February 02, 2015 11:18

The Commission has imposed new obligations upon “Silknet” and “Caucasus Online” based on a study of the market sub-segments of Internet access to the global resources

Based on a study and analysis carried out on market sub-segments of the Internet access to the global resources, the Commission has defined “Silknet” JSC and “Caucasus Online” Ltd as the operators holding significant market power.

 In accordance with the Georgian Law “on Electronic Communications” the Commission shall carry out market study and analysis on various segments of the market, determine operators with significant market power and impose specific obligations consisting of the following: to ensure transparency of the information, prohibition of the discrimination, tariff and expenditure regulation, to provide access with relevant elements of the network and separate allocation of expenses and revenues.

The Commission has carried out a study and analysis on competition of the market sub-segments with Internet access on global resources in 2013, based on a study, the significant market power holders of the market on Internet access to the global resources, besides “Silknet” JSC and “Caucasus Online” Ltd, were "Fiber-Optic Telecommunications Network-Foptnet" Ltd and “System Net” as well, although, the Commission has only imposed obligations such as ensuring news transparency and prohibition of the discrimination upon these companies.

 In accordance to the decision made on January 29, 2015, the Commission has determined that the share distribution of the market sub-segments of the Internet access to the global resources has changed and it was defined that the only operators holding significant market power were “Silknet” JSC and “Caucasus Online” Ltd. In accordance with the Georgian Law “on Electronic Communications” both companies were imposed with the following specific obligations: to ensure the transparency of the information, prohibition of the discrimination, tariff regulation (tariff cap of 32 GEL on 1MB) and separate allocation of expenses and revenues.

 To see the full version of the decision, please visit the Commission’s official decision’s page.

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