Business consultancy project

Azerbaijan Telecommunication Industry

1. Background

Azerbaijan ICT market has passed through the dynamic modification and vigorously absorbed the world trend diversifications in the shortest period. The telecommunication industry has rocketed within the last decades and became the second-largest business environment of the country after the oil industry.
The telecom sector in the country is being provided by 4 Mobile Network Operators and two fixed telephone network services. The fixed-line operators Aztelekom Production Association (APA) and Baku Telephone Communication Production Association (BITRIB) provide the country with fixed-line service. Aztelekom covers the region and rural areas except for the Nakhchivan Autonomous Republic, whereas Baktelecom
serves the fixed telephony and broadband service in Baku city. Besides, the supporting country with fixed- line Aztelekom is functioning as a provider for the long-distance and international voice and data transmission. (Asian Development Bank, 2019) (Aztelekom, 2019)
The expansion of the internet within a country integrated slowly until the elimination of the licensing of Internet Service Providing. Over 15 years the number of ISP`s has reached 40, which accelerates the competition and maintain of WiMAX (Worldwide Interoperability for Microwave Access) and other wireless technologies deployment. (United Nation, 2014)
Eventually, Azerbaijan telecommunication industry has endorsed the extensive infrastructure development by considerable government support which maintained the high-advanced technology expansion across the country. (The World Bank, 2014) The foundation of Azerbaijan`s “2020 Look into the Future” strategy emphasized the development of information and communication industry by transforming from moderate level to high-technological economy with the development of FTTH (fiber to the home), Wi-Fi and high- speed mobile network. (Azerbaijan 2020; Look into the Future)
Despite the government support and concernment of the players in the continuous enhancement, the telecom industry can be considered the most vulnerable business environment. The frank assessment of the industry by outlining the political, economic, social, and technical factors for the understanding the modification of the telecom landscape with the implication of these factors can be done through PEST analysis.

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