Last week the Tariff Council of Azerbaijan increased from 1 June the monthly subscription fee for telephone talks from AZN 0.7 to AZN 2. In turn, the fees of local calls will be reduced from AZN 0.09 to AZN 0.07 per minute.
It was a reply to proposals submitted by the Ministry of Communication and Information Technology to the Tariff Council. The Ministry was proposed several mechanisms on change of tariffs, including the application of limits for talks in Baku and application of per minute payment. Free monthly limit was proposed in the amount of 450 minutes per month.
Consultations were held at the Tariff Council and it was decided that it too premature to apply these limitations. Although the Ministry of Communications and Information Technologies offered to increase the subscriber fee up to AZN 4, the Tariff Council increased it from AZN 0.66 to AZN 2
It may be considered as payment by the citizens of Azerbaijan to improve the quality of the communication services.
Electronization of the telephone networks, reconstruction of the telephone lines, cancellation of the payments for using telephone lines to connect to the internet and other qualitative measures facilitated the use of the telephone services by the population.
This increase will enable carrying out projects which provide opportunities for additional investments.
The cost for local calls was reduced instead of increased for the subscriber. Up to now, the tariffs in Azerbaijan for inter-city and international conversations were higher as compared to other countries due to the low subscriber payment.
Despite an increase of the subscription fee, major expenses of the Ministry will be covered at the expense of the international calls.
The decision of the Tariff Council of Azerbaijan to increase telephone subscriber fees will not significantly affect inflation in the Country.
Firstly, the expenses inked with the rise of subscription fees exceed the dividends from cut in charges for international calls. Secondly, expenses for subscription fees for telephone talks do not occupied the last place in the formation of the the direct cist of the Azerbaijani products.