Communication (Azerbaijan market)

Telecom operators in Azerabaijan

• Azercell Telecom
• AzerTelecom

Chronicle

2025: Azerbaijan Communications Market Volume Grew by 7% for the Year

At the end of 2024, the volume of the telecommunications market in Azerbaijan reached 2.57 billion manats (approximately $1.51 billion at the exchange rate as of July 1, 2025). This is 7% more compared to 2023, when expenses were estimated at 2.35 billion manats. Such data are provided in the Nexign study, the results of which TAdviser got acquainted with in early July 2025.

The review says that the telecom sector of Azerbaijan is showing stable growth due to the increase in the number of mobile and Internet users, as well as the active introduction of digital technologies. By the end of 2023, the penetration of cellular communications in the country amounted to 108.03% of the total population (some residents own several SIM cards). At the same time, Internet penetration reached 16.68% against 14.23% a year earlier.

In the total volume of the telecom market of Azerbaijan, cellular communications in 2023 accounted for almost half of the costs - 49.46%. Another 15.52% provided Internet services, 4.1% - broadcasting television and radio programs. Approximately 3.33% fell on urban and rural telephone communications, 2.27% - on satellite communications.

The authors of the study note that the largest telecom providers of Azerbaijan are focused on the modernization and expansion of the network infrastructure, preparation for the introduction of 5G, as well as on the development and provision of digital services that meet modern requirements. Special attention is paid to the integration of artificial intelligence to improve efficiency and competitiveness. There is an active development of ecosystem services - fintech, e-commerce, digital health, etc.

Analysts point to the continued expansion of the cloud services sector: such technologies play an important role in accelerating the country's digital transformation. Demand for cloud services is seen in a variety of areas including finance, healthcare, telecommunications and education. At the same time, the introduction of AI is in the early stages - operators are starting to use such tools to optimize networks and improve the quality of customer service.

As of 2024, Azerbaijan is preparing to deploy commercial 5G networks: test tests and pilot projects are being carried out. Operators and government agencies are working to build the necessary infrastructure and regulatory framework to successfully launch 5G.

The study says that Azerbaijan is actively introducing digital technologies into public administration and business. As part of the digitalization strategy, in 2025 it is planned to fully digitize the interaction between the state and citizens, including the use of the Internet of Things (IoT). In general, the telecommunications market of the country is at the stage of active expansion and digital transformation aimed at improving the quality of services and applying advanced technologies.

The largest player in the telecom sector of Azerbaijan is Azercell Telecom, which serves about 5 million subscribers. In second place is the Bakcell Group (Bakcell) with 3.4 million users. Closes the top three Azerfon (Nar Mobile), whose subscriber base has 2.2 million customers.

Analysts believe that the telecommunications sector of Azerbaijan will continue to show positive dynamics: the drivers are state initiatives for digitalization and infrastructure development. In particular, in January 2023, AzerTelecom and Kazakhtelecom signed a cooperation agreement within the framework of the Trans-Caspian Project aimed at laying a fiber-optic communication line along the bottom of the Caspian Sea. This is expected to help the country strengthen its position in the regional telecommunications network.^[1]

2023-2024

Launch of 5G network in Baku

On February 1, 2023, Bakcell announced the launch of a 5G network in Azerbaijan. It has become available to residents of several districts of Baku - in particular, you can use the technology on Fontanov Square (19 G.Z. Tagizade St.), in the Hagani Garden (Molokan Garden) and in the Deniz Mall. Read more here.

Azerbaijan and Kazakhstan agree to stretch 330-km fiber optic under water between countries

In January 2023, the largest telecommunications companies in Azerbaijan and Kazakhstan - AzerTelecom and Kazakhtelecom, respectively - entered into an agreement on the terms of cooperation within the framework of the Trans-Caspian Project, designed to lay fiber-optic communication lines (FOCL) along the bottom of the Caspian Sea. The main route of the submarine line will run from Kazakhstan's Aktau to Azerbaijan's Siazan and will be more than 340 km. Read more here.