IT & CommunicationsAs the result of economic reforms carried out in Georgia there firmly settled liberalized and de-monopolized market economy in the telecommunications sector, mentioned stipulated favorable environment for investments and for implementation of new services and info-communications means. Competition is progressively developing which positively effects on the service quality and its accessibility for the population. Communications play the great role in development process of Georgian economy.
In recent years have been adopted Legislative acts, which improved business field in the country. (Law of “Electronic Communications” in 2005, Law of Broadcasting in 2006 and etc.).
In 2004-2006 Legislative amendments simplified licensing procedures. According to the low of “Electronic Communications” licensing procedures turned into authorization, which means registration of communication service providers. Licensing needs only for assignment of frequency and numeration resources.
“Low of Electronic Signature and Electronic Document” and “Elaboration of technical rules towards e-signature certificate and issuing e-signature” is already adopted; it will support the settlement of electronic signature and electronic documentation in public administration and civil relations.
For developing the competition and entrepreneurship in postal sector will be adopted “The Postal Law” and “Postal manuals” in the nearest future.
In the sphere of info-communications, according to the international standards in the nearest future will be enacted Georgian National new Numbering System, that means the old system will be transferred in modern system according to the European standards, which ensures deployment of new technologies and services, competition and creation of new working places in the info-communications field.
For stabile and secure Communication among the governmental bodies Georgian government has launched new Georgian Governmental Network GGN project that has started in November of 2006 and In last year, 3 month ahead completed first phase of building process of Georgian Governmental Network in which are evolved more than 400 point of different Ministries and entities. There is established network management center, maintained installation and switching in the net of IP telephony and also its technical service. At the same time mentioned network offers the customer wide internet services.
For the second phase, according to the demand will be insured switching process of any governmental body and organization in the GGN with relevant technical service.
The modern technologies based GGN stipulates the development of IP protocol-supported, integrated and protected VPN type of computer network all over the Georgia that enables the online interconnection of governmental bodies, exchange of any type of digital data between central and regional agencies, considerably decreasing the communication costs of state authorities, allowing the use of high-speed, as well as that of the ordinary internet access at affordable rates.
The GGN is the first and the most prominent step towards implementation of electronic governance in Georgia.
Last year successfully was carried first regional conference on Georgian IT Innovation events (GITI), which is planned to be carried out in current year. The purpose of this conference is to describe the significance of information technology in terms of creating an engine of growth for socio-economic development of Georgia; network with stakeholders and build awareness regarding IT importance among high-level governmental officials, private sector representatives and the society at large. distinguished panel of keynote speakers will bring a diverse set of insights on different advancements on IT initiatives around the world.
Main goal of communications is to support of economical social and cultural evolution, accelerating development of the Info-communication Networks in the country in purpose to building information society. The State plays the key role in creating favorable conditions for building information society, and its main challenge is ensuring: - Fixed telephony systems transition into modern digital system - increasing capacity of PSTN’s, eliminate rural and urban PSTN’s divide, development of rural telephone networks and equal development of communications systems in the other regions of Georgia;
- Increasing of Computerization level and Internet penetration, decrease of digital gap between the rural and urban Internet penetration;
- Creating of e-commerce, e-learning and e-medicine system for developing the business and social and economical stability;
- Formation new field of Info-communications to connect Europe and Asia , creation of new telecommunication backbones and organizing of systems;
- Develop production of info-communication means;
- Transition from the analog broadcasting into digital.
The condition of the development of communications networks and means
Public switched telephone network
In 2008 the modern digital switches amounted 92.3 % of general capacity of installing switches. In 2008 the number of the public switched telephone network’s subscribers reached 674 730 comparing with 570 000 in 2005. In 2008 the penetration of the public switched telephone network in the country on per 100 inhabitants reached 15.4%, in the urban areas – 27.9%, and in rural areas – 1.6%.
The biggest share in the PSTN service segment belongs to the JSC “United Telecom of Georgia”. Combined shares of three companies, those of Ltd “Akhteli”, Ltd “New Net” and JSC “United Telecom of Georgia” reach almost 90% in this segment. Ltd “GTC”, Ltd “MagtiCom” and JSC “Unidet Telecom of Georgia” offers the customers CDMA standard wireless fixed telephone services, The number of wireless fixed telephone services subscribers increasing day by day and reached approximately 85 000.
Mobile cellular radiotelephone network
In 2008, number of active subscribers in mobile networks grew up from 1 415 400 subscribers (in 2005) to 2 815 055 (in 2008).
In 2008, the penetration of the active subscribers of the cellular radiotelephone networks reached 32.7% on per 100 inhabitants, while this number in 2008 was 64%.
Rapid expansion of the mobile service has significantly eased the access issue for urban as well as rural areas of Georgia. The growth of the cellular telecommunication segment is one of the highest parameters of the Georgian telecommunication sector. Three dominant companies Ltd “Magticom”, Ltd “Geocell” and Ltd “Mobitell” covering 95% of the populated area. Two companies (Magticom and Geocell) have already developed 3.5G systems in Georgia.
Data transfer and internet network
The number of users switched to the internet increased up to 350000, comparing with 140000 in 2005.
The number of data transmission and internet users increasing day by day, On the ISP market works 18 internet service providers. Four providers offering wireless broadband services ( Wi-Max) for individual and business users. Customers are free to choose a provider. ISPs are subject to class authorization. Past years three major ISPs have merged and was created Ltd “Caucasus Online”.
In 2008 Caucasus Online constructed high capacity an undersea fiber optic link between Poti-Varna (total bandwidth of nearly 1.3 Terabits) and Georgia directly connected to the Global internet network . This project makes positive influence on Georgian ICT sphere.
TV and radio broadcasting
TV broadcasting covers the 96% of the whole population of Georgia, radio broadcasting – 90%. It is considerable, that 65% of population receives three or more TV programs. The main economic indicators of the field
Field income
In 2008, increasing tendency remained at the telecommunications market. In 2008, the field income amounted 1 248 260 000 Gel comparing with 595 960 Gel in 2004. The increase is 109.5%.
In 2008, market share of the mobile telecommunications was 71%; Fixed Telecommunications – 19%; Internet – 3%; Tv-radio broadcasting – 6%; Postal service – 1%. Communications market in segments – 2008
In 2004-2008 communications common annual income (including VAT) increased from 595.96 to 1234.75 GEL, which can be considered as indicator of the success resulted from the reforms in the economic segment. Communications market income dynamics is brought below.  |
|
|||||||||||||||||||||||
| Developed by ITNOVATIONS |
