Innovations in telecommunications of the world and Georgia

Sofo Gogoladze

On April 27-29, 2005, the 2nd international telecommunications and informational technologies exhibition GEORGIATEL was held in Sheraton Metechi Palace.

The organizers of the event were: “Ite Georgia PLC”, its official representative in Georgia Iteca Kavkasia as well as Iteca Caspian (Baku, Azerbaijan) and EUF (Istambul, Turkey).
28 companies from 11 countries of the world exhibited their production and services, among them Geocell (Georgia), Electric Communications (Georgia), Sabi (Georgia), Global-One (Georgia), Railway Telecom (Georgia), Daisytek Computers (United Arabian Emirates), D&K (Russia), Hewlett-Packard/Nissa (USA), Alcatel (France), Greennet (Georgia), Karel (Turkey), Krone (Germany), Minitelsy (Georgia), MGE UPS Systems (United Arabian Emirates), Xerox (USA), Orient-Logic (Georgia), X-Sat FZE/Thuraya (United Arabian Emirates), Kramer Electronics (Israel), Sony Professional (Japan), Veziri (Georgia), AXXESIT ASA (Norway), UGT (Georgia), ZTE (China), etc.
Realization of TAE’s transcontinental fiber system project in Georgia will promote the advance of IT technologies.
In 2003, the communications share in GDP of Georgia was up 30% running into 154,2 million dollars, whereas in the first quarter of 2004 the volume of telecommunications service was 36,7 % up on last year. In the first quarter of 2004, non-financial investments made up 103,2 million dollars. In the course of the last year more than 280 million dollars’ foreign capital was invested in the country thus exceeding tenfold the data of 2002. Of the total investments, 79,9 fell at the share of communications.
Up to 2006, about 400 million dollars have been invested in different Georgian IT projects. Fifty millions’ worth IT development projects will be realized in Georgia over the next 5 years. This implies realization of a project on introducing universal communications system in Georgian districts and regions.
International IT data reveal that among CIS countries Georgia holds the third place by the number of telephone service subscribers after Russia and Ukraine ? for every 100 residents, the 2nd place by the number of mobile service consumers ? for every 100 residents, and the 3rd place by the number of Internet service users ? for every 10000 residents.
Since 1 April tariffs on international calls have been liberalized with certain long-distance calls costing 35-40 tetri per minute – the price used to be no less than 50 tetri before.
There are significant novelties in Georgia’s IT sector. This is, for instance, wireless cable telephone, i.e. cable (city) telephones are installed without wires. Internet-telephony has also been developing. Internet telephony means that DSL subscribers can call by dialing numbers on computer keyboard.
The perspective direction of modern digital telecommunications development that is totally accepted abroad has been developing slowly in Georgia. Hence, local communications companies started to introduce IP telephony ? a new comfortable telemetric service that, what is of much importance, is not expensive for end-consumers (Georgian Electro communications already started work in this direction).
There is a great choice of services on mobile service market. For instance, Geocell offers a wide range of services for its subscribers: it is GPRS – Internet on mobile, fax and data transfer, and MMT (Multi Media Service) that makes it possible to attach files, pictures or video clips to short text messages (the company also offers its subscribers international communications, international roaming, voice main, dial SIM card and other services).
In the South Caucasus Geocell has become the first GSM operator after Azerbaijan. At the end of the first year when the company launched its business there were 8000 subscribers, but now half a million calls are made via Geocell within one hour. In 2003, a joint Swedish-Finnish company TeliaSonera became the owner of Geocell’s control stock. TeliaSonera is one of the leaders in the world’s communication sector. After merger with TeliaSonera, Geocell automatically turns into a member of the world’s major groups such as Fintur Holdings B.V. Apart from Georgia, members of the group include companies from Azerbaijan – Azercell, Moldova- Moldcell, Kazakhstan – Kcell.