At the meeting held on September 9, GNCC imposed sanctions – written warnings on Ltd “Geocell” and Ltd “Magticom.” As for an issue regarding Ltd “Mobitell” (brand name Beeline,) the administrative proceedings are still in progress.

“Geocell” and “Magticom” were sanctioned for abusing the significant market power. In particular, both companies, based on the tariffs established by the wholesale market were offering subsidized tariffs to its subscribers. Therefore, both companies violated the specific obligations imposed on them for sharing significant market power as sound mobile market operators.

GNCC began to discuss the particular issue in 2013, based on a complaint submitted by "The Caucasus Digital Network." Later on, the discussion of complaint on the part of respondents grew into the proceedings for the abuse of significant market power. The Commission obligated all of three companies to submit the expenses and revenues in a separate format, audited and signed by internationally recognized auditing company. Ltd “Geocell” and Ltd “Magticom” provided requested information in pre-determined period of time. Based on a study of these and other documents, the Commission concluded that Ltd “Geocell” and Ltd “Magticom” were indeed abusing the significant market power.

As for Ltd “Mobitell” the company did not provide the requested information, therefore, the sanction has been imposed.  The Commission continues proceedings in connection with Ltd “Mobitell” and will make a decision after the requested information is submitted.

At the same session, the Commission launched new administrative proceedings in order to make amendments in the decision regarding the interconnection tariff caps in a wholesale market of mobile services. Hearing session is scheduled for October 9, 2014 at 16:00 pm. The session is public.