Annual Report - Georgian National Communications Commission

Financial resources: budget of the 2004 and
conclusion of auditor
Annual regulation fee and license fee are the sources of formation
of the Commission's budget. According to article 22 of the Law of
Georgia «on communications and post», «license fee is a sum paid by
license seeker for temporal usage of frequency spectrum and temporal
usage of code for the provision of international phone connection.
The Commission, under the Georgian legislation, shall define
the amount of the license fee as well as payment rules.
20% of the license fee shall be transferred to the Commission's
account and does not represent revenue received from economical
activity. The Commission covers the expenses defined by the
Commission's budget with this sum.
80% of the license fee shall be used for ensuring the demand satisfaction
making telecommunications and post service available.
Therefore, the sum is transferred to the special account of the
Commission opened for this purposes»; License holders pay the regulation
fee.
Growth of Commission's annual budget (Annex 1) was naturally
followed to the increase
of telecommunications
market income. In 2004, a
sum of GEL 840,587.55
(2001-2004) was accumulated
on the above-mentioned
special account of
the Commission.
The distribution of
the sums transferred to the
account by years is given
on the Figure 4.