Azerbaijan Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: October 2024

Report Pages: 97

Analyst: Sebastien De Rosbo

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Summary
Table Of Contents

Azerbaijan telecom sector experiences tepid growth as investment in infrastructure lags other countries

In spite of the telecom sector being one of the major contributors to Azerbaijan’s non-oil GDP, overall development, growth, and investment in the sector has been held back by years of political and civil unrest coupled with endemic corruption.

Mobile penetration rates reached 100% as far back as 2011, but have largely stagnated since then. The MNOs are slowly extending the reach of their LTE networks around the country, and this increased coverage (along with access to faster data-based services) is expected to produce a moderate resurgence for both mobile and mobile broadband over the next few years as customers migrate from 3G to 4G. 5G services are still some ways off, as the demand for high-speed data and fast broadband can easily be met by existing capacity on LTE networks.

Fixed-line teledensity continues to drop down each year as customers consolidate their telecommunications services around the mobile platform. Yet the rate of decline is comparatively slow to other countries, since Azerbaijan has a relatively high proportion of (87%) of fixed-line broadband customers still on DSL. Fibre (12% of fixed broadband connections) is gradually being rolled out in urban areas, and this makes up the bulk of the (limited) growth being seen in the overall fixed broadband market. DSL’s predominance, however, will serve to keep Azerbaijan’s average access speeds in the sub-10Mbps range for the foreseeable future.

This report update includes operator data to December 2020; Telecom Maturity Index charts and analyses; an assessment of the global impact of Covid-19 on the telecom sector; and other recent market developments.

Key developments:

Azercell and Bakcell complete 5G trials but delay announcing the start of commercial services due to insufficient demand and a lack of suitable spectrum.
The regulator extends GSM, 3G, and 4G LTE mobile license agreements with Azercell, Bakcell, and Azerfon for a further ten years.

Companies mentioned in this report:

Aztelekom, AzEuroTel, Azercell, Bakcell, Azerfon, Catel, BakTelekom, Delta Telecom.

Key statistics
Regional Market Comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market
Regulatory environment

Ministry of Transport, Communications, and High Technology
Mobile Number Portability (MNP)
Fixed Number Portability (FNP)
Spectrum
Licensing

Mobile market

Mobile technologies

5G
4G/LTE
3G
Mobile broadband

Major mobile operators

Azercell
Azerfon
Bakcell
Catel
Delta Telecom
BakTelekom
Aztelekom

Fixed-line broadband market
Digital economy

E-Government

Fixed network market

Major network operators

Aztelekom
BakTelekom
AzEuroTel

Telecommunications infrastructure

National telecom network

Next Generation Network (NGN)
Optical fibre network
National Broadband Network

International infrastructure

Trans-Asia-Europe (TAE) cable network
Europe Persia Express Gateway (EPEG)
Trans Caspian Fiber Optic (TCFO)
Satellite

Appendix – Historic data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – Azerbaijan – 2022 (e)
Table 2 – Telecom market revenue (AZN million) – 2012 – 2019
Table 3 – Telecom Investment – 2012 – 2019
Table 4 – Change in the number of mobile subscribers and penetration – 2012 – 2027
Table 5 – Change in the number of mobile broadband subscribers and penetration – 2012 – 2027
Table 6 – Change in the number of Azercell’s mobile subscribers – 2012 – 2020
Table 7 – Development of Azercell’s financial data (AZN million) – 2012 – 2020
Table 8 – Change in the number of Azerfon’s mobile subscribers – 2012 – 2020
Table 9 – Increase in the number of Bakcell’s mobile base stations – 2016 – 2020
Table 10 – Change in the number of Bakcell’s mobile subscribers – 2012 – 2020
Table 11 – Change in the number of fixed broadband subscribers and penetration – 2012 – 2027
Table 12 – Change in the number of fixed broadband subscribers by access speed – 2012 – 2020
Table 13 – Decline in the number of fixed lines and penetration – 2012 – 2027
Table 14 – Development of Aztelecom’s financial data (AZN million) – 2016 – 2019
Table 15 – Development of BakTelekom’s financial data (AZN million) – 2015 – 2019
Table 16 – Increase in international internet bandwidth – 2012 – 2020
Table 17 – Historic - Fixed lines in service, annual growth and penetration – 1996 – 2011
Table 18 – Historic - Azercell mobile subscribers – 2003 – 2011
Table 19 – Historic - DSL broadband subscribers – 2005 – 2011
Table 20 – Historic- Internet users and penetration – 1996 – 2011
Table 21 – Historic - Mobile subscribers, annual growth and penetration – 1996 – 2011
Table 22 – Historic - Bakcell mobile subscribers – 200 – 2006
Table 23 – Historic - Internet bandwidth capacity – 2001 – 2011
Table 24 – Historic - Azerfon mobile subscribers – 2007 – 2011

List of Charts

Chart 1 – Asia Telecoms Maturity Index – Market Leaders
Chart 2 – Asia Telecoms Maturity Index – Market Challengers
Chart 3 – Asia Telecoms Maturity Index – Market Emergents
Chart 4 – Asia – Telecoms Maturity Index vs GDP per capita
Chart 5 – Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 6 – Central Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 7 – Central Asia – Fixed and mobile broadband penetration
Chart 8 – Telecom market revenue – 2012 – 2019
Chart 9 – Telecom Investment – 2012 – 2019
Chart 10 – Change in the number of mobile subscribers and penetration – 2012 – 2027
Chart 11 – Change in the number of mobile broadband subscribers and penetration – 2012 – 2027
Chart 12 – Change in the number of Azercell’s mobile subscribers – 2012 – 2020
Chart 13 – Development of Azercell’s financial data – 2012 – 2020
Chart 14 – Change in the number of Azerfon’s mobile subscribers – 2012 – 2020
Chart 15 – Increase in the number of Bakcell’s mobile base stations – 2016 – 2020
Chart 16 – Change in the number of Bakcell’s mobile subscribers – 2012 – 2020
Chart 17 – Change in the number of fixed broadband subscribers and penetration – 2012 – 2027
Chart 18 – Change in the number of fixed broadband subscribers by access speed – 2012 – 2020
Chart 19 – Decline in the number of fixed lines and penetration – 2012 – 2027
Chart 20 – Development of Aztelecom’s financial data – 2016 – 2019
Chart 21 – Development of BakTelekom’s financial data – 2015 – 2019
Chart 22 – Increase in international internet bandwidth – 2012 – 2020

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Asia
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Asia – Market Leaders and market developments
Exhibit 4 – Asia – Market Challengers and market developments
Exhibit 5 – Asia – Market Emergents and market developments
Exhibit 6 – Map of Azerbaijan
Exhibit 7 – Mobile operators and systems

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Azerbaijan Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Azerbaijan telecom sector experiences tepid growth as investment in infrastructure lags other countries

Key developments:

Companies mentioned in this report:

Key statistics

Regional Market Comparison

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Digital economy

Fixed network market

Telecommunications infrastructure

Appendix – Historic data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views