GNCC began public  administrative proceedings and is conducting a research study in order to determine the competition sub-segments in the wholesale market of internet advanced interconnection- “pairing.” The research study was based on a written request by Ltd “Caucasus Online.”

In compliance with “The Law of Georgia on Electronic Communications,” The Commission is conducting study and analysis on different segments in the market of electronic communications field, determines operators with significant market power and imposes on them specific obligations. The obligations are following: to ensure the transparency of information, to prohibit discrimination, regulation of tariffs, cost accounting, access with relevant elements of network and separate accounting of cost and revenue.

Based on the research of the market conducted by the Commission in 2013, and by the decision made on August 16, it was determined that the only operator possessing significant market power happened to be Ltd “Caucasus Online.” Within the same decision, Ltd “Caucasus Online” in accordance with the scope of tariff and cost accounting obligations, was determined to pay fee of advanced interconnection tariff cap totaling 250 GEO per gigabyte/second monthly. The above-mentioned tariff is in force since January 5, 2014.

Ltd “Caucasus Online” believes that, since the company was obligated to pay tariff of 250, and all other authorized persons managed to maintain tariff totaling 5000 GEO, multimedia and content provider companies found ways of additional income by generating traffic. Therefore, company believes that holding the significant market power and the delivery of specific obligations imposed by the Commission, puts Ltd “Caucasus Online” into uneven, unjust and noncompetitive condition.

Considering these circumstances and in order to study the conditions in the internet wholesale market, the Commission began public administrative proceedings and has already claimed relevant information from the internet providers in the scope of public administrative proceedings.

The public hearing is scheduled for September 12, 2014 at 16:00 pm.