December 29, 2022 17:38

ComCom Extends Deadline for Mandatory MVNO Access Until 1 July 2023

The Communications Commission has postponed the introduction of regulations on the mandatory access of mobile virtual network operators by 6 months. Mobile operators Magticom, Silknet and Beeline must publish the offer for MVNOs wishing to access their networks by no later than 30 June 2023.

The Commission first made the decision regarding the mandatory access of MVNOs in 2019, but several circumstances have led to the postponement of the deadline for the aforementioned three companies. In particular, the changes to the Law of Georgia on Competition have made the law enforcement functions of the Commission more effective. Furthermore, the powerful operators have expressed their willingness to allow MVNOs access to their networks, while the relevant MVNOs have stated their interest and taken the necessary steps to access the networks. The Commission decided to observe these processes, allow the parties to hold negotiations based on mutual commercial interests, and enable the implementation of practical activities. To this end, the companies were given the deadline of 31 December 2022.

Following ComCom’s decision, an agreement was signed between Silknet and Eclectic regarding mobile network access. Eclectic subsequently launched operations under the brand name “Hallo.” As for the conduct of mutually beneficial conditional negotiations between network operators and companies wishing to gain network access, the Communications Commission is aware that companies that have openly expressed their interest in accessing the network operators' infrastructure since 2020 have not yet been able to obtain access. To this end, the MVNO Association made both a public and an official written appeal to the Communications Commission. The letter states that despite numerous attempts, negotiations with network operators are proceeding passively. Therefore, they asked the Commission not to cancel the decision on compulsory access. The Communications Commission will continue to monitor the negotiation process between MVNOs and network operators.

Furthermore, it should be noted that the Communications Commission, together with European experts, has initiated a full-fledged study of the telecommunications market in Georgia. As part of the study, the existing competition in the telecom market will be assessed, relevant markets will be determined and, if necessary, specific obligations will be determined for the operators with significant market power. The aim of the study is to remove barriers to entry into fixed and mobile service markets and increase competition. On the one hand, this will enable access to various telecom services, and on the other hand, it will give small companies the opportunity to develop services and create alternative communication offers, while the network operators will better utilise the capabilities of their own networks, thereby earning additional income.

Due to its scale, the study will be implemented in several stages. The first phase will involve analysing the competitive environment on the fixed and mobile communications retail market. During the second phase, operators with significant market power on the respective markets of fixed and mobile services will be identified, and specific obligations will be defined in accordance with the legislation.

The Communications Commission reiterates that the removal of entry barriers to the telecom market for MVNOs and enabling access to the “Bitstream” segment on the fixed services market is of utmost importance for creating a competitive environment and accessible services on the retail services market, as well as for utilising innovative services and niche segments. In turn, the decision of the Communications Commission will enable small and medium-sized companies operating in the telecom sector to grow into alternative service operators and increase the potential of telecom services, while creating diverse and affordable offers for Georgian consumers.

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