Broadband market in Azerbaijan For the 3 rd

Broadband market in Azerbaijan For the 3 rd Meeting of the BEWG of Ea. Pe. Reg 20 -21 February 2017, Tbilisi Azer Safarov Department of Regulation, Ministry of Transport, Communications and HTs tsh. azer@mincom. gov. az

Regulatory framework Law on “Telecommunications” Law on “Anti-Monopoly Activity” Law on “Unfair Competition” Rules on “Access to and use of PSTN network” Rules on market definition, analysis, determination of SMP operators and imposition of remedies Rules on co-location and use of telecommunication equipment and facilities (installation and construction) 2

Market players v 10 fixed operators with own network - 6 out of 10 operate both in Baku and regions - only 1 out of these 6 operate in wholesale market - 2 out of 10 have international access v nearly 30 ISPs v 3 mobile network operators 3

Fixed Broadband dynamics 1. 5 1. 34 1. 3 1. 26 1. 19 1. 1 Total fixed BB subscribers (mln) 1. 03 1. 1 Total fixed BB residential subscribers (mln) 0. 9 0. 7 0. 5 2013 2014 2015 4

Fixed Broadband dynamics Fixed BB penetration per 100 households 100 90 80 70 60 50 51. 9 2013 54. 4 2014 57. 6 2015 5

Fixed Broadband technologies 87% 86% 100 80 60 40 20 7% 6% 6% 8% 6% DSL+ Others 8% 0 2013 2014 2015 FTT+ 6

Revenue from Fixed Broadband, mln AZN 120 116 111. 52 112. 5 108 104 100 101. 1 2013 2014 2015 Reference: www. cbar. az 7

Mobile Broadband All 3 mobile operators provide for 3 G and 4 G services: territory and population cover as for 01. 2016 90 3 G, 86% 70 50 3 G, 70% 4 G, 38% 30 10 4 G, 26% 8

Mobile Broadband As of 01. 2016… q Mobile internet penetration reached 52% ; q Number of active BB users increased up to 2. 1 mln; q Share of mobile BB in total mobile internet is 43 %; q Average number of Mbs per month – 503 Mb 9

Ministry`s initiatives v Digital switchover is finished in Nov 2016 - freed law frequencies to be allocated to mobile operators v “Strategic Road Map on Advancement of telecommunications and information technologies in the Republic of Azerbaijan” adopted by the Presidential Decree dated 06. 12. 2016 10

Strategic Road Map v “Strategic Road Map on Advancement of telecommunications and information technologies in the Republic of Azerbaijan” adopted by the Presidential Decree dated 06. 12. 2016 Three main priorities with regard to broadband deployment: • Establishment of Independent Regulatory Body • Further development of FTTx and other contemporary technologies • Enhancement of mobile infrastructure: frequency management 11

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