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26.07.2013 09:12

GNCC gets acquainted with radio broadcasting license competition participants’ documentation

Nata Dzvelishvili

GNCC

25 July Georgian National Communications Commission (GNCC) opened the sealed documentation submitted by Companies participating in the radio broadcasting license competition in Tbilisi.  As it appeared at the session, all the documentation was complete and all five Companies will take part in the competition – Art Palace LLC, Energy Group LLC, Stere+ LLC, Broadcasting Company Hereti LLC and Art Radio LLC. 

GNCC Legal Department concluded that Art Radio LLC has violated Article 60 of the Law on Broadcasting which restricts concentration of broadcasting.  “A person has a right to independently or together with a person having interdependence with hi to own not more than 1 general broadcasting television and 1 general broadcasting radio license in one service zone.” 

Interdependence in the same Law is defined as relations which exists if one person directly or indirectly owns shares or share in authorized capital of another or is an official or conducts works for certain payment for him, his shareholder, partner or official. 

GNCC Legal Department conclusion reads that as long as Art Radio Director Irakli Dateshidze in parallel is Member of Board of Radio Abkhazetis Khma, there is interdependence between these two companies.  GNCC members did not agree with the conclusion of the Legal Department. 

In their opinion there is no interdependence as Art Radio LLC Art Radio LLC does not directly or indirectly have shares or authorized capital in Abkhazetis Khma and in addition Art Radio does not conduct any paid job for Abkhazetis Khma so Art Radio cannot physically be Abkhazetis Khma official.  Accordingly Art Radio was granted the right to participate in competition. 

According to the documentation submitted to the GNCC Art Palace LLC plans to launch broadcasting during 1 year in case it gains the license, duration of broadcasting will be 24 hours.  The radio will be funded by investments from the owner of the radio Gia Andguladze. 

Energy Group LLC plans to launch Radio Zenith and plans to do it in 2 months after gaining the license; duration of broadcasting will be 19 hours a day-night.  Founders Kakha Baindurashvili and Lasha Chkhenkeli take liability to fund the radio with personal funds. 

Stereo+ LLC founders plan to allocate GEL 300,000 for the radio in case if the radio will receive the broadcasting frequency.  They plan to go on air in 6 months and duration of broadcasting will be 12 hours a day-night. 

Broadcasting Company Hereti LLC plans to launch 24-hour broadcasting immediately after receiving the license.  Hereti submitted Capital LLC and Good Travel LLC letters in which they pledge to buy advertisement time of GEL 40,000 and GEL 30,000, if Hereti receives Tbilisi broadcasting license. 

Art Radio LLC plans to launch broadcasting in 2 months.  The Company states that radio will be funded from advertisement revenues.  For the moment it has enough recourse to launch broadcasting on a new frequency. 

Competition participant Companies also submitted concepts based on which GNNC Commissioners will choose the winner. 

1 p.m. 22 August 2013 is scheduled a verbal hearing session at which contestants will express their positions and the session for issuing the license will be held 1 p.m. 26 August 2013. 

Winning Company will gain the right to broadcast at FM 93.5 frequency in Tbilisi.  

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