The Role of Telecom in the Development of the Banking Sector and the Digital Economy

Head of the Market Regulation Department of the Communications Commission, Ekaterine Sichinava, took part in an event organised by the National Bank of Georgia. The event, titled “Development of Financial Technologies: Challenges and Opportunities,” served as a forum for discussion and sharing of experiences among the representatives of various sectors. 

The event included a panel session on the “Effects of Key Stakeholder Collaboration,” where the ComCom representative focussed on the role of the telecom sector in developing the digital economy and the banking systems, and talked about ComCom's initiatives and the importance of the regulatory environment: “The development of telecom services leads to an increase in the number of users of digital financial services. Therefore, the development of telecom infrastructure is of critical importance. It forms the basis for the development of digital services and a means of delivering them to consumers. It is therefore important to develop the investment environment in the sector and create a healthy regulatory environment so that the increased and service-based competition can ensure the effective management of the digital transformation process,” Ms. Sichinava stated, noting that tangible progress in this process is ensured by factors such as the availability of 5G, optical technologies and satellite connections, as well as the development of digital skills among users, which the Communications Commission is actively working on. 

During the discussion, Eka Sichinava also highlighted the role of mobile virtual network operators (MVNOs) in the development of financial services: “As a rule, MVNOs are not focused on replicating telecom services, but on developing niche services. In this regard, the development of financial services holds the leading position. Within the framework of the holistic study of the telecom market carried out by the Communications Commission, the decisions taken last year will ensure the opening of the market and the removal of barriers to entry for mobile virtual operators.” 

Additionally, the ComCom representative discussed the importance of mobile virtual network operators in the context of the country's transformation into a digital hub and emphasised that Georgia can act as a digital transit corridor between Europe and Asia, and that the Communications Commission is starting to explore the possibilities of developing MVNOs for this very purpose: “Recognizing the importance of creating new opportunities in the ongoing process of digital transformation, the Communications Commission, with the support of the World Bank, is launching a study of the development opportunities of mobile virtual operators, which will identify the areas in which new model operators can develop in Georgia against the backdrop of the development of fintech, the digital economy and digital services,” Ms. Sichinava stated. 

The discussions held during the event once again demonstrated the importance of cooperation between sectors in terms of the development of digital and customer-oriented services.