(MENAFN – AzerNews)

By Shams Aghazadeh

Starting today, Azerbaijan has made significant adjustments to its broadband internet tariffs to improve speeds and reduce costs for consumers.

Higher speeds and lower costs

GPON (Gigabit Passive Optical Network) service speeds have been increased by 2.5 times. In detail:
– The speed of 40 Mbit/s has been increased to 100 Mbit/s
– The speed of 60 Mbit/s has been increased to 150 Mbit/s
– The speed of 100 Mbit/s has been increased to 250 Mbit/s

According to the new tariffs, the minimum speed for subscribers is 100 Mbps, and the cost per Mbps has been reduced from 0.45 AZN to 0.25 AZN. The revised prices are as follows:
– 25 AZN for 100 Mbit/s
– 30 AZN for 150 Mbit/s
– 36 AZN for 250 Mbit/s

Investigation of market practices

The State Service for Antimonopoly and Consumer Market Control has launched an investigation into possible violations of the Competition Code in the broadband Internet services market. According to recent reports, natural monopolies and several private providers have increased the minimum prices for Internet services, which has led to numerous complaints from citizens.

It has been revealed that after the proposed changes, the current minimum tariff for fiber optic internet services – 40 Mbps for 18 AZN per month – will be replaced by a new tariff of 100 Mbps for 25 AZN per month. This change is expected to result in a significant increase in the cost of the minimum price of fiber optic internet service for customers. In addition, customers who want lower speeds (below 100 Mbps) will have limited options, as high-speed internet packages will be offered at higher prices.

Initial analyses suggest that these new tariffs may have been set collectively by the main market participants, including both natural monopolies and private providers. There is evidence of coordinated actions or cartel-like behaviour with uniform prices for similar services.

Regulatory framework and future measures

The activities of commercial entities are now regulated by the Competition Code, which has been in force since July 1 of this year. This code prohibits horizontal (cartel agreements) and vertical agreements, including all coordinated actions that restrict competition. It also prohibits the abuse of a dominant position with the aim of restricting 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 coordinated actions, agreements or monopolistic practices and preventing the restriction of consumer choice.

In response, the State Service has sent letters of inquiry to market participants, held several meetings and requested relevant information. Legal action will be taken based on the results of these investigations.

Azerbaijan rises four places in the global broadband ranking

Azerbaijan has made remarkable progress in internet speeds, thanks to significant improvements in its broadband infrastructure. Since July this year, Azerbaijan has moved up four places in the global rankings for stable broadband internet, reaching 109th place out of 162 countries with an average speed of 40.65 MB/s.

According to the Speedtest Global Index, the average fixed broadband speed in Azerbaijan increased by 39.5% compared to last year, when it was 29.14 MB/s.

When it comes to fixed broadband speeds in July, the United Arab Emirates leads the way with an impressive 291.85 MB/s, while Afghanistan comes last with 3.56 MB/s.

In terms of mobile internet speed, Azerbaijan maintained its position at 49th place out of 111 countries with a speed of 53.98 MB/s, unchanged from June. The United Arab Emirates tops the mobile internet rankings with 359.85 MB/s, while Yemen ranks last with 7.26 MB/s.

In the city rankings, Baku moved up one position to 134th out of 207 cities with a speed of 42.13 Mbps. Valparaiso, Chile, tops the ranking of cities with stable broadband with a speed of 320.47 Mbps, while Aleppo, Syria, is at the bottom with 1.95 Mbps.

Among cities, Baku improved its position to 69th place out of 162 cities with a speed of 68.99 MB/s compared to June. Ar-Rayyan, Qatar, tops the ranking of cities with mobile internet with a speed of 451.02 MB/s, while Kabul, Afghanistan, ranks last with 8.01 MB/s.

These advances underscore Azerbaijan’s commitment to developing its digital infrastructure and improving internet connectivity for its citizens.

Azerbaijan’s Digital Silk Road Initiative

In addition, Azerbaijan is pioneering a major project to establish a digital telecommunications corridor between Europe and Asia through the Digital Silk Way initiative, which is part of the Azerbaijan Digital Hub program. The aim of this project is to facilitate the transport of digital content and Internet services from European centers to Asia and to position Azerbaijan as a central hub of the Digital Silk Road.

A key element of the initiative is a transnational fiber optic cable that will be laid on the bottom of the Caspian Sea between Azerbaijan and Kazakhstan. The aim of this project is to improve internet connectivity in Central Asia and the South Caucasus. The 380-kilometer-long cable line is expected to achieve a transmission capacity of several terabits per second.

In summary, these changes reflect Azerbaijan’s commitment to improving the quality of internet services while ensuring regulatory compliance and promoting significant progress in digital infrastructure. The efforts also underscore the country’s ambition to advance its digital infrastructure and strengthen its role in the global digital landscape.

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