The promised increase in internet speed and tariffs did not occur

The promised increase in internet speed and tariffs did not occur

On July 18, Azerbaijan's state-owned telecommunications providers, Aztelecom and Baktelecom, both under the Ministry of Digital Development and Transport, announced significant changes to their broadband internet tariffs. The changes, which were set to take effect on August 15, promised to increase the data transfer speed for subscribers using GPON (Gigabit Passive Optical Network) technology by 2.5 times: from 40 Mbit/s to 100 Mbit/s, from 60 Mbit/s to 150 Mbit/s, and from 100 Mbit/s to 250 Mbit/s. Additionally, the cost per megabit per second (Mbit/s) was supposed to decrease from 0.45 manats to 0.25 manats, effectively lowering monthly prices for subscribers.

According to the revised tariffs, consumers were expected to pay 25 manats per month for 100 Mbit/s, 30 manats for 150 Mbit/s, and 36 manats for 250 Mbit/s. These price adjustments were seen as a positive step towards improving internet access across the country.

However, on August 15, subscribers found that the promised increase in data transfer speeds had not occurred. GPON technology speeds remained unchanged, much to the dissatisfaction of consumers. Aztelecom and Baktelecom have so far remained silent on the matter, offering no explanation for the delay.

Critics of Azerbaijan’s internet landscape had previously expressed skepticism about the monopolistic position of Aztelecom and Baktelecom. Experts in the information and communications technology (ICT) sector doubted whether these state-run providers could effectively deliver on their promises of higher speeds and better service quality. The lack of competition in the market has often been cited as a significant barrier to improving the country's digital infrastructure.

In addition to the controversy, on August 14, the State Service for Antimonopoly Policy and Consumer Market Control announced that it had initiated an investigation into the decision made by the providers. The investigation, conducted in accordance with Azerbaijan's Competition Code, aims to assess whether Aztelecom and Baktelecom’s actions comply with fair competition laws and whether the tariff changes were implemented properly.

This latest development has heightened concerns over the monopolistic control of Azerbaijan’s telecommunications market, shedding light on broader issues related to consumer protection and market transparency.

 

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