Magticom’s statement regarding another of those lies and deliberate misinformation spread by Georgian National Communications Commission on 28 July 2023

The Commission’s announcement contains factual errors and lies and is structured so as to deliberately mislead the public. The Commission attempts to shift the blame for its failed 5G auction (EU recommendation) onto others. Therefore, we think it obliged to provide the public with objective information regarding the 5G auction.

In order to build a consistent 5G network, an undertaking must have purchased frequencies from 3400-3700 MHz and 700 MHz ranges. Lack of the appropriate number/bandwidth of any frequency out of the above ranges would result in a substandard 5G network. Further, the Commission is breaching the technological neutrality principle contemplated by law in respect of other action frequencies, of which the Commission is keenly aware. Nonetheless, the Commission rolled out frequencies to build the 5G network so that it unconditionally prompted the operator to purchase the frequency to build a quality 5G network with the obligation to grant MVNOs mandatory access to its network.

In this connection, to rule out any speculation, we’d like to point out (and we have said this a number of times in public) that Magticom does not object to the existence/operation of MVNOs in Georgia if the relations are based on partnership, healthy business principles and are profitable/beneficial to both parties, not as a result of compulsion by the Commission where the Commission is definitely seen as a forced MVNO party, not a neutral arbiter.   

Magticom fights and opposes where the Commission demonstrates unnatural interest in mandatory MVNOs, acts partially, incompetently, and attempts to put into being or create, without appropriate justification/analysis, disproportionate measures of compulsion, which, in turn, having been premeditated and unscrupulously planned by the Commission, pose artificial risks to Magticom.

It is noteworthy that the Commission that poses in public as a fake news fighter comes as the main source and disseminator of misinformation in this particular case (and this is not the first time it has done so). It is unbusinesslike and unethical of the Commission to disseminate what has not actually happened. Although in the ordinary course of business as well as at the public meeting Magticom had informed the Commission in advance that the 5G auction conditions did not provide any real alternative for Magticom to purchase frequencies required by its strategy without the existence of mandatory MVNOs, the Commission disregarded this position of Magticom and, more than that, groundlessly blamed us as if we had breached the condition/promise we had never given.

Not just one operator is going to implement 5G in Georgia. We’d like to tell and promise the public and, in the first place, our subscribers that just like it was the case with other technologies, Magticom as a standard will continue to be the company to implement 5G in Georgia most successfully and comprehensively, just as we have done in respect of other technologies so far. We have willingness, a specific plan, capacities, financial resources and skills to do so. When will it happen? After the Commission ceases spreading lies and, instead, takes a businesslike approach, listens and takes into account the voice of undertakings operating in the sector. Today, with its unbusinesslike approaches, the Commission postponed opportunities for a successful development of the new technology as well as for the implementation of investments in hundreds of millions of US dollars. We’d like to remain hopeful that the current negative situation will change soon. Our vision is that the regulator and the undertakings in the sector should be making joint and constructive efforts to develop new technologies and address any issues that may come on their way, not the contrary where the the Commission comes as the main barrier to the development of the new technology.