MagtiCom - A New Page of Opportunities

From the very outset, working at MagtiCom became a dream job in Georgia’s labor market. But what does it mean to work as part of a team for a company with a leadership philosophy? How does MagtiCom ensure constant readiness for any kind of challenge? How does the company contribute to the country’s economic development? These and other questions from Neostudio are answered by Zurab Zaridze, Deputy CEO of MagtiCom.

Education

Tbilisi Academician Ilia Vekua School of Physics and Mathematics #42
Tbilisi Ivane Javakhishvili State University, major in engineering economics
Tbilisi Ivane Javakhishvili State University, major in jurisprudence.

Qualifications and Professional Development

Certified Public Accountant (CPA), the Georgian Federation of Accountants and Auditors
General Audit Certificate, the Auditing Council at the Parliament of Georgia
ISO 9001 Lead Auditors Certificate, EXCEL PARTNERSHIP, London, UK
Master’s Certificate in Project Management, the George Washington University, School of Business.

Q: You have worked for MagtiCom in different capacities for over 20 years. What was your motivation then and what keeps you going  now?

A:I first started cooperating with MagtiCom through an audit firm. I was lucky to have been engaged in a new project involving MagtiCom’s tax audit. Given my professional training, I was quite familiar with various corporate cultures and organizations with different workplace policies operating in a whole range of business spheres. But I can assure you that what I found at MagtiCom was a totally different business environment. It was unbelievable to see a company focusing on such high standards at the earliest stage of market economy and business development in Georgia. MagtiCom had been an organization with a leadership philosophy from the very outset, one with a team of brilliant minds with a clearly defined mission, vision, and values, consistently pursuing set goals. At MagtiCom, high standards could be seen across the board, from office arrangements to mobile stations and other equipment from leading international telecommunications companies. Even their accounting software was American. I’ve been into electronics and radio technology since childhood, but I never thought of opting for telecommunications as my future profession. Thus, my very first encounter with MagtiCom secured a connection on both professional and emotional levels, so no wonder I wanted to work for a company like this. Fortunately, my dream soon came true. And I’ve been a MagtiCom employee for 22 years. I have come a long way from tax manager to deputy CEO, having also served as head of internal audit and first deputy CFO. I was and still am excited to be working with an excellent team of professionals. And it is through standing by one another and investing joint efforts that we have carried out numerous exciting and complex projects. I have accumulated invaluable experience, learned a lot, and reevaluated many things over these years.

As for my motivation today, the telecommunications industry is so dynamic and fast-paced that, just as you think you’ve achieved it all, new challenges arise, so you engage with all your determination, and a new page of opportunities is turned as a result.

What is MagtiCom’s greatest achievement in 25 years of operation?

I believe that MagtiCom’s greatest achievement lies in the quality it delivers and, at the same time, its impeccable reputation. There are many examples in business when a company kicks off successfully but eventually fails. Being the market leader and maintaining top quality from day one is MagtiCom’s greatest achievement, I think. This means that subscribers trust you, and keeping this trust is the most difficult task. Achieving quality is no picnic either. It calls for considerable capital expenditure and sizeable investments, which is why quality services come at a price. That MagtiCom has the largest subscriber base illustrates that most users choose reliable connectivity. “Earn your leadership every day,” these words belong to Michael Jordan, a natural-born leader and the world’s all-time greatest basketball player. I believe this is exactly what we are doing.

What kind of organizational culture has MagtiCom introduced in Georgia?

Principles that eventually become part of corporate culture may come from any member of the organization, though it is largely defined by the founder’s visions and values. The more employees share these principles, the stronger the company’s organizational culture grows. Above all, for MagtiCom this means effectively achieving set goals, proper management—in which minimal bureaucracy really comes in handy—as well as suitable business process management and relevant control. And this applies to all, from top managers to new employees on probation.

MagtiCom’s flexibility and ability to respond to changes effectively are factors that account for a strong organizational culture. Challenges arising at home, in the country, are one thing, but global context and technological process are something different. We can provide the most rapid response to legislative changes and macroeconomic challenges alike, both on strategic and operational levels. Without this ability to respond, we will lose our leading positions. Continuous, quality delivery of telecommunications services is a key component of the company’s strategy. We constantly weigh up such challenges and are ready to take action.

Corporate culture faces a major test in the form of mergers and acquisitions. It is known for a fact that, next only to mergers, the biggest challenge lies in incompatible corporate cultures. To our team’s credit, we have been successful—within record-breaking intervals of four months—in the merger/acquisition and then transformation of two companies with different corporate cultures: Caucasus Online retail business at first and then 100% of Delta Comm’s shares. As a result, we have expected synergies in place.

In your opinion, what are the key principles of business ethics?

Long-term success largely depends on the given company’s ethical decisions. Legally defined and regulated rules are one thing. But it’s a different story when it comes to behavior beyond the law, something that predominantly guides companies and their employees in the contemporary world. Dedication to work, integrity, discipline, and continuous self-criticism are our key principles spurring us on to outdo ourselves. MagtiCom’s reputation is built by decent, fair, and morally upright people. Following through on a promise is our top objective. This helps us win over and maintain the trust of our employees, subscribers, business partners, and the public at large.

Over 2 billion 300 million into the country’s budget, and over a billion USD in investments: behind these numbers, what does MagtiCom mean for the country’s economy?

One of the criteria of a company’s success is its contribution to the country’s economy. I am proud that, in terms of foreign direct investments (FDIs), we are among Georgia’s largest 10 investors, as evidenced by the National Statistics Office, among others. FDIs are a substantial source of hard currency flows into the country, and consequently of the stability of the national currency, explaining why the country’s real progress, development, stability, and reduced poverty lie behind these numbers, something that naturally impacts the welfare of each citizen.

The development of our country’s economy relies heavily on technological progress and the advancement of digital economy. Innovative, technologically advanced countries are often more competitive and have better economic indicators. Infrastructure in the form of internet and telecommunications networks is the foundation of information technologies, explaining why it is also the cornerstone of not only electronic commerce, but also of upgraded information and idea exchange, education, and healthcare. Consequently, we have invested heavily in infrastructural development, to ensure the flexibility and effectiveness of digital platforms building on it, which in turn stands for easy access to products and services in both public and private sectors.

As for taxes paid to the state budget, MagtiCom has been a role model of transparency since establishment, a part of our DNA and an unconditional must requested by the company’s founder, Mr. Gia Jokhtaberidze. And the main principle of being straight with the state budget remains unchanged. Besides having first-rate professionals in this area on board, we also receive additional assurances and guarantees of proper and timely tax payments from leading independent audit firms.

Years later, many other companies jumped on the wagon and, similar to MagtiCom, started publishing tax-related information. Better still, I believe that MagtiCom’s example has cultivated taxpaying habits and culture not only among other companies, but among ordinary citizens as well. Various surveys confirm close ties between paying taxes and responsibility—law-abiding taxpayers take a greater interest in how their taxes are spent, considering themselves active members of civil society.

After pitching a full package of communications services, how will MagtiCom make its subscribers feel even more advantaged?

Like I said, the field of telecommunications is developing in leaps and bounds to shape into one of the leading sectors of the global economy. If just 15 years ago telecommunications meant only calling, conversing, and texting, now it largely stands for data transfer.

The rapid development of such technologies as 5G, IoT (internet of things), AI (artificial intelligence), and ML (machine learning) solutions leads us to expect large - scale changes over the next few years.

Compared to 4G, the development of 5G technology for cellular networks implies much faster data transmission and reduced latency, and this offers greater opportunities for creative innovative products and applications. Along with advancing 5G internet, IoT enables the collection and rapid analysis of data in real time, in this way putting in place prospects of better understanding consumer preferences and making predictable decisions. AI and ML solutions foster greater effectiveness and reduced expenses in operations, also facilitating automatized network optimization.

As the future of telecommunications, the technological trends above are ultimately designed, once again, to ensure quality services. We are flexible enough to introduce all necessary services in a timely and effective manner as soon as the Georgian market is ready for it. We want our subscribers to be proud of being able to use ever-modern technologies just by plugging into the MagtiCom network.

What underpins MagtiCom’s financial decisions?

We believe - and time has proved us right - that decisions on ensuring top-quality services set the seal on financial success in the long run. If, at an earlier stage of operation, MagtiCom was driven solely by profit targets, we would not have been able to cover remote and scarcely populated regions and villages. And it is thanks to our dedication to work, and by ensuring comprehensive, top-quality mobile connectivity, that we earned our subscribers’ trust, loyalty, and appreciation. In the same vein, we would not seek short-term financial gain from developing the optic internet network either. Despite depopulation in the regions, we invested heavily and, as a result, ensured the highest coverage rates. The optic internet and IP television bolster the empowerment of the regions, keeping the population in villages, and educating young people, something of crucial importance for the future of the country. And our success is also the success of MagtiCom.

We are working toward the Georgian cause! What does this phrase mean to you in the era of globalization?

The truthfulness of the adage “the world is getting smaller” is as relevant today as ever. International markets, technologies, and organizations are becoming increasingly interconnected. Today’s internet world - with its social networks, video streaming, blogs, online collaborations, podcasts, and mobile devices - differs drastically from the familiar and comfortable world many have become used to. The digital revolution has changed the game, overhauling not only how we interact, but also how organizations are created and managed, how businesses operate, and how employees work. Today, successful companies feel at home in any corner of the world. Global processes generate not only new opportunities, but also competition. To remain competitive, Georgia must keep pace with leading countries in terms of access to the latest technologies. In this regard, MagtiCom is a true role model. Besides pitching state-of-the-art technological achievements to subscribers, for years we have utilized in-house IT solutions and operating systems, which perfectly meet our requirements and needs. Also, alongside striving to preserve and promote national identity in the field of culture in our global era, MagtiCom also has a say in the development of technologies fast-paced we are working toward the Georgian cause!