US-based Metromedia International has announced the formation of a new – as yet unnamed – company to compete in Georgia’s fixed line and data communication markets. According to the terms of the deal, Metromedia contributed its 81% stake in Telecom Georgia and USD450,000 in cash to the new business, giving it funds to acquire Telenet, an established fixed line voice and data provider. Further acquisitions are expected as the company seeks to rapidly expand its presence.
Telecom Georgia provides international long-distance services and operates an extensive transit network interconnecting all of the country’s principal telecoms carriers. Telenet, meanwhile provides high speed internet services over both wired and wireless infrastructure, primarily to business customers. It also offers voice and data transit links between Georgia and Russia. Prior to its acquisition, Telenet obtained a CDMA-450 fixed wireless licence; it owns a WiLL network covering the capital, Tbilisi. Metromedia’s interests in Georgia are not limited to the fixed line arena: it also owns the country’s largest wireless operator Magticom.