Georgia - Telecoms, Mobile and Broadband - Statistics and Analyses
Georgia’s MagtiCom breaks into the quad play market
Georgia continues to develop its economy in the face of considerable challenges, not least being a fractured political relationship with Russia and the continuing downturn in the Russian economy which has negatively impacted on its own growth potential. There are also difficulties related to breakaway regions which have been recognised by Russia, and in which Russian telcos are active. However, there is potential for economic growth from closer ties to Europe, while new pipelines running across the territory may lessen Georgia’s dependence on Russia for oil and gas supplies.
The slow economic growth has impacted on the country’s telecom sector. Revenue from fixed-line voice services has fallen sharply, while revenue from the mobile sector has also fallen in the wake of intense competition compounded by the fall in messaging traffic as subscribers migrate to alternative OTT services. The overall market is largely propped up by the broadband sector, where the number of subscribers continues to increase steadily. The sharp growth in the number of fibre broadband connections has impacted on the DS segment as customers are migrated from copper to fibre networks. This development reflects the significant increase in investment in infrastructure in recent years, spurred by the government’s national broadband plan.
Since 2003, telecommunications has become one of the fastest growing sectors in the Georgian economy. The share of telecommunications in the country’s GDP reached a high of 7%, though it fell to about 5.6% for 2015.
Mobile penetration broached 130% by mid-2016. Further growth in mobile broadband is anticipated following the recent multi-spectrum auction, as well as the award of additional spectrum in the 800MHz band in 2016. Spectrum is being made available for LTE services, and the three MNOs are all investing to expand the reach and capabilities of their LTE infrastructures. In mid-2016 MagtiCom claimed that its LTE-A network provided 90% territorial coverage. Mobile networks are crucial for the provision of voice and data services given that fixed-line networks in many parts of the country remain outdated (particularly in rural and remote areas).
Mediafon Datapro awarded contract to manage number portability database;
MagtiCom offering fixed-line services following acquisition of the ISP Caucasus Online;
Turkcell submits bid for TeliaSonera’s 58.55% stake in Fintur Holdings;
Regulator awards spectrum in the 800MHz band to MagtiCom, which it now uses for LTE-A services;
Caucasus Online contracts TE SubCom to upgrade the Caucasus Cable system, to support data of over 9Tb/s;
MagtiCom claiming 90% geographic coverage with LTE-A services.
Market penetration rates in Georgia’s telecoms sector – 2016 (e)
Penetration of telecoms services:
Mobile SIM (population)
Companies mentioned in this report:
Caucasus Online, Georgia Online, United Telecom, Telecom Georgia, Egrisi, SaNet, SilkNet, Georgian Railway Telecom, Akhali Kselebi
Table of Contents
1. Executive summary
2. Key statistics
3. Country overview
4. Telecommunications market
4.1 Market analysis
5. Regulatory environment
5.1 Regulatory authority
5.3 Numbering changes
5.4 Number Portability (NP)
5.5 Licensing and auctions – background information
5.6 Illegal operations
5.7 Call termination
6. Fixed network operators
6.1 United Telecom (formerly Sakartvelos Elektrokavshiri)