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Russia’s “MegaFone” Enters Georgia

The Russian cellular communications company “MegaFon” together with the Georgian telecommunications operator SilkNet organized the first land border crossing trunk line between the two countries along the route Upper Lars – Kazbegi. The length of the main portion is  37 km, the initial capacity of the “highway” – 100 Gbit/s. The investment cost is not specified.
Oksana Maguli, “MegaFon” representative, states.

“The Transcaucasia communication market is characterized by high demand for Russian content, and this is confirmed both by the presence of the Russian operators and their constant interest. At the same time, the market is not saturated with Russian companies. ” A new player will have opportunities and prospects if good ideas emerge and then are competently  realized,” – she underlined.

She recalls  that “MegaFon” has a long experience of cooperation with Azerbaijan, so Georgia is interesting for the company in terms of customer potential and transit projects. The only element that has long lacked was  a direct interconnection between the countries.

The initial capacity of the established line is 100 Gbit/s. “MegaFon” is able to provide access to both Russian traffic exchange points and the European – the operator has the ability to use the network in the direction of Frankfurt, namely the western portion of the highway Dream. In addition, the project has the best indicator of a circular delay, says Maguli.

She reminds  that the operator has two border crossings with  each Georgia’s neighbors (Armenia, Azerbaijan and Turkey).

“MegaFon” does  not disclose the amount of investment in the project.

In an interview with ComNews Oksana Maguli clarifies that the project will be  put into commercial operation in early 2015.

According to her, “MegaFon” did not meet any resistance on the part of Georgia.

In 2009, the Georgian National Commission for Communications fined OJSC  “MegaFon” GEL  1 million (about $ 600 thousand) on charges of illegal activities on the territory of Abkhazia and the Tskhinvali region, where “MegaFon” units  – “Aquafon-GSM” and “Ostelecom” are operating.

In Georgia, “MegaFon” does not provide communication services.