Affordable rates, broad choice, high-quality service and competitive environment – these are the benefits that consumers in Georgia will be able to enjoy from 2021 as a result of the Communications Commission’s decision to allow virtual operators on the mobile telecommunications market. This is a novel opportunity for the public to gain access to innovative products, comfortable services and new offers.

A mobile virtual network operator (MVNO) is a mobile service provider that does not have its own network and infrastructure, and instead uses another operator’s network to provide services. Virtual companies will be able to operate on the market without substantial costs, as they will be using the existing networks of Magticom, Silknet and Beeline. The entry of new players on the market will increase the choice of mobile telecommunication services, which will gradually have a positive effect on pricing and quality.

There are more than 1300 virtual operators in around 80 countries across the world, including the United States, Germany, Japan, United Kingdom, Australia, Spain and France. Their advantages in the field of technological innovations are evident. The number of MVNOs grew by 61% between 2010 and 2018. According to the latest figures, the number of MVNO subscribers exceeds 220 million, which is 2.46% of the total global subscriber base. The US has the highest amount of virtual operators (139), while 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, while the value of the MVNO market will increase by more than 40% by 2024.

International practice shows that MVNOs are an effective tool for creating a healthier competitive environment on the market. Virtual operators boast the best figures in all customer satisfaction parameters. The companies can easily adapt to the constantly changing demands from the customers, as they can offer competitive packages that the traditional operators do not focus on.

MVNOs can create products tailored to low-income customers, small businesses and start-ups in fields such as transport, agriculture, healthcare and ‘smart cities.’ Implementation of new technologies will aid rapid development of the local economy.