Based on the comprehensive study of the mobile communications market and the conclusions of EU experts involved in the study, the Communications Commission recognised Magticom as an operator with significant market power. In order to rectify the uncompetitive environment on the market and facilitate the opening of the market, the Commission imposed three different types of access obligations, according to which the operator with significant market power will have to allow the interested operators to use its network or infrastructure against the payment of a certain fee. According to the experts involved in the study, this will improve the current situation on the market and prevent Georgian consumers from suffering due to a lack of choice or unfavourable conditions. 

More specifically, the unfavorable circumstances identified in the research are backed by the comparative price analysis conducted by ComCom, according to which the Georgian subscribers have to pay premium prices compared to their European counterparts, or contend with low-speed and low-volume services. Considering that the use of telecommunication services, and mobile internet in particular, has been steadily growing (14 GB in 2023, compared to 12 GB in 2022), this clearly illustrates how restrictive the Georgian mobile market is for subscribers. 

It is also noteworthy that in recent years, operators have implemented changes in retail tariffs in parallel with each other, meaning that a price change by one operator was soon followed by a similar action by another operator, with an almost identical percentage change. The experts therefore concluded that the market is not competitive, which deprives consumers of choice and creates restrictive conditions. 

The research also determined that there is no motivation to invest in new technologies and further implement them on the market. Georgian consumers are therefore constantly lagging behind the innovations introduced in the world. This is also evidenced by the fact that Georgian operators launched 3G and LTE services later than the EU countries, while 5G, which has been widely implemented in Europe for several years, has not yet been developed in Georgia. 

In light of all the identified problems, the EU experts involved in the study found that the Georgian market is characterised by low dynamism, lack of innovation and a lack of progress, and emphasised that in the absence of ex-ante regulation, this situation will not change and consumers will continue to be affected. To eliminate these challenges, the Communications Commission imposed three different access obligations on Magticom based on the research. 

The three main obligations set for Magticom are national roaming, co-location and mandatory access for MVNOs (mobile virtual network operators). National roaming will compel Magticom to allow operators who lack the appropriate infrastructure and coverage in certain parts of the country to use the Magti network to supply their customers with high-quality service. The co-location obligation will allow other operators to place their network infrastructure at the facilities owned by Magticom, allowing them to easily expand their network without large-scale investment, and to use Magticom’s electricity, cooling or security systems to provide their customers with improved services. As for the third obligation, it will allow MVNOs without their own network to enter the mobile market and start operating by using the Magticom network. These obligations will significantly increase competition on the market and create a variety of choices, improved quality and very favourable conditions for Georgian subscribers. In addition to the three main obligations, the Commission further outlined 5 specific obligations for Magticom in order to ensure fairness, transparency and non-discriminatory conditions for companies seeking access.

The decision of the Communications Commission will be reviewed in 3 years, and certain changes may be made depending on the market situation. 

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 comprehensive research project on 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. The comprehensive study was conducted over two years. Research of this magnitude has not been conducted on the Georgian telecom market before. The study conducted by the EU experts was also revised by the experts of TAIEX (EU Technical Assistance and Information Exchange Tool). At all stages of research over two years, the Commission ensured the involvement of Georgian telecom operators.