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Georgia to launch pay satellite TV

October 13, 2011

Georgian mobile telecommunications operator Magticom is planning to launch the country's first satellite pay TV. Branded as Magtisat, the service is due to launch in January 2012 and will target the mid- and high-end pay TV market, offering 80-90 channels in three packages. International channel brands such as National Geographic and Discovery Channel will be in the line-up as well as five HDTV channels.

In the longer term, Magticom is also planning to launch internet and IPTV services. Magticom has signed a multi-year agreement with SES Astra for capacity on the Astra 31.5E satellite. The new satellite TV operator will use Bulgaria's Bulsatcom set top boxes. At the end of 2010, Magticom had about two million mobile telephone subscribers.

Currently, multichannel penetration in Georgia is relatively low, reaching about 30 per cent of total households. DTT has not yet launched, the only players are cable TV and IPTV operators. At least for some time Magticom will not have to compete with any platform in rural areas and may hope to gain subscribers in urban areas too. Nonetheless, even if DTT had already launched in Georgia, it is hard to expect it to compete with a high-end offer planned by Magticom. On the contrary, it is likely that sooner or later, Magticom will show some interest in the low-budget market, following the example of Eastern European markets like Poland - where ITI launched first the high-end N, and two years later the pre-paid service Telewizja Na Karte.

For the moment, however, the lack of competition may help Magticom to keep the prices for its TV service at a higher level. Combining mobile telephony and satellite TV is rather rare on the European market, although there are several telecommunications companies which launched satellite TV. These are, however, typically incumbent telcos focusing on fixed telephony and internet; and even if mobile telephony is provided by their sister-companies, mixing mobile telephony with satellite TV happens only sporadically (an example of combining these services is Romania's Romtelecom).

The only operator in Europe which combines satellite TV services with mobile telephony is Poland's Cyfrowy Polsat. After a successful growth for its satellite TV platform in 2006-9, the company launched mobile telephony on its own network, complemented later with mobile internet. The services have not been as successful as TV. Recently, Cyfrowy decided to buy one of the largest Poland's mobile telephone operators, Plus.

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