Annual Report

October. 28, 2005

Georgian National Communications Commission

End of 20th century is highly characterized by the rapid development rate and scope of the telecommunications market in the world. New realities and environment have clearly shown the necessity of introducing adequate tools and measures ensuring the market sustainability and stable development.

Independent regulating authorities were established in order to elaborate effective and impartial mechanisms of market regulation; respectively telecommunications market development trends and activity rules have been defined.

The principles of creation and management of regulating authorities have been established on the basis of analysis of the functioning of similar structures and results achieved. The number of telecommunications regulating authorities has largely increased within the last ten years in the world; in 1990 there were only 10, in 2004 their number reached 136.

The existence of independent regulating authority is a State warranty of neutral regulation and free from political interested groups, accordingly, it encourages the establishment of reliable and stable investment environment, which naturally ensures: the development of technologically increasing and innovative electronic communications market; improvement of telecommunications network and development of the sector. Stable investment environment encourages liberalization of the market, lowers market entry barriers; also state-owned enterprises are privatized and rules for encouraging competition are determined.