GNCC has issued a prior consent to “Magticom” Ltd in regard to the acquisition of operating assets owned by “Caucasus Online” Ltd.

“Magticom” Ltd has been given an approval to purchase all those assets owned by “Caucasus Online” Ltd, which company uses in order to provide broadcasting transit (IPTV), digital telephony (VOIP) and retail internet services for its subscribers.

In the scope of public administrative proceedings, Commission has examined the possible impact on competition of relevant market segments in the field of electronic communications sector in case of a purchase of assets owned by “Caucasus Online” Ltd by “Magticom” Ltd and has determined, that implementation of such transaction will have no impact on existing competition of mobile communications, broadcasting transit (IPTV), digital telephony (VOIP) and retail internet service market segments. 

It should be noted, that on November 13, 2015, “Mobitel” Ltd (Beeline) and “Caucasus Online” Ltd have submitted a joint application to GNCC. In this case as well, both companies are requiring a prior consent of the Commission in regard to the acquisition of the retail market segment services owned by “Caucasus Online” by “Mobitel.” The application states, that “Caucasus Online” plans to split company in two parts in order to transfer retail segment services  (broadcasting transit (IPTV), digital telephony (VOIP) and retail internet services to “Mobitel” Ltd, and to continue to strengthen the operation of the wholesale market segment (network infrastructure and a backbone).

GNCC will launch public administrative proceedings in the nearest future based on the joint application of “Mobitel” Ltd and “Caucasus Online” Ltd.