Kranj - The Slovenian broadband access solutions provider Iskratel will work with Ukraine's Ukrtelecom on a project to expand the fibre-optic network in Ukraine in a deal worth EUR 12 million, the Kranj-based company said on Wednesday.

Iskratel and Ukrtelecom have signed a three-year contract for a network expansion project that will provide gigabit connectivity to 1.3 million people and 530,000 homes in more than 300 locations in different regions of Ukraine, Iskratel said.

"The joint programme by Iskratel and Ukrtelecom is playing an increasingly important role in establishing broadband internet in Ukraine. This cooperation is a continuation of the long-term partnership between the two companies in the development of the fibre-optic network in Ukraine, now worth EUR 25 million," explained Iskratel CEO Željko Puljić.

The telecommunications equipment will be assembled in Iskratel's production centres in Slovenia and will provide customers with speeds of up to one gigabit per second, IPTV and other IP services.

Ukrtelecom CEO Yuriy Kurmaz said upon the signing of the new contract that the cooperation with Iskratel would increase their contribution to the development of internet access in Ukraine.

Last year, the two companies launched a two-year project worth EUR 7 million, which aims to connect more than 200 towns in 13 different regions of Ukraine, the press release from Iskratel added.