Azercell Reduces Tariffs for Interconnection

The judicial economic cycle suit of the local mobile operator Bakcell against Azercell Telecom is over.

According to Bakcell, high tariffs for interconnection, implemented and supported by the competitor, will be reduced, the pioneer of the mobile Power Supplies will be compensated at the rate of 15 million manat.

According to the company press release, April 3, 2009, the Ministry of Communications and Information Technology (MCIT) has established a new tariff for interconnection to GSM network operators of 0.02 AZN (2 kopecks) per minute. However, Azercell, despite appeals for business partners remain the same rate in 5 kopecks.

On November 26, 2011 Baku Administrative-Economical Court № 1 met the Bakcell suit against the company Azercell Telecom of giving legal effect to additional agreement to the contract on interconnection, from 03 April 2009, as well as the payment of compensation in the amount of AZN 15 million for damage.

  The Administrative and Economic Disputes Board of the Court of Appeal by its decision of 27 July 2012 did not satisfy the appeal of Azercell Telecom and upheld the decision of Baku Administrative-Economical Court No 1. Administrative and Economic Division of the Supreme Court decision of AR 6 February 2013 did not satisfy the appeal of Azercell Telecom against the decision of the Baku Court of Appeal. Thus, all the requirements Bakcell, relating to tariffs for interconnection have been satisfied by all instances of Azerbaijan, is stated in the information.

Azercell for three years, refused to comply with the requirements of regulations approved by the ministry, keeping the inflated retail rates. As a result, Bakcell was forced to go to court in order to achieve reduction of interconnection and retail tariffs.

Bakcell was established in March 1994. Azercell established in January 1996 is part of the international group TeliaSonera. - 17D-