AzEuroTel welcomes full competition
Quality service, staff training & latest technology, an unbeatable combination

"AzEuroTel is unique," says the company's General Director Nuri A. Akmedov. "We went against ten years of tradition when other CIS telephone companies continued modernizing using analog equipment for local networks and providing conventional services. Instead, we went the way of digital communications to be able to render a wide range of services."

That kind of independent vision helped define AzEuroTel during its first six years of operation So, too, did dynamic management, dedication to staff training, and a customer service orientation unrivaled in Azerbaijan's telecommunication sector. As a result, the company has placed Azerbaijan's digital communications capabilities at world-class levels.

Like other joint stock venture tele-communication companies with government participation, AzEuroTel is looking forward to the second stage of the government's privatization program. AzEuroTel is working for a more open and competitive environment in Azerbaijan communications after privatization. It is eager to offer its service throughout the country, and add even more services at competitive costs to its subscribers.

"To achieve this," says Akmedov, "the joint ventures must first be privatized, and the government can receive good sums for the sale of their assets. We as a joint venture are prepared, although the government will have to define its share. Other joint stock ventures will require proper preparation for privatization, however."

"Secondly," he continues, "privatization must create an open, competitive environment for telecommunications companies in the country. A partial privatization, allowing the maintenance of a monopoly on any telecommunication service, would be very dangerous."

AzEuroTel Joint Venture, formed in 1995 by LUKoil Europe Ltd (UK) and the Azerbaijan Ministry of Communication, quickly brought an impressive array of the latest high-technology communications technologies to Azerbaijan. It became one of the leading Internet service providers (ISPs) in Azerbaijan, now supporting Internet access services to more than 40 other ISPs and offering high-speed Internet access via its earth satellite station. The company operates a modern digital exchange based on "System X" technology produced by Marconi Communications International, Ltd (UK), and provides international and national telecommunications services using Protocol X.25, TCP/IP and Frame Relay. AzEuroTel enables Azerbaijan banks to transfer cash and exchange financial data as well as have telecommunication access to any commercial information source in the world.

The company provides the connection between banks and credit card verification services, including VISA International, MasterCard, UnionCard, STB, etc. AzEuroTel also connects Automatic Teller Machines with card readers and verification terminals. It provides a continuous connection between banks and the Baku Interbanking Currency Exchange using fiber optic cables and the Frame Relay high-speed protocol.

AzEuroTel rounds out its services with 24-hour connections through asynchronous protocol between the commercial operations servers in banks and Reuter's "Dealing 2000" communication agency, and provides access to Reuter's database, Reuters Market 2000, Business Briefing, RIMOS, and Reuter's Mail. AzEuroTel also provides similar access between TELERATE Workstations and Tradestations to the Dow Jones Telerate information-analysis complex.

The company's digital exchange is supported by an autonomous system of uninterruptible power supply that excludes any possibility of failure. "During the November 1999 earthquake, we were the only telephone company in Baku which did not suffer a service interruption," Akmedov says with satisfaction.

AzEuroTel's "System X" offers all the latest digital telephone services to its subscribers, including call forwarding, automatic call reminder, call waiting, conference calling, call blocking, and speed dialing.

The joint venture company provides Multisite Trunking Communication service (known as Nokia Actionet) using Protocol 1327, the only one of its kind in the Caucasus. The system covers the functions of mobile telephones, radiotelephones, and paging.

"Currently, the capacity of our exchange is 20,000 subscribers, but our software enables us to expand our capacity to 100,000 users," Akmedov says.

"We also have the capability to transfer data, telephone traffic, and provide Internet access via our equipment. We receive signals through our own equipment, but we are required to send signals through Ministry of Communications lines. Even so, we provide service at better rates than our competition to the United States, Asia and other foreign countries.

Akmedov continues: "One specific example of our much more competitive consumer prices for communication services is the installation cost for a telephone. Our main competitor charges $130 for an installation, whereas we charge only $45.

Before we set our charge, we completed market surveys which showed us that Bakuites' average salary is 450,000 manats per month (about US $97). We then established a business plan that showed we could set an installation cost at $45 --- a figure that would cover our costs and still earn us a small profit, but was still deemed affordable for city residents."

Akmedov stresses two reasons for AzEuroTel's success: "First, we are scientifically managed. Proper management is the main key to achievement in the telecommunications industry. Secondly, we have highly skilled professionals. We have invested about $500,000 for training of our personnel, who are 100 percent Azerbaijani citizens. We have sent them for training in the West, Russia, America, the UK, Turkey and other countries. Our secret is the training of our staff. Not only do our employees expand their skills through training, but they also become very loyal to the firm because of the investments we make in them."

AzEuroTel believes its future is bright. Akmedov explains: "The main difference with us is that we are oriented toward a long-term view. We think the future outlook is good, and we have many plans. We have a license from the Ministry of Communication for a large project to replace all the old Azerbaijan analog exchanges with digital exchanges. We can then expand the number of our subscribers to 100,000. We plan to take fiber optic digital connections to other regions. We can also multiply by four times the number our of Internet subscribers."

Turning to the Internet, Akmedov continues: "We want to extend Internet service to other cities such as Ganja, although we are still restricted as to where we can offer service. As of now, about 40 ISPs get channel capacity from us. In all, about 60-70 percent of all Internet users in Azerbaijan go through our lines. We are the country's only provider of ISDN broadband connection capability, using the latest Nortel equipment. We also offer Video Conference Communication."

"In the future," Akmedov concludes, "one telephone line will provide a subscriber with all communication services, including telephone and interactive services of world-class quality. In fact, we are now talking with companies which provide the latest communication technologies, such as Lucent Technologies and Advantek International, in order to see how they might be able to work with us."