Pages from Magti’s Lifebook

Magti has turned twenty-five!

Is this a long time? Or maybe short? What do you think?
Looking back at the development of communications over the past twenty-five years, we keep track of our journey from long lines at intercity telephone stations to the world of unlimited connection to the whole world; or, from showing up at dawn to buy newspapers in a kiosk to learn the latest news or soccer scores to watching the latest developments in real time at any given moment we please; or, from reading printed encyclopedias in libraries to evolving into carriers of vast amounts of information stored in our cell phones or laptops.
The field of communications has made a bigger leap in these twenty-five years than in the previous twenty-five centuries. And that Georgia’s development in this area is now on par with the world’s leading countries is largely credited to Magti.

How it all began

1995. Tbilisi, Georgia….
The consequences of the 1991-1993 war with Russia and the civil war, extreme poverty, cold, lack of transport, refugees, the Mkhedrioni criminal group, the National Guard, gunfire, the city enveloped in darkness, overwhelming loss of hope for a better tomorrow….
Under these circumstances, we made a seemingly utopian decision to transform Georgia as we knew it at that time into a member of the community of the most technologically advanced countries, and to enable interpersonal communication in the country by way of cellular technologies. 
Shortly after this decision, in February 1996, MagtiCom LLC was established to get a new phase under way, one of studying and searching. 
First off, it was vital to collect at least some information on new technology, also to locate and get in touch with manufacturers and persuade them to cooperate with us.
In hindsight, all this looks quite simple. But the truth is that, in that period, finding a point of contact and explaining to them that our Georgia was neither a US state nor a Russian oblast was no child’s play. And even after giving the point of contact a clearer picture of Georgia’s political and economic state of affairs, our interaction usually ended with the cliché “good luck to you in all your endeavors.”
As luck would have it, Metromedia, a US-based company, made a move around that time to enter the post-Soviet telecommunications market. This media giant first appeared in Georgia to introduce a paging system. The spring of 1996 saw the inaugural meeting between Georgian Magti’s Founder Gia Jokhtaberidze and American Metromedia International Telecommunication’s CEO Dick Sherwin. Shortly after this meeting, in October 1996, Metromedia became Georgian Magti’s co-founder and partner.

First steps

The year 1997 saw the preparation phase for launching MagtiCom’s operations. Grant Reed was invited as the company’s CEO. MagtiCom’s office opened on Jikia Street (now Politkovskaia Street), in Saburtalo, to occupy one floor in the former Elva building. Staff recruitment started, and an agreement on equipment delivery was signed.
American Motorola became MagtiCom’s first equipment supplier and technological partner. With Metromedia as the guarantor, a 40-million USD credit line was extended to supply the first stations, something very unusual given the situation in that period. Motorola also provided a Siemens-manufactured main switching station. In the same vein, the first stations were installed by Motorola’s specialists with engagement from our technical team.
Needless to say, adopting and coming to grips with new equipment and technologies was a major challenge. But this and every other direction—such as subscriber services, marketing, financial and legal affairs, and others—shaped and developed in sync with the company’s progress.
The first strategic decision on launching the company’s operation argued against jumping the gun, instead taking a back seat to competitors for the time being and using this time to expand the geography of our signal coverage.

First call

The day MagtiCom launched its commercial operation, September 22, 1997, changed everyone’s life by reshaping the notions of distance, time, and relationships. People, now knowing that they could get in touch with others any time they pleased, no longer felt lonely.
That day best exemplified the excellent cooperation between Georgia and the US. The presentation was attended by Metromedia’s Founder John Kluge and his partner, Stuart Subotnick. 
That day also stood for MagtiCom’s assuming enormous responsibility to its subscribers, more specifically constant development, growth, covering previously inaccessible areas, introducing new technologies, building new offices, towers, and stations, and pitching innovative services….
Shortly after inception, MagtiCom became leader of the Georgian telecommunications market, eclipsing everyone in the rankings ever since and symbolizing quality, technological advancement, progress, and focus on the future.  

“It’s calling here too….”

Many probably remember the beautiful video called “It’s calling here too,” but probably not many have really considered how much work and effort it took to make sure that “it’s calling here too.”  Despite the absence of road infrastructure, power outages, and frequent protests from local populations, towers and base stations were installed, sometimes seventy meters in height, also equipment was put in place, new stations powered mostly by generators were commissioned, and so on—just like everywhere else around the globe—and this is how MagtiCom gradually expanded its coverage area.
While having only a few stations to kick off operations, MagtiCom now runs over 8,000 stations to cover 98% of the country’s populated and controlled territory. Importantly, MagtiCom also operated in the Kodori Valley and Samachablo. But, as a result of the war in 2008, the equipment installed there was seized by the occupants. 

In some areas, MagtiCom’s stations are designated specifically to serve small villages with only a few households, or individual border guard units. Needless to say, these stations will never perform well enough to ensure return on investment. But ultimately, what matters is that “it’s calling here too.”  
The World of Constant Connection
The World of Constant Connection, MagtiCom’s bilingual quarterly magazine celebrating technological content since 1999, is a corporate gift for Magti’s subscribers. With ninety-five issues to its credit so far, the magazine has shaped itself into a genuine world of its own. Alongside technological materials, the publication offers diverse content on Georgian arts, science, nature, and history, in this way establishing itself as a solid constant connection between the past, present, and future.
Through the efforts of Neostudio, The World of Constant Connection has evolved into an enticing symbiosis of “physics and lyrics.” Articles for each issue are selected with extra care and complemented with refined illustrations to bear witness to things incomparably exquisite, beautiful, eternal existing in our rapidly changing technological era.

From 2G to 5G

For human beings, a quarter-century stands roughly for one generation. In MagtiCom’s case, however, the 2G network adopted twenty-five years ago was followed by 3G and 4G. And the technical network aspects of 5G are practically set up across the world, poised gradually to replace the previous generations that, similar to the earliest cell phones, will leave us with just sweet memories. 

Below is a list of Magti’s technological and marketing achievements in strict chronological order, leaving enough room for you to imagine the amount of intellectual and financial resources invested in all this:

1998: Roaming services launch, a prepaid system is adopted.
1999: The World of Constant Connection magazine is founded; GSM 1800 frequency band is put to use.
2000: Dual SIM cards, conference calls, mobile fax and data services are introduced.
2001: GPRS technology and SMS are introduced.
2002: The first GPRS call is placed, identification restriction (CLIR) and voicemail are introduced.
2004: MMS and push-to-talk options are pitched.
2005: Bali youth brand is established.
2006: 3G services launch.
2007: WiMAX wireless broadband internet rolls out, the unified Georgian Governmental Network (GGN) is established.
2008: MagtiFix, fixed wireless telephony from MagtiCom, launches.
2009: 3.5G HSDPA, the next step in the development of mobile internet, starts.
2010: Bani, Magti’s new brand, launches.
2011: Deer’s Leap project launches to provide 2,287 schools across the country with internet connection and to ensure technical support at unified national exams.
2012: Satellite television MagtiSAT launches.
2013: In-house movie channels: Chveni Magti, Magti Kino, and Magti Hit roll out.
2014: The largest ground station in Georgia is commissioned for satellite signal transmission.
2015: 4G is put into operation. 
2016: MagtiCom becomes an internet and IPTV service provider.
2017: Magti’s fiber-optic internet is delivered to more than 500 cities and villages.
2018: VoLTE service launches.
2019: e-SIM is ushered in.
2020: Rebranding is carried out. 
2021: Remote services are initiated.

MagtiCom has dedicated these twenty-five years to a constant search, trying its hand at every new technological direction to offer it to customers.
But what exactly has enabled Magti to become the leader of Georgia’s telecommunications space sharing the latest global achievements in this field with its customers? I believe there is more than one determinant. 

We are working toward the Georgian cause

What matters above all else must be the appreciation of the fact that your work, development, and every step toward growth has a direct impact on the country’s progress. You see with your own eyes the changes in people’s lives brought about by the introduction of mobile telephony, mobile or fiber-optic internet, and internet television, also the ease of access to state services secured by the GCN network built with your own hands, and the excellence with which Deer’s Leap, a Magti-led project, facilitated unified national exams in 2,287 schools.

Consequently, every employee of MagtiCom feels the same way, that “we are working toward the Georgian cause.” For over two decades, these sentiments and this slogan define the work of MagtiCom.

“We are working toward the Georgian cause” stands for over one billion USD in direct investments into the Georgian economy.

“We are working toward the Georgian cause” stands for over 2.3 billion GEL channeled into the state budget.

“We are working toward the Georgian cause” stands for myriad charity projects, numerous educational projects under the aegis of Magti for Education, also unique publications by contemporary Georgian authors and artists.

In publishing books under this slogan, MagtiCom expresses its gratitude to Chabua Amirejibi, Guram Dochanashvili, Rezo Tabukashvili, Jansugh Charkviani, Murman Lebanidze, Guram Asatiani, Rezo Gabriadze, Niko Gomelauri, Edmond Kalandadze, Jibson Khundadze, Irakli Parjiani, Merab Abramishvili, Radish Todria, Levan Tsutskiridze, Shalva Matuashvili, and many others for contributing to the development of Georgian culture and creating masterpieces.
Publications celebrating the history of Georgia deserve special mention. These books are constant reminders of where we come from, also of the fact that our company has already taken its modest place in the country’s history.

Team

Still, what underpins MagtiCom’s success must be the team of people taking the company’s progress as their personal advancement toward prosperity, those working 24/7 to bring more to the table, to benefit the company and its customers, and the country as a whole.
This is a unity of people whose ideas, though sometimes clashing, underpin decisions that translate into action plans applicable to all. Most members of MagtiCom’s current management joined our team at a young age, subsequently growing alongside the company and evolving into real professionals in their respective fields.
In these days of anniversary celebrations, my special thanks go to those who have left their unmistakable marks on MagtiCom, even though they currently have moved to different spheres. These are Dato Gachechiladze, Zura Gojiashvili, Ani Rekhviashvili, Levan Buchukuri, Tato Makharadze, Gigisha Tsuladze, Zura Gurgenidze, Nika Tsereteli, Zura Galumashvili, Achiko Gomiashvili, Irakli Lobzhanidze, Levan Vachnadze, Shota Ghvinianidze, Rezo Kopaladze, and others.
Also, I absolute must, with enormous pain in my heart, honor the memory of Metromedia’s President and CEO Mark Hauf and MagtiCom’s first Georgian Director General, Giorgi Kiknadze.

Partners

Choosing the right partners has been one of the determinants of MagtiCom’s success from the get-go.
Motorola, Siemens, Nokia, Ericsson, Huawei, Cisco, Oracle, Microsoft, HP, KPMG, BDO, McKinsey—this is a very short list of the MagtiCom team’s global partners over the years. It has been especially gratifying to hear them commend with excitement the professionalism of MagtiCom’s staff.
For local partners, long-term business cooperation with MagtiCom has been a source of solid revenues.

Gia Jokhtaberidze

One of the key secrets behind MagtiCom’s success lies in minimizing the time between decision-making and execution. Enter Gia Jokhtaberidze, MagtiCom’s Founder.
It is thanks to Gia’s decision that nothing at MagtiCom is provided by the state—instead, everything is the fruit of the company’s tireless work. Also, at his behest, the company’s tax obligations to the state undergo triple filtration to ensure against the budget losing even a single tetri due. In addition, he is uncompromising in withstanding any attempt to pressure the business.

An episode illustrating Gia’s personality. Once, he was wrongfully detained, and no charges could be brought against him. Eventually free to go, he refused to leave his holding cell in protest at unscrupulous comments about his release. Ultimately, special forces were brought in to remove him from the prison.
For Gia, MagtiCom is not about business only, it is a way of life. For twenty-five years, he is one of the first to open the door every morning and delve into the tiniest details of the company’s life. At first glance, he seems to be absorbed by monotonous, routine daily cares. But calling to mind MagtiCom’s development strategy drawn by him on a flip chart fifteen years ago, you realize at once that this routine work, having already dealt with the strategy’s tasks, is now targeting a brand-new masterplan appearing on a flip chart….

In place of an epilogue 
Still, is twenty-five years a long time? Or maybe a short one?
I have no answers to these questions. But I’m confident that the next twenty-five years will continue to embody the adage “Magti—Connecting to Your World.”
Gia Koshoridze
Graduated from the engineering economics department of Tbilisi State University.
Has worked as Magti’s Senior Accountant since the company’s establishment. 
Since 2004, he has been Deputy General Director of MagtiCom.
Awarded with the Order of Honor for his contribution to the development of the field of communications.