Azerfon entry delays

In a notification forwarded to the Ministry of Communication and Information Technologies, the company said the activities to set up its network are somewhat behind schedule due to the considerable workload.

Deputy minister Iltimas Mammadov said the government is not seriously concerned over the delay, as it was caused by "objective reasons" and will not have a negative impact on the domestic market.

Mammadov went on to say that the ministry is doing everything in its power to assist in launching Azerfon's operation. The company has already inked deals with Azercell and Bakcell, the two providers already working in the country.

"The ministry did not allow for the existing operators to squeeze the new company entering the market. We have also provided favorable conditions for Azerfon in the area of international calls."

The deputy minister said the volume of investments to be channeled into setting up Azerfon's network has not been determined yet, as this will depend on tenders to be conducted and technologies to be used by the company.

Commenting on reports circulating that a third operator's entry would bring down communication fees, Mammadov said it was difficult to predict this now. The policies on fees, he said, are set not by the ministry, but the cellular companies proper. However, Azerfon is likely to pursue a special policy on prices, in line with international experience.

"All over the world, operators entering the market offer special fees and quality. A third operator that spends millions to enter the market is certainly aware of this," Mammadov said. He added that if the fees set by Azerfon are too high, naturally, it is unlikely to acquire the needed clientele.

The official added that the communications ministry is working to promote the environment of wholesome competition in the domestic market, which leads to the gradual reduction in fees.

Azercell and Bakcell are currently unable to meet the demand. This has been causing some problems in the network, such as overloads, that will be gradually resolved with the new provider's operation.

Azerphone is a joint venture, with Siemens holding a 30% stake, while British companies Extel and Celex Communications - 60%, and local Internet provider Aztelekom 10%. AssA-Irada

/BakuTODAY/