The article conducts a comprehensive study of public information and communication space in Ukraine, analyzes its current state considering regulatory and organizational features, identifies key challenges for quality development and modernization of the industry, and identifies key dysfunctional problems that prevent high performance in domestic development of information and communication technologies. It is argued that an important role in the constructive formation of the public information and communication sector is played by the state information policy, which should be based on such principles as openness, system, equality of interests, priority of domestic producers, social orientation. It turns out that the formation of a quality public information space contributes to the development of civil society, information society and information democracy. Comprehensive digitalization of public communication will promote openness, transparency and accessibility of public information, the formation of partnerships between the public, business, and civil sectors. Three basic stages of formation of information and communication space have been identified: strategic, organizational and control ones.