Are computers and computer parts widely available in Ukraine? What about service? How do prices compare with US and Europe?
How much do internet cafes charge per hour? Or home internet dial-up connections?
Would like to know the same info about Romania and Russia.
Thanks for any info you can provide.
Internet in Ukraine
Here is some info:
Internet Use & E-Commerce
Web use and penetration
At the end of 2001 there were in total around 1.5 million Internet users penetration rate of 3%), 500 thousand were active users (those who use it at least once a month). This lags far behind Central and Eastern European countries’ penetration rate; for example, at the end of 2000 penetration rate in Estonia was 26.3%, in Lithuania – 17.2%, in Poland – 13% (Source: ESIS II (EU Info Society.) The number of active users represents around 40% annual growth (See the chart below). If, most likely, the growth rate will remain the same, there will be 700 thousand regular users by the end of 2002.
Kyiv leads in the number of Internet users – its share is more than a half (around 55%) of all Ukrainian users. Total share of the visitors from large regional centers (Odesa, Dnipropetrovsk, Donetsk, Kharkiv, Lviv, Zaporizhya) constitutes one third (around 29%) of the Ukrainian audience. Other regions account for around 25%. The share of Ukrainians in total audience of Ukrainian Internet resources constitutes 56%, 20% falls to Russia, 11% to visitors from Western Europe, U.S. and Canada – 7%, Baltic and CIS states – 3%, and other countries
Source: Aventures, 2002
Around 900 thousand active users of the Internet expected at the end of 2002.
Dial-up is the prevalent type of connection for both residential and corporate users. Leased lines and DSL remain unaffordable for most of residential users. Dial-up prices have stabilized while leased line prices will keep falling.
At the end of 2002 the number of Internet users is expected to reach around 2 million (penetration
rate of 4.5%) in total, with 900 thousand active users (those who use it at least once a month). This
lags far behind Central and Eastern European countries’ penetration rate.
Kiev has roughyl 55% of all Ukrainian internet users.
Visitors from large regional centers (Odesa, Dnipropetrovsk, Donetsk, Kharkiv, Lviv, Zaporizhya) constitutes one third (around 29%) of the Ukrainian audience.
Other regions account for around 25%. The share of Ukrainians in the total audience of Ukrainian internet resources constitutes 56%, 20% falls to Russia, 11% to visitors from Western Europe, U.S. and Canada – 7%, Baltic and CIS states – 3%, and other countries – 3%.
Private Internet users have expressed noticeable interest in using on-line
shopping: 85.2% of them know about the service, and 49.8 would like to use it.
At least 60% of the Internet audience accesses the Internet from their
As of January 1999, the number of PC in Ukrainian schools totaled 92 033, while the number of pupils was 6,787,000. This is equal to 1.36 PC per 100 pupils.
Universities and institutes are equipped by personal computers slightly better than secondary schools with 7.14 PC per one hundred students.
ISU, December 2002
Around 500 thousand active users of the Internet and more than 260 ISPs
• Highly competitive and liberalized market
• The market is on the edge of consolidation. There are opportunities for both strategic and financial investors to participate in the process of consolidation and development of the market
• Dial-up is the prevalent type of connection for both residential and corporate users. Leased lines and DSL remain unaffordable for most of residential users
• Dial-up prices have stabilized while leased line prices will keep falling
Based on official statistics, there are now approximately 260 ISPs in the Ukraine, of which seventy are located in Kiev. (Source: Kompanyon No. 24, June 2000). The industry experts believe that 30 to 40 of the leading ISPs, that have the necessary experience, size and finances are determining the development of the national market. The remaining 220 ISPs are either small peripheral operators or in a short-term business. Industry sources disagree with the estimates as to the market of ISP services in 2000. Sales estimates ranged from $25 million to $60 million. In our opinion, industry sales appear to be closer to $30 million. Since 1997 the ISP business in the Ukraine has not been subject to licencing, though law enforcement agencies and some of the major ISPs are advocating the reinstatement of licencing to protect their business from small, aggressive and often short life competitors.
To expand the local market for Internet services and reduce the demand on international connections, ISPs have created the "Ukrainian backbone network". ISP companies that operate outside of Kiev are at a disadvantage, because they have to pay for access to an international channel and lease fiber optic lines from their region to the capital (similar in costs to international access). To reduce these costs, regional providers use radio relay channels that are outdated and unreliable, or voice band frequencies of Ukrtelecom. In the near future regional ISPs may opt for satellite channels. It is a fact that many larger ISP providers feel the need for additional Internet connectivity. Substantial growth in Internet traffic and expensive international channels have forced ISPs to look for affordable Internet connections through satellite access.
Those ISPs that seriously focused on young Ukrainians as a future customer base launched a prepaid web card in 2000. Currently 10 ISPs offer a prepaid web card. Managers of these firms expect that the reduced cost of the service will expand their customer base. The cards allow customers to save on monthly and registration fees by offering lower rates. The service offer is expected to attract customers who cannot afford or do not need regular Internet access.
By the end of 2002, there will be more than 260 ISPs.
The ISP market is on the edge of consolidation – there are around 30 first- and second level ISPs
which occupy up to 80% of the market.
Expect that up to ten first-level ISPs will survive in the future consolidation, while only a handful of up to 15 second-level ISPs (and probably none of the third-levels) will survive in the long run.
ISU, December 2002
• Despite its current low level of development, B2B will start growing in the near future
• B2C is set to grow significantly in the coming years
E-commerce has been developing slowly in Ukraine due to several factors, the main being poor infrastructure (including the underdeveloped banking sector and low Internet penetration), the lack of legislation, and low living standards of population.
The Ukrainian B2B market is very poorly developed. There is a handful of portals that provide marketplaces for businesses, however, their amount of trade is negligible and their facilities are inadequate.
At the same time, with the development of Internet infrastructure and growth of computerization of businesses, the need in B2B services will grow substantially.
The annual turnover of the retail e-commerce was estimated at $1m in 2001. We expect that the consumer e-commerce segment will generate over $65m in revenues in 2005 taking over 0.4% of country’s retail sales. According to a February 2001 Socis-Gallup research, 6% of all Ukrainian Internet users had made online purchases. Another 7% were 'offline shoppers', which means that they bought offline as a result of their online information search. Additional 7% stated that they were planning to buy online within the next 6 months, which indicates that by the end of 2001 the number of online shoppers may have doubled.
While e-commerce was almost nonexistent in 1999, by late 2000 the number of online stores approached 40. In February 2002, Ukrainian e-commerce directory Topshops.com.ua numbered 182 online stores. The following top selling e-commerce categories in Ukraine are:
• Consumer Electronics (audio, TV, household electronics);
• PC hardware and consumables (computer parts, cartridges, scanners, printers,
• Books, Video and Music (CD’s, DVD’s, tape).
We don’t expect Ukraine’s product structure to significantly change over the next four years, which the Russian example clearly shows.
Similar to Russia, cash on delivery is the most popular online payment method in Ukraine. Advance payment is the second most popular method – it is offered by 80% of e-stores surveyed. In July 2001, online retailer Bambook became Ukraine’s first e-store to accept credit card payments. The penetration of plastic cards in Ukraine is extremely low - in October 2001, about 1.5 million Ukrainians had credit/debit cards (3% of population). Europay International expects Ukraine’s card market to triple in the next three years.
Ukrainian e-stores in most cases make their own delivery. This can explained by the following factors: The majority of e-stores and their buyers are located in the largest cities, therefore own delivery within a limited area is the most effective; As cash on delivery is the prevailing method of payment, this is also the riskiest method (the customer may decline the order), which makes alternative delivery methods not feasible. Changes in delivery methods may only be resulted by the improvements in payment methods.
Source: Aventures, 2002
An estimated 80% of Ukraine’s web through banner-exchange networks. Ukraine's leading banner networks expose web surfers to approximately 1 million banners per day. The most popular banner networks are the Ukrainian Banner Network (banner.Kyiv.ua) launched in 1999, Another Banner Network (abn.com.ua) launched in 2000, and SputnikMedia's Big Banner Network (bigbn.com.ua) launched in early 2001.
Most commercial advertising is channeled through Internet advertising agencies. Ukraine’s first Internet advertising agency, Real Media Ukraine (realmedia.com.ua), was established in 1999. Since then, there have been a number of newcomers, such as Netvertising (netvertising.com.ua), Mediacom (mediacom.com.ua), and Internet Expert (ie.com.ua). Netvertising is a subsidiary of SputnikMedia.net. Mediacom is the Internet subsidiary of Ukraine’s major offline advertising agency Perekhid Media. In 1999, Internet-Expert valued Ukraine’s web advertising market at under $50,000 (PC hardware manufacturers Intel and Kvazar-Micro accounted for most of this figure). The market quadrupled in 2000, mainly due to such advertisers as UMC, Kyivstar, Samsung, Unitrade and MTI, and grew 50% in 2001 to $300 thousand or less than 1% of total advertising expenditures.
For 2001, Internet-Expert predicts 70% growth (chart 5). In the first half of 2001 main advertisers were ING Bank Ukraine, Samsung, UMC, Reemstma, Kyivstar and Unitrade.
Internet advertising is set to grow in Ukraine – its share of total advertising in Russia is 0.8% and in the US – 4.2% (source - United Financial Group). In line with this trend, Mediacom and SputnikMedia.net expect more cash to pour in the sector in the near future, as more offline advertisers will resort to web advertising as an effective alternative to the traditional print, television and radio advertising.
Source: Aventures, 2002
Only up to 10% of corporate users
use leased lines, the rest use dial-up.
The annual turnover of the retail e-commerce was estimated at $1m in 2001. Expect that the consumer e-commerce segment will generate over $65m in revenues in 2005 taking over 0.4% of
country’s retail sales.
According to a February 2001 Socis-Gallup research, 6% of all Ukrainian Internet users had made
online purchases. Another 7% were “offline shoppers”, which means that they bought offline as a
result of their online information search. Additional 7% stated that they were planning to buy online
within the next 6 months, which indicates that by the end of 2001 the number of online shoppers
may have doubled.
While e-commerce was almost nonexistent in 1999, by late 2000 the number of online stores approached 40. In February 2002, Ukrainian e-commerce directory Topshops.com.ua numbered 182
63.5% of companies don’t have corporate Web page. Most of them (93.4%) think that modern Ukrainian company should have a Web page, and 57.1% are interested in creating their
At the beginning of 1999 the number of corporate websites didn’t exceed 1,400. At the beginning of 2001 their number totaled 9268.
79.3% of corporate Internet users know
about B2B opportunities, and 52.8% are interested in utilizing them.
ISU, December 2002
Kasper the retarded ghost!
Sheep population explodes!!!!!
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