The Antimonopoly Service Addresses Internet Cost Hike Concerns in Azerbaijan

Azerbaijan's Antimonopoly Service recently hosted a meeting with major players in the telecommunications market, including state-owned Aztelekom and its private sector competitors, to address rising Internet costs and discuss sector challenges, according to Osman Gunduz, head of the NGO "Multimedia," who shared details on the X network.

The meeting comes as Aztelekom plans to increase the minimum price for an Internet connection package from 18 to 25 manats this month, a move that Gunduz claims will eliminate cheaper options for consumers. Gunduz expressed skepticism about Aztelekom's promise to enhance Internet speeds from 40Mb/s to 100Mb/s, citing concerns about the company's capacity to deliver.

"There is reason to assume that Aztelekom, which recently received the status of a backbone operator, will not only provide hundreds of thousands of consumers with a speed of 100 Mb/s, but will not even be able to deliver traffic half of this indicator," Gunduz stated.

Gunduz also criticized the silence of the Antimonopoly Service (AMS) and the Agency for Communication Technologies (ACT) of the Ministry of Digital Development and Transport regarding the price hike. He urged these agencies to scrutinize Aztelekom's technical capabilities to ensure the promised speed upgrades are feasible.

"The natural monopolist, Aztelekom, ignores the opinion of the AMC and the ACT, setting the price for the Internet that it wants," Gunduz said.

Vahid Gasimov, a telecommunications expert, highlighted the misleading nature of the claimed cost reduction per Mbit/s. While the unit price may appear lower, the increased minimum monthly fee results in higher overall costs for consumers. Gasimov noted the monopolistic control exercised by providers following the dismantling of alternative networks and the mandate for GPON technology, allowing Aztelekom and Baktelekom to set terms with minimal competition.

Gasimov further explained that although GPON technology can theoretically support speeds up to 250 Mbps, actual performance during peak hours might be compromised by traffic congestion. The reliability of these speeds during high demand periods remains uncertain.

Aztelekom and Baktelekom have announced new Internet pricing effective August 15, with the minimum subscriber speed set at 100 Mbit/s. The price per Mbit/s will decrease from 0.45 AZN to 0.25 AZN, resulting in prices of 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s. The companies attribute these changes to increasing demand for high-speed broadband and a commitment to aligning with global trends and enhancing service quality.

Recent reports from the Speedtest Global Index rank Azerbaijan 118th out of 181 countries for average fixed broadband Internet speed, at 39.48 Mbit/s, with international analyses indicating that the country remains among those with costly Internet services.