The Communications Commission has published its 2018 activity report. Apart from the significant projects implemented in 2018, the report also talks about the challenges and plans for the following year. 2018 was full of interesting challenges and successes for the telecommunications industry. Authorised entities from the electronic communications sector collected GEL 1,237 million in revenues, compared to GEL 1,220 million in 2017. The number of fixed internet users continues to grow. Internet penetration increased by 8% in 2018 and reached 73.6%. 2018 also saw the implementation of the internet quality control system. Furthermore, the Commission took on the new challenge of developing media literacy in the country.

Last year was a success with regards to liberalisation of the fixed and wholesale markets, which is an important prerequisite for achieving high-quality telecommunications service and protecting consumer interests. Wholesale internet service costs for small and medium-scale operators were reduced eightfold in 2018. As for the major companies, they had upper tariff limits imposed on them for interconnection services. The tariff for mobile networks was reduced from 3.5 tetri to 0.75 tetri, and the tariff for landlines from 2 tetri to 0.28 tetri. 

With regards to liberalisation of the mobile communication market, the Commission took an important decision in 2019 to allow virtual operators, which is essential for development of the industry. The Commission plans to devise a strategy for implementation of another large-scale project in 2019 in the shape of 5G mobile internet technology. Work on 5G is actively ongoing across the whole world, and the Commission aims to implement the technology at the same time as the developed countries of Europe.

Last year we also saw an interesting trend with regards to advertising revenues. Broadcasters collected GEL 83,845,826.48 in revenues in 2018, compared to GEL 84,087,810.68 in 2017. Advertising revenues are not always characterised by growth, but the situation on the Georgian market reflects stability. According to recent studies, there is a falling trend in 20 European countries, as digital media evolves on a daily basis and advertising money moves from traditional media to new media.

As mentioned earlier, the Commission implemented the internet quality control system in 2018. Since 20 March 2019, users have been able to measure the speed and quality of their internet connection, check whether their internet provider is complying with its contractual duties, and whether their rights are protected. This system allows all subscribers to find out whether or not they are getting adequate value for their money. In case any faults are identified, the Commission will seek to protect consumer interests and take action against the provider in accordance with the legislation.  

With regards to media literacy development, best European practices and experiences were used to approve a strategy and action plan. The Media Literacy Department was established to work on media literacy development among the users of media products. The same purpose will be served by the newly established Media Academy, which will focus on enhancing the qualifications of journalists, producers and media managers.

Plans were devised for 5 important projects designed to enhance media literacy in Georgia. These projects will be implemented over the course of 2019, starting with Hello Ruby – a series of Finnish books that has been translated into 25 languages. The Commission published the Georgian version of Hello Ruby, and invited its author Linda Liukas to Georgia, where she trained more than 60 teachers and trainers in using her internationally acclaimed method to teach 3^rd and 4^th grade pupils the basics of programming and computer science. The Georgian Ministry of Education has included Hello Ruby in its reforms, and local public schools will be using the book from September this year.

The Media Academy will use its Media School, Media Critique and Media Lab components to work on media literacy development. The Media School offers media representatives short and long-term courses to help them deal with modern day challenges in their industry. Media Critique is a platform that will, on the one hand, help journalists and producers achieve professional development, and on the other hand, help consumers differentiate between high and low-quality media products. Creating and launching a qualified and healthy media critique platform was a major challenge for the Media Academy in 2019. Next year, the key challenge will be to launch the Media Lab – a laboratory that will support and fund digital media startups, helping them implement innovative projects.

As a result of the decisions made by the Commission, wholesale internet service costs for small and medium-scale operators decreased eightfold. The Commission believes that its decisions will help the development of small and medium-scale businesses, which will ultimately benefit customers, as they will receive better product quality at more affordable prices due to increased competition on the market.

In 2018, the Commission also made the decision to halve the wholesale service tariff for access to global internet resources, while in 2019, the wholesale global internet tariff was reduced from GEL 32 to GEL 9.  

Important steps were also made towards the liberalisation of the wholesale mobile and landline telephone market. The LRIC model was used to calculate long-term costs, as a result of which the interconnection tariffs for mobile and landline services were reduced fourfold.

In 2019, the Commission plans to further liberalise the mobile communications market by allowing access to virtual network operators (MVNOs). This will significantly increase the competition for mobile communication services, ensuring that prices will initially remain stable and decrease in the longer term. The mobile sound service market is currently least competitive. The Commission is therefore working to resolve this issue quickly, effectively and for the benefit of the consumers.  

The Commission will actively work with its European counterparts to develop the strategy for implementing 5G mobile internet technology. In May 2019, the Commission hosted the heads of regulatory commissions from 19 European Union and Eastern Partnership countries. Along with other important issues, the main topic of discussion during the conference was the development of a common 5G implementation strategy. Most importantly, the conference once again highlighted Georgia’s position as one of the leading countries on the issue of 5G.