Azerbaijani Citizens Can Combat Monopolists' Price Hike by Joining Forces with Neighbors

The Antimonopoly Service has launched an investigation into the pricing practices of internet service providers in Azerbaijan, suspecting that they may be artificially inflating prices. However, the government itself played a significant role in this shift by raising the minimum monthly internet fee to 25 manats as of August 15, effectively eliminating cheaper, low-speed internet options for consumers. Over the past two years, internet costs in Azerbaijan have more than doubled.

Prior to 2022, state-owned companies Aztelekom and Baktelecom offered 4 Mb/s for 10 manats and 10 Mb/s for 12.5 manats. By 2022, these rates had risen to 15 Mbit/s for 15 manats and 30 Mbit/s for 18 manats. In 2023, the base rate stood at 40 Mbit/s for 18 manats. Now, from August 15, 2024, 100 Mbit/s will cost no less than 25 manats per month.

Osman Gunduz, head of the Multimedia NGO, warned of the negative consequences this steep price hike could have, particularly for rural populations. He foresees a potential wave of disconnections as many citizens, especially in less affluent areas, may be unable to afford the increased costs.

While the faster internet speeds may benefit the country by enabling the digitization of more services and business operations, Gunduz cautions that the sharp rise in prices could render the service unaffordable for a large segment of the population. The majority of Azerbaijanis do not require high-speed internet for everyday activities, as most use it primarily for communication, which can be adequately handled with speeds of 10 Mbit/s.

To navigate the price increases, Azerbaijani citizens—especially those in rural areas—may resort to sharing costs with their neighbors. By pooling resources, two or three families could collectively pay for a single internet package. Yet, widespread adoption of this practice has yet to materialize.

Gunduz calls on the Antimonopoly Committee to safeguard citizens' rights, pointing out that the government's transition to an "e-government" model may exclude those without internet access from essential services. Traditional forms of communication with state institutions, such as written correspondence and in-person visits, are gradually being phased out in favor of digital interactions.

The root cause of the relentless rise in internet prices, according to Gunduz, lies in the monopolistic control of Azerbaijan's internet infrastructure by two state-owned entities, Aztelekom and Baktelecom. The solution, he argues, is for the Antimonopoly Committee to dismantle this monopoly. In its place, a competitive marketplace with numerous private providers offering a range of affordable, low-speed internet packages to rural populations must emerge. Only then can Azerbaijan’s digital future be accessible to all its citizens.