Georgia - Telecoms, Mobile, Broadband and Forecasts
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1 Brochure More information from Georgia - Telecoms, Mobile, Broadband and Forecasts Description: Georgia's telecom sector sees strong growth as the country weathers a series of major shocks Georgia is continuing to build itself into a modern economy while at the same time it confronts a series of major challenges. One of the biggest problems is the troubled times it has been having with its neighbour Russia. The country has also had to cope with the severe setback suffered in 2009 following the onset of the Global Financial Crisis. With the overall economy progressively becoming healthier again, it is not surprising that the country's telecom sector has rebounded. At the same time, rising telecom revenues have seen a corresponding and significant increase in investment in infrastructure. Despite obvious and ongoing positive news for the telecom sector, there remains much to be done. The year 2003 proved to be both a political and economic turning point for Georgia with the so-called Rose Revolution seeing a reforming administration take control of government; at the same time, the influence of the telecom sector on the potential development of the country's other economic sectors was starting to increase dramatically. Since 2003, telecommunications has become one of the fastest growing sectors in the Georgian economy. The share of telecommunications in the country's GDP had reached around 7%, a significant increase over levels achieved in the not too distant past. The mobile segment of the market in particular has been booming. Coming into 2014, mobile penetration had reached 120%, subscriber penetration having increased tenfold in nine years since Georgia awarded three 3G licences in 2005/2006. Mobile communication systems have become increasingly important for Georgia since the fixed-line networks in many parts of the country remained outdated (particularly in rural and remote areas) and the mobile network represented the only means of communication, especially as mobile coverage has now been provided for virtually the whole of Georgia. An encouraging feature of the telecom market in Georgia is the high level of internet usage; there was an estimated user penetration of over 50% into However, internet subscriptions have been lagging somewhat behind the user numbers in relative terms. Nevertheless the gap is being bridged quickly, with fixed broadband internet having achieved considerable market presence in the last few years. Broadband comprises some 85% of all fixed internet subscriptions. Even before the Rose Revolution in 2003 and the reforms that took place following that, positive regulatory developments had already commenced. These reforms included the establishment of an independent telecom regulator, the Georgian National Communications Commission (GNCC) in Although the privatisation of fixed-line operators Sakartvelos Telekomi and Sakartvelos Elektrokavshiri was commenced in 2001, the process suffered multiple delays. Sakartvelos Elektrokavshiri was finally privatised in 2006, having changed its name to United Telecom. Sakartvelos Telekomi was also eventually privatised changing its name to Georgia Telecom. Competition had arrived for all segments of the telecoms market, including for fixedline voice services. Georgia has more than 320 licensed and operational service providers and network operators. In the meantime Georgia's ongoing tension with Russia continues to provide a level of uncertainty for the country and the future direction of its social and economic development. Despite this the economic outlook continues to be positive. In a telling report considering the timing, the World Bank ranked Georgia in 2009 as the 15th easiest economy in the world in which to do business (up from 21st in 2008). By 2013 the country had improved even further, holding 8th place in that year's World Bank survey. Market highlights: By early 2014 mobile penetration in Georgia had reached 120%, subscriber penetration having increased tenfold over the previous nine years; Despite signs of a faltering economy, the mobile market continues to grow, although the annual rate of growth has moderated and become more unpredictable; Georgia's telecom regulator having awarded three 3G mobile licences in 2005/2006, there has been a strong uptake of new generation subscriptions; 3G subscribers had claimed an estimated 40% of the total mobile subscriber base by early 2013; The introduction by the regulator of mobile number portability seen a significant and increasing movement
2 of subscribers in the market place in the first three years of operation; Despite a somewhat erratic growth pattern, the fixed-line network in Georgia had reached a fixed teledensity of 24% in early 2014; however this was down from 31% in mid-2012; Although the interest in internet in Georgia is clearly high, subscription numbers remain modest; With internet user penetration running at an estimated 50% by end-2013, fixed internet subscriber penetration was a relatively low 11%; In the meantime, mobile broadband has been offering a cheap effective means of accessing the internet. Georgia Key telecom parameters Category (e) 2014 (e) Total number of fixed-line subscribers 1,276,000 1,100,000 1,100,000 Total number of fixed internet subscribers 475, , ,000 Total number of mobile subscribers (million) 4.7 million 5.3 million 5.9 million (Source: BuddeComm) This report provides an overview of the trends and developments in the telecommunications markets in Georgia. Subjects covered include: Key statistics; Market and industry overviews; Major operators (mobile and fixed); Regulatory environment; Infrastructure; Mobile market; Internet market, including broadband; Telecom market subscriber scenario forecasts for years 2015 and Data in this report is the latest available at the time of preparation and may not be for the current year. Contents: 1. Executive summary 2. Key statistics 3. Country overview 3.1 Background 3.2 Economy 4. Telecommunications market 4.1 Overview of Georgia's telecom market 4.2 Forecasts 5. Regulatory environment 5.1 Regulatory authority The Georgian National Communications Commission (GNCC) 5.2 Privatisation 5.3 Regulatory developments Mobile Number Portability (MNP) Georgia's membership of regional regulatory association Changes made to numbering Subscriber number portability (SNP) Cooperation with Azerbaijan Licensing and auctions background information Illegal operations Restrictions on internet access Colocation areas Satellite broadcasting 6. Fixed network operators in Georgia 6.1 United Telecom (formerly Sakartvelos Elektrokavshiri) 6.2 Telecom Georgia (Sakartvelos Telekomi) 6.3 NewNet Telecommunications (Akhali Kselebi Ltd) 6.4 Egrisi 6.5 Georgian Railway Telecom (GRT) 7. Telecommunications Infrastructure 7.1 National telecom network Wireless local loop (WLL) 7.2 Forecasts fixed-line subscribers 2015; International infrastructure
3 8. Internet market 8.1 Overview 8.2 Internet statistics 8.3 Forecasts internet subscribers 2015; August 2008 conflict and possible cyber warfare 8.5 ISP market Overview Internet service providers 9. Broadband market 9.1 Overview Broadband performance Broadband statistics 9.2 WiMAX Warid Telecom Georgia VTel Georgia MagtiCom 9.3 Mobile broadband 10. Mobile communications 10.1 Overview of Georgia's mobile market 10.2 Mobile statistics 10.3 Forecasts mobile subscribers 2015; Regulatory issues in the mobile market Georgia's unrecognised operators Regulatory fines Frequency auction 10.5 Third Generation (3G) mobile Background and licensing G mobile statistics G / Long Term Evolution (LTE) 11. Major mobile operators 11.1 Overview 11.2 Geocell 11.3 MagtiCom 11.4 Mobitel (Beeline) 12. Broadcasting market 12.1 Overview 13. Notes on forecasting 14. Related reports Table 1 Country statistics Georgia 2014 Table 2 Telecom revenue and investment statistics 2011 Table 3 Telephone network statistics 2013 Table 4 Internet user statistics 2013 Table 5 Mobile statistics 2013 Table 6 National telecommunications authority Table 7 Georgia's GDP real growth rate Table 8 - Georgia Key telecom parameters Table 9 Mobile number portability - transactions Table 10 Ported numbers gains v. losses - by operator January 2013 Table 11 Fixed lines in service, annual change and penetration Table 12 Fixed subscribers by technology type March 2013 Table 13 Forecast fixed line subscribers 2015; 2020 Table 14 Internet users, annual change and penetration rate Table 15 Fixed internet subscribers Table 16 Households with internet Table 17 Internet bandwidth capacity Table 18 Forecast fixed internet subscribers 2015; 2020 Table 19 Fixed broadband subscribers Table 20 Fixed broadband subscribers by technology type March 2013 Table 21 Fixed broadband subscribers and households 2013 Table 22 DSL subscribers Table 23 FttH subscribers Table 24 WiMAX subscribers Table 25 Mobile broadband subscribers
4 Table 26 Mobile subscribers and penetration rate Table 27 Mobile operators, subscribers and annual change 2013 Table 28 Mobile operators subscribers and market share 2013 Table 29 Forecast mobile subscribers 2015; 2020 Table 30 3G mobile subscribers and market share Table 31 3G mobile operators and subscribers 2009 Table 32 Geocell subscribers Table 33 MagtiCom subscribers Table 34 Mobitel total mobile subscribers Table 35 Mobitel mobile broadband subscribers Table 36 Mobitel blended ARPU Table 37 Key broadcasting statistics 2013 Chart 1 - Georgias GDP real growth rate Chart 2 - Key telecom parameters Chart 3 - Fixed lines in service, annual change and penetration Chart 4 - Fixed subscribers by technology type - March 2013 Chart 5 Fixed and mobile subscribers in Georgia Chart 6 - Internet users, annual change and penetration rate Chart 7 - Fixed broadband subscribers Chart 8 - Mobile subscribers and penetration rate Chart 9 Mobile operators market share 2013 Chart 10-3G mobile subscribers market share Exhibit 1 GNCC's definition of colocation' Exhibit 2 United Telecom's Tbilisi network infrastructure Ordering: Order Online - Order by Fax - using the form below Order by Post - print the order form below and send to Research and Markets, Guinness Centre, Taylors Lane, Dublin 8, Ireland.
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