MagtiCom to Be Only Quadruple Play Service Company in Georgia

The process of handing over the corporate and retail service assets from Caucasus Online to MagtiCom shall tentatively commence on August 1, 2016 and proceed for several months, drawing to a close by the end of this year.

As a result, MagtiCom will become the first and the only operator in Georgia offering a full quadruple play service: Mobile telephone, Fixed-line telephone (wireless and cable), Internet (mobile and cable) and Television (satellite and IPTV). A joint statement of both parties was published on May 30, 2016.

Shortly after concluding the agreement, the European Bank for Reconstruction and Development (EBRD) said it would provide up to USD 100 million senior A/B Loan to MagtiCom. “The use of proceeds is to finance acquisition of retail assets of Caucasus Online. The assets include all the infrastructure, equipment and network necessary to provide internet, telephone and IPTV services to end customers,” stated the EBRD.

Last summer, Caucasus Online, which is one of the largest Internet providers of Georgia, stated that it would sell most of its assets due to financial difficulties. Besides MagtiCom, another main contender for the acquisition of assets was mobile operator Beeline (Mobitel). Many Georgian opposition politicians saw a risk in selling Georgian Internet space to Beeline as it is a subsidiary of the Russian VimpelCom. Although VimpelCom has regularly rejected the concerns, it ultimately decided not to go ahead with the purchase of Caucasus Online’s assets.

Eka Karsaulidze