Analysis of the competitiveness of mobile operators in Ukraine based on benchmarking: Market assessment and development of innovative business environment

Abstract

This study aims to assess the level of competitiveness among the primary mobile operators in Ukraine through benchmarking. The analysis focuses on the three largest operators: Kyivstar, Vodafone, and lifecell Ukraine. The purpose of this article is to compare their key performance indicators to determine the strengths of each company and identify potential areas for performance improvement. Methods: The primary research tool employed was benchmarking analysis, which involves a comparative evaluation of the key characteristics of the operators. The analysis assessed several factors, including the number of subscribers, service costs, the number of service centers, mobile internet speeds, and the quality of service. Additionally, the study calculated the Herfindahl-Hirschman Index (HHI) to evaluate the level of market concentration and to measure the degree of competition among operators. Results: The findings indicate that the Ukrainian mobile market is highly concentrated, with a total Herfindahl-Hirschman Index of 3,409, suggesting an oligopolistic market structure. Kyivstar holds the largest market share at 48%, followed by Vodafone Ukraine at 35% and lifecell Ukraine at 14%. lifecell Ukraine provides the most favorable tariffs for consumers, while Vodafone Ukraine offers the widest range of tariff options. Kyivstar leads in the number of service centers. In terms of mobile internet speeds, lifecell Ukraine exhibits an advantage in 4G data transfer rates. Conclusions: The benchmarking analysis indicates that the mobile market in Ukraine exhibits characteristics of oligopolistic competition among the three primary operators. While lifecell Ukraine offers the most competitive pricing, Kyivstar and Vodafone Ukraine maintain advantages in other areas, such as service quality and subscriber base. For future development, these companies can benefit from implementing best practices observed in their competitors.