Based on the comprehensive study of mobile services market commissioned by ComCom, EU experts found that Magticom is an operator with significant market power (SMP), as it enjoys considerable advantage over its competitors in terms of financial resources, user numbers and infrastructure. The experts believe that in order to improve the uncompetitive situation on the market, Magticom must allow all interested companies free access to its infrastructure. To this end, the regulator must impose three different obligations on Magticom. 

One such obligation is national roaming, which compels an SMP operator to allow interested operators who lack the appropriate infrastructure and coverage in certain parts of the country to use its infrastructure for a certain fee. This allows the users of other operators who are unable to receive a signal in some locations due to lack of coverage to automatically switch to the Magti network, as is the case with international roaming. 

On the one hand, this allows smaller operators to provide customers mobile services across the whole country without having to invest significant funds, while on the other hand, it is an additional source of income for large operators. 

The second obligation which, according to the experts, ought to be imposed on the SMP operator is the co-location obligation, which allows a mobile service provider to place its network infrastructure (network management equipment, transmitters, mobile base station receivers) at the facilities owned by other operators (towers, rooftop structures or buildings housing equipment). This allows operators to easily expand their network without large-scale investment and use the larger operator’s electricity, ventilation and security systems that would normally require substantial expenditure. Once again, this setup benefits both parties, while the ultimate beneficiaries are consumers who receive improved services. 

The third obligation for Magticom is to allow access for mobile virtual network operators (MVNOs) to its network. This will allow companies without their own network to enter the mobile market without obstacles and start operating against the payment of a network access fee alone. Allowing access to MVNOs will significantly reduce the market entry barriers and enable the emergence of new players, which will in turn enhance competition and create a variety of offers for the consumers. 

According to the experts, a total of five specific obligations must be imposed on the SMP operator for all three types of access. If the Communications Commission were to concur with the EU experts and recognise Magticom as an operator with significant market power, the company will be obliged to allow all interested operators access to its network and publish an invitation offer with detailed technical and commercial terms for more transparency, providing the interested operators information about the terms of access. Furthermore, the company will be obliged to offer all operators non-discriminatory terms with a cost-oriented fee, to ensure that the interested operators will be able to conduct their activities on commercially attractive terms. In addition, Magticom will be required to present a separate breakdown of costs, which will allow the Commission to monitor the operations and ensure that the operator does not force a competitor out of the market through cross-subsidisation, which involves lowering the price of one product at the expense of other services. 

In 2022, ComCom launched a comprehensive telecom market study as part of the EU-funded Association Agreement Facility project. The study involved EU experts and was designed to enhance competition on the Georgian telecom market, provide consumers with diverse and affordable high-quality services, and bring the Georgian regulatory framework closer to the EU framework in accordance with the country’s obligations under the Association Agreement. The comprehensive study was carried out over a period of two years, and was unprecedented for the Georgian telecom market in its scale. The study was revised by experts from the EU Technical Assistance and Information Exchange (TAIEX) instrument.