Although the two have worked together for a decade, the new partnership is targeted at developing Silknet’s service portfolio
Orange has formed a new strategic partnership with Georgia’s leading fixed and mobile network provider Silknet which will cover that telco’s service capabilities in the business, consumer and ICT markets. The partnership is part of Orange’s Alliance program which launched in 2014 in French Polynesia and Portugal.
The timing is interesting given in March, the Georgian operator had a data leak impacting “up to 2000” users, although local media reports speculate that up to 33,000 were impacted with ID card copies appearing on the internet. The incident is still under investigation, but Orange Cyberdefense is certainly a part of the service portfolio Silknet may find attractive.
As part of the agreement, Silknet will gain access to Orange’s reservoir of knowledge and experience in the telecom and ICT sectors. One of the initial focuses of this alliance will be on enhancing B2B ICT services. Orange said it will provide substantial support to Silknet to “transform the telecom landscape”.
“Silknet has a 10-year history of successful cooperation with Orange, and I am happy that it has now grown into a strategic partnership,” said chairman of Silknet’s supervisory board George Ramishvili. “It marks a new era in the development of Silknet’s digital ecosystem enabling it to offer cutting-edge products and services. We are delighted that this global European conglomerate will help Silknet introduce its innovations to the Georgian and regional telecoms markets.”
“Orange is pleased to confirm and strengthen its relationship with Silknet through the Orange Alliance program,” said Orange EVP and CTIO Bruno Zerbib. “Leveraging Orange expertise, products and platforms will create value for Silknet on the Georgian market. Building scalable platforms and opening them to partners is at the core of our innovation strategy.”
Looking ahead, Silknet and Orange stated they are committed to expanding this partnership by exploring new avenues for cooperation and further integrating their operations.
An expensive market
Silknet launched 5G services last December in the capital Tbilisi. According to the Georgian Communications Commission, 100Mbps fixed broadband is 136% more expensive the the average in Euorpean countries while mobile internet with 10GB speed and 1795 minutes of talk time is 35% more expensive than the average price in Europe. The study by Strategy Analytics was based on prices for services of the two major Georgian operators, Magticom and Silknet, as these companies own more than 70% of the Georgian telecommunications market.
According to the survey results, low-volume and low-speed services in Georgia are almost similar in cost or cheaper than in Europe and Britain. However, prices for high volume and high-speed services are significantly higher than the European average. High prices for volume and high-speed services are particularly problematic because, according to 2022 data, mobile internet consumption is growing dramatically, reaching an average of 12GB.
“As long as high prices for high-speed and volumetric internet remain high in Georgia, consumers will continue to be forced to choose low-speed and low-volume services or pay significantly higher, premium prices,” concluded the Communications Commission.
Low-volume mobile service packages for individual subscribers in Georgia, such as 5GB and unlimited minutes, are 1% more expensive than in Europe, and the price of 5GB internet and 577 minutes is 23% higher. One of the most consumed optical internet packages for individual subscribers, 25Mbps in Tbilisi, is 5% cheaper than the average price of similar services in European countries, and 17% cheaper in the regions.
The comparative analysis of the combined offers showed that for more than half a million families living in Tbilisi and the regions, the cost of the cheapest Internet and TV packages is lower than the European average.