Contact
Tbilisi 0144,
50/18 Ketevan Tsamebuli Ave/ Bochorma Str., 0144, Tbilisi
Tel/Fax: +995 32 2921667
E-mail: post@comcom.ge
Phone number
+995 32 2921667
According to EU Experts, Silknet is an Operator with Significant Power in the Infrastructure Market
The Communications Commission has completed the second phase of the holistic study of the Georgian telecommunications sector, which included an analysis of the physical communications infrastructure markets. The EU experts participating in the study, together with the ComCom team, determined that Silknet is an operator with significant power in the physical infrastructure market, and particularly in the market for access to communication/sewerage channels. In addition, the study showed that the existing regulatory framework in these markets is not sufficient and additional regulations are needed to develop competition, which would increase the choice available to operators, ensure equal access to infrastructure, and ensure the availability of quality services to consumers.
The second stage of the study included an assessment of the physical infrastructure market for two separate market segments - access to communication/sewerage channels and access to poles. The study showed that Silknet owns approximately 70% of the potentially usable infrastructure in the access to communication/sewerage channels market. The analysis was carried out in 5 major cities - Tbilisi, Batumi, Kutaisi, Rustavi and Poti, as well as other territories of Georgia, as a result of which it was determined that Silknet holds a dominant position in all of them. The market for access to communication poles was considered competitive, based on the analysis of the current situation in the market and due to the fact that access to electrical and outdoor lighting poles is also regulated by the Law of Georgia on Access to Infrastructure.
The wholesale markets for access to communication/sewerage channels are facing significant competition challenges, such as high barriers to entry, lack of competition, strengthening of the position of the dominant infrastructure owner, and ineffectiveness of the existing regulations.
In order to effectively regulate the market, the EU experts have provided the Communications Commission with action recommendations that include obligations of transparency and non-discrimination, as well as standardisation of the access procedure and means for ComCom to monitor the access process, and price regulations. These mechanisms constitute the best practices of the EU member states, which will contribute to the creation of a fair, competitive and predictable environment, increasing access to quality services, and developing the country's digital infrastructure.
The results of the second phase of the holistic study were presented to the representatives of telecom operators by the EU experts, together with the Communications Commission team. The meetings also focussed on the development of the margin squeeze test methodology and model, the draft amendment to the regulation on unbundling, and the analysis of the retail market for corporate fixed internet services. After receiving feedback from the companies, the Communications Commission will launch public administrative proceedings and make the relevant decisions.
The first stage of the holistic study was completed in 2024, as a result of which it was determined that both the fixed and mobile communications markets were uncompetitive and stagnating, and that Magticom was an operator with significant power in both markets for wholesale access. To this end, ComCom imposed additional obligations on the company.
In 2022, the Communications Commission, together with the experts of the European Union, with the funding of the European Union and within the framework of the assistance for the implementation of the Association Agreement between the European Union and Georgia (“AA Facility II”), started working on the holistic study of the Georgian telecom market. The project serves to enhance competition on the Georgian telecommunications market, bring the regulatory framework of Georgia closer to the European framework in accordance with the obligations under the Association Agreement, as well as provide diverse, high-quality and affordable services for consumers.
