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Weekly economic review

Analysis Materials 27 March 2007 12:02 (UTC +04:00)

Azerbaijan's new mobile GSM operator - Azerfon JSC, presenting its mobile communication services under the trade mark of Nar Mobile, announced about the launch of its commercial activity last week.

The talks on the arrival of third mobile operator to Azerbaijan have gone throughout the country for a long period. In December 2005 Azerfon was granted a license by the Azerbaijani Ministry of Communications and Information Technologies for rendering mobile services in the territory of Azerbaijan.

People spread rumors about relatively profitable terms offered by the company versus to the companies of same profile over the past 10 years. Particularly, all SMS and MMS were said to be free, while tariffs to be lower than those offered by Bakcell. Morever, Azerfon was said to offer options which were not earlier offered by Azercell and Bakcell. They were mainly television, traffic review.

Azerfon made basic arrangements for its commissioning in Azerbaijan through opening wide dealer network at every corner of Azerbaijan.

"Our broad dealer network has virtually covered the whole territory of Azerbaijan. By the end of 2007, we expect to extend the coverage area up to 80 percent of the country," saim John Armley, the Director General of Azerfon.

At opening a new telephone number, the lump-sum payment will reach AZN 3. Nar Mobile has introduced the three tariff plan:

First - for outcoming calls among the subscribers of Nar Mobile. The cost of one minute of telephone conversation is AZN 0.15 in the afternoon, and AZN 0.075 per minute of conversation at nights, weekends and public holidays.

For outcoming calls to other mobile providers, the cost of one minute of telephone conversation is AZN 0.30 in the afternoon, and AZN 0.15 at nights, weekends, and public holidays.

Second - for outcoming calls among the subscribers of Nar Mobile, the cost of one minute of telephone conversation is AZN 0.22 in the afternoon, and AZN 0.11 - at nights, weekends, and public holidays. The cost of calls to other mobile operators in the second package is the same.

Third - for outcoming calls among the subscribers of Nar Mobile, the cost of one minute of conversation is AZN 0.08 in the afternoon, and AZN 0.04 - at nights, weekends, and public holidays.

The cost of one minute of telephone conversation to other mobile operators is AZN 0.24 in the afternoon, and AZN 0.12 - at nights, weekends, and public holidays.

The now citizens of Azerbaijan should choose the most acceptable variant of the tariff package Nar Mobile. It is up to them to decide whether to continue cooperation with an old operator, or replace it with the new one.

In 2006 the number of Azercell Telecom subscribers exceeded 2.3mln, while share of Azercell at the mobile communications is 76%. As of 1 January 2007 Bakcell's subscribers totaled 800,000.

Azerfon will carry out active rivalry to attract subscribers. However, it is possible only through establishment of high quality services and introducing profitable tariffs.

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