By law, foreign shares in a company that broadcasts in Ukraine cannot exceed 30 percent. Foreign companies or foreign citizens cannot independently establish a TV or radio broadcasting company in Ukraine. Ukraine is covered by a network of 240 radio relay stations used for TV and radio broadcasting. The capacity of this outdated and technically dilapidated network is hardly enough to support the transmission of four national TV channels, while the demand is much higher. To date, Ukrainian authorities have granted 330 licenses for radio and TV broadcasting in Ukraine.
Advertising is the main source of revenue for Ukrainian TV broadcasting companies.
Administration of the Ukrainian TV broadcasting industry is conducted by government entities and is an obscure issue, not only for foreign investors but even for specialists. The television industry is viewed by Ukrainian authorities as a matter of national security and, therefore, major projects that influence the market are supposed to be cleared, although unofficially, at the highest levels. Due to reorganization undertaken in 1995, many licenses for TV transmission that were issued at that time will expire in the year 2000. The National Council for TV and Radio Broadcasting plans to announce in early 1999 a tender for channels that will be available in 2000. Reorganization of the transmission network will create additional possibilities for broadcasting on approximately 10 new national channels, but in order to use this opportunity, U.S. companies need to be positioning themselves now.