Will the quality change while more will be paid for the internet in Azerbaijan?

"Aztelekom" and "Baku Telephone Communications" have announced that there will be changes in internet prices starting from August 15.

The announcement states that under the new tariffs, the minimum speed for subscribers will start at 100 Mbit/s. The payment per Mbit/s will be reduced from 0.45 AZN to 0.25 AZN. For instance, 100 Mbit/s internet will be offered for 25 AZN, 150 Mbit/s for 30 AZN, and 250 Mbit/s for 36 AZN.

They explain this by the increasing demand from customers for high-speed broadband internet: "These measures are being implemented to keep pace with global trends in our country, taking into account the growing demand for high-speed internet among the population, to improve the quality of the services provided, and to ensure a stable infrastructure."

New packages are frequently introduced, and increased speeds are emphasized, resulting in either higher payments or, at best, stable charges for subscribers. However, complaints about internet speed and performance persist.

The "Speedtest Global Index" recently reported that Azerbaijan ranks 118th among 181 countries for average fixed broadband speed, with a speed of 39.48 Mbit/s. Singapore ranks first (289.98), while Cuba ranks last (2.69).

Regarding prices, international reports indicate that Azerbaijan is among the countries with expensive internet.

"Aztelekom" and "Baku Telephone Communications" LLC informed Turan that the companies aim to provide broadband solutions that ensure digital access in the country, contributing to the improvement of citizens' quality of life and implementing significant infrastructure improvements for this purpose: “The goal of the infrastructure improvements is to meet the growing demand for high-speed internet among citizens and enable them to benefit from higher quality internet services. Our pricing policy is formed in accordance with market demands, offering the most optimal prices based on higher speed and Mbit volume for our customers.”

The companies noted that they constantly evaluate the market conditions in the context of efficient use of resources, the general economic situation, the financial stability of the company, and the continuous improvement of service quality: “Information about our service terms and price offers is published on the company’s official website 30 days in advance in accordance with the requirements of the "Law on Access to Information."

The Ministry of Digital Development and Transport informed Turan that within the framework of the "Online Azerbaijan" project, 800,000 households and business entities were provided with broadband internet access in the first six months of 2024: “In total, 2.7 million households in the country have broadband internet access. During the project, the number of households and business entities with broadband internet access increased 12 times, from 9% to 92%. In the first six months of this year, the number of households with broadband internet access increased fivefold compared to 2020, and overall coverage increased by 26%.”

The Ministry emphasized that in 30 regions of the country, more than 90% of households, in 23 regions, between 70-90%, and in other regions, up to 65% of households have been provided with broadband internet access: “Within the framework of the said project, it is planned to provide all households and business entities in the country with broadband internet access through GPON and other broadband technologies, expand the use of high-speed internet, and increase the percentage of fixed broadband internet subscribers by the end of 2024.”

President of the Azerbaijan Internet Forum, Osman Gunduz, stated that the current minimum price is set at 18 AZN, which provides a speed of 40 Mbit/s: “Now, the proposed minimum price will be 25 AZN for 100 Mbit/s. It seems that providers, including state providers, are trying to get rich quickly.

They see everyone in the country raising prices and think, why shouldn’t they?”

In his opinion, this is not a correct approach: “The principle of high speeds and high prices is not correct under any circumstances, especially for the regions. Making the minimum speed 100 Mbit/s for everyone to achieve high rankings in some international ratings is unacceptable to the interests of our citizens.”

According to the expert, the pricing policy should be such that it is accessible to everyone according to their needs: “The steps taken by state providers, in general, are incomprehensible. The provider is still a state provider so that citizens can have access to the internet necessary for their needs and future development. On one hand, we talk about 'digital transformation,' create digital services, and increase digital literacy, and on the other hand, we limit access to the essential tool for this.”

Gunduz noted that over the last three years, the Ministry of Digital Development and Transport has managed to implement internetization policies across the country: “Access to quality internet across the country has reached 92%. This is a significant achievement. However, allowing actions that could overshadow this success would not be correct. Now, the state-owned internet network should be managed in a way that makes usage and prices accessible to everyone.”

Economist Rashad Hasanov told Azadliq Radio that no achievements have been made in this area in Azerbaijan in terms of either quality or quantity: “Compared to other countries, we have seen many times that there are significant differences between the speed and quality of the internet offered and its price.”

According to him, another important issue is the monopolistic position of state internet providers: “Although they are not 100% monopolists, there are other representatives in the market. But in any case, especially in relation to the regions, it can be said that the market is with these companies... People need to know the transparency of their financial flows and the cost price of the product. It should be explained clearly why, despite so many resources and investments in Azerbaijan, both the accessibility and quality of the internet are low.”

The economist believes that the current decision is merely an abuse of the dominant position in the market: “In recent years, goals have been set to reduce the dependence of state enterprises on the budget and make them operate profitably. However, instead of achieving this by optimizing costs, increasing transparency, and preventing embezzlement and corruption, they are trying to solve it by simply raising prices, taking the easiest route to make the enterprise profitable.”