Georgian National Communications Commission - Georgian National Communications Commission Vs Megafon

Georgian National Communications Commission Vs Megafon

In a recent notable case, the GNCC has accused the Russian mobile telecommunications provider MegaFon of illegal, unlicensed business operations within Georgia’s national territory, as well as participation in the Russian military’s invasion of the country in August, 2008. In a press release, the GNCC has compared MegaFon’s operations in Georgia to “economic annexation.”* The GNCC claims that the Mobile Communications Company registered in the Russian Federation, “MegaFon”, started its illegal operations back in 2005 in the conflict zones of Georgia, in particular–South Ossetia region. Using the Georgian radiofrequency bandwidth, the Russian company provided coverage mostly in the areas of dislocation of the Russian military forces (participating in the UNOMIG mission). The rest of the area was mostly covered by the Georgian Communication Companies “Geocell” Ltd. and “Magticom". In the spring of 2008, the GNCC received complaints from Georgian mobile phone carriers alleging destruction of their communication facilities and antennas in the region and installation of MefaFon antennas. On June 5, 2008, the GNCC conducted a monitoring survey of the spectrum use in Zemo Nikozi, in the Tskhinvali region of South Ossetia. Representatives of the Monitoring Department of the Commission conducted tests to identify the users of GSM-900 spectrum radio frequencies. The technical results show that MegaFon is maintaining unlicensed network coverage in the area. Since 2005, MegaFon has conducted retail sales of SIM cards for consumer use within Georgia, as confirmed by the explanatory letters of local citizens using MegaFon services. Notably MegaFon never sought or received an authorization or license from the GNCC to operate in any part of Georgia. On the basis of Administrative legislation of Georgia GNCC imposed two fines on MegaFon, the first–in the amount of 5000 GEL ($3,750.00 USD) in July 2008, and the second, for the recurrence of violation in the amount of 500,000 GEL (approx. $350,000.00 USD) in September 2008. GNCC transferred the files on violations, committed by MegaFon to the General Prosecutor of Georgia for initiating criminal proceedings against the key officials of MegaFon. In August, 2008, during the Russian military intervention in Georgia, the company expanded the coverage area beyond the conflict zone. Namely, the coverage area now included the territory of the former Autonomous Province of South Ossetia and Gori and Kareli districts of Georgia. On September 16, due to the findings of the second monitoring mission of GNCC and establishing its extended coverage, “MegaFon” was fined with 500,000 GEL.On October 2 2008 Tbilisi City Court upheld the decision of GNCC and dismissed the claim of MegaFon, which was held liable for providing unlicensed telecommunication services in Georgia.

MegaFon’s appeal of the second administrative fine shall be discussed by Tbilisi City Court in November 2008.

The business news portal MediaGuide.ru reported that the Russian government asked MegaFon on August 14 to send a number of "base stations" to the so called South Ossetia to connect with systems in neighboring North Ossetia, part of the Russian Federation. The government stated that the signal for one of two existing South Ossetian communication networks, routed through Tbilisi, was "very weak" and had no "guaranteed stability." Once the stations were in place, MegaFon’s signal could be picked up as well in the neighboring Georgian town of Gori. GNCC declares that no Russian mobile communication company have been rooting any signal via Tbilisi, moreover, the separatist region does not have any “existing” communication networks. Therefore, the talks of expanded MegaFon coverage rather attempt to justify its illegal economic invasion in Georgia, whereas MegaFon itself has been and persisted to deny its operations in Georgia even in September. Numerous articles in Russian media, including Moscow Times publish declarations by the separatist leaders, in particular Aduard Kokoity on the long-awaited expansion of the MegaFon network and multiplying the number of customers to 36,000.