Russia's Megafon has lost a court appeal in Georgia's Tbilisi City Court over allegations that the mobile network had been operating a mobile network inside Georgia without a license. The telecoms regulator, the Georgian National Communications Commission (GNCC) has imposed a fine of US$360,000 on the company, for allegedly expanding their operations before, during, and after the Russian invasion in August.
"We view this court finding as a very important step in bringing accountability to a foreign company operating within Georgian sovereign territory," said Giorgi Arveladze, the Chairman of the GNCC. "The fact that this Russian company has appealed these administrative sanctions within Georgia's legal system represents recognition of the court's jurisdiction over South Ossetia and other areas where we believe the company is providing unlicensed service."
Before the war, Megafon only covered part of the former Autonomous Republic of South Ossetia, namely, Tskhinvali and Java regions. In August of 2008, during the Russian intervention on Georgian territory, the company is alleged to have expanded the coverage area and exceeded the conflict zone to include the regions of Gori and Kareli. A report issued by the GNCC on August 23 details this unauthorized use of radio frequencies, which has also damaged the technical operations of licensed telecom providers Magticom and Geocell.
"Whenever you turn on a cell phone in Gori you are greeted with the message 'Welcome to the Russian network Megafon! Enjoy your stay here!'," continued Arveladze. "We are obligated to act in response to this blatantly transparent use of our radiofrequency without license or regulatory oversight. It is, however, a very positive sign that Megafon has chosen to engage within Georgia's legal system."
Megafon's appeal, rejected by the Tbilisi Civil Court, denies any unlawful operations, coverage, or unlicensed use of radio spectrum within Georgian territory. However, in an interview given to the Moscow Times on Oct. 2, 2008, separatist leader Eduard Kokoity claims that "Megafon already covers the entire territory of South Ossetia and has 36,000 users signed on."
Posted to the site on 2nd October 2008
Posted to: www.cellular-news.com/story/33949.php