Communication Regulatory Body’s Activity Questioned
03 October, 2013
Communication Regulatory Body’s Activity Questioned
The case of activities of the Georgian communication regulatory body may be transferred to the Prosecutors’ Office for further investigation as the Temporary Investigation Commission of the Parliament, perusing activity of Georgian National Communication Commission at the moment, finds that certain breach of law the GNCC committed is of criminal nature. In particular, violation of market competition rules, protectionism, murky tenders and suspicious tariff calculation tools cast a shadow on the GNCC activity.
GNCC activity has long been a subject
of ardent discussions and suspicion of economic analysts who argued that the communication regulatory body fell far below its role of independent and unbiased referee. Opponents believe the GNCC was guided by the ex-ruling party, polluting rather than insuring fair market competition. Association of Young Financiers and Businessmen for example insisted the GNCC is the culprit that a Georgian consumer is charged by one of the highest tariffs [globe over] for cell calls. Market operators also claimed discrimination and unfair treatment some trying to find truth through courts. However, the outcry against GNCC has remained as a voice in the wilderness during the previous regime. As the power changed past fall a special investigative parliamentary commission was set up to delve in the GNCC activity. Having scrutinized the issue, parliamentary commission found GNCC activity even criminal in several aspects which will be passed to Prosecutors office. As Tina Khidasheli, Chairperson of the said Temporary Investigation Commission at Parliament, is reported by, GNCC very likely misshaped itself into some sort of punishing body to market operators instead of operating as a protector of their rights as one normally would have expected.
First of all, investigation commission questions relevance of the tender held in 2010 to hire an operator company for performing service to “porting” of phone numbers. While Georgian legislation requires selection of the best out of reputable and experienced companies who offer best pricing terms, a completely unknown operator making the worst pricing proposal won the tender in completion with one of the prominent international players in porting business. As a result, according to Khidasheli, now Georgian companies pay GEL 7 million based on the entire available number pool, making 6.7 million throughout country, while they might pay just GEL 660 thousand for porting service of 124 thousand numbers (as the defeated bidder offered). The extra expenses of cell and fixed line operators reflect in the consumer tariffs eventually and they float high. Another major question falls on regulatory tariff that GNCC charges market operators for service. Investigative commission found out that GNCC artificially increased the regulatory tariff rate from 0.5% to 0.75% and thanks to adopting sophisticated calculation method it enjoys more than 1% in fact. Commission also doubts that the high regulatory tariff rate is related with allegedly falsified cell license purchase from the Prosecutors’ Office fund. This will be estimated as a crime if confirmed.
The third major malfunction of GNCC is the protectionist policy it applied toward Beeline cell operator thanks to which two other cell companies Magti and Geocell practically subsidize the favorite as far as they pay by 3 tetri higher inter-company-connection tariffs to Beeline than beeline pays them back.
GNCC did not make comment to Georgian Journal at the moment saying that it prefers to remain silent until it presents counter arguments at the special parliamentary commission meeting scheduled on 5 October. “We do have answers on all questions in fact but we do not make comments until the meeting of the special commission where GNCC is called to respond to the Parliament,” a spokesperson of GNCC Khatia Kurashvili said.
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30