March 13, 2012

MARGINAL TARIFF FOR INTERNATIONAL OPERATORS

The Georgian National Communications Commission  set tariff floor for termination of international calls in Georgia (making a call). According to the new tariff since May 1, 2012 the tariff floor (communication) for termination of incoming call from abroad in mobile communication networks (mobile network) was defined - 10 US cent per minute and the tariff floor of incoming call termination in fixed communication network - 5 US cent per minute.

The Commission has studied the dynamics of international traffic of incoming and outcoming calls as well as the dynamics of incomes and sums paid for such calls in 2005-2011. As a result it was established that incoming traffic (call volume) in the Georgian territory considerably exceeds outcoming traffic (outcoming call volume) which was not adequately reflected in incomes of Georgian companies.

According to the study the total amount of profit of Georgian undertakings authorized for international telephone service was 3.5 million USD as a result of international calls made in 2011. As a result of implemented changes the Georgian National Communications Commission supposes that profitability index to the same service will expand up to 20 million USD.

Based on these indices the Georgian National Communications Commission made a decision to set call termination tariff floor for international operators.  As a result prices of termination will become close to the real prices of region and generally to international market prices, and currency resources’ escape from the country will be limited as much as possible. The Georgian companies will also be given possibility to have extra income in bona fide competition conditions.

These tariff changes will not concern prices of international calls made by the Georgian population.

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