Home News Investments in United Telecom to make up $50M for the next 3 Years period

Investments in United Telecom to make up $50M for the next 3 Years period


Yoerg Shmolinski, director of JSC Georgian United Telecommunication Company, declared today that investments of $50 million will be made within next 3 year.  He said that the funds will be used for the infrastructure and cable renewal in major cities of Georgia. Currently 50% of infrastructure and 75% of cables is useless, said Shmolinski.

Wireless phones will be installed in regions which do not have cable network. The installation is to be performed under CDMA technology. United Telecom has signed the contract with Chinese company ZTE, which will provide equipment.

The company has about 350,000 subscribers, 45% of which are connected to digital telephone stations. However, all subscribes will be served by digital stations by the end of year.

Company intends to provide internet access in Tbilisi since June and nation-wide – since September, Shmolinski said. Service will be significantly cheaper than local provider Caucasus Network offers. Caucasus Network currently holds 93% of market.   As for the future plans, company intends to make new generation network within 2-3 years. Consumers will be offered the package: telephone, cable television, internet and mobile service. Iva Martiashvili, deputy director of JSC, said that creation of virtual operator is expected, using towers of one of the local mobile communication operator.

Investments volume in company made up $4 million since the privatization, held in May of last year. Black Sea Telecom Holding B.V. (former DEsch Property II B.V.), founded with Kazakh participation, owns 50% of JSC and 40.6% is owned by Central Asia Logistics B.V.

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