The FINANCIAL — The Georgian National Communications Commission (GNCC) blames internet provider companies in abdicating their responsibility of the speed of internet access. The speed of internet offered by an internet provider company should be corresponding to its terms, signed by two sides, the customer and company offering the service. “However internet provider companies are frequently failing in their duty to do this,” Khatia Kurashvili, PR manager of GNCC, told The FINANCIAL.
“In order to solve this problem, on July 20, 2007, the Commission produced a special article on the issue. Internet provider companies are obligated to satisfy the transparency of information of the speed of internet which customers received over the month,” Kurashvili says.
According to GNCC’s statement internet provider companies, when calculating customers’ monthly costs, are obligated to consider periods when internet supply was affected by interruptions in speed.
None of the individuals interviewed by The FINANCIAL had ever been compensated for the interruptions, despite monthly paying bills for high quality internet.
According to the official information of Caucasus Online, one of the largest internet providing companies in Georgia, if experiencing interruptions in internet availability, customers need to contact the company’s call centre which will subsequently work towards fixing the problem as soon as possible. But this seems to be the mission impossible for many Georgian users.
Nata Vakhtangashvili, 25, says, “When I try to contact CO call centre due to internet problems, an automated message responds that Caucasus Online is facing global problems. So there is no actual help available for any of the individual client’s problems.”
Mamia Sanadiradze is one of the biggest shareholders of the company. He sold a part of company shares to the European Bank of Reconstruction and Development recently, but this did not help him in customer service improvement.
GNCC says it has a customer’s rights protection service.
“Each citizen, juridical person or individual, can lodge a complaint. The Commission will discuss it at the next commission’s meeting,” Kurashvili says.
“United Telecom of Georgia (UTG) is working on several projects in the direction of internet speed. The company receives internet from different alternative sources: Frankfurt, Turkey and Azerbaijan. As a result we avoid the problems and disruptions resulting from relying on only one source. Accordingly we think that the current tariffs are actually very fair and low compared to the quality we provide,” says Gia Chiaureli, head of internet service improvement of United Telecom.
“It has not been long since UTG first started offering internet service to customers. After entering the Georgian market we managed to increase internet speed four times over just three months. UTG is now able to offer six different types of internet packages. Also any speed of internet demanded by customers. Currently there is no deficit of internet speed,” Chiaureli notes.
“Internet packages of individual tariffs differ from each other according to the technologies they involve, like Dial-up, ADSL, GPRS, WAP and WiMax. In Georgia the most widespread is the ADSL modem. As for other technology, like WiMax, they are still in the stages of development. The monthly internet cost on an ADSL modem fluctuates from GEL 10 to GEL 400. According to the tariff plan on the packages of GEL 400 the speed of internet is from 3mb/s to 8mb/s. As for cheaper packages the speed on it ranges from 56kb/s to 1mb/s,” explains Kurashvili, UTG.
As Kurashvili notes, the main problem in supplying customers with ADSL technology is connected with its infrastructural resources.
“The Commission has already put steps in place in order to solve the current problems connected with internet supply in Georgia. As suppliers of ADSL technology are using copper cable-lines, in 2007 the Commission let the largest internet provider companies use the mentioned cables and also obligated them to let other companies use the above-mentioned copper lines,” she says.
“Georgian internet providing companies need to make additional costs and attract different sources to get reliable and constant internet connection from. This all influences our costs. Tariffs are oriented on our expenses and the margin is determined by market prices,” Chiaureli declares.
Currently UTG is serving 61,000 customers in total.
“In comparison with 2008 demand for internet service has decreased at our company. Actually our service is proving acceptable for both VIP and low income segments,” Chiaureli says.
In 2009 UTG managed to attract 23,000 additional DSL customers throughout Georgia.
Chiaureli mentions that United Telecom was an initiator of internet price reduction in Georgia. “Even last year UT offered internet to customers for packages of just GEL 15. At that time none of the other internet providers offered internet for less than GEL 40. After such liberal tariffs other companies started price reductions for the internet. At present, customers are able to get internet for USD 10. As for packages of high speed internet, the cost of that is GEL 35.”
Kurashvili, GNCC, claims that “The cost of internet packages ranges from GEL 10 to GEL 400. The amount depends on the services of the package. Therefore it would be incorrect to state that raised competition on the internet market has caused either a reduction or increase of internet services.”
Written By Madona Gasanova
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