According to the 2023 Activity Report of the Communications Commission, last year ComCom commissioned the British research organisation Strategy Analytics to carry out a benchmarking study of telecom service costs in Georgia, which compared the current prices in Georgia to those in 23 countries of Europe. The analysis established that the cost of high-speed and high-volume services in Georgia substantially exceeds the European average, which creates restrictions for Georgian consumers. The cost of low-volume and low-speed services on the mobile and fixed internet markets was similar or lower than in the countries included in the study. 

The research showed that the high cost of high-volume and high-speed internet services is particularly problematic for the consumers, as internet usage increased sharply in 2023, reaching an average of 14 GB, and is set to grow even further with the introduction of 5G. The situation on the fixed internet market is similar, as consumers spend more time online and demand on various online services is growing. The role of high-speed internet services is therefore critically important, and the high prices are creating restrictions for Georgian consumers. 

“Until the prices for high-volume and high-speed services in Georgia are lowered, subscribers will be forced to use restrictive low-volume and low-speed services, or to pay premium prices for higher speed and volume,” the study concludes. 

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 in accordance with the internationally recognised and tested methodology developed by the Organisation for Economic Co-operation 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 (PPP) and presented in US dollars.

To eliminate the challenges on the telecom market, the Communications Commission began administrative proceedings and will take a decision in accordance with the law to ensure that Georgian consumers can access high-volume and high-speed services at affordable rates similar to those in Europe.