The claim made by Magticom that allowing mobile virtual network operators (MVNOs) will have negative results for the country does not correspond to the truth. As we have often stated before, the Communications Commission took the decision to allow MVNOs in order to liberalise and improve the market. We wish to emphasise that the findings of six consulting firms that have been presented by Magticom are not based on research of the relevant segment of the Georgian telecommunications market. Consequently, the “risks” identified by the aforementioned firms are not well-grounded and convincing. The documents also fail to take into account or to appropriately assess the global best practices for regulating MVNOs. All arguments and assessments presented in the documents are either “possible” or “probable.” In line with the preferences of the client (Magticom), they focus on “potential negative aspects” without providing any research results or evidence.

The Communications Commission’s detailed and substantiated response to the findings commissioned by Magticom is supported by market research and analysis. It is attached to the aforementioned statement.

There are currently more than 1300 MVNOs operating across the globe, with a combined market share of 63.3 billion US dollars that accounts for 2.46% of the world telecommunications market. The United States has the largest amount of virtual operators (139), followed by Germany (135). 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. The MVNO market value is expected to reach USD 89.9 billion by 2025, growing at a CAGR of 7.3%.