of the electronic communications market by (a) introducing a simple system of general
authorization instead of an individual licensing regime; (b) identifying operators having significant market power in order to prevent the abuse of power and determining
the usage of methodological approaches when carrying out competition analysis on the
market segments; (c) recognizing principles of convergence and technological neutrality; and (d) setting out a sanctions regime in the event of violations of the legislation or
the Commission’s decisions. Articles 41 and 42 of the law establish the procedures for
dealing with interconnection disputes.
The government has also implemented a strategic program for ensuring the decentralization of power in the regions, furthering transparency of governance, and
promoting ICT for maintaining sustainable democracy in the country. The ICT development framework program has been elaborated under the initiative of the government and the Commission with the support of the UNDP and the World Bank. With
its program for 2004–2009, the government has recognized that the development
of the telecommunications sector and of the information society constitutes a main
priority for the country’s strategic economic development. One of the main objectives
of the program is to overcome the uneven urban/rural coverage as communication system operators and service providers focus mainly on the big cities and settlements with
little interest in developing networks for rural areas. As part of the National Strategy for
ICT Development, among others, the government plans on creating a single information and communication network with integrated services, expanding the telephone
network and transfer to digital systems, converting to digital TV-radio broadcasting,
and increasing Internet usage among the population.
The Ministry of Economic Development, in particular its Telecommunications and
Information Technology Department, sets out the government policy in the electronic
communications sector and is responsible for monitoring communications and ICT
policy implementation. The sector regulator, the Commission, was established on
July 1, 2000. The Commission members are appointed for a period of six years by the
president, a fact which may affect their political independence. Otherwise, the Commission is not financed by the state budget, and its source of revenue consists of the
license and regulation fees it collects from licensees. The Commission regulates legal,
technical, and economic issues on interconnection among telecommunications network operators. Other statutes providing for the Commission’s regulatory authority
are the Georgian Law on Broadcasting 12 and the Law on Independent Regulating
Authorities. 13
The regulations of the Commission promote innovation in the communications
service sector, for example, by easing the procedures when consumers bring disputes
against operators and forbidding suspensions of service in the event of a dispute. 14
Other decisions 15 revise the legal regime to guarantee a consumer’s rights with regard
to the protection of personal information, higher accountability and responsibilities of
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