights restrictions imposed by Ukrainian courts earlier. The press service of the Dutch telecommunications holding announced this in early December 2024. Kyivstar welcomed the court's decision and said that it would allow it to focus on expanding the 4G network.

Cyber ​ ​ attack that destroyed IT infrastructure will cost Kyivstar $100 million

A powerful cyber attack that destroyed the IT infrastructure of the Ukrainian telecommunications company Kyivstar will cost almost $100 million. This is stated on January 18, 2024 in a statement by the holding company Veon, the parent structure of Kyivstar.

The notification notes that the hacker invasion led to a temporary disruption of various Kyivstar services, including the provision of voice and data services in mobile and fixed networks, international roaming and SMS. The restoration of the IT infrastructure was carried out in several stages, and law enforcement agencies, the Security Service of Ukraine and other state structures were involved in the investigation of the incident. As compensation for the inconvenience, Kyivstar provided customers with a month of free service. And it is with this that the significant costs of the operator incurred as a result of the cyber attack are partly associated. In addition, funds were needed to pay for the work of third-party specialists and to purchase new equipment to replace failed devices.

It is reported that the total costs are estimated at 3.6 billion hryvnia, or approximately $95.66 million at the exchange rate as of January 25, 2024. Kyivstar plans to continue work on the restoration of its infrastructure. The statement emphasizes that the costs or loss of income from measures to eliminate the consequences of a hacker invasion are uncertain and cannot be reasonably estimated as of the specified date.

Veon and Kyivstar would once again like to thank their customers for the support and loyalty shown during and after the cyber attack. We also express our gratitude to the industry partners and the Ukrainian authorities for their support in restoring services, the statement said.[3]

2023

The head of Kyivstar told how the cyber attack occurred, because of which 24 million Ukrainians were left without communication

In early February 2024, Kyivstar CEO Alexander Komarov revealed additional details about a large-scale cyber attack on the company's infrastructure, which left 24 million Ukrainians without communication. According to him, the goal of the criminals was to destroy the operator's network.

Komarov confirmed previously circulated information that hackers received initial access to Kyivstar's systems through a compromised account of one of the employees. Further, the attackers successively hacked a number of other accounts and, ultimately, were able to gain access with administrator rights. After that, cybercriminals seized control of the centralized database, which stores information about network resources. This allowed them to perform arbitrary destructive operations.

Details about a large-scale cyber attack on the company's infrastructure, due to which 24 million Ukrainians were left without communication, have been disclosed

Comments on the invasion were also given by the head of the cybersecurity department of the Security Service of Ukraine (SBU) Ilya Vityuk. He said that the hackers "disrupted the operation of hundreds of Kyivstar servers and thousands of computers, which made it difficult to track their movement over the network." At the same time, the attackers used specially created malware, against which the operator's protection systems were powerless.

As of early February 2024, the investigation into the incident is ongoing. Komarov says the hackers planned to carry out the attack in two stages - on virtual and physical infrastructures. The attackers managed to destroy the virtual servers, but "their attempt to damage physical equipment failed." According to Komarov, the operator was able to disconnect the equipment from the network in time. In addition, a conflict arose between the two phases of the invasion: one attack interfered with the development of the other. The hackers also did not take into account the variety of suppliers serving the physical infrastructure of Kyivstar^[4]

Russian hackers have been in the Kyivstar system since May 2023 - SBU

In early January 2024, the head of the cybersecurity department of the Security Service of Ukraine (SBU) Ilya Vityuk told some details of the cyber attack on Kyivstar. According to him, Russian hackers have been in the IT systems of the Ukrainian telecom operator for several months.

At the moment, we can say with confidence that they have been in the system since at least May 2023. I can't say now how long they've had... full access. Probably at least since November, - said Vityuk in a conversation with Reuters.

According to him, the cyber attack on Kyivstar was so large-scale that the damage to the network was catastrophic. "Almost everything" was destroyed, including thousands of virtual servers and PCs, as well as "the attack completely destroyed the core of the telecom operator," said the head of the SBU cybersecurity department.

The special service believes that cybercriminals could determine the locations of users' mobile phones, intercept SMS messages and, presumably, steal part of Telegram accounts. At the same time, the Ukrainian media write that Kyivstar continues to refute the possible leakage of personal data of subscribers.

The SBU spokesman also said that after the massive attack, new ones were taken, but subsequently the Ukrainian special services, together with the operator, were able to prevent them.

Ilya Vityuk told Reuters that he is almost sure that the Sandworm hacker group associated with Russia is behind the cyber attack. At the same time, representatives of the Solntsepek hacker group took responsibility for the attack.

The head of the cybersecurity department of the Security Service of Ukraine said that the cyberattack did not have a big impact on the Ukrainian military, since they do not rely on telecom operators and use "other algorithms and protocols." He noted that after the hacking in some regions of Ukraine, the air raid siren used during missile and drone attacks did not work properly.^[5]

Kyivstar: Hackers hacked the security system through the employee account

On November 13, 2023, Kyivstar CEO Alexander Komarov said that a hacker attack on the company was committed through hacking the account of one of the employees. As a result of the cyber attack, many subscribers of the telecom operator in Ukraine began to have communication problems.

We must admit that this attack broke through our defense. This happened because the account pool was compromised, the account of one of the employees was compromised, and the enemy was able to get inside the company's infrastructure. This is being investigated, - Komarov said on the air of the Ukrainian telethon.

According to him, the reason for the hack is not Kyivstar's protection technologies, but the fact that "in any company there can be people who are ready to give their passwords." At the same time, the head of Kyivstar stressed that the final conclusions of the investigation are still unknown to him.

The personal data of Kyivstar subscribers have not been compromised, the operator's representative Irina Lelichenko told reporters. The data is secure, and the systems in which it is stored were not affected by the hacker attack, she assured.

The Security Service of Ukraine opened a criminal case under eight articles of the criminal code. The hacker group Solntsepek claimed responsibility for the cyber attack, as reported in its Telegram channel.

We destroyed 10,000 computers, more than 4,000 servers, all cloud storage and backup systems, the hackers said.

On the evening of December 13, 2023, the operator's press service reported that they had gradually begun to resume voice services, Страна.ua writes.

Currently, the company's specialists are working on restoring data transmission and SMS services, and we hope that they will also be restored within 24 hours, "Kyivstar said then[6]

Kyivstar reported the destruction of IT infrastructure as a result of a hacker attack

On December 12, 2023, a large-scale failure occurred in the work of the Kyivstar telecommunications company, one of the largest mobile operators in Ukraine. Subscribers cannot use mobile communications and access the Internet. The mobile application is not working, and the operator's website is unavailable.

The Kyivstar network, according to the operator's own data, covers all regions of the country. As of the end of 2023, the company serves about 24.4 million mobile subscribers and more than 1 million broadband users. Internet Kyivstar connects the global failure with cyber warfare, due to which the company's internal systems failed.

Today [December 12, 2023] in the morning we were the target of a powerful hacker attack. It caused a technical failure, as a result of which services are now unavailable: mobile communications, Internet access, - said in a message on the Kyivstar page on the social network Facebook (owned by Meta Corporation, which is recognized as an extremist organization; activities on the territory of the Russian Federation are prohibited).

To investigate the incident, law enforcement officers and special services were involved. The cyber attack provoked numerous problems in the work of Ukrainian organizations. In particular, the DTEK energy holding announced the disconnection of part of the telephone lines, and Privatbank warned of possible malfunctions in the operation of some ATMs and terminals relying on mobile communications. The national roaming system has turned off, since the networks of other operators cannot receive information from Kyivstar. In addition, the work of some utilities is disrupted. At the same time, Kyivstar emphasizes that the personal data of subscribers were not compromised as a result of the invasion.^[7]

In Ukraine, a combat drone with a Kyivstar SIM card was shot down. The operator confirmed this

At the end of November 2023, it became known that an unmanned aerial vehicle (UAV) based on a modified Iranian combat drone Shahed was shot down in Ukraine. It is reported that the equipment of the affected drone includes additional components for control through the cellular network of the Ukrainian telecommunications operator Kyivstar.

According to Ukrainian media, a specially modified UAV is equipped with a cellular module with a Kyivstar SIM card and a power bank to provide backup power. Judging by the photographs published on the Internet, these components are fixed using tape. And therefore, it is suggested that the downed drone is an experimental development, and not a serial model. It is also claimed that similar electronic components were found in several other drones hit in the special operation zone.

Ukrainian media report that the presence of a cellular module, presumably, allows you to control the flight of the device through the local cellular network. A Ukrainian source said on November 29, 2023, that through the Kyivstar SIM card, operators can track the location of the drone and change its flight path. The Kyivstar company said it was cooperating with law enforcement agencies to prevent such incidents, and also stressed that SIM cards are freely available.

The "evidence" of the alleged use of Iranian drones in Ukraine is comical. This was announced in July 2023 by the Permanent Representative of the Russian Federation to the UN Vasily Nebenzya.

The representative of the Russian Foreign Ministry, Maria Zakharova, called the information about Russia's purchase of Iranian drones "a set of unfounded conclusions and far-fetched assumptions." According to her, the accusations against the Russian Federation in violation of the UN Security Council resolution on the embargo on arms supplies from Iran are biased.^[8]

Mike Pompeo joined the board of directors of Kyivstar

Michael Pompeo joined the board of directors of Kyivstar. The press service of the Veon holding (owns the Ukrainian telecom operator) announced this on November 14, 2023. Read more here.

Ukrainian court found erroneous the decision to arrest 100% of the shares of telecom companies Lifecell and Kyivstar associated with Fridman

The Ukrainian court recognized as erroneous the decision to arrest 100% of the shares of telecom companies Lifecell and Kyivstar, associated with Russian entrepreneurs Mikhail Fridman, Peter Aven and Andrey Kosogov. This became known in mid-October 2023. Read more here.

How Kyivstar is trying to keep in touch in wartime

The telecommunications company Kyivstar (part of the Veon holding) in the current geopolitical situation caused by the military special operation of the Russian Federation in Ukraine faces serious difficulties in maintaining the operation of its network. This was announced at the end of June 2023 by the general director of the operator Alexander Komarov.

According to him, one of the problems is the congestion of base stations in certain regions of the country due to the internal migration of citizens. In addition, the equipment is periodically disabled, which necessitates permanent restoration of the cell towers. At the same time, Kyivstar needs to obtain a special permission to carry out work, which may take some time: during this period, the facility may remain dysfunctional.

Another problem is regular power supply failures. From October 2022 to January 2023, due to a power outage, the availability level of the Kyivstar network decreased by 60%, which prompted the company to develop a special plan to ensure emergency power supply. In particular, new lithium-ion batteries are installed, allowing the equipment to work up to four hours in the event of a power outage. In addition, the operator is increasing the number of backup generators - their number increased from 300 to 2000. Two generators are now installed at the main facilities.

Another difficulty is the storage of large volumes of fuel for electricity production. During a power outage, gas stations may not work, and Kyivstar's fuel consumption is not high enough to conclude large contracts for the delivery of fuel by heavy vehicles. At the same time, storage of the necessary volumes contradicts fire safety rules.

While equipment shortages have been a problem for many operators around the world, Komarov says Kyivstar has received "a high level of support from suppliers of certain types of devices." However, some companies still refuse to ship equipment to Ukraine.^[9]

$600 million investment from Veon

At the end of June 2023, Veon announced an investment of $600 million in Kyivstar. The funds will be used to develop and modernize the infrastructure of a telecom operator in Ukraine.

According to the press service of Veon, the investment program is designed until 2026 in the total amount of $600 million will contribute to the development of digital services, to ensure a higher quality of LTE services for millions of users in Ukraine. In a separate perspective, there will be preparations for the transition for the development of 5G services.

Mobile operator Kyivstar plans to increase the coverage area of ​ ​ the LTE network even in small and remote settlements, so that 98% of the population of Ukraine has access to high-speed mobile Internet. The company will also accelerate investments in cyberspace and cybersecurity. According to the leadership of Kyivstar, the funds received will accelerate the digitalization of the country, providing it with the necessary digital services, as well as an Internet connection.

As of June 22, 2023, Kyivstar is the largest telecommunications company in Ukraine. The mobile operator provides the necessary communication for 24.3 million mobile users and 1.1 million fixed-line users. 90% of Kyivstar's networks operate normally. The company has lost about 7% of its active customer base (about 1.7 million subscribers) since the start of Russia's special military operation in Ukraine at the end of February 2022.

According to Reuters on June 22, 2023, since the end of February 2022, when the military special operation of the Russian Federation in Ukraine began, Kyivstar has lost about 7% of its active client base - or about 1.7 million subscribers. This was due to the large outflow of the population from the country, as well as due to the transition of part of the Ukrainian territories of the Russian Federation - there the operator stopped serving customers.^[10]

2022: Early repayment of loans from Ukrainian banks

In August 2022, the largest Ukrainian mobile operator Kyivstar, against the background of a military Russia special operation, paid off debts to ahead of schedule. banks Ukraine According to the financial statements of the company (Veon Netherlands), in the first 6 months of operation in 2022, its subsidiary Kyivstar fully repaid ahead of schedule:

• UAH 1350 million loan to CityBank JSC,
• UAH 1275 mln in Credit Agricole JSC,
• 1677 million UAH loan in Alfa-Bank.

In addition, Kyivstar early repaid part of the loan for UAH 1250 million in OTP Bank (paid UAH 490 million).

2013: Customer base 27 million people

Kyivstar provides mobile communication services in GSM-900 і GSM-1800 standards; roaming services in 195 countries on 5 continents, broadband Internet services based on FTTB, fixed-line services for business using the most modern technologies.

As of December 2013, every second citizen of Ukraine uses the services of Kyivstar. The combined customer base is more than 27 million people.

The Kyivstar mobile communication network covers all large and small cities of Ukraine, and more than 28 thousand rural settlements, all the main national and regional routes, most of the sea and river coasts of Ukraine.

Since 2010, Kyivstar has also begun to provide fixed-line services for business and broadband access based on FTTB. Today, the broadband Internet network (Home Internet service) operates in 138 cities of Ukraine. Kyivstar is the only one among large Internet providers in Ukraine to use FTTB technology (Fiber To The Building - "Optics to the House").

Notes