DEVELOPMENT OF ТНЕ GEORGIAN TELECOMMUNICAТION MARKET
The current function of Georgia as the international communicational highway connecting Europe and Asia serves as а driving force for progress in telecommunication. The process of linking the Georgian telecommunication system to the integrated international infrastructure implies the introduction of modern communication technologies and the development of the relevant profile segment for servicing the infrastructure. The creation of an appropriate communication service system for international transportation, commodity, monetary and information flow plays а decisive role in the ongoing structural transformation of the country’s economy.
The current processes of global economic integration create the demand for the horizontal development and expansion of the telecommunication infrastructure at the national, sub-regional and international levels. Georgian legislation on communications and postal services is based on international market principles and provides for the comprehensive development of the telecommunication sector.
The Government of Georgia declared the telecommunications sector among its priorities in the program for 2004-2009. Based on the above, it is imperative to develop a National Strategy of ICT development that will facilitate implementation of state programs in the sector.
In 2000, the Georgian National Communications Commission (GNCC) was established as the first independent telecommunications regulator. The policies of the GNCC promote innovation in the communications service sector by easing the procedures when consumers bring disputes against operators and forbidding suspensions of service in the event of a dispute.
In Georgia, licenses are required for fixed and mobile telecoms operators, cable operators and Internet service providers. Licensing is based on the Law on Communication and Post (1999) and the Law of Georgia on Principles for Issuing Entrepreneurial Licenses and Permits (2002). A major problem with the licensing requirements is that all the technologies requiring licensing are specifically detailed, so that any new technology would not automatically be covered.
International Telecommunication Policies – Georgia has obtained a high level of compliance with international standards with regard to its telecommunications sector.
During last years the Networked Readiness Index (NDI) was improved for Georgia, according to the World Economic Forum, Georgia is 58 out of 133 in rankings, while in 2009-2010 it was 93.
Telecommunications is one of the fastest developing industries in Georgia; however Georgia lags behind Europe with improving public access to ICT due to outdated infrastructure which has left many people in rural areas without access to ICT. While 38% of residents in the capital city of Tbilisi use the internet, that percentage is much lower for residents in rural areas and even in other major cities (21%).