Mobile communications in Azerbaijan: 'They need to open the market'

Azerbaijan's mobile communications sector experienced a 9.6 percent increase in revenues, reaching 354.2 million Manats during January-April of this year, as reported by the State Statistics Committee. However, some citizens argue that mobile network services in Azerbaijan are expensive, attributing it to the monopoly in this industry.

For several years, only three mobile operators have been functioning in Azerbaijan. The cost of on-net calls ranges from 4 to 8 kopecks per minute, depending on the tariff package, while off-net calls vary between 6 and 12 qepiks per minute. International calls are priced at 32 kopecks per minute.

When approached, the mobile operators did not provide a specific response to complaints about high tariffs. However, they generally consider their services to be high-quality and their tariffs profitable.

Aydin Huseynov, a member of the Milli Majlis Committee on Economic policy, Industry and Entrepreneurship, told Turan that limited competition arises due to the small number of operators. Huseynov noted that a new law on mobile networks is currently under discussion, along with the preparation of a law on space activities.

Huseynov believes that by enhancing regulatory and legal measures and increasing the number of mobile operators, prices can be made more affordable based on supply and demand principles.

Economist Natig Jafarli mentioned in an interview with Radio Azadlig, that the market consists of three mobile operators operating with identical rules, offers, tariffs, and approaches. He pointed out that the only difference is the quality of network coverage in various regions, which generates limited competition.

According to The Economist, if the market were regulated in accordance with the law, prices would also be regulated. The law specifies that if a company holds a market share exceeding one-third, state bodies have the authority to intervene and participate in tariff regulation. Alternatively, they could open the market to both local and foreign operators, enabling a competitive environment that would influence price regulation.

Jafarli emphasized that an increase in the number of subscribers would result in higher income for mobile operators. Comparing the situation to Georgia, where the population is half the size of Azerbaijan's, Jafarli highlighted that Georgia has more mobile operators and greater consumer choice. Even in a competitive market, mobile operators are compelled to offer discounts on communication service prices.