Internet Speed: 7.3 Mbps downlink; 7 Mbps uplink

Population: 45 million

Internet Coverage: 45% of residents

Main Types of Access to the Internet: ADSL, Fiber-optic, Wireless

Internet Censorship: Relatively Lenient

Colocation Datacenters: 32

Colocation Industry: Emerging

Web Hosting Market: Emerging

According to Akamai’s Q3 2015 rankings, the average downlink Internet speed in Ukraine is 7.3 Mbps and the average uplink speed is 7 Mbps.

Population & Internet Availability

The current population of Ukraine is approximately 45 million. Over 45% of residents have access to the Internet, especially broadband connections.

Main Types of Internet Access

Ukrainian residents can access the following types of Internet services:

– ADSL Internet
– Fiber Optic Internet (limited availability)
– Wireless Internet

Internet Access – ADSL

ADSL Internet is the most popular way of accessing the Internet in Ukraine. It is available both in bigger and smaller cities; however, in the latter cities, services provided are not as reliable and affordable as in the former cities. This broadband technology is preferred by both ISPs and customers alike because it does not require dedicated infrastructure, as in the case of fiber-optic internet, thus costs on both ends are reduced significantly. Downlink and uplink speeds are quite reasonable, in most cases reaching 20 Mbps downlink and 10 Mbps uplink respectively. However, high demand for high internet speeds has brought up the idea of deploying newer and more reliable broadband infrastructure (i.e. fiber-optic), which can support speeds of 100 Mbps and upward.

Internet Access – Fiber-optic

Fiber-optic internet is available mostly in bigger cities, notably in Kyiv, the capital city of Ukraine. Fiber-optic services are provided by a wide array of companies, including but not limited to Ukrtelecom, Lucky Net, and Kyivstar. In Kyiv, the fiber-optic infrastructure is well developed, and will soon be able to replace ADSL infrastructure completely. Regarding other smaller cities, the fiber-optic infrastructure sees limited availability due to lack of demand for high speed internet.

Internet Access – Wireless Internet

Less than half of Ukraine’s population have access to the Internet, of which even less are connected to the internet via fixed broadband methods. Users who cannot access the Internet via fixed broadband methods for various reasons usually resort to fixed wireless internet. This technology falls under the same “broadband” category as DSL, cable, and fiber-optic. The difference lies in the former broadband connection being a little more expensive than the latter broadband connections due to the technology used.

Internet Censorship in Ukraine

Ukrainian residents can access the Internet freely. There are no reported governmental attempts to censor the internet save for content that is universally illegal (e.g. drug trafficking-related content). In December 2010, the OpenNet Initiative (ONI) found little or no evidence of internet filtering in all four areas monitored over a certain period of time (political, social, conflict/security, and Internet tools). The constitution and laws provide for freedom of speech and press; however, the government does not always respect these rights in practice. For instance, law enforcement bodies are widely known to monitor internet user activity without appropriate legal authority. Controversial bloggers and diverse satirical online publications are the most affected. This holds true especially in the ongoing Ukrainian crisis, which has had severe negative effects on internet freedom.

According to datacentermap.com, there are currently 32 colocation datacenters established in Ukraine. The great majority of datacenters are situated in the capital city of Kiyv (21), distantly followed by Kharkov (6), Odessa (2), etc.

Prominent Colocation Providers

In Kiyv, prominent colocation providers include the following:

– Volia Datacenters
– United Kiyv
– BEMOBAIL
– Wnet
– Volia-Cable LTD.
– Ukrainian Resilient Data Network
– DC Newtelco Ukraine

Prominent Colocation Providers – BEMOBAIL

One of the most sought after colocation providers located in Kiyv is BEMOBAIL. This company owns and operates a state-of-the-art colocation facility located in downtown Kiyv. Founded in 2009, this facility provides diverse colocation services, including rental of suites, cages, rack cabinets, footprints, and diverse enclosures. It also provides hosting of dedicated servers and virtual servers.

Amenities found at this location consist of the following:

– N+1 UPS power equipment
– N+1 cooling system
– two independent power feeds
– primary and backup diesel generators
– 24/7 monitoring

The datacenter is not carrier neutral.

Prominent Colocation Providers – Volia Datacenter

Another important colocation provider nestled in Kiyv is Volia Datacenter. This company is renowned on the local market for operating two different facilities, both of which specialise in providing a wide array of colocation services, including but not limited to rental of suites, cages, rack cabinets, footprints, and diverse enclosures, in addition to hosting of dedicated servers and virtual servers.

In terms of amenities, we can outline the following which are common to both facilities:

– multiple power supply sources
– primary and backup diesel generators
– state-of-the-art cooling system
– 24/7 monitoring

Neither facility is carrier neutral.

Colocation Industry in Ukraine

Ukraine is regarded as an emerging market on an international scale, and current trends indicate upward growth in this sector as demonstrated by the many facilities that have been built in recent years. In the context of the Russia-Ukraine conflict, both sides suffered economically – the Russian economy stagnated in 2014, and Ukraine shortly experienced a de facto recession. Even though colocation market development was hindered temporarily, local providers managed to show substantial organic growth through their existing customer bases. They also benefited from corporate policies to cut capital expenditure, that is, the construction of new datacenters, to the detriment of increasing operating expenditure, that is, increasing outsourcing. However, the general assertion is that the local market is very expensive, and on top of that, costs are not justified either. Due to the uncertainty caused by the ongoing conflict with Russia, many customers are deterred from colocating in the region and usually orientate themselves to other markets, notably Western countries such as Germany and the Netherlands.

Advantages for Colocation

Ukraine exhibits a series of advantages for colocation, and is as follows:

– relatively low risk for natural disasters
– good year-round weather
– developed technical infrastructure inside Kiyv
– cluster of colocation providers in Kiyv
– ever-growing market, hindered only by the conflict with Russia

Web hosting providers who have servers in Ukraine are sought after by customers looking to establish a solid presence in Eastern Europe, due to the fact that prices offered are comparatively cheaper than in other neighbouring Eastern countries. However, contrary to popular belief, Ukrainian hosts do not exhibit more attractive prices than their Western counterparts, notably Dutch, French, and German hosts. What is more, the latter providers might prove to be more easy to deal with due to lack of language barriers.