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Govt adopts new approach for calculating spectrum fees; plans expansion of GPON networks

10 Oct 2022

Azerbaijan’s Ministry of Digital Development and Transportation (MDDT) has adopted a new methodology for determining spectrum usage fees, reports Trend, citing Deputy Minister Rovshan Rustamov. To aid development of mobile services in the regions and reduce the digital divide, the new guidelines will notably allow flexible rates to be applied in different areas of the country. Under the plan, a 25% discount will apply in regions outside Baku, Sumgait and the Absheron district, while the fee will be 2.6 times cheaper in areas reclaimed during the military conflict with Armenia in 2020.

The MDDT’s website states the new methodology has been developed based on recommendations from the International Telecommunications Union (ITU), as well an examination of best practice in several other countries. In addition to the regional variations, the fees will be determined by a range of factors, including the technology implemented, the available bandwidth, and the size and number of frequency assignments.

Meanwhile, the deputy minister has also revealed that a total of 420,000 households will be connected to GPON networks in Azerbaijan by the end of 2024. With some 370,000 homes passed by GPON infrastructure at the end of 2021, the minister noted the planned expansion will increase the country’s minimum average internet speeds to 25Mbps.

Azerbaijan, Ministry of Digital Development and Transport (MDDT)

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