GNCC is reviewing a dispute between “Silknet” Jsc and “Georgian Telephone Company GTC” Ltd.

The subject of dispute is the termination of international traffic (calls) by “Georgian Telephone Company GTC” Ltd through “Silknet’s” channel which is allocated for local calls. “Silknet” JSC believes, that assumingly, with a changed “A” number (call set-up number) the “Georgian Telephone Company GTC” Ltd used to terminate international calls as local ones through “Silknet’s” network.

During the case review it was revealed, that “Georgian Telephone Company GTC” Ltd had agreements signed with legal entities – “Geo Line” Ltd and “TBCom” Ltd, which have no authorizations for working in the field of electronic communications.  By using the numbers temporarily owned by these companies, more than 5 million minutes were carried out in a short period of time through “Silknet’s” channel that is allocated for the local traffic, assumingly with changed “A” number (call set-up number).

Despite its effort, the Commission was unable to find any kind of information in regards to noted companies through internet space (Google and Yahoo search engines have been used). The Commission has called the directors of “Geo Line” Ltd and “TBCom” Ltd as witnesses for explanation, the notices have been sent out together with the files of administrative proceedings in addition with the time, date and location of Commission’s session. On May 13^th, 2015, none of the company representatives have showed up at the session despite receiving an invitation. Accordingly, the Commission has not been given the opportunity to examine substantial circumstances of the case.

It should be noted, that in accordance with Article 188, Section 3 (c) of the Tax Code of Georgia, the excise rate for completion of international calls in the fixed network in Georgia totals to 8 cents per minute. Also, in accordance with the Commission’s resolution of October 9, 2014, №571 / 9 on “Establishment of Temporary Regulations of International Call Termination in Georgia,” for the purpose of effective temporary regulation of international call termination, it was established, that a termination call rate in the fixed communications network of an authorized person equals to 0,09 USD equivalent to GEL per minute.  As for the tariff cap for service types such as the set-up/termination of local calls (local market), the rate was established to total- 2 Tetri per minute (The Commission’s №428/9 decision of September 9, 2010). 

Based on a unity of above-mentioned facts and circumstances, there is a possibility of international call termination through the allocated channel used for the local traffic, therefore, causing damages to both - the state budget and “Silknet” JSC .

Thus, the Commission believes that within a scope of administrative procedure, the investigated materials should be forwarded to the Investigation Service of Ministry of Finance of Georgia for the further investigation within their competence.

The commission continues to review the dispute between “Silknet” JSC and the “Georgian Telephone Company GTC” Ltd, the session is scheduled for June 4, 2015 at 16:00 pm. As for the subscribers of “Georgian Telephone Company GTC” Ltd – “Geoline” Ltd and “TBCom” Ltd, the case materials were forwarded to the Investigation Service of Ministry of Finance of Georgia for the further investigation.