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July 10, 2025 12:16

ComCom: Magticom’s Decision to Increase Tariffs is Unfounded

The decision by Magticom to increase the price of fixed internet services for up to half a million subscribers raises questions. According to Magticom, from 1 August 2025, the service tariff for the subscribers using 50 Mbps fixed internet or the internet + IPTV package will increase by GEL 3. According to ComCom, this change will affect 496,168 subscribers across Georgia. The company's tariff increase is particularly noteworthy given that high-speed internet prices in Georgia are already much higher than in the European countries. In order to protect consumer interests, the Communications Commission will examine the issue in accordance with the applicable legislation, including the Law of Georgia on Competition. In addition, the Commission will monitor the actions of other companies to see whether they will echo the announced changes by Magticom and decide to also increase tariffs.   

According to ComCom's calculations, if Magticom does lose any subscribers following the decision to increase tariffs, the company will receive additional GEL 1,159,874 each month, which will increase its annual income by an average of GEL 13,918,485 GEL. 

With regards to pricing, in 2024 the Communications Commission published a benchmarking study that compared the tariffs for the telecom services in Georgia with similar figures in 22 European Union member states and the United Kingdom. The analysis found that on the Georgian mobile and fixed markets, the prices of high-volume and high-speed services significantly exceeded the European average, while low-volume and low-speed services were similarly priced or cheaper than in the countries included in the study. Specifically, residential subscribers in Tbilisi paid 5% less for the popular 25 Mbps internet package than in Europe, while the figure in the regions was 17% lower. On the other hand, high-speed fixed internet packages were considerably more expensive that in the EU. Specifically, the price of the 100 Mbps internet package was 136% above the European average. 

Last year, the Communications Commission completed the first stage of the holistic study of the Georgian telecommunications sector, which identified Magticom as an operator with significant power both in the fixed and the mobile wholesale markets, as it enjoyed a significant advantage over other companies in terms of subscribers, infrastructure, and revenues. In order to improve competition on the market and provide consumers with a diverse choice and better service, ComCom imposed various obligations on Magticom, the enforcement of which is currently being actively pursued. 

It is also worth noting that last year, Magticom increased the speed of fixed internet for its customers “without any additional charge.” Specifically, it increased the speed of the 30 Mbps package to 50 Mbps, and the speed of the 50 Mbps package to 80 Mbps. Consequently, the 30 Mbps package was removed. As of today, subscribers who used to purchase the 30 Mbps package no longer have the choice of paying less for lower internet speed, and are forced to purchase the 50 Mbps package at an increased price, which significantly limits their choice.

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