The Communications Commission says EU experts are calling for regulation of Georgia’s “uncompetitive” fixed-line internet market

An investigation by European Union experts has found that Georgia’s fixed-line Internet market is “uncompetitive,” has “negative consequences” for consumers and that changing circumstances will require regulation, the National Communications Commission said on Friday.

The study identified mobile operator MagtiCom as a major player, leading to requirements for the company to allow market access to other operators in order to create a “more diverse and favorable” customer environment similar to that in Europe.

The commission said its investigation showed that high-speed, high-quality internet services in the country are “significantly more expensive” than in Europe. The authority added that the optical internet speed of 100 MB/s in Georgia was 136 percent higher. more expensive than the average price of a similar service in European countries in 2022.

The authority mentioned that Georgian operators, in particular MagtiCom, had a significantly high profitability rate, with the company reporting an EBITDA margin – an alternative measure of profitability to net income – of 75 percent in 2022 compared to an average of 35 percent for European operators .

The conclusion drawn from these findings is that the Georgian fixed broadband market is characterized by a restrictive and unfavorable user environment. “Experts suggest that regulatory intervention by the Commission could help eliminate barriers to entry, thereby improving market dynamics and competition, leading to better services, lower prices and greater choice for consumers,” the body said.

The investigation was conducted in cooperation with the EU and was financed by the bloc in support of the implementation of the Association Agreement signed with Georgia in 2014.