The Communications Commission, together with European experts, presented the results of the first phase of comprehensive telecom market study to representatives of the telecom sector, the EU Attaché to Georgia, the EU-Georgia Association Agreement Facility and the European Investment Bank.

During the first phase of research in the telecom sector, the experts studied the retail and wholesale markets of mobile and fixed broadband services. Comprehensive research of the telecommunications market, which the Communications Commission is carrying out together with European experts, identified a need for preliminary (ex-ante) regulation on specific fixed and mobile service markets in Georgia.

Based on the results of the study, wholesale markets such as the wholesale broadband internet market, the Bitstream segment, access to physical infrastructure, internet transit markets and the relevant wholesale access market for mobile services should undergo assessment for regulatory purposes. Based on the recommendation of the European Commission, the next phase will involve identifying the operators with significant market power and the determining the appropriate obligations that will remove market entry barriers and facilitate the development of small and medium-sized operators and competition growth. This will have a positive effect on the availability of various services for end users. 

The first phase of research identified the relevant retail markets for fixed broadband services, which includes offers both for natural persons and legal entities. Prospective analysis of the development trends on the fixed broadband market, the market share dynamics, the competition and the obstacles for market entry revealed that the aforementioned retail market is not sufficiently competitive, and it will be hard to develop effective competition without ex-ante regulation of the wholesale segment. Thus, it was established that in order to achieve effective competition in the segment of fixed services, which in turn provides a wide choice of high-quality broadband services to the end user, it is necessary to evaluate the access to physical infrastructure and wholesale broadband services (Bitstream and internet transit markets). 

The study also assessed the following mobile retail services: voice, SMS and mobile internet. According to the results, the market shares of mobile service providers in Georgia remain unchanged, while the range of offers and the readiness of network operators to effectively develop the network resources is notably insufficient. Based on the analysis, in order to strengthen the competition in the retail market of mobile services, it is necessary to conduct an in-depth study of the relevant wholesale markets and, if necessary, determine a proportional and effective regulatory framework. 

The study also assessed the wholesale mobile network access segment and identified the need for ex-ante regulation on this market.  

The Communications Commission, together with European experts, initiated a comprehensive study of the telecom sector at the end of last year. The aim of the study is to remove entry barriers on the fixed and mobile service markets and increase competition. The project will identify the operators with significant market power on the telecom markets, and determine the appropriate regulatory framework. On the one hand, this will enable access to various telecommunication services, while on the other hand, it will give small companies the opportunity to enhance their activities and create alternative communication offers.

Together with the Communications Commission, the project is being implemented by Croatian, Belgian, Slovenian and British experts from the EU-Georgia Association Agreement Facility. Work on the next phase of the comprehensive study has already begun. The Communications Commission will inform the stakeholders about the results during each phase.