Azerbaijan - Telecoms, Mobile and Broadband - Statistics and Analyses

Azerbaijan - Telecoms, Mobile and Broadband - Statistics and Analyses

Azerbaijan completes 5G trials but makes little progress towards commercialisation Two of Azerbaijan’s three major mobile network operators (Azercell and Bakcell) completed 5G trials some years ago, but neither company seems keen to invest further towards transforming those results into a commercial proposition. The reasons for the delay are threefold. Firstly, the MNOs claim that they are yet to see sufficient subscriber demand for higher-speed data capabilities that cannot already be met using existing 4G LTE networks. Secondly, little progress has been made by the operators in terms of upgrading their infrastructure and core networks to enable the rollout of 5G services. With mobile penetration rates stuck at a little over 100% for more than ten years and mobile broadband just reaching 76% in 2021, the return on investment doesn’t appear to stack up (at least for now). Finally, the regulator has yet to make any firm progress towards releasing 5G-suitable spectrum. That’s possibly a direct result of there being a lack of interest shown by the operators. The government is unlikely to generate sufficient revenue from a spectrum auction at this time. If overall demand for mobile services suddenly takes off following the easing of Covid-19 restrictions in 2022, there is a slim chance of seeing some 5G services go live around the end of the year. Otherwise it might be well into 2023 or beyond before Azerbaijan moves into the next era of mobile communications.