100 MB/sec fixed interest is 136% more expensive in Georgia than in Europe, while 10 GB mobile internet together with 1795 minutes of talking time is 35% above the average price in 24 EU countries and the UK.  These are the findings of the comparative analysis of telecom service rates commissioned by the Communications Commission in April 2023. According to the benchmarking study, low-volume and low-speed services on the Georgian mobile and fixed internet markets are similar or cheaper than in the countries included in the study, while the price of high-volume and high-speed services considerably exceed the average prices in Europe.

According to the study, the high rates for high-volume and high-speed services are particularly significant and problematic due to the sharp increase in mobile internet consumption, which reached an average of 12 GB in 2022. In the digital age, internet usage trends are oriented towards high-speed and high-volume consumption, and are set to increase even further with the introduction of 5G technology. There is a similar situation with regards to fixed internet services, as the time spent online and usage of various online services is constantly growing. The role of high-speed internet services is therefore critically important, which presents a problem in Georgia.

“As long as the high cost of high-speed and high-volume internet services persist in Georgia, consumers will be forced to choose low-speed and low-cost services, or to pay premium rates for higher volume/speed,” the verdict reads. 

Low-volume mobile service packages for individuals, such as the 5 GB and unlimited call time package, are 1% more expensive in Georgia than in Europe, while the 5 GB / 577-minute package is 23% more expensive. The   price of the 10 GB / 1795-minute package is 35% above the European average, while the 20 GB / unlimited call time package is 36% more expensive than in the 24 European countries on average. 

As for legal entities, they pay on average 1% more for a 10 GB / 1795-minute package in Georgia than in the 24 countries included in the study, while a 5 GB / 577-minute package is 32% cheaper in Georgia. The price of a 20 GB / unlimited call time package is 36% higher in Georgia than the European average price of a similar package. 

With regards to the fixed internet market, the popular 25 MB/sec monthly fibre-optic internet package is 5% cheaper for natural persons in Tbilisi and 17% cheaper in the regions compared to similar packages in Europe. However, high-speed internet services are considerably more expensive in Georgia, where a 100 MB/sec internet package costs 136% more on average than in Europe. It is worth noting that on average, 55% of European households use internet speeds of 100 MB/sec or above, with the figure exceeding 40% in 19 out of the 24 surveyed countries. In Georgia, only 1% of the households (4000 subscribers) use internet speeds of 100 MB/sec or above due to the high costs involved.

Legal entities also pay more for fixed internet in Georgia than in Europe. More specifically, 10 MB/sec fibre-optic internet pay almost 3 times above the average for the 23 surveyed EU countries. It is also worth noting that high-volume fibre optic internet is unavailable in standard packages for legal entities. 

Comparative analysis of combined offers showed that over half a million households in Tbilisi and the regions pay less for the cheapest combined TV and internet packages than in Europe. In case of the regions, this is due to the special offers provided by the operators. More specifically, the cost of 20 TV channels and 25 MB/sec broadband is 24% below the European average in Tbilisi, and 43% cheaper in the regions. On the other hand, the combined package for 30 TV channels and 100 MB/sec broadband is 30% more expensive than the European average in Tbilisi, and 35% more expensive in the Georgian regions. 

The study was carried out by the British research organisation Strategy Analytics (Teligen, TechInsights) according to the internationally recognised method devised by the Organisation for Economic Cooperation and Development (OECD). The study used the service rates offered by Magticom and Silknet, who own more than 70% of the Georgian telecom market and provide both mobile and fixed internet services. The figures used in the study reflect the cheapest offers in Georgia as of April 2023. The prices are calculated in purchasing power parity and presented in US dollars.

To improve on the findings presented in the comparative analysis, the Communications Commission will take appropriate decisions upon the conclusion of the comprehensive study to ensure that Georgian consumers can access high-volume and high-speed telecom services at affordable rates similar to those in Europe.