Ukrtelecom is to pay 152 million hryvnas for the license, an official with the commission told Prime-Tass.

After Ukrtelecom filed an application with the NKRS to get a 3G license, the government ruled that the Defense Ministry was to free up some frequencies that could be used for 3G networks with a license for these frequencies allocated to Ukrtelecom without a tender.

Applications for 3G licenses were also filed by major Ukrainian mobile operators UMC and Kyivstar.

UMC and Kyivstar have said that they plan to send an open letter to Ukraine's President Viktor Yushchenko, claiming that the award of a 3G license to an operator without a tender is illegal when other companies have also filed applications, Kommersant Ukraine daily reported Friday.

Market participants estimated Ukrtelecom's necessary investments to launch a 3G network at about U.S. $2 billion.

Ukrtelecom is a state-controlled national fixed-line monopoly. The Ukrainian government holds a 92.86% stake in Ukrtelecom through the Federal Property Fund.

The government plans to sell a stake in Ukrtelecom at an auction in 2006 and officials had earlier said that awarding a 3G license to Ukrtelecom would increase the company's value.

(5.05 hryvnas - U.S. $1)

© Prime-Tass.