Reduction of profit impels Internet-providers to seek new spheres of activity
Azerbaijan, Baku, July 25 / Trend G. Veliyev /
Tariffs on consumer services are reduced more intensively than tariffs given by initial providers, chairman of Azerbaijani Internet-community, Galib Gurbanov, told Trend .
He said that is happens because of tough competition between ISP (Internet Service Provider). He said that firm price-dropping is natural process. Tariffs are reduced for both ISP services rendered to physical and legal entities and rent of Internet-channels of initial providers.
Tariffs on Internet repeatedly reduced within last years. Tariffs on several kinds of telecommunication services were also reduced. This reduction was not global. Fox example, recent 6-percent-reduction of tariff on E1 channels with 2 megabit/s capacity.
At present, sphere of provider activity is not licensed, i.e. any legal and physical entity can buy corresponding equipment and launch rendering Internet services. Gurbanov said that at present, 70 percent of ISP expenses fall on transmission and rent expenses of international communication channels, rest 30 percent - internal expenses (wage of staff, rent of apartment, etc.).
As profitability is reduced, many companies seek other trends of activity, including integration services, development and construction of network solution, etc.
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