ComCom: MagtiCom’s decision to increase tariffs raises questions

MagtiCom’s recent announcement of a tariff increase has been described as unfounded by the Communications Commission (ComCom), which issued a statement, emphasising its commitment to protecting consumer interests.

According to the Commission, they will thoroughly examine the matter and observe the responses of other telecommunications providers.

“The decision to raise tariffs prompts legitimate questions. MagtiCom announced that starting August 1, 2025, the service fee for users of 50 Mbps fixed internet or combined Internet + IPTV services will increase by three GEL. The Communications Commission estimates that this change will impact approximately 496,168 subscribers across Georgia.”

This tariff hike is particularly noteworthy given that Georgia’s high-speed internet prices are already considerably higher than those in European countries, the ComCom believes. To safeguard consumers, the Commission will evaluate the issue under applicable legislation, including the Georgian Law on Competition. Additionally, they will monitor whether other companies follow MagtiCom’s lead in implementing similar increases.

Under the new tariff structure, if MagtiCom retains all its current subscribers, the Commission projects the company will earn an additional GEL 1,159,874 each month, translating into an annual revenue increase of approximately GEL 13,918,485.

As a point of reference, in 2024, the Communications Commission published a comprehensive benchmarking study comparing Georgian telecom prices with those in 22 EU member states and the United Kingdom. The analysis revealed that Georgia’s prices for both mobile and fixed high-volume, high-speed services significantly exceed the European averages. Conversely, prices for low-volume or lower-speed services are comparable or even cheaper than those in the studied countries. For example, the cost of a 25 Mbps internet package for individual subscribers is 5% lower in Tbilisi than the European average, and 17% lower in regional areas. However, high-speed fixed internet packages are markedly more expensive— a 100 Mbps package costs 136% more than the European average.

Furthermore, last year, the Comcom completed the first phase of a comprehensive sector study, which identified MagtiCom as a dominant operator in both fixed and mobile wholesale markets. This dominance is reflected in their substantial subscriber base, infrastructure, and revenues. To foster competition, diversify consumer choices, and improve service quality, the Commission has imposed various obligations on MagtiCom, which are currently being actively implemented.

“It is also noteworthy that last year, MagtiCom increased the internet speeds for optical internet users at no additional charge, raising the 30 Mbps package to 50 Mbps and the 50 Mbps package to 80 Mbps. Consequently, the 30 Mbps package was discontinued. Currently, subscribers who purchased the 30 Mbps plan face limited options: they must either settle for slower internet speeds or pay higher prices for the upgraded 50 Mbps packages, which restricts consumer choice,” the Communications Commission said in a statement.