MagtiCom's Application to the Communications Commission

Magticom has provided to the public and the Communications Commission with reports issued in response to the Commission statement of 16 October 2020 by six of the 10 best international audit companies, namely Deloitte, KPMG, BDO, RSM, Nexia and Grant Thornton in reaffirmation of the invalidity of the Commission’s position. The same issue is highlighted in a publicly accessible document (https://mobilesyrup.com/2020/07/15/mandated-mvno-access-unhealthy-canadian-telecom-industry-pwc/) issued by PWC, a member of the so called “Big 4” audit companies, whose opinion on the introduction of the mandatory MVNO access regulation is equally negative.    

Misinterpreting the EU regulation practices for MVNOs, the Communications Commission has made deliberate attempts to mislead the public. A number of similar unprofessional decisions of the Commission have inflicted substantial harm to the entire telecommunications sector and its further development that, in turn, has a direct adverse impact on the national security and economic development of Georgia, threatening a full collapse of the Georgian mobile comminications market.   

Not having obtained an assessment of the risks involved, the Communications Commission made a hasty and ill-though-out decision (O-20-9/156, 31 December 2019) on mandatory access of MVNOs. The Commission did so without having conducted a study required by law. The Communications Commission disregards the cybersecurity risks recognized and confirmed by ITU (International Telecommunication Union). This, having regard to the geopolitical and foreign risk-factors facing Georgia, places Georgia exposed to cybersecurity and defense risks. The government, defense, banking systems, financial institutions, businesses and all that make up a state may collapse by a domino effect.

Although Magticom had warned the Communications Commission against the risks involved, with the risks reaffirmed by six leading international audit companies in their appropriate studies, analyses and reports, the Commission disregarded them without substantiation. These facts and studies beg the question as to why the Communications Commission has resorted to such a harmful decision, especially when the situation in the whole world in general and in Georgia in particular is entirely uncertain in terms of the pandemics and its consequences and a sharp devaluation of the national currency. Besides, despite the fact that the mobile network quality in Georgia is one of the best in the world, the average  mobile revenue per user in Georgia is around $2.5, one of the lowest in Europe. Consequently, one can’t help wondering what purpose the above decision is intended to serve. The purpose not to experience any further development? Or the purpose to be enslaved by others? Or the purpose to ruin the national security, the economy, etc.? One may reasonably suspect that someone may have a vested interest behind all of this.     

We call on the Chairman as well as all the members of the Communications Commission to analize deeply their personal responsibility before the country and the law as well as about the adverse consequences that may follow their illegal and unreasonable decisions – such consequences will reflect on the country’s weakened cybersecurity and defense capabilities as well as on termination of investments in the country and on suspension of development of new technologies. All of this may completely paralyze the country and its economic sectors. In case the Communications Commission does not cancel decision (O-20-9/156, 31 December 2019), as a law-abiding and highly responsible company, Magticom will use all the legal remedies available to make sure the Communications Commission members are held accountable to the full permitted severity for their illegal and negligent/irresponsible decisions and the damages are reimbursed in full through local as well as international courts.