Silknet questions optic fiber cable tariffs
26 May, 2011
Silknet questions optic fiber cable tariffs

Silknet, a monopolist of fixed line cable infrastructure, hates to pay non-contracted increased tariff to Georgian Railway LLC, the state owned railway monopolist owning also the trunk optic fiber cable that provides all three South Caucasus countries with the internet.

Georgian Railway assures tariffs were increased to Silknet through the contract.
Georgian National Communication Commission (GNCC) has to solve the tariff-and-contract dispute between Georgian Railway and Silknet unless sides will not achieve an agreement till May 31, 2011.
The dispute emerged

after Georgian Railway raised annual transmission tariffs fixed as GEL 300 thousand for its optic fiber cable to roughly GEL 800 thousand in 2010 under the pretext that prices at the market increased generally and Silknet, that within itself is a monopolist owner of fixed line underground cable network throughout the country, increased similar tariffs to other Internet Providers (IP) that use Silknet service.
Silknet was founded in 2010 through merger of three companies including United Telecom of Georgia (UTG) that actually owned the fixed line cable infrastructure covering entire Georgia and enjoyed the largest fixed line consumer coverage, Wanex –an internet provider, and Ajara Elektrokavshiri [Ajara Electrocommunication] – a fixed line provider in Ajara region. UTG also started IP business in summer of 2007 and beforehand raised its tariffs fixed for broad band cable service as GEL 3.5 per DSL unit to GEL 21 in April of 2007. However GNCC cut the tariff to GEL 11.68 ultimately.
Commensurately, Silknet including the UTG within itself enjoys these tariffs at the moment and Georgian Railway that is responsible for management and maintenance of the main optic fiber cable running alongside the entire length of the main railway line [that is a part of Caucasian railway corridor and takes 1323, 9 km] and provides with the internet Azerbaijan and Armenia as well believes it has full right to enjoy higher tariffs too.
“The contract empowers Georgian Railway to oversee tariffs each year based on the decision of international audit we carry on each year,” Irma Stepnadze, PR Manager of Georgian Railway, said.
The cable consists of 12 line pairs out of which Silknet owns 4 pairs and one is owned by Railway Telecom LLC, a Georgian Railway asset handed to the Ministry of Economy and Sustainable Development of Georgia in 2010. The state structures including interior and defense ministries are allegedly using the remainder line pairs, but Georgian railway neither approved nor denies the information.
Silknet assures that the raised tariffs are not valid as they  were not built in the contract of 2010 as Silknet finds the tariff hike groundless and refuses to pay it. To escape possible halt of service Silknet appealed to communication regulatory body with the request to ensure its admission right to the optic fiber. Silknet does not make official comments till the two-week negotiations with Georgian Railway are completed. But a trustful Silknet source informed Georgian Journal that Georgian Railway cannot claim for as high tariff as the Silknet as far as the optic fiber cable infrastructure that exposes on the surface and frequently is damaged differs from the well-secured underground cable infrastructure of the Silknet laid deeply in the ground.
“The optic fiber cable is not laid underground throughout the entire length and is not as protected as the underground cable infrastructure of the Silknet, in some places it runs in the air, or across the rails at bridges, or is laid only at depth of 20 centimeters while our cable network is deeply laid in the ground and is absolutely secured. You all remember how a woman digging potatoes in the yard cut the optic fiber cable accidently leaving the entire region without internet recently. Commensurately our services differ very much and similar tariffs cannot be fixed on them,” The Silknet source told GJ.
GNCC confirms that these two cable infrastructure are not similar but refrains to make more in-depth comments till the negotiation period required by disputing sides expires.
Georgian Railway assures that the new tariff was proposed to the Silknet in full observance of contract terms, and that it has full right to increase tariffs based on annual international audit data.
According to GNCC, the disputed contract was not signed in fact and GNCC will undertake due efforts to regulate the conflict without court.
Georgian Railway legal experts say they already sue Silknet through court and the court decision will be made public.

 

Print
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 Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
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.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
16.11.2018
17.11.2018
USD
1
USD
2.6818
2.6727
EUR
1
EUR
3.0299
3.0268
GBP
1
GBP
3.4332
3.4240
RUB
100
RUB
4.0185
4.0447
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
USD
1
USD
2.6727
EUR
1
EUR
3.0268
GBP
1
GBP
3.4240
RUB
100
RUB
4.0447
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