International Relations and Project Management Office EaPeReg REWG 2nd Meeting 11/12 May, 2017 Prague, Czech Republic Georgia – International Roaming Market This template can be used as a starter file for presenting training materials in a group setting. Sections Right-click on a slide to add sections. Sections can help to organize your slides or facilitate collaboration between multiple authors. Notes Use the Notes section for delivery notes or to provide additional details for the audience. View these notes in Presentation View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production) Coordinated colors Pay particular attention to the graphs, charts, and text boxes. Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale. Graphics, tables, and graphs Keep it simple: If possible, use consistent, non-distracting styles and colors. Label all graphs and tables. Irine Verdzeuli International Relations and Project Management Office iverdzeuli@gncc.ge

Legislation and Regulations There is no roaming tariff regulation in Georgia at present Roaming prices are set by the operators; GNCC Regulations “On the Rules of Provision of Services and Protection of Consumer Rights in the Sphere of Electronic Communications” (https://www.gncc.ge/en/legal-acts/commission/resolutions/resolution-no-3-of-georgian-national-communications-commission-on-the-approval-of-the-georgian-national-communications-commission-charter.page). The GNCC is currently updating the document.

Consumer Protection and Transparency warning systems (“welcome SMS”) and informative websites have been developed to ensure consumers to understand their usage; Data usage limit is not reached in every individual case; Visited operator should grant the Near real time access to the information to the home operator; Pre-paid platforms such as CAMEL should be implemented;

Mobile Market (Georgia)

Operators’ Foreingn Ownership MagtiCom -USA companies: International Telcell Cellular LLC and Telcell Wireless LLC Geocell - Finish-Swedish Telia Company Mobitel (Beeline Trademark) - VimpelCom Ltd

Spectrum holding by operators in 800/900/1800/2100 MHz bands   MHz Band MagtiCom Geocell Mobitel 800 MHz 2x5.0 10 2x10 20 900MHz 2x13.2 26.4 2x11.8 23.6 2x5.49 10.98 1800 MHz 2x29.9 59.8 2100 MHz 2x15 30 Total 2x63.1 126.2 2x56.7 113.4 2x30.49 60.98 Spectrum licenses which is obtained as a result of modification in 2015 (900/1800/2100 MHz) Spectrum licenses which is obtained as a result of auctions in 2015-2016 (800/2100 MHz)

Spectrum reserve price Spectrum band Weighted price in GEL/MHz Weighted price in GEL/MHz/cap 800 2,545,494 0.567 900 2,469,267 0.550 1800 1,423,785 0.317 2100 863,088 0.192

Structura of the roaming prices

The majority of roamers make calls to home country: To provide competitive roaming offers, Georgian operators set exclusive discounts and innovative tariffs on individual visited operators network but relevant Radio network is not always accessible for visitors.

International gateway monopolies Key challenges to reduce the cost of providing roaming services in EaP Region: International gateway monopolies The international call component is a very important element in roaming calls; prices on routes with monopolized international gateways will continue to remain high; prices on international routes within the region are asymmetrical; Shall we adopt the EU model and impose the wholesale price caps on roaming services when environment and regulations in EaP region is different?

Key challenges to reduce the cost of providing roaming services in EaP Region: Double Taxation The visited country’s government might add a non-resident income tax or other tax to the wholesale roaming service; The home country’s government might add a VAT to the retail price for the service. Since 2008 Georgia has been initiating and signing DTA agreements with its major trade partners; however there are some countries (e.g. Moldova) Georgia has not signed such agreement yet.

Mobile roaming in EaP Region Regulatory Intervention Promotion of competitive activity in roaming market: International termination rates; Steering of roaming and Anti-steering of Roaming techniques; Per second call rounding; Near real time access.

Thank you! გმადლობთ!