Leading Georgian internet service provider halts price hikes

Georgia’s leading internet service provider company Silknet has halted price hikes, the chairman of the Georgian National Communications Commission Kakha Bekauri told local Imedi TV.

About a week ago Silknet and mobile telecommunications operators Magti and Geocell announced price and service changes.  

The same day the Georgian National Communications Commission released a statement and said that “there is no reason to increase the tariff for subscribers”.

As Geocell is now owned by Silknet and the two companies are merged, it means that Geocell also will not increase its prices.

Bekauri said that he hopes Magti will also make a similar decision.

Bekauri stated that the Georgian National Communications Commission has significantly contributed to the development of the telecommunication market and has made “many effective decisions”. 

He said that the commission has broken the duopoly in the country - a situation in which two suppliers dominate the market for a commodity or service.

Bekauri said that all these efforts were made to  create a competitive environment, to avoid price and cartel agreements. Bekauri raised questions about how appropriate it is for two significant operators to plan simultaneous price changes.

He said that the companies have the right to appeal against the decision on the marginal tariff set by the commission, but Bekauri hoped the case will not come to this end as the commission will not make an ‘unsubstantiated decision’.