Georgia’s telecommunications market has improved considerably in the last years and should continue this trend, with rising revenues and increased investment in infrastructure. The GSM players operating in the mobile market are Geocell (TeliaSonera), GSM Magticom (Magti), and the latest entrant, Beeline (VimpelCom). Telenet provides wireless local loop services, Internet access services and holds CDMA 450 and CDMA 800 licences. While the incumbent operator had a 44.1% share of the Georgian fixed broadband sector at the end of March 2015, Caucasus Online had 30.8% of the market; and the next largest player was Akhali Kselebi (including Akhteli) with a 10.8% share of the country’s fixed broadband users. The Georgian National Communications Commission (GNCC) was established in 2000 as an independent regulatory body to license and oversee the operations of telecommunication and broadcasting companies.
Georgia’s economy sustained GDP growth of more than 10% in 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed following the August 2008 conflict with Russia. The economy rebounded in 2010-13, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. The country is pinning its hopes for renewed growth on a determined effort to continue to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment.