Azerbaijan Сhanges Broadband Internet Service Fees

(MENAFN- Trend News Agency) BAKU, Azerbaijan, August 15. Changes have been made in Azerbaijan to the speed and payment amounts for broadband internet tariffs starting today, Trend reports.

The speeds offered under the GPON (Gigabit Passive Optical Network) tariffs have been increased by 2.5 times (internet speed has been increased from 40 Mbps to 100 Mbps, from 60 Mbps to 150 Mbps, and from 100 Mbps to 250 Mbps).

With the new speed tariffs, the minimum speed for subscribers starts at 100 Mbps, and the payment amount per Mbps has been reduced from 45 gapiks (26 cents) to 25 gapiks (15 cents).

Thus, subscribers wishing to use 100 Mbps will pay 25 manat ($15), 150 Mbps - 30 manat ($17.6), and 250 Mbps - 36 manat ($21).

The State Service for Antimonopoly Supervision and Consumer Market Control under the Ministry of Economy of Azerbaijan has launched an investigation into potential violations of the Competition Code requirements in the broadband internet services market and published the relevant statement.

"Recently, the media, the official websites of some internet service providers, and social media have been releasing publications about the increase in minimum tariffs for internet services by natural monopolies and several private providers operating in the broadband internet services market. Numerous citizen complaints on this issue have also been received by the State Service for Antimonopoly Supervision and Consumer Market Control.

After the changes introduced by internet providers, it became known that fiber-optic internet services with the current minimum tariff of 40 Mbps and a monthly fee of 18 manat ($10.59) would be replaced by a tariff with a speed of 100 Mbps and a monthly fee of 25 manat. As a result, the cost of the minimum tariff for fiber-optic internet services available to customers (including consumers) will increase sharply.

Additionally, it has been found that customers who wish to choose a lower internet speed (below 100 Mbps) will have limited options, and high-speed internet packages will be offered at a high price, disregarding their purchasing power.

A preliminary analysis of the information in the media and the numerous citizen complaints received by the State Service has established that the new internet service tariffs are collectively set by natural monopolies and several private providers, who are the main participants in the relevant market.

The same prices for the same services (identical speeds and packages) are being set, and this process is being carried out by internet providers operating in the country. Initial signs indicate that this will be done through coordinated actions or cartel-like relationships.

The activities of economic entities are currently regulated by the Competition Code, which came into force on July 1 of this year. According to the Code's requirements, horizontal (cartel deals) and vertical agreements, including coordinated actions that may have or may not have consequences restricting competition, are prohibited and void from the moment they are made. Additionally, the Code prohibits actions by economic entities to abuse their sole or joint dominant position to restrict competition.

Given the social, economic, and strategic importance of the broadband internet services market, the State Service has launched an investigation into potential violations of the Competition Code in this market, aiming to identify coordinated actions, horizontal and vertical agreements, cartel-like market relations, and the use of low and high monopoly prices, and to prevent abuse of a dominant position by limiting customer choice options.

In this regard, the State Service has sent inquiry letters to market participants, held a series of meetings, and requested relevant information. Based on the results of the investigations, the State Service will take appropriate legislative measures," the statement reads.

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