The FINANCIAL — According to The Research and Markets, one of the leading global source for international market research and market data, by March 2009 mobile penetration in Georgia had reached 83%, having increased more than sixfold over the previous 5 years; Despite a faltering economy, the mobile market was continuing to grow at an annual rate in excess of 20%.
Report presents controversial data about internet users. It says total number of subscribers is 85,000 – 95,000 Annual growth: 13% – 12%.
Report says the development of the fixed-line network in Georgia has effectively stalled,
with zero growth and a system that is still well short of 100% digital target (only 62% digital in 2007); The Internet segment of the Georgian market also continues to lag, with user
penetration below 10% by early 2009, report said.
“Broadband Internet development has been particularly slow with penetration
sitting somewhere below 2% for the time being;
“Georgia's ongoing tension with its neighbour Russia is providing considerableuncertainty for the country and its future direction of its development;”
“As the overall Georgian economy became healthier, not surprisingly, so too did the country's telecom sector. With rising telecom revenues, there was a corresponding and significant increase in investment in infrastructure. Notably, the share of telecommunications in the country's GDP had reached 6.1% by 2005, this compared with 3.7% in 2000. Between 2000 and 2004, total investments in the telecom sector amounted to approximately US$383 million.
The mobile segment of the market in particular was booming. In the five years to March 2009, mobile penetration in the country had increased more than sixfold to reach 83%. MagtiCom was awarded Georgia's first 3G licence in 2005. Then, in a significant move in 2006, the regulator awarded another 3G licence, followed by a third later in the same year.
Report says since 2003, telecommunications has become one of the fastest growing sectors in the Georgian economy. In its annual report published in July 2008 the Georgian National Communications Commission (GNCC), the country's telecom regulator, noted that sales in the country's electronic communications market (telecoms, TV and radio) had reachedGEL1.1 billion (US$784 million) in 2007, up 10% year-on-year. The sector accounted for 6.6% of Georgia's total GDP, down from 7.5% in 2006. Mobile operators earned 63.3% of overall telecom service revenues, ahead of fixed-line operators with 29.5% and TV and radio broadcasters with 7.2%.
This had been the pattern for some time. In 2004, the telecom market share had been dominated by the mobile operators (63%), followed by local operators (19%), international operators (8%), radio and TV companies (5%) and Internet service providers (4%). Between 2002 and 2004, total revenues of local operators increased by 75.6%; international operators by 68.8%; mobile phone operators by 153.4%; Internet providers by 231.1% and radio and TV operators 84.4%.
The Internet segment of the market continues to lag the wider development of the country, with user penetration still below 10% by early 2009, according to the ITU figures. At the same time, broadband Internet penetration was sitting somewhere below 2% and the uptake of broadband services also remained slow.
“Positive regulatory developments in the country have included the establishment of an independent regulator for the telecom sector in 2000 and the ongoing privatisation of fixed-line operators, Sakartvelos Telekomi and Sakartvelos Elektrokavshiri. Competition had arrived for all segments of the telecoms market, including fixed-line voice services. Georgia had more than 270 licensed and operational service providers and network operators.”
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