The "ITC online" narrates the interview with Lev Tolmachov the managing director of the Hewlett Packard office in Ukraine.

The HP office in Ukraine was set up over 3 years ago. Can you draw any conclusions? What changes happened during this period?

We obtained some valuable experience of how to work in the Ukrainian market. It is worth noting that other leaders of IT industry entered the market that caused competition to grow and market to expand.

What are the market shares for the sale of HP' peripherals and PCs?

I can't give you the numbers but I can state that the Hp's market decreased since 1997 significantly. It is primarily due to the higher competition and lately enacted legislation. The latter made the brand technology less accessible to customers. I am talking about the notorious tariffs that are supposed to protect the domestic producer that virtually does not exist. First, the market is not yet developed enough to be protected. Second, with all my respect to the people assembling computers in Ukraine I can't call it production to the full extent. Therefore, it's hard to understand what production the state is protecting. Third, having restricted the sales the state cut the public revenue and deprived the local businesses of possible investment. The level of the settled PC tariffs is unprecedented. For example in Western Europe the tariffs are absent and in the Eastern European countries they do not exceed 5%.

How would you assess the competition that exists among the PC brands under these circumstances?

It certainly exists, especially in the corporate sector. But to the large extent, under the current market distribution it is practically absent. If the restrictions are lifted the situation might change.

And what is the current situation with the SOHO market?

The SOHO computer market is a fledgling one. However, the number of people who can afford to buy a PC is growing.

Do you think the company will reorient itself to meet the demands of this segment if restrictions are lifted?

Well, the demand for the SOHO computers is not yet at the necessary level. We surely sell the peripherals for the sector but it does not account for the major source of our income.

Are the "gray" supplies as big as they used to be in 1995-1997?

The "gray" supplies always exist and it does not have anything to do with Ukraine or the market of peripherals. I am not aware of any market that could boast of not having them. Our objective is not fighting against "gray" supplies but setting up and developing cooperation with the legal partners.

It is well known that there are different approaches to distribution. Some have one distributor, others prefer to have several.

Yes, it varies from one company to another. As the result of a big variety of products we have many partners with different statuses. HP has two whole sellers, numerous solution providers, and even more authorized partners.

So what are the specifics of the Ukrainian market in this area?

First, as I have mentioned already, it is the lack of resources among the consumers. Second, the particular market is not sufficiently filled. The situation could change if other brands enter the market.

And the last question, how do you evaluate Internet in Ukraine?

To my mind, it is too early to talk about real business in Internet here. Developed infrastructure and on-line payment system are the prerequisites for that. And finally the welfare of people should improve. Meanwhile, Internet serves mostly as an entertainment.