Azerbaijan revamps broadband tariffs with higher speeds and lower costs
By Shams Aghazadeh
Starting today, Azerbaijan has introduced significant adjustments to its broadband internet tariffs, improving speed and reducing costs for consumers.
Enhanced speeds and reduced costs
The GPON (Gigabit Passive Optical Network) service speeds have
been increased by 2.5 times. Specifically:
- The speed of 40 Mbit/s has been upgraded to 100 Mbit/s
- The speed of 60 Mbit/s has been upgraded to 150 Mbit/s
- The speed of 100 Mbit/s has been upgraded to 250 Mbit/s
Under the new tariffs, the minimum speed for subscribers is set
at 100 Mbit/s, and the cost per Mbit/s has been reduced from 0.45
AZN to 0.25 AZN. The revised pricing is as follows:
- 25 AZN for 100 Mbit/s
- 30 AZN for 150 Mbit/s
- 36 AZN for 250 Mbit/s
Investigation into market practices
The State Service for Antimonopoly and Consumer Market Control has initiated an investigation into potential violations of the Competition Code in the broadband internet services market. Recent reports indicate that natural monopolies and several private providers have been raising the minimum rates for internet services, leading to numerous citizen complaints.
It has come to light that after the proposed changes, the current minimum tariff for fiber optic internet services—offering 40 Mbit/s at 18 AZN per month—will be replaced with a new tariff offering 100 Mbit/s at 25 AZN per month. This change is expected to result in a significant increase in the cost of the minimum fiber optic internet service for customers. Additionally, customers seeking lower speeds (below 100 Mbit/s) will face limited options, with high-speed internet packages offered at elevated prices.
Preliminary analyses suggest that these new rates may have been set collectively by major market players, including both natural monopolies and private providers. There are indications of coordinated actions or cartel-like behavior, with uniform pricing for similar services.
Regulatory framework and future actions
The activities of economic entities are now regulated under the Competition Code, effective from July 1 of this year. This Code prohibits horizontal (cartel agreements) and vertical agreements, including any coordinated actions that restrict competition. It also forbids any abuse of a dominant market position aimed at limiting competition.
Given the importance of the broadband internet services market, the State Service is actively investigating these issues to ensure compliance with the Competition Code. This includes identifying any coordinated actions, agreements, or monopolistic practices, and preventing the restriction of consumer choice.
In response, the State Service has sent inquiry letters to market participants, held several meetings, and requested relevant information. Legal actions will be taken based on the findings of these investigations.
Azerbaijan climbs four spots in global broadband rankings
Azerbaijan has made notable progress in its internet speeds, reflecting significant improvements in its broadband infrastructure. As of July this year, Azerbaijan has moved up four places in the global rankings for stable broadband internet, achieving 109th place out of 162 countries with an average speed of 40.65 MB/s.
According to the "Speedtest Global Index," Azerbaijan's average fixed broadband speed has surged by 39.5% compared to last year, when it was 29.14 MB/s.
In terms of fixed broadband speeds for the month of July, the United Arab Emirates leads with an impressive 291.85 MB/s, while Afghanistan holds the lowest position with 3.56 MB/s.
For mobile internet speeds, Azerbaijan maintained its position at 49th place out of 111 countries with a speed of 53.98 MB/s, unchanged from June. The UAE tops the mobile internet rankings with 359.85 MB/s, while Yemen ranks last with 7.26 MB/s.
In city rankings, Baku advanced one position to 134th out of 207 cities with a speed of 42.13 MB/s. Valparaiso, Chile, leads the stable broadband city rankings with a speed of 320.47 MB/s, while Aleppo, Syria, is at the bottom with 1.95 MB/s.
Among cities, Baku improved its position to 69th from 162 cities with a speed of 68.99 MB/s compared to June. Ar-Rayyan, Qatar, tops the mobile internet city rankings with a speed of 451.02 MB/s, while Kabul, Afghanistan, ranks lowest at 8.01 MB/s.
These advancements underscore Azerbaijan’s commitment to enhancing its digital infrastructure and improving internet connectivity for its residents.
Azerbaijan's Digital Silk Road initiative
Additionally, Azerbaijan is spearheading a major project to establish a digital telecommunications corridor between Europe and Asia through the "Digital Silk Way" initiative, part of the "Azerbaijan Digital Hub" program. This project aims to facilitate the transportation of digital content and internet services from European centers to Asia, positioning Azerbaijan as a central hub in the digital Silk Road.
The initiative includes a key component: a transnational fiber optic cable laid across the Caspian Sea bed between Azerbaijan and Kazakhstan. This project aims to enhance internet connectivity in Central Asia and the South Caucasus, with the cable line spanning 380 kilometers and a capacity expected to reach terabits per second.
In conclusion, these changes reflect Azerbaijan's commitment to improving internet service quality while ensuring regulatory compliance and fostering significant advancements in digital infrastructure. The efforts also underscore the country’s drive to advance its digital infrastructure and strengthen its role in the global digital landscape.
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