The FINANCIAL — United Telecom of Georgia (UTG) together with Caucasus Online, the leading Georgian internet provider company, have signed an agreement of further cooperation. Previously as a result of the companies’ disagreement, around 6,000 users of Caucasus Online were left without access to the internet.
As Nikoloz Chiaureli, Director of Internet and ITTV Projects Development of UTG, says, there was a very large number of Caucasus Online customers that were left with absolutely no access to the internet during the period in question. “Even though we received many complaints, most of the users of Caucasus Online stayed loyal to their provider.”
Chiaureli notes that according to UTG’s system, “if one source from which we are receiving the internet faces some problems then we replace it with another, alternative channel as a substitute. Due to our service equipment it would be impossible for us to experience such a large-scale failure in providing internet to our customers.”
“After active consultations and summaries of all relative financial documents Caucasus Online recognized its debt to United Telecom of Georgia (UTG). The total sum of Caucasus Online’s obligation was GEL 624,712. The above mentioned sum built up over the years 2006-2008. This was debt belonging to internet provider companies: Sanet, LTD Georgian Online and LTD Deltanet, as all these companies later joined Caucasus Online,” Chiaureli says.
Chiaureli says that despite the global recession, UTG did not stop working on the company’s further development and in 2010 the company will continue to run an aggressive policy focused on introducing the latest technologies to Georgia and their integration to the regions.
“Despite the global recession we did not change our plans of development in 2009. Rehabilitation of the chain, switching to digital technologies and the spread of wireless remain our main priorities.”
“We can say that the telecommunications sphere remains one of the most stable on the market. UTG has 43,000 customers in Tbilisi. The number is two times larger than it was last year. I think that we started very interesting projects including supply to the regions. Reduced costs and our innovatory projects have caused an increase in customers.”
Chiaureli says that the main challenges for the company in 2010 are further focusing on the company’s development. “The recession has not stopped us and we are developing every year. We have all kinds of telecommunications products. In 2010 we will offer another new product to our customers. These are mobile phones of the latest technology and wireless internet (EV-DO). Our main goal which we are focused on is to make telecommunication more mobile and available for our customers. The mobile phone which will be on offer from UTG next September is based on the phone principle yet has no analogue on the Georgian market. We will also offer modems of 1-3 MB/Sec. Our main priority will remain integration in the regions,” he says.
Currently UTG has 74,000 internet users as customers, among them 43,000 are citizens of Tbilisi. We occupy about 34% of the total market.
“In 2009 UTG has been actively replacing old stations with digital technologies. The process will last well in to the future, as we are focused on replacing all stations with modern ones. The new stations will let our customers use the additional offered services. So all of the fixed customers of UTG will be able to use services that are possible for mobile phones: long distance service, redirection, fixed private number, limitation of several numbers (black list), alarm, fixing the number of a third caller during a call,” Chiaureli declares.
Chiaureli says that regulation of conflict between the companies is not a prerogative of the Georgian National Communication Commission (GNCC). “Despite this the commission has taken the responsibility to run consultations between the sides. We think that their role has been a productive yet delicate one,” he says.
“UTG is serving about 50 partner companies. Monthly we are providing our customers with reports, where it is described in detail the total sum of their expenses for our service. Caucasus Online has not signed any of the records which we were sending them from 2007. The company objected to many of the subjects in the report. Still, internet provider Caucasus Online has been paying the sum overdue. This was one of the main subjects of controversy. Currently Caucasus Online recognizes all the circumstances of the report.”
The report includes a guaranteed sum of GEL 500,000 to a bank account that will provide that Caucasus Online can use our service.
“In October 2008 when a mutual agreement between the sides was signed, Caucasus Online demanded to withdraw arbitration and so a mechanism to guarantee payment to the bank account was settled. If the side would abrogate its responsibility UTG would have a guaranteed sum in the bank account and would be allowed to use it. From October 2008 till May 2009 because Caucasus Online abrogated its responsibility, UTG used the above mentioned sum twice,” Chiaureli says.
As Chiaureli notes, there existed an agreement from 2008 but it only included the responsibilities and rights of the companies. In it was not fixed the volume of service.
“We twice offered our partners the opportunity to concretely agree on a sum and form of re-payment that would be agreeable for them. Caucasus Online always assured that they would pay a sum which was not their obligation. Accordingly we asked for a detailed summary of the volume of service as we considered their comments disinformation and Caucasus Online as unreliable partners. We also offered them a second way which was refused after some time. We offered to let our specialists count in detail the volume of our service, but we have still not managed to receive an answer.”
“UTG publishes the fee for its service on the official website of GNCC. That means that the commission agrees with our fee. The prices are according to our costs,” Chiaureli notes.
Chiaureli says that the company has been actively working on simplification of service for their customers. “With the help of individual passwords customers can activate the phone and DSL service of UTG, limitation of code 07 and so on. These processes are ongoing and so in three years time we plan to attract a number of customers with the help of high quality infrastructure and innovative products. The company has also simplified the procedures of the payment system. Currently, all of our customers are able to pay money for our service in Georgian banks without any additional fee. Our customers can also pay money for our service at terminals and on the websites: www.ipay.ge and www.tbcbank.ge. Monthly more than a half of our customers are using an alternative means of payment. About 450,000 customers are loyal to UTG. Together with Novo-Group we offer cable TV. We will replace all copper cables with digital-fibrous ones. This latest service will supply our customers with internet and IPTV service of high quality. Until the end of 2009, the company plans for 40 new basic stations to start working. That will additionally attract hundreds of new customers.
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