Cell operators’ Clash
14 July, 2011
Cell operators’ Clash

Magti GSM, one of the key players at Georgian cell market, hardly escaped the black list of the State Procurement Agency of Georgia after it failed to meet its assumed responsibilities against the state tender.  Magti argues that Geocell, its chief opponent cell operator, is responsible for the failure as it blocked Magti’s activity. Geocell dismisses the accusation. 

Magti accuses Geocell in a latent attempt to blackmail Magti in order to be unrivaled in coming tenders.

Magti who had won the state

tender on providing hot-line service to Tbilisi Transport Company last May, informed other communication operators acting in Georgia that a special numeration resource is earmarked for providing free hot-line service to Tbilisi Transport Company and asked them to exempt the hot-line calls from charging starting June 1st of 2011.  Magti pledged to cover all due charges for the entire call traffic. Magti managed to contract 22 companies including fixed lines except Geocell. The latter  turned down the request under the pretext that it has already refused similar requests of other communication operators as far as activation of free of charge numbers was a heavy burden to its billing system and human resources.   Geocell also reminded Magti that a provision of Georgian National Communication Commission (GNCC), has already defined a special free-of-charge numeration resource scheduled to become operational this fall and till activation of this numeration Geocell refrains itself to perform  similar service.

As a matter of fact Geocell went ahead by charging the calls requested by Magti and the latter failed to meet responsibilities assumed in frames of the state tender. The Procurement Agency consequently annulled the tender and was to put Magti on the black list that might affect both Magti’s image and commercial side alike. If been blacklisted Magti could not participate in any tender within a year and enjoy any profit out of it.

Magti accused Geocell in blackmail and appealed to GNCC to settle the dispute and impose sanctions on Geocell for violation of market rules. According to Irakli Lobzhanidze, Deputy Director General of Magti in Marketing, Geocell let Magti down so as to get rid of key competitor. Geocell counterclaimed that Magti had to agree the issue with Geocell not post-tender but before it and in this case Magti could avoid lamentable results it faced.

“No market regulation obliges us to implement free of charge services, “Sandro Sadaghashvili, Head of Legal Department of Geocell, explained to Georgian Journal. “Magti had to agree this issue beforehand, we would explain our terms and agree payment issues and no mishmash would happen. Magti could not dictate its terms, it is a matter of financial agreement. But it behaved impudently as it drew out its own decisions and informed us only afterward.”

Lobzhanidze counterclaims that Magti did not agree the issue beforehand because it was a standard thing and Geocell has no right to dismiss it.

“Geocell has no right to refuse as far as it has been implementing similar service to other market operators. It was a standard agreement, there was nothing new and that’s the reason we did not inform Geocell beforehand. We would agree things beforehand if there was anything new,” Lobzhanidze told GJ.

GNCC discussed the case on July 8, 2011 and approved Magti’s claim only partly: it obliged Geocell to activate the free of charge service to the requested numeration till the special free numeration service [accounted on all companies use for services like hot-line and other special intellectual needs] becomes operational in November of 2011. The key ground was that Geocell is performing similar service to other operators. To avoid further misunderstandings the regulatory body obliged the litigant companies to back the deal though a contract with a detailed description of possible fees and obligations.  More positive result to Magti is that the Procurement Agency did not blacklist the company thanks to GNCC decision.

However GNCC did not impose any sanctions on Geocell for violation of market rules as found apt that Magti had to agree the issues with Geocell prior to the tender.

“GNCC will not interfere in the contract details as it is a matter of private companies to outline provisions of their agreement,” Khatia Kurashvili, PR of GNCC, said.

Ultimately, the questioned contract is not as urgent as it was to Magti as the contract on provision hot-line service to Tbilisi Transport Company is revoked. A new tender has been announced but nobody participated in it as yet. Magti does not plan to appeal to it again.

Print
Other Stories
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
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.
PHOTO OF THE DAY

Exchange Rates
GEL Exchange Rate
Convertor
20.01.2019
21.01.2019
USD
1
USD
2.6629
2.6629
EUR
1
EUR
3.0368
3.0368
GBP
1
GBP
3.4463
3.4463
RUB
100
RUB
4.0103
4.0103
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
2.6629
EUR
1
EUR
3.0368
GBP
1
GBP
3.4463
RUB
100
RUB
4.0103
January 2019
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 31