January 31, 2024 9:49

Kakha Bekauri: Magticom is Conducting a Feeble Campaign of Absurd Accusations Aimed at Intimidating the Independent Commission

The Chairman of the Communications Commission has responded to the absurd accusations made by Magticom. According to Kakha Bekauri, Magticom has failed to adapt to the successive steps taken ComCom for the purpose of opening the telecom market and improving competition. In order to cover up the problems in the market, the company is feebly trying to mislead the public by making absurd accusations and shifting the emphasis.

“The statement by Magticom, which calls on the Anti-Corruption Bureau to investigate my activities, contains absurd accusations. The feeble attempts by Magticom to shift the focus from the main problems to fictional topics are directly related to the activities and decisions of the Communications Commission that are aimed at improving competition in the telecom market. In this way, Magticom is trying to grossly interfere and influence the activities of the Communications Commission.

A possible motive for the open confrontation on the part of the company are the steps taken by the Communications Commission to open the market. These steps include a price study of mobile and fixed services, the results of which are alarming, as Georgian subscribers pay 136% more for fixed high-speed internet than their European counterparts, and 36% more for high-volume mobile services.  In order to eliminate these challenges and problems, the Communications Commission has been conducting a comprehensive study of the telecom sector for more than a year. All operators including Magticom have been involved in the research process. The results of the study conducted by European experts present a grim picture of the telecom market. Magticom is aware of these results and the Communications Commission’s intent to make effective decisions in accordance with the European legislation to improve the Georgian telecom market and provide consumers with the appropriate quality and price.

At present, the public is unaware of the findings of the comprehensive research, but Magticom is well aware of the documents and recommendations prepared by European experts, which emphasise that additional regulations ought to be imposed on Magticom in order to improve the market. The company is aware of the possible decisions of the Communications Commission that may impose new obligations on the company based on the recommendations of experts. Therefore, the company is trying to rudely interfere in the activities of the Communications Commission and influence its decisions, which I see as a feeble effort. Such absurd accusations shall affect the Commission's activities.

Regarding Magticom’s three absurd accusations, even though all questions have been answered numerous times before, I will once again emphasise the following:

1 – My ownership of shares in the company “Ori Nabiji” is fully consistent with the law. Specifically, issues relating to a commissioner’s conflicts of interest are regulated by the special laws “On National Regulatory Bodies” and “On Broadcasting,” while the law “On Conflict of Interest and Corruption in Public Service” is used in relation to a commissioner only in cases not covered by the special laws. According to the current legislation, the economic activities of a commissioner (be it ownership of shares, direct or indirect income, or other economic interest) are prohibited only in relation to the entities regulated by the Commission. Since “Ori Nabiji” is not regulated by ComCom, the ownership and management of the company’s shares does not constitute a conflict of interest for a commissioner. This issue has been studied in recent years, and the issue of compatibility with the law has never been raised by the appropriate bodies.

2 – The second accusation does not withstand any scrutiny, as the legal entity “Skhva Arkhi” is not regulated by the Communications Commission. Magticom could have verified this with the Commission's departmental register, which is publicly accessible on the Commission's web page. Thus, according to the law, a commissioner is not prohibited from owning shares or otherwise being active in the aforementioned company.

3 – With respect to the Media Academy, it is operating in accordance with the transparency standards of the Communications Commission. We have already responded publicly to the relevant questions, including about my wife’s involvement in one of the Media Academy projects. The “Masterclass” is an educational project, and Eka Beridze is sharing her journalistic experience and knowledge with active and rookie journalists free of charge. We have publicly shared information in this regard on more than one occasion. This can be easily verified by viewing my wife’s financial declaration, where no income from the Media Academy is recorded.

I can emphatically tell you that neither Magticom nor any authorised person can influence the activities and decisions of the Communications Commission with absurd accusations. We will continue to work on introducing European standards and making the telecom market in our country competitive and customer-oriented,” Kakha Bekauri says in his statement.

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