After the oil sector, the telecommunications industry is the largest sector in Azerbaijan, and a major contributor to the country's economy.
Fixed-line broadband market penetration has grown moderately over the last five years, with penetration increasing from a relatively small base. Over the next five years to 2022 growth is expected to continue to grow moderately. By January 2018 Baktelecom expanded its GPON fibre-optic network in the capital city Baku and surrounding areas.
Azerbaiijan is ranked 13th out of 34 with a Telecoms Maturity Index score of 43. This ranks Azerbaiijan sixth in the Market Challengers category. (The Publisher's Asian Telecoms Maturity Index, is an index (on a scale between 0 and 100) that measures and ranks the relative maturity of the telecoms industry in all of the 34 countries in Asia.) Compared to other Asian nations, Azerbaiijan has moderate mobile, mobile broadband and fixed broadband penetration.
Growth has been flat in the Azerbaiijan mobile market over the past five years. Mobile subscriber growth is expected to grow slowly over the next five years to 2022.
AzQtel (SAZZ) announced it will build the country's first Pre-5G' network operating on the TD-LTE standard in 2018.
Mobile broadband subscribers have grown very rapidly over the past five years supported by widespread rollouts of 4G infrastructure and the release of a growing range of mobile broadband packages by the major mobile operators. The mobile broadband market will be driven by increasingly faster speeds offered by the mobile operators as they roll out their 4G and 5G networks and falling prices due to growing competition.
- Azerbaiijan is ranked 13th out of 34 with a Telecoms Maturity Index score of 43.
- Fixed-line broadband market penetration has grown moderately over the last five years.
- AzQtel will build the country's first Pre-5G' network operating on the TD-LTE standard.
Aztelekom; AzQtel (SAZZ); AzEuroTel; Azercell; Bakcell; Azerfon; Catel; BakTelekom (BTRIB); Eurasiacom; Fintur; Vimpelcom (Beeline);
2. Key statistics
3. Country overview
4. Telecommunications market
4.1 Market Overview and Analysis
4.2 Regional Market Comparison
5. Regulatory environment
5.1 Ministry of Communications and High Technology (MCHT)
5.2 Proposed telecom regulator
5.3 Mobile Number Portability (MNP)
5.4 Fixed Number Portability (FNP)
6. Fixed Network Operators
6.4 BakTelekom (also known as BTRIB)
7. Telecommunications infrastructure
7.2 Fixed-line statistics
7.3 Next Generation Network (NGN)
7.4 Optical fibre network
7.5 National Broadband Network
7.6 International infrastructure
7.6.1 Azerbaijan's satellites
7.6.2 Trans-Asia-Europe (TAE) cable network
7.6.3 Europe Persia Express Gateway (EPEG)
8. Fixed-line broadband market
8.1 Broadband Statistics and Forecasts
8.2 Broadband infrastructure
8.2.1 Trans-Eurasian Information Superhighway (TASIM)
8.3 Internet Service Provider (ISP) market
8.3.1 Nar CityNet
8.3.2 Delta Telecom
9. Mobile Communications
9.1 Mobile Statistics and Forecasts
9.2 Mobile Broadband Statistics and Forecast
9.3 Mobile technologies
9.3.1 Trunk Mobile Radio (TMR)
9.3.2 Third Generation (3G) services
9.3.3 Fourth Generation (4G) / Long Term Evolution (LTE)
9.3.4 Voice-over-LTE (VoLTE)
10. Major Mobile Operators
10.1 Operator Statistics
10.4 Azerfon (Nar Mobile)
10.6 Delta Telecom
11. Digital economy
12. Broadcasting and digital media
13. Related reports
List of Tables
Table 1 Country statistics Azerbaijan 2017 (e)
Table 2 Telephone network statistics 2017 (e)
Table 3 Internet user statistics 2017 (e)
Table 4 Broadband statistics 2017 (e)
Table 5 Mobile statistics 2017 (e)
Table 6 National telecommunications authority
Table 7 Percentage of Population Covered by Type of Mobile Network
Table 8 Key Metrics - Compound Annual Growth Rate (CAGR) - 2017 - 2022
Table 9 Azerbaijan's GDP real growth rate 2006 - 2017
Table 10 Fixed Line Subscriptions and Penetration 2007 - 2017
Table 11 Historic - Fixed lines in service, annual growth and penetration 1995 - 2006
Table 12 Fixed lines in service, annual growth and teledensity 2005 - 2016
Table 13 Fixed Broadband Subscribers and Penetration (with Forecast) 2007 - 2022
Table 14 Internet Users and Penetration 2007 - 2017
Table 15 Historic - DSL broadband subscribers 2005 - 2015
Table 16 Historic- Internet users and penetration 1995 - 2006
Table 17 Internet bandwidth capacity 2001 - 2017
Table 18 Mobile Subscribers and Penetration (with Forecast) 2007 - 2022
Table 19 Historic - Mobile subscribers, annual growth and penetration 1994 - 2006
Table 20 Mobile Broadband Subscribers and Penetration (with Forecast) 2007 - 2022
Table 21 Mobile operators and systems
Table 22 Mobile operators Subscribers and market share 2017
Table 23 Azercell mobile subscribers 2003 - 2017
Table 24 Bakcell mobile subscribers 2002; 2005 2006; 2010 - 2018
Table 25 Azerfon mobile subscribers 2007 - 2017
Table 26 Key broadcasting statistics
List of Charts
Chart 1 Mobile, Mobile Broadband & Fixed Broadband Penetration 2017; 2022
Chart 2 Asian Telecoms Maturity Index by Market Category
Chart 3 Asian Telecoms Maturity Index Central Asia
Chart 4 Asian Telecoms Maturity Index vs GDP per Capita
Chart 5 Fixed Broadband vs Mobile Penetration - Central Asia (selected countries)
Chart 6 Fixed Line Subscriptions and Penetration 2007 - 2017
Chart 7 Fixed lines in service and penetration 2005 2016
Chart 8 Fixed Broadband Subscribers and Penetration (with Forecast) 2007 - 2022
Chart 9 Internet Users and Penetration 2007 - 2017
List of Charts
Chart 10 Mobile Subscribers and Penetration (with Forecast) 2007 - 2022
List of Charts
Chart 11 Mobile Broadband Subscribers and Penetration (with Forecast) 2007 - 2022
List of Exhibits
Exhibit 1 Key Market Characteristics by Market Segment
Exhibit 2 Central Asia -Key Characteristics of Telecoms Markets by Country
In the meantime, the number of internet users in the country had passed the 6 million mark by early 2016 with an internet user penetration of about 63%. Fixed broadband subscriptions had increased from just 100,000 in 2009 to more than two million and strong growth was continuing. Mobile broadband had rocketed from just 19,000 in 2009 to 6.4 million by end-2015. Into 2016, the number of mobile broadband subscribers was growing at an annual rate of around 15%.
The government has announced that the country’s second telecommunications satellite, Azerspace-2, was to be launched by 2018. Earlier, Azerbaijan had put its first telecommunications satellite into orbit. The Azerspace-1 satellite was providing communications coverage for Azerbaijan, Central Asia, Europe and Africa with a mission life of 15 years. Its service offerings included digital broadcasting, internet access and data transmission, among others.
The expansion of the country’s telecom sector has taken place in the context of a very strong developing economy. Azerbaijan has seen rapid economic expansion, recording annual GDP growth levels of up to 30% a few years back. However, the economy suffered a major setback following the Global Financial Crisis (GFC). The poor state of the global economy saw a big drop in Azerbaijan’s oil and gas exports; real GDP grew by just 0.1% in 2011. Since then there have been signs of a patchy recovery as the country adjusted to the global realities. The anticipated slower expansion in oil production was acting as a considerable drag on the country’s GDP growth. Growth has been fluctuating. In 2015 was forecast by the IMF at less than 1%, but came in at 4%.
Apart from the economy the other major issue hanging over the telecom sector involves the corrupt business practices that prevail in the local industry. Companies linked to the family of the President Aliyev have been playing a significant role in telecoms that has been cause for concern. Transparency International’s Corruption Perceptions Index (2015) for Azerbaijan was 29 out of 100 ranking it 119 out of 168 countries rated.