The FINANCIAL — Caucasus Online, the leading internet provider in Georgia, serves 100,000 subscribers in Georgia and plans to expand its services to other regions and cities including Rustavi, Kutaisi and Batumi.
In 2009 the company increased its client base, bringing total operational revenue of 38,640 million GEL excluding VAT. The company has been operating in the Georgian market since 1998.
According to the official statistics 18-20% of the population in Georgia use the internet.
Caucasus Online provides its subscribers with internet directly from Europe, with a cable running through the Black Sea. Moreover Georgia is connected through 5 channels with the external world: Azerbaijan, Turkey – 2 channels, Black Sea – 2 channels.
“Caucasus Online offers radio internet for those who seek for an alternative to cable internet. Radio internet might be an alternative to a cable connection, however from a technical point of view, it can’t compete with a fibrous cable,” said Gia Adeishvili, Vice-Director of Caucasus Online.
“The potential of market development is high. The company is working in the direction to provide new products for the market. Moreover we have new investment projects to enter the cities – Rustavi, Kutaisi, Batumi and other regions.”
“Usage of the global internet has increased significantly in Georgia. After completing the Varna-Poti channel, via which we have a direct connection with Europe, the indicator increased 6 times. Whereas before it was more than 1 gb, now this indicator is up to 10 gb.”
Gia Adeishvili says the number of Caucasus Online subscribers increased by 40,000 in 2009.
“Our priority was to focus on our customers by providing a wide range of services, and eliminating all problems. Moreover, we changed our location and moved to a new office, with new modern data centre and European standard services.
Caucasus Online attracts customers with quality products which we are increasing in the day-to-day activity of our company.
Considering all this is probably the reason we were awarded by Golden Brand,” said Adeishvili.
“Economic stability and consequently the financial stability of our subscribers are essential factors determining our business development. Moreover a healthy competition environment is necessary for company development.”
“The main advantage of Caucasus Online is the channel that lies in the Black Sea and connects directly to Europe. The product arrives direct from Europe and consequently our advantages are quality and stability,” Adeishvili said.
“Our market price is the sum of cost price and price surplus, and this indicator is regulated by market condition. Internet service is more costly in European countries than in Georgia. In the Caucasus region our prices are several times low than in other countries.”
“To make a forecast is quite difficult due to the economic conditions, as it is difficult to define how the GEL will change in relation to other currencies. Our direct providers are European countries and consequently payment is in foreign currency.
If the GEL rate is stable, we might think of price reduction, however it is still difficult to predict.”
“IT technologies considering the Georgian market capacity develop as quickly as in European countries, and even more quickly than in other CIS countries.”
“European values are basic for our company. We were the first to introduce the cable connected to Europe. The project was quite costly but we decided to carry out the project to have a direct connection with Europe.
Neither of our products provide threats to the environment and it is obvious that we are introducing innovative products to the market.”
Caucasus Online registered more than 8,000 .GE domains. The growth rate is 15%. There are approximately 50 two point domains registered.
Caucasus Online has been developing internet media for several years. Adeishvili says this is probably a product of the future.
“Internet TV has already existed for one year. We are developing this product and in the future it will be more attractive,” he said.