Recent claims by Magticom that virtual mobile network operators (MVNO) will pose a threat to personal data and cyber security on the telecommunications market are false. Such statements serve to mislead the public and sections of the media. In reality, the entry of virtual operators on the Georgian market is not associated with any risks.

On the contrary, COMCOM decided to allow virtual operators on the mobile communications market in order to make it more liberal and healthy. It has been underlined several times that the entry of MVNOs on the market will increase competition, which will have a positive long-term effect on pricing and quality.

Affordable rates, diverse offers, high quality of service and a competitive environment – these are the benefits that consumers will be able to enjoy from 2021 when virtual operators join the mobile communications market. This is a novel opportunity for the public to gain access to innovative products, comfortable services and new offers.

It is regrettable that Magticom decided to supply certain sections of the media with claims that COMCOM’s decision to allow virtual operators on the market was taken hastily and without risk assessment, leading to the commission being forced to carry out a new study. These claims are false, as the Commission has been considering the decision to allow virtual operators on the market for more than two years. All mobile network operators and other stakeholders were involved in this process, which was conducted by international consulting firms based on 20 years of experience in Europe and in accordance with best practices from around the world. As for the study that was commissioned by COMCOM from the international consulting firm, it serves the purpose of eliminating any questions and alternative interpretations that may be put forward by companies.

We wish to strongly emphasise that both personal data and cyber security are fully protected by the Georgian legislation, and specifically by the Law of Georgia on Electronic Communications, which applies to virtual operators in the same manner as it does to network operators Magticom, Silknet and Veon Georgia. Furthermore, COMCOM took the decision to admit MVNOs on the market based on 20 years of experience in Europe, where data protection and cyber security are maintained to a very high standard. Moreover, virtual operators in all European countries are using the protocols and guidelines set by the International Telecommunication Union. A similar protocol will be in force in Georgia.

It is worth noting that numerous virtual operators have been present on the global market for several years, during which time there has not been a single publicised case of data breach associated with such operators.

We also note that small and medium-scale telecom firms have been requesting access to the network of Magticom for the past 4 years. Despite being obliged to grant such access by law, Magticom has failed to even provide these firms with a response for years, which shows that the company does not wish to tolerate market liberalisation and free access.

A mobile virtual network operatoris a mobile service provider that does not have its own network and infrastructure, and instead uses another operator’s network to provide services. There are more than 1300 virtual operators in around 80 countries across the world, including the United States, Germany, Japan, United Kingdom, Australia, Spain and France. Their advantages in the field of technological innovations are evident. The number of MVNOs grew by 61% between 2010 and 2018. According to the latest figures, the number of MVNO subscribers exceeds 220 million, which is 2.46% of the total global subscriber base. The US has the highest amount of virtual operators (139), while Denmark accounts for the largest market share held by MVNOs. The number of virtual operators is set to increase by a further 18% and reach a figure of 260 million subscribers by 2022, while the value of the MVNO market will increase by more than 40% by 2024.

International practice shows that MVNOs are an effective tool for creating a healthier competitive environment on the market. Virtual operators boast the best figures in all customer satisfaction parameters. The companies can easily adapt to the constantly changing demands from the customers, as they can offer competitive packages that the traditional operators do not focus on.