GNCC Launches Consideration on the Merger of Georgia’s Two Main Internet Providers

The Georgian National Communications Commission (GNCC) launched a consideration on the merger of the two main internet service providers in Georgia yesterday.

Caucasus Online and Silknet filed an application for permission to merge on Saturday, 8th　August.

The two companies dominate Georgia’s broadband internet services with a combined market share of up to 70% (Silknet with 40.7% and Caucasus Online with 27.4% of market share), providing internet services for about a total of 570,000 internet subscribers.

Geocell, Beeline and Magti, which offer 4th generation Internet (4G) and other services could be considered as alternative internet providers in Georgia. However, for those who really want to have a good internet connection at home, Silknet and Caucasus Online are the only options.

To date, both providers have declined a request for details of a potential deal, saying that they would unveil details later.

GNCC has a duty to prevent monopolization in the market and it has three months to assess the impact of the proposed merger before making a final decision.

Meanwhile, internet users have expressed concern that the merger of the two companies may impact the service prices.