“The uncompetitive Georgian mobile communications market is damaging for the consumers.” Such is the conclusion drawn by the EU experts from the comprehensive study of the mobile communications market commissioned by ComCom. According to the experts, this situation can be rectified by imposing specific obligations on the operator with significant market power in the shape of Magticom. This includes the obligation to allow all interested companies access to its own network in order to enhance competition and allow the operators to provide consumers with high-quality services across the whole country without obstacles. 

The unfavorable environment for consumers was also clearly reflected in the comparative price analysis conducted by the Communications Commission, according to which Georgian subscribers have to pay premium prices for high-speed and high-volume services compared to European consumers, or to purchase low-speed and low-volume services. The recent increase in the use of telecom services, and mobile internet services in particular (from 12 GB in 2022 to 14 GB in 2023), clearly shows how restrictive the Georgian mobile market is for subscribers. 

It is also worth noting that operators have implemented changes in retail tariffs in parallel with each other in recent years. Specifically, a price change by one operator was soon followed by a similar action by another operator, with an almost identical percentage change. Thus, experts argue that the market is uncompetitive, which deprives consumers of choice and creates restrictive conditions. 

Furthermore, the study notes the lack of motivation to invest in implementing new technologies on the Georgian market, ensuring that Georgian consumers are constantly lagging behind the innovations implemented globally. For example, Georgian operators launched 3G and LTE services later than their European counterparts, while the 5G technology, which has been widely available in Europe for several years, has not been developed in Georgia yet. 

Based on all the identified challenges, the experts concluded that the Georgian market is characterised by low dynamism, scarcity of innovations and lack of progress. They emphasised that in the absence of ex-ante regulation, this situation will not change and consumers will continue to be disadvantaged. To overcome these challenges, the experts identified the need to impose specific obligations on the operator with significant market power.  

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.