“The decision taken by the Communications Commission is a step towards creating a more competitive market,” according to the head of the EU expert group involved in the comprehensive study of the fixed broadband market commissioned by ComCom, Domagoj Jurjevic. 

According to Mr. Jurjevic, although the research was carried out in accordance with the EU market analysis methodology and best practices, all findings were based on the data obtained from the Georgian telecom market. The EU expert pointed out that Georgian consumers are mainly using low-speed internet due to the lack of competition on the market. The analysis found that Magticom is an operator with significant market power, and determined the need for ex-ante regulation in order to facilitate development of competition on the retail market.

“According to the comprehensive study, which is based on the market analysis methodology of the European Union and the Communications Commission, as well as the data obtained from the Georgian market, we found that the level of competition on the retail market is unsatisfactory and damaging for the Georgian end users. For example, the majority of the Georgian population uses low-speed and low-quality internet. We found that Magticom is an operator with significant market power. According to the EU rules and ComCom’s methodology, such operators are subject to ex-ante regulation. Examples from other European countries show that such regulations lead to an improvement of the competitive environment on the market. The obligations imposed on the dominant operator will help us solve the problems identified during the market research. It is necessary for ComCom to impose regulations in order to enhance competition and provide Georgian consumers with more choice,” Domagoj Jurjevic stated.