Kyivstar restores services in all categories, brings 99% of mobile network back on air
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Following a significant cyber-attack, the rapid restoration of services by Kyivstar, a subsidiary of VEON Ltd., underscores the resilience and operational competence of the company's crisis management protocols. The return to 99% operational capacity of base stations indicates a robust infrastructure and effective recovery strategy, which is crucial for maintaining customer trust and minimizing revenue loss from service disruptions.
The emphasis on improving the user experience and network stability for both local and roaming customers demonstrates a customer-centric approach that is likely to reinforce brand loyalty and potentially attract new subscribers who value reliable service, especially in times of crisis.
However, the cyber-attack also highlights the vulnerability of digital operators to security breaches, which can have significant financial implications including recovery costs and potential regulatory fines. Continuous investment in cybersecurity is vital to safeguard against future attacks, which could otherwise erode investor confidence and impact the long-term valuation of VEON.
The cyber-attack on Kyivstar presents a critical reminder of the cybersecurity risks faced by the telecommunications sector. In the short term, the company's response has been commendable, with a swift service restoration that mitigates immediate financial impacts and sustains operational continuity. This incident will likely prompt a review of security measures and could lead to increased investments in cybersecurity, which are necessary to protect against the growing sophistication of cyber threats.
Long-term implications include the potential for regulatory changes and the need for industry-wide collaboration on cybersecurity standards. Companies that proactively enhance their cyber defenses and transparency regarding such incidents could gain a competitive edge. Investors will be monitoring the situation closely for any signs of recurring vulnerabilities that could affect future earnings.
The financial implications for VEON and its subsidiary Kyivstar following the cyber-attack are multifaceted. The immediate restoration of services is a positive indicator of operational resilience, likely averting significant revenue losses and preserving market share. The company's proactive communication and customer engagement during the recovery process can also mitigate the impact on customer churn.
In the longer term, the incident could result in increased capital expenditures on cybersecurity measures, which may affect the company's financial projections and operating margins. Analysts and investors will need to factor in these potential costs when evaluating VEON's financial health and growth prospects. Additionally, the incident may influence regulatory scrutiny and insurance premiums for the sector.
Amsterdam, 19 December 2023 – VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services, today announces that Kyivstar has now restored services in all categories of its communication services, with mobile voice and internet, fixed connectivity, SMS and MyKyivstar self-care application active and available across Ukraine. As of today,
Kyivstar teams continue to work on improving user experience and troubleshooting for technical issues that might have an impact on quality and accessibility, while they also focus on stabilizing the network and enabling the full range of services for roaming customers. Among the key improvements today is the restoration of high-speed mobile internet in Kyiv metro.
“Recovering from one of the largest cyber-attacks our industry has ever seen, our teams have restored communication services with significant speed while prioritizing the safety and the stability of the Kyivstar network and quality of customer experience. We are proactively addressing all remaining pain-points and would like to express our gratitude to Kyivstar customers for their support and patience. Kyivstar will continue to be the backbone of Ukraine’s connectivity and resilience going forward” said Oleksandr Komarov, CEO of Kyivstar.
VEON and Kyivstar would also like to thank the Ukrainian authorities for their immediate response and assistance in addressing the attack, and their support in restoring services. VEON and Kyivstar reiterate their commitment to keeping Ukraine connected and resilient.
About VEON
VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
For more information visit: https://www.veon.com.
Disclaimer
This release contains “forward-looking statements,” as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, VEON’s efforts to address the consequences of a cyberattack. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.
Contact Information:
VEON
Hande Asik
Group Director of Communication
pr@veon.com
TUVA Partners
Julian Tanner
Julian.tanner@tuvapartners.com
FAQ
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