Georgia - Telecoms, Mobile and Broadband

Georgia's telecom sector has been attempting for many years to overcome the decades of under-investment in its fixed-line infrastructure during the Soviet era. Concerted efforts to privatise state-owned enterprises and open up the telecom market have been mostly successful, with a large number of operators now competing in both the fixed-line and the mobile segments. More needs to be done, however, to give investors the confidence to enter a market that has barely moved in terms of revenue growth over the last decade, and where regulatory overreach has sometimes come perilously close to arresting further development.

Georgia's government moved fast following the collapse of the Soviet Union to liberalise the country's telecom market. This resulted in a relatively high number of operators competing in the under-developed fixed-line segment as well as in the emerging mobile market. For all that, both segments remain dominated by just a few companies, with SilkNet and MagtiCom holding the lion's share.

The mobile and mobile broadband segments have both demonstrated solid growth in 2021, to date. This upturn follows a significant contraction in subscriber numbers as well as revenue during 2020 due to the Covid-19 crisis. The pullback was roughly in line with Georgia's drop in GDP for that year.

The pandemic also put a restraint on telecom sector investment in 2020, down 25% overall on the previous year. Funding has, however, continued to flow into mobile ventures, with the MNOs ploughing ahead with their preparations for 5G. That's despite there yet being little apparent appetite or demand for higher-speed services; relatively low mobile data consumption levels on existing 4G LTE networks means the business case for rolling out 5G services is difficult to make.

This 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.

Key developments:

VEON Georgia signs a $10 million deal with Nokia to upgrade its 4G mobile network in readiness for 5G, while MagtiCom starts 5G trials using four different vendors.

Azerbaijan's Neqsol Holdings completes its takeover of Caucasus Online's wholesale business following the resolution of a lengthy dispute with the Georgian National Communications Commission (GNCC).

SilkNet rolls out a gigabit LTE network in Tbilisi and Batumi.

Georgia's MNOs each indicate their readiness to accept MVNOs on their networks.

Companies mentioned in this report:

SilkNet, MagtiCom, VEON Georgia, Caucasus Online, Akhtali, CGC, Telecom Georgia, New Net Telecommunications, Neqsol Holdings, MegaFon.

Key statistics

Country overview

Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Regulatory environment

Regulatory authority
Fixed-line developments
- Privatisation
- Number Portability (NP)
- Licensing and auctions
- Call termination
Mobile network developments
- Unrecognised operators
- Spectrum auctions
- Mobile Number Portability (MNP)

Mobile market

Mobile statistics
Mobile infrastructure
- 5G
- 4G/LTE
- 3G
Mobile data
- SMS and MMS
Major mobile operators
- MagtiCom
- SilkNet
- VEON Georgia (Mobitel)
- MVNOs
Mobile broadband
Mobile commerce
- M-banking

Fixed-line broadband market

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

Fixed network market

Major network operators
SilkNet
MagtiCom
New Net Telecommunications (Akhali Kselebi)
Telecom Georgia (Sakartvelos Telekomi)

Telecommunications infrastructure

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 - 2021 (e)
Table 2 - Change in Georgia's GDP growth rate - 2012 - 2021
Table 3 - Growth in retail and wholesale telecom revenue (GEL million) - 2013 - 2020
Table 4 - Development of telecom sector investment - 2016 - 2020
Table 5 - Distribution of telecom investment by sector - 2016 - 2020
Table 6 - Change in the number of fixed number portings - 2011 - 2019
Table 7 - Change in the number of mobile number portings - 2011 - 2019
Table 8 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Table 9 - Change in mobile voice traffic - 2010 - 2021
Table 10 - Fall in mobile market voice revenue - 2010 - 2021
Table 11 - Change in mobile market retail revenue - 2010 - 2021
Table 12 - Decline in SMS traffic - 2010 - 2020
Table 13 - Decline in SMS revenue - 2010 - 2020
Table 14 - Change in mobile market share of subscribers by operator - 2011 - 2021
Table 15 - Development of mobile revenue by operator (GEL million) - 2010 - 2021
Table 16 - Development of average mobile ARPU - 2010 - 2021
Table 17 - Development of mobile ARPU by operator (GEL per month) - 2010 - 2021
Table 18 - Growth in the number of MagtiCom's mobile subscribers - 2011 - 2021
Table 19 - Growth in the number of SilkNet's mobile subscribers - 2012 - 2021
Table 20 - Growth in the number of VEON Georgia's mobile subscribers - 2011 - 2021
Table 21 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Table 22 - Growth in the number of standard mobile internet subscribers by operator - 2010 - 2021
Table 23 - Growth in mobile internet traffic - 2010 - 2020
Table 24 - Proportion of mobile internet traffic by technology - 2015 - 2020
Table 25 - Growth in the number of fixed-line broadband subscribers and penetration - 2011 - 2026
Table 26 - Change in the number of fixed broadband subscribers by major operator - 2010 - 2021
Table 27 - Growth in fixed broadband market revenue - 2010 - 2021
Table 28 - Development of fixed broadband ARPU by customer type (GEL per month) - 2013 - 2020
Table 29 - Difference in fixed broadband ARPU by capital and regions (GEL per month) - 2016 - 2020
Table 30 - Share of fixed/ fixed-wireless access by technology - 2010 - 2021
Table 31 - Change in the proportion of fixed broadband connections by data rate - 2013 - 2020
Table 32 - Fall in the number of DSL subscribers - 2011 - 2021
Table 33 - Growth in the number of FttP subscribers - 2010 - 2021
Table 34 - Growth in the number of MagtiCom's fixed broadband subscribers - 2010 - 2021
Table 35 - Development of MagtiCom's internet revenue (GEL million) - 2010 - 2021
Table 36 - Growth in the number of SilkNet's internet subscribers - 2010 - 2021
Table 37 - Development of SilkNet's internet revenue - 2010 - 2021
Table 38 - Change in the number of Wi-Fi subscribers - 2010 - 2021
Table 39 - Decline in the number of fixed lines in service and penetration - 2011 - 2026
Table 40 - Decline in fixed-line revenue by technology (GEL million) - 2010 - 2021
Table 41 - Change in the number of fixed-line subscribers by technology - 2010 - 2021
Table 42 - Decline in fixed-line voice traffic by technology (million minutes) - 2010 - 2021
Table 43 - Change in the number of fixed line subscribers by major operator - 2010 - 2020
Table 44 - Growth in international internet bandwidth capacity - 2010 - 2020
Table 45 - Historic - Mobile subscribers and penetration rate - 1999 - 2010
Table 46 - Historic - Geocell subscribers - 2002 - 2018
Table 47 - Historic - MagtiCom's mobile subscribers - 2007 - 2010
Table 48 - Historic - VEON Georgia's mobile subscribers - 2007 - 2010
Table 49 - Historic - Fixed lines in service, annual change and penetration - 1995 - 2010
Table 50 - Historic - Internet users and penetration rate - 1996 - 2016
Table 51 - Historic - Fixed-line internet subscribers and penetration - 2001 - 2010
Table 52 - Historic - household internet penetration - 2005 - 2015
Table 53 - Historic - fixed broadband subscribers and penetration - 2001 - 2010
Table 54 - Historic - Fibre broadband providers - 2010 - 2016
Table 55 - Historic - WiMAX subscribers - 2010 - 2017
Table 56 - Historic - Telecom market revenue (GEL million) - 2010 - 2016
Table 57 - Historic - International internet bandwidth capacity - 2001 - 2010
Table 58 - Historic - Fall in the number of DSL subscribers - 2008 - 2010

List of Charts

Chart 1 - Growth in retail and wholesale telecom revenue - 2013 - 2020
Chart 2 - Change in the number of fixed number portings - 2011 - 2019
Chart 3 - Change in the number of mobile number portings - 2011 - 2019
Chart 4 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Chart 5 - Change in mobile voice traffic - 2010 - 2021
Chart 6 - Fall in mobile market voice revenue - 2010 - 2021
Chart 7 - Change in mobile market retail revenue - 2010 - 2021
Chart 8 - Decline in SMS traffic - 2010 - 2020
Chart 9 - Decline in SMS revenue - 2010 - 2020
Chart 10 - Change in mobile market share of subscribers by operator - 2011 - 2021
Chart 11 - Development of mobile revenue by operator - 2010 - 2021
Chart 12 - Development of mobile ARPU by operator - 2010 - 2021
Chart 13 - Growth in the number of MagtiCom's mobile subscribers - 2011 - 2021
Chart 14 - Growth in the number of SilkNet's mobile subscribers - 2012 - 2021
Chart 15 - Growth in the number of VEON Georgia's mobile subscribers - 2011 - 2021
Chart 16 - Growth in the number of active mobile broadband subscribers and penetration - 2011 - 2026
Chart 17 - Growth in the number of standard mobile internet subscribers by operator - 2010 - 2021
Chart 18 - Growth in the number of fixed-line broadband subscribers and penetration - 2011 - 2026 -
Chart 19 - Change in the number of fixed broadband subscribers by major operator - 2010 - 2021
Chart 20 - Growth in fixed broadband market revenue - 2010 - 2021
Chart 21 - Development of fixed broadband ARPU by customer type - 2013 - 2020
Chart 22 - Change in the proportion of fixed broadband connections by data rate - 2013 - 2020
Chart 23 - Fall in the number of DSL subscribers - 2011 - 2021
Chart 24 - Growth in the number of FttP subscribers - 2010 - 2021
Chart 25 - Growth in the number of MagtiCom's fixed broadband subscribers - 2010 - 2021
Chart 26 - Development of MagtiCom's internet revenue - 2010 - 2021
Chart 27 - Growth in the number of SilkNet's internet subscribers - 2010 - 2021
Chart 28 - Development of SilkNet's internet revenue - 2010 - 2021
Chart 29 - Change in the number of Wi-Fi subscribers - 2010 - 2021
Chart 30 - Decline in the number of fixed lines in service and penetration - 2011 - 2026
Chart 31 - Decline in fixed-line revenue by technology - 2010 - 2021
Chart 32 - Change in the number of fixed-line subscribers by technology - 2010 - 2021
Chart 33 - Decline in fixed-line voice traffic by technology - 2010 - 2021
Chart 34 - Change in the number of fixed line subscribers by major operator - 2010 - 2020

List of Exhibits

Exhibit 1 - United Telecom's Tbilisi network infrastructure

Georgia - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

Georgia telecom sector's growth stymied by weak demand

Key developments:

Companies mentioned in this report:

Table of Contents

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 market

Telecommunications infrastructure

Appendix - Historic data

Glossary of abbreviations

Related reports

List of Tables

List of Charts

List of Exhibits