The FINANCIAL — Landline phones are losing their popularity in Georgia. Offers by mobile phone operators make it possible to chat with others 24 hours a day for almost the same price as on a landline. Our survey shows that the majority of people prefer to call others directly, rather than to their home or office.
It’s becoming clear that the young generation today is totally ignoring landline telephones. SMS and calls from mobiles give them more confidentiality and privacy. Despite such trends, the number of landline phones is still increasing. We tried to find out what the reasons are behind customers’ behaviour in buying a landline telephone.
There are about 4 million mobile phone users in Georgia, meaning that every citizen is connected to the mobile world.
“I don’t even remember when I last talked on a fixed-line phone,” said Anna, 26, translator. “I literally never use the phone at home. With most of my friends and colleagues I use a corporate cell phone number and call them free of charge. When I return home late in the evening, I’m either too tired or it’s already too late to call and catch up with my relatives,” Anna said.
“I don’t think it’s just me. I imagine teenagers also gave up using landline phones eons ago. Of course I used a fixed line phone more and it was almost always busy before social networks became so popular in Georgia. I always prefer to meet, invite or visit my friends when we have time to chat in a calm atmosphere. I call my friends at home when we have something really important to share with each other. A fixed phone is almost free of charge, that’s why it’s convenient to discuss something over it, even if it lasts a little bit longer than a mobile phone conversation,” said Tamta, 27, lawyer.
Though people don’t spend hours talking on the phone, they still consider it necessary to have fixed-line phones at home. It doesn’t matter whether they use the telephone actively or not. The figures of fixed-line phone subscribers of company Akhali Qselebi (New Nets) are an assertion of that. By the end of 2006 the number of fixed-line phone subscribers was about 150,400, which rose to 181,600 by the end of 2010.
“The number of subscribers is increasing every year. However we have to mention that the rate of increase slowed down by 12% from 2007-2008. From 2006 to 2007 the figure of subscribers increased from 150,400 to 164,200. By 2008 the number grew only by 170,500,” Irina Gegechkori, Marketing Manager of Akhali Qselebi, told the FINANCIAL.
Silknet data shows that the number of fixed-line phone subscribers is constantly increasing more or less. From 2006 to the beginning of 2011 the number of fixed phones increased from 343,200 to around 361,400.
“Since 2008 have introduced wireless fixed phones. Due to that reason use demand on landline phones decreased by 5%. Another reason is an internet, which provides another way of communication. In spite of this, the number of subscribes doesn’t drop down, but rises permanently,” said Keta Akhobadze, Publish Relations Specialist of Silknet.
“When I moved to a new flat, I installed a telephone immediately because of my parents. They call from Moscow 3-4 times a week to a home phone because it’s cheaper than to a mobile. I hate using the telephone and never call anybody myself. In case of emergency I have a cell phone and that’s quite enough for me,” said David, 24, economist.
“A fixed phone is like having a clock on your wall,” said Temur, 33. “It’s a traditional element of interior design.”
The presence of a fixed phone is important when selling a flat or office. It adds extra hundreds of USD to your real estate price, even though phone installation is quite inexpensive itself.
Telephone installation in Georgia costs about 30-40 GEL (20 USD). After installation each subscriber chooses their subscription fee according to the package he/she chose while installing the telephone. Most of the packages include unlimited free talk minutes with the same net, whilst calling other operators’ networks in Tbilisi costs 4 Tetri per minute.
Fixed phone operators are facing double competition from mobile operators which are offering home wireless phones as well as regular mobile connection. Magtifix is now in the position of leader among such providers. It gives many more privileges to its users than fixed phone operators do. For instance calling mobile phones from Magtifix costs less than from traditional landline telephones.
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