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GNCC releases annual report: telecoms turnover exceeds a billion lari

8 Jun 2007

Revenues in Georgia’s electronic communications market exceeded GEL1 billion (USD 595 million) in 2006, up from GEL715.5 million in 2005, the Georgian National Communications Commission (GNCC) said in its annual report. The sector accounted for 7.5% of the country’s GDP, up from 6.2% in 2005. Sales for mobile phone operators increased to GEL650 million in 2006 from GEL425 million in 2005. The number of subscribers increased by 45%, reaching 1.7 million at the end of 2006. Until March 2007, when Russia’s Vimpelcom entered the market under the Beeline brand, Geocell and MagtiCom had been the only digital mobile operators in Georgia.

Fixed line operators’ turnover for 2006 was GEL299 million, up from GEL252 million in 2005. The number of users increased slightly to 553,000. ISP revenues grew to GEL26.15 million (GEL19.8 million in 2005). The GNCC reported an 81% increase in the number of internet users in Georgia, with 27,700 ADSL users registered at the end of 2006. Three major ISPs — Sanet, Georgia Online and Caucasus Net — merged last year to create a near monopoly with 90% of the market. Many users have complained about declining quality of service since the merger. Four other companies also operate in the ISP sector.

Georgia, Beeline (Russia), Geocell, MagtiCom

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