Development and innovation potential of the telecommunications sphere in Ukraine

Abstract

Modern trends in the development of the global telecommunication industry can be characterized as a movement toward globalization, creation of a unified information space, a single unified telecommunication system and standards of information sharing, implementation of new information technologies into important spheres of activity of the society, especially in the economy. Development of telecommunications is one of the factors ensuring the functioning and growth of the state’s economy, because the dynamics of modern world economic relations predetermined dramatic increase in the demand for telecommunication services. In its turn, the scientific and technological revolution contributed to the creation of new telecommunication technologies, which due to the multiplier effect generate new services and consequently form new markets. The aim of the research is to analyze and discover peculiarities of the telecommunications industry of Ukraine, based on statistical, scientific and theoretical data and taking into account the achievements of the world's leading analytical companies, to form trends and perspectives of its development through the use of innovative potential. The telecommunications market was studied and the conclusions made about the market of mobile operators "approaching” a maturity stage. At the current stage of development of mobile communication, additional services based on different technologies are actively developing. Thematic services are dynamically developing – reference and information and entertainment services for mobile communication, while themed services using SMS technology are also popular. The peculiarities of the development of Ukrainian mobile communications market were discovered: 1) lack of new companies and, accordingly, of any pressing incentive for intensive innovative development of the industry; 2) the need for the development of additional services is due to the saturation of the mobile market and the aggravation of price competition; 3) additional services can be named stimulating for the marketing activities of the companies–operators. The trends of the market development were formulated: telecommunication companies are forced to develop innovative policy and constantly bring new services to the market, the price of which, as evidenced by the results of the study, is quite high and does not always quickly pay off. It is expected that the rate of development of mobile Internet in Ukraine will significantly accelerate if the operators are able to provide services of the third–generation 3G (UMTS) standard in full using this resource. Ukrainian telecommunications market will continue to grow, albeit by small tempo, due to the popularity of mobile Internet services. But the true dynamics can be expected only after the implementation of efficient mechanisms of regulation that will reduce the impact of dominant operators on pricing and introduction of new services and technologies. Scientific novelty of this work consists in determining the status, major trends and directions of development of Ukrainian telecoms industry through efficient use of innovative potential. The results of the study can be used for the industry’s strategy development and identifying of promising areas of investment for the companies that work in the telecommunications market of Ukraine. Further research can be conducted with regard to the prospects for creation of a new market through larger use of additional services of the telecommunication market.