Changes the Two Companies will Jointly Bring into Telecommunication Market
Twist together with Geocell and Silknet
Silknet and Geocell, Georgia’s two leading telecommunication companies, have introduced a new unique product – Twist. The innovative product enables subscribers to enjoy telecommunication services such as Silknet’s high-quality internet, Silk TV and Silknet’s landline telephone packages, as well as the METI (MORE) product of Geocell. The new product enables subscribers to receive Silknet’s high-speed internet, as well as Geocell’s doubled package of the METI product for extra 2 GEL a month and Geocell’s package of the METI Unlimited for extra 14 GEL a month.
A joint payment system represents an additional advantage of the Twist product. Subscribers are able to make payments to the same account in Silknet. Discount tariffs run for five numbers of Geocell’s METI package together with Silknet’s desirable product.
Georgia’s two leading telecommunication companies have combined their products and created a good preconditions to provide consumer-oriented, modern-technology and simplified services.
“Starting today we offer an entirely new product to Silknet and Geocell subscribers – a combined product of internet and cellular communication services called as Twist. This service is an entirely new and innovative product in the Georgian market. The product reflects the global trends of combining cellular and landline internet services. We are glad to have introduced this service in Georgia for the first time. This comfortable product enables subscribers to manage both landline and cellular communication accounts through a joint account. Moreover, for the first time in Georgia, subscribers are able to receive cellular services through the post-paid system, besides landline service.
Geocell subscribers are also able to enjoy the post-paid method, when they will receive services and pay for the service at the end of a month”,
Silknet director general Levan Buchukuri said and stressed the service will be financially profitable and both companies offer about 20% discount rates to subscribers.
Geocell director general Pavel Smalinski noted the product is a unique one in Georgia and the whole Region.
“Peculiarities of both companies are different and it was quite difficult to develop a one product from all these peculiarities. I express my deep gratitude to personally Levan Buchukuri for this cooperation. Now we are able to provide simplest and the most comfortable services to our subscribers”, Pavel Smalinski noted.
The Silknet’s website has published a specially developed calculator for this product that enables subscribers to select a desirable combination simply and it is very simple to enjoy the new product thanks to this calculator.
Silknet and Geocell Cooperation and Plans
The companies have introduced a genuinely innovative product in the Georgian telecommunication market. This is the first precedent in Georgia, when two leading companies in different segments develop and introduce a joint product with a focus on future cooperation. The company managers assure only this innovative product will not confine them and this cooperation will further grow. Moreover, this innovative product was developed through 6-month joint efforts.
Seemingly, the Twist is a certain test product and if it justifies we should expect Silknet and Geocell to continue developing joint products to gain leading positions in the market. And they will genuinely need to provide huge job to become the market leaders, because in both segments the companies rank second and come behind Magti and Caucasus Online respectively.
Properly planned cooperation will definitely guarantee a success.
Everything depends on how Georgian consumers will accept similar products. It is also fact similar approaches are better than a merger of companies.
It is more expedient to operate in specific segments separately, but to develop joint campaigns and offer new tariffs with the aim to draw new subscribers and satisfy their interests.
Competitor companies have not fixed their position regarding this issue yet. Neither Mati nor Beeline nor Caucasus Online have made comments yet. Consequently, it is unclear whether other telecommunication companies will also take a example of the Geocell-Silknet cooperation. The fact is we have witnessed an interesting precedent and subscribers will make a use of this. Tariffs will expectedly decline too. If this effort justifies, Silknet and Geocell are expected to make focus on joint planning of future projects and campaigns.
Similar innovations in the Georgian telecommunication market are welcome, indeed, but there are several unclear aspects in expected future cooperation formats and we will overview these issues too.
According to the latest reports, Scandinavian company TeliaSonera plans to alienate Geocell. No specific information is divulged regarding new owners or whether the company will merge with other company. In this context we should remember the roars around Silknet and internet market, in general, when two leading providers Silknet and Caucasus Online were going to merge and a due application was also submitted to the Georgian National Communications Commission (GNCC).
Experts and specialists used to note the merger was unacceptable, because a monopolist body would dominate in the market and the consumer interests would be encroached. Nevertheless, the amalgamation issue remains relevant and the GNCC has not finished the consideration process yet.
If a new owner buys Geocell or the company merges with other company and if GNCC satisfies the application and Caucasus Online and Silknet merge, how will all these companies continue cooperation?
If Geocell joins the union of Caucasus Online and Silknet, all other companies will face major problems and difficulties, while subscribers will bear major losses because of uncompetitive conditions in the market. To put simply, the fact is the future is foggy. We hope Geocell’s fate will be clarified, even more so Geocell director Pavel Smalisnki noted Geocell is a Georgian company and despite the TeliaSonera decision it will definitely continue operation in the market. We hope the amalgamation of the companies will not take place in the internet market too and Silknet and Geocell will offer jointly or separately new packages, low tariffs and continue cooperation as this happens in global markets.