November 07, 2014

The Commission has decreased access tariff for duct communication channels to 370 GEL instead of tariff in force from 900 to 1400 GEL, as for tarifffor resources in copper pair of subscriber cable lines, it has decreased to 2.20 GEL instead of 11.68 GEL

GNCC has carried out study and analysis with the purpose to define the competition within the wholesale market segments having access on duct communication channels and on segments of the wholesale market  with access on resources in copper pair of subscriber cable lines and to reveal the operators with significant market power in order to impose specific obligations upon them. New tariff regulation is one of the imposed obligations.

Based on study and analysis, the Commission has revealed following authorized persons with significant market power with access on communication duct channels in the wholesale market: In Tbilisi – JSC “Silknet,” in Rustavi – JSC “Silknet” and Ltd “ Central Communications Corporation;” in Zestaponi -JSC “Silknet” and Ltd “ AkhaliKselebi;’ the rest of Georgia – JSC “Silknet.” Based on a same decision, above- mentioned companies in the geographical units where they have been revealed as the operators with significant market power, have been imposed with new tariff regulation – the tariff cap for 100 mm duct tube passing one channel per km comes down to 370 GEL, excluding tax.  The new tariff shall enter into forcestarting January 1, 2015. The Commission has established the applicable tariff for such services in 2008 and its fee was somewhere between 900 to 1400 GEL.

Based on study and analysis of the competition to define segments of the wholesale market with access on resources in copper pair of subscriber cable lines, the Commission has revealed following authorized persons as significant market power holders: In Tbilisi – JSC “Silknet,” Ltd “AkhaliKselebi” and Ltd “Akhtel”; In Kutaisi – JSC “Silknet” and Ltd “ AkhaliKselebi”; In Rustavi – JSC “Silknet” and Ltd “ Central Communications Corporation’; In Zugdidi – JSC “Silknet” and Ltd “IveriaKseli”; In Zestaponi – JSC “Silknet” and Ltd “AkhaliKselebi”; In Samtredia – JSC “Silknet”; In Terjola – JSC “Silknet” and Ltd “AkhaliKselebi”; The rest of Georgia – JSC “Silknet.” On top of other obligations, the Commission has also imposed new regulation tariff upon above-mentioned companies.  The tariff cap for the service of copper pair cable lines per month is determined to be 2,20 GEL excluding tax. Therefore, disregarding the tariff regulation established in 2007 totaling 11.68 GEL. The new regulation tariff shall enter into force starting January 1, 2015.

In accordance with “The Law of Georgia on Electronic Communications,” the Commission shall conduct study-analysis on the different segments of the market in electronic communications field, reveal the operators with the significant market power and impose specific obligations upon them. These obligations are: to ensure transparency of the information, prohibition of discrimination, regulation of tariff and expenditures, access to the relevant elements of the network and separate allocation of expenses and revenues.

In accordance with the decision made by the Commission on November 6,2014, each company certified as an operator with significant market power is obligated to publicly publish renewed offer (standard offer) regarding the access in duct communication channels and the access on resources in copper pair of subscriber cable lines before December 15, 2014. The document should outline the essential conditions of the service delivery.

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