Georgia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 22 Sep 2020 Update History

Report Pages: 125

Analyst: Henry Lancaster

Contact BuddeComm

Purchase this Report

Summary
Table Of Contents

Georgia sets in train 5G roadmap

The telecommunications sector remains one of the fastest growing areas of the Georgian economy, accounting for between 5% and 7% of GDP. There is still room for further growth, with penetration rates in the mobile and broadband segments relatively low by the standards of European benchmark countries. Growth in mobile broadband has been steady, supported by the auction of spectrum in the 800MHz and 2100MHz bands which has enabled the network operators to expand the reach and capabilities of LTE services. LTE services now cover the vast majority of the population. The regulator has also developed a strategy to introduce 5G, incorporating elements such as coverage obligations, network access, and the possibility of a joint venture to build the network. Spectrum considered for 5G is in line with European guidelines.

The country still faces economic challenges, which have impacted on the telecom sector. Revenue from fixed-line voice services has fallen sharply, while revenue from the mobile sector has been under stress from 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 DSL segment as customers are migrated from copper to fibre networks. DSL now accounts for only a small proportion of fixed broadband connections. This development reflects the significant investment in infrastructure in recent years, spurred by the government’s national broadband plan. Much of the investment in fixed-line infrastructure is earmarked for fibre networks, which will provide backhaul for future 5G services.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

Fixed-broadband sector continues to migrate from copper to fibre;
MVNOs to be able to launch services from February 2021;
MagtiCom closes down its CDMA service;
Report update includes the regulator’s annual report for 2019, market statistics to March 2020, assessment of the global impact of COVID-19 on the telecoms sector, recent market developments.

Companies mentioned in this report:

Caucasus Online, Georgia Online, United Telecom, Telecom Georgia, Egrisi, SaNet, SilkNet, Georgian Railway Telecom, Akhali Kselebi

Key statistics
Country overview
COVID-19 and its impact on the telecom sector

Economic considerations and responses
Mobile devices
Subscribers
Infrastructure

Telecommunications market

Market analysis

Regulatory environment

Regulatory authority
Fixed-line developments

Privatisation
Number Portability (NP)
Licensing and auctions
Illegal operations
Call termination

Mobile network developments

Unrecognised operators
Spectrum auctions
Mobile Number Portability (MNP)

Mobile market

Market analysis
Mobile statistics
Mobile infrastructure

5G
4G/LTE
3G

Mobile data

SMS and MMS

Mobile broadband
Mobile commerce

M-banking

Major mobile operators

Operator statistics
Geocell
MagtiCom
VEON Georgia
SilkNet
MVNOs

Fixed-line broadband market

Introduction and statistical overview
Broadband statistics
Fixed-line broadband technologies

Digital Subscriber Line (DSL) networks
Fibre-to-the-Premises (FttP) networks
Other fixed broadband services

Fixed network operators

SilkNet
Telecom Georgia (Sakartvelos Telekomi)
New Net Telecommunications (Akhali Kselebi)
Egrisi
Georgian Railway Telecom (GRT)
MagtiCom

Telecommunications infrastructure

Overview of the national telecom network
International infrastructure

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities - Georgia – 2020 (e)
Table 2 – Change in Georgia’s GDP growth rate – 2012 – 2021
Table 3 – Growth in retail and wholesale telecom revenue – 2013 – 2019
Table 4 – Development of telecom sector investment – 2016 – 2019
Table 5 – Distribution of telecom investment by sector – 2016 – 2019
Table 6 – Change in the number of fixed number portings – 2011 – 2020
Table 7 – Change in the number of mobile number portings – 2011 – 2020
Table 8 – Growth in the number of mobile subscribers and penetration – 2010 - 2025
Table 9 – Change in mobile market retail revenue – 2010 – 2020
Table 10 – Fall in mobile market voice revenue – 2013 – 2020
Table 11 – Change in mobile voice traffic – 2010 – 2020
Table 12 – Decline in SMS traffic – 2010 – 2020
Table 13 – Decline in SMS revenue – 2010 – 2020
Table 14 – Change in MMS traffic – 2010 – 2020
Table 15 – Fall in MMS revenue – 2010 – 2020
Table 16 – Growth in the number of active mobile broadband subscribers and penetration – 2010 - 2025
Table 17 – HSPA/EVDO internet subscribers – 2010 – 2019
Table 18 – Development of CDMA and LTE internet subscribers – 2012 – 2020
Table 19 – Growth in the number of standard mobile internet subscribers – 2013 – 2020
Table 20 – Growth in the number of standard mobile internet subscribers by operator – 2013 – 2020
Table 21 – Growth in mobile internet traffic – 2010 – 2019
Table 22 – Proportion of mobile internet traffic by technology – 2015 – 2019
Table 23 – Development of mobile internet traffic by technology – 2015 – 2019
Table 24 – Change in mobile market share of subscribers by operator – 2010 – 2020
Table 25 – Development of average mobile ARPU – 2013 – 2019
Table 26 – Development of mobile ARPU by operator – 2010 – 2020
Table 27 – Development of mobile revenue by operator – 2013 – 2020
Table 28 – Growth in the number of MagtiCom’s mobile subscribers – 2010 – 2020
Table 29 – Growth in the number of VEON Georgia’s mobile subscribers – 2010 – 2020
Table 30 – Growth in the number of VEON Georgia’s standard mobile internet subscribers – 2010 – 2020
Table 31 – Growth in the number of SilkNet’s mobile subscribers – 2012 – 2020
Table 32 – Share of fixed/ fixed-wireless access by technology – 2017 – 2019
Table 33 – Development of fixed broadband ARPU by customer type – 2013 – 2019
Table 34 – Difference in fixed broadband ARPU by capital and regions – 2016 – 2019
Table 35 – Development of fixed broadband ARPU by technology – 2013 – 2019
Table 36 – Change in the proportion of fixed broadband connections by data rate – 2013 - 2019
Table 37 – Growth in the number of fixed-line broadband subscribers and penetration – 2010 - 2025
Table 38 – Growth in fixed broadband market revenue – 2010 – 2020
Table 39 – Change in the number of fixed broadband subscribers by major operator – 2013 – 2020
Table 40 – Fall in the number of DSL subscribers – 2008 – 2020
Table 41 – Growth in the number of MagtiCom’s fixed broadband subscribers – 2012 – 2020
Table 42 – Development of MagtiCom’s internet revenue – 2013 – 2020
Table 43 – Growth in the number of SilkNet’s internet subscribers – 2012 – 2020
Table 44 – Development of SilkNet’s internet revenue – 2013 – 2020
Table 45 – Growth in the number of FttP subscribers – 2010 – 2020
Table 46 – Change in the number of Wi-Fi subscribers – 2010 – 2020
Table 47 – Fall in the number of fixed line subscribers by major operator – 2010 – 2020
Table 48 – Decline in the number of fixed lines in service and penetration – 2010 - 2025
Table 49 – Decline in the number of fixed-line subscribers by technology – 2013 – 2020
Table 50 – Decline in fixed-line revenue by technology – 2010 – 2020
Table 51 – Decline in fixed-line voice traffic by technology – 2010 – 2020
Table 52 – Growth in international internet bandwidth capacity – 2009 - 2018
Table 53 – Historic - Mobile subscribers and penetration rate – 1999 - 2009
Table 54 – Historic - Geocell subscribers – 2002 - 2018
Table 55 – Historic - MagtiCom’s mobile subscribers – 2007 – 2009
Table 56 – Historic - VEON Georgia’s mobile subscribers – 2007 – 2009
Table 57 – Historic - Fixed lines in service, annual change and penetration – 1995 - 2009
Table 58 – Historic - Internet users and penetration rate – 1996 - 2016
Table 59 – Historic - Fixed-line internet subscribers and penetration – 2001 - 2009
Table 60 – Historic - household internet penetration – 2005 - 2015
Table 61 – Historic - fixed broadband subscribers and penetration – 2001 - 2009
Table 62 – Historic - Fibre broadband providers – 2010 – 2016
Table 63 – Historic - WiMAX subscribers – 2010 – 2017
Table 64 – Historic - Telecom market revenue – 2010 - 2016
Table 65 – Historic - International internet bandwidth capacity – 2001 - 2009

List of Charts

Chart 1 – Growth in retail and wholesale telecom revenue – 2013 – 2019
Chart 2 – Change in the number of fixed number portings – 2011 – 2020
Chart 3 – Change in the number of mobile number portings – 2011 – 2020
Chart 4 – Growth in the number of mobile subscribers and penetration – 2010 - 2025
Chart 5 – Change in mobile market retail revenue – 2010 – 2020
Chart 6 – Fall in mobile market voice revenue – 2013 – 2020
Chart 7 – Change in mobile voice traffic – 2010 – 2020
Chart 8 – Decline in SMS traffic – 2010 – 2020
Chart 9 – Decline in SMS revenue – 2010 – 2020
Chart 10 – Decline in MMS traffic – 2010 – 2020
Chart 11 – Decline in MMS revenue – 2010 – 2020
Chart 12 – Growth in the number of active mobile broadband subscribers and penetration – 2009 - 2024
Chart 13 – Development of CDMA and LTE internet subscribers – 2012 – 2020
Chart 14 – Growth in the number of standard mobile internet subscribers – 2013 – 2020
Chart 15 – Growth in the number of standard mobile internet subscribers by operator – 2013 – 2020
Chart 16 – Development of mobile internet traffic by technology – 2015 – 2019
Chart 17 – Change in mobile market share of subscribers by operator – 2010 – 2020
Chart 18 – Development of mobile ARPU by operator – 2010 – 2020
Chart 19 – Development of mobile revenue by operator – 2013 – 2020
Chart 20 – Growth in the number of MagtiCom’s mobile subscribers – 2009 – 2020
Chart 21 – Growth in the number of VEON Georgia’s mobile subscribers – 2009 – 2020
Chart 22 – Growth in the number of SilkNet’s mobile subscribers – 2012 – 2020
Chart 23 – Development of fixed broadband ARPU by customer type – 2013 – 2019
Chart 24 – Development of fixed broadband ARPU by technology – 2013 - 2019
Chart 25 – Change in the proportion of fixed broadband connections by data rate – 2013 - 2019
Chart 26 - Growth in the number of fixed-line broadband subscribers and penetration – 2010 - 2025
Chart 27 – Growth in fixed broadband market revenue – 2010 – 2020
Chart 28 – Change in the number of fixed broadband subscribers by major operator – 2013 – 2020
Chart 29 – Fall in the number of DSL subscribers – 2008 – 2020
Chart 30 – Growth in the number of MagtiCom’s fixed broadband subscribers – 2012 – 2020
Chart 31 – Development of MagtiCom’s internet revenue – 2013 – 2020
Chart 32 – Growth in the number of SilkNet’s internet subscribers – 2012 – 2020
Chart 33 – Development of SilkNet’s internet revenue – 2013 – 2020
Chart 34 – Growth in the number of FttP subscribers – 2010 – 2020
Chart 35 – Change in the number of Wi-Fi subscribers – 2010 – 2020
Chart 36 – Fall in the number of fixed line subscribers by major operator – 2010 – 2020
Chart 37 - Decline in the number of fixed lines in service and penetration – 2010 - 2025
Chart 38 – Decline in the number of fixed-line subscribers by technology – 2013 - 2020
Chart 39 – Decline in fixed-line revenue by technology – 2010 – 2020
Chart 40 – Decline in fixed-line voice traffic by technology – 2010 – 2020

List of Exhibits

Exhibit 1 – United Telecom’s Tbilisi network infrastructure

Related Reports

Purchase this Report

Contact BuddeComm

Share this Report

Purchase with Confidence

Paul is by far, the leading telecommunications analyst in Australia. Not only is his company's research first class and timely, it is superbly contextual to the complexities of today's modern media and communications technology. He is always extremely generous in sharing his knowledge with others and has a great ability to connect people together and be a thought leader on topics of National interest such as the NBN, FttH and Smart Grids.

Bruce Duyshart, Director Strategic Technology, Lend Lease

Research Methodology

BuddeComm's strategic business reports contain a combination of both primary and secondary research statistics, analyses written by our senior analysts supported by a network of experts, industry contacts and researchers from around the world as well as our own scenario forecasts.

For more details, please see:

Research Methodology

More than 4,000 customers from 140 countries utilise BuddeComm Research

Are you interested in BuddeComm's Custom Research Service?

Hot Topics

News & Views

Have the latest telecommunications industry news delivered to your inbox by subscribing to Paul's FREE weekly News & Views.

Georgia Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Georgia sets in train 5G roadmap

Key developments:

Companies mentioned in this report:

Key statistics

Country overview

COVID-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

Purchase with Confidence

Research Methodology

Hot Topics

News & Views