Monthly subscription fee for fixed network telephones and long-distance call tariffs updated
The monthly subscription fee for fixed network telephones and long-distance call tariffs have been updated.
The existing tariffs for the above services in Azerbaijan came into force on 02.12.2013, and the monthly subscription fee for the use of fixed network telephones for the population was 2.5 AZN. According to the service operators, the cost per subscriber is currently 3.96 AZN, including VAT.
If we look at the international practices, we can see that monthly subscription fee for the use of fixed network telephones for the population is 9.5 AZN in Ukraine, 12.7 AZN in Russia, and 15.3 AZN in Turkey. Also, in the Azerbaijani telecommunications market, the average monthly subscription fee for mobile operators with a total subscriber base of over 10 million ranges from 10 to 18 AZN, and tariff for a one-minute call on-net is from 2 to 9 gepicks.
It should also be noted that in line with global trends taking place in the world, the volume of international incoming and outgoing telephone traffic is decreasing from year to year against the backdrop of an increase in internet connections, which in turn has a negative impact on the operations of communications service providers.
Capital investment is planned to provide quality communication services to fixed line network subscribers in the country, as well as to replace existing ADSL (Asymmetric Digital Subscriber Line) telecommunications equipment with modern GPON (Gigabit Passive Optical Network) and other broadband technologies. As a result of the implementation of this project, equipping the country with a broadband network during 2021–2024 will make it possible to provide other services as packages along with high-speed internet and quality call service.
The introduction of new tariffs will gradually adapt existing tariffs to their cost, expand investment opportunities for economic entities, and compensate for the decline in revenues from long-distance and international traffic exchange.
In view of the above, the monthly subscription fee for fixed network telephones and long-distance telephone tariffs should be reviewed with a view to improving the quality of communication services, improving working conditions for employees and creating investment opportunities. In this regard, at the meeting of the Tariff (Price) Council of the Republic of Azerbaijan on October 26, 2022, It was considered appropriate to increase the monthly subscription fee for the use of fixed network telephones for the population from 2.5 AZN to 3.5 AZN (including VAT), and reduce the tariff for long-distance telephone calls from 5 to 3 gepicks.
The decision takes effect from 1 November 2022.
