Will the Price of Internet Increase?

An investigation has begun in Azerbaijan regarding violations of the requirements of the Competition Code in the broadband internet services market. The State Service for Antimonopoly and Consumer Market Control issued this information on August 14.

According to the report, in recent times, news has spread about the increase in the minimum tariffs for internet services provided by natural monopoly entities and several private providers operating in the broadband internet services market:

"... It has been revealed that after the changes, the current minimum tariff for fiber-optic internet services, with a speed of 40 Mbps and a monthly fee of 18 manats, will be replaced by a tariff with a speed of 100 Mbps and a monthly fee of 25 manats. As a result, the cost of the minimum tariff for fiber-optic internet services will significantly increase for customers (including consumers)."

The report further states that customers who wish to choose a lower internet speed (below 100 Mbps) will have limited options, and high-speed internet packages will be offered at higher prices without considering their purchasing power.

The Service emphasizes that the investigation will be conducted in accordance with the Competition Code, which came into force this year:

"In connection with this issue, inquiry letters have been sent to market participants, several meetings have been held, and relevant information has been requested from them. Lawful measures will be taken based on the results of the investigations."

So far, it has not been possible to obtain comments from the interested parties regarding this statement.

However, last month, the country’s media reported that internet prices would change starting August 15, citing "Aztelekom" and "Baku Telephone Communications." These organizations explained that the changes were due to the growing demand from customers for high-speed broadband internet:

"These measures are being implemented to improve the quality of services and ensure a sustainable infrastructure, considering the global trends and the growing demand for high-speed internet in our country."

At that time, the president of the Azerbaijan Internet Forum, Osman Gündüz, mentioned that the current minimum price is set at 18 manats, with which a citizen can get a speed of 40 Mbps: "Now, the minimum will be 25 manats for 100 Mbps. It seems that the providers, including state providers, have decided to enrich themselves quickly. They see that everyone in the country is raising prices and have thought, why shouldn’t they?"