Business consultancy project

Azerfon LLC (Nar Mobile)

Azerfon was founded in Y2005, and it was the pioneer in terms of the 4G network provided. The market share of Nar Mobile varied around 20-21% starting from 2008. Considering the disadvantage of Nar being a “last comer” and the fact that the market was already divided between the two telecom providers earning a market share was quite challenging for the company. However, according to the interview of the Company’s CEO, Nar succeeded in entering the market and competing with rivals. Moreover, network coverage has been extended due to the increased number of base stations. Price killing aggressive strategy has been deployed by Nar to acquire a market share. Nar provided extremely cheap offers and was focused on lower-income target group in comparison with Azercell and Bakcell LLC. Besides, 4G coverage was provided in the regions as well at affordable prices. (The Business Year, 2014). In addition, the strategic cooperation agreement was concluded with Vodafone to boost brand awareness and to take advantage of the Vodafone’s experience and technological knowledge. (Vodafone Group Services Limited, 2009)
Despite that Nar was the first mobile provider, offering 4G for the customers in Azerbaijan, 62% market share in 4G was hardly maintained by the operator. Currently, Nar has 2.3 million people customers and mobile coverage of 80% of the total area of the country (nar.az, 2019).

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   Naxtel LLC
   

Naxtel LLC was founded in 2016 based on the agreement between the Ministry of Communications and New Technologies of Nakhichevan Autonomous Republic (MCNT). Services of Naxtel LLC are provided on the territory of Nakhichevan Autonomous Republic (NAR) only.
NAR is the part of Azerbaijan Republic and is located in the south-west with the 5500 square meters and a population of 410 000. Current market share of Naxtel LLC is 9% of the overall market and increased more than twofold in comparison with 2016. (GSMA Intelligence Data, 2019)
The coverage territory of Naxtel LLC services is expanding, and the operator becomes a rival for other telecom providers in this region. According to the Company’s plans, the geography of services can extend to other regions of Azerbaijan. (Naxtel, 2018)

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