AZEUROTEL JV, A STEP AHEAD OF OTHERS

AzEuroTel JV, the Azerbaijan-British Joint Venture was founded by the Ministry of Communications of the Azerbaijan Republic and Lukoil Europe Ltd (Great Britain) in 1995 on a parity basis. Today AzEuroTel is a universal operator of integrated telecommunications services.

Since 1996 AzEuroTel JV has had a license granted by the Ministry of Communications on creation and operation of the local telephone communication, organization of dedicated international and intercity satellite communication channels, creation of data transmission and telematic communication networks, rendering services on video-conference communication and providing of public call-boxes.

AzEuroTel JV operates the modern digital ATS 492/497/437 and renders various services such as local, long-distance and intercity communication, Internet access, data transmission, IP-telephony, wireless DECT standard communication and broadband multimedia services on the top level.

Originally, the joint venture was established on the basis of decade-step exchange ATS-92 with a capacity of 10,000 numbers. After reconstruction, the ATS system turned electronic and its capacity expanded up to 20,000 numbers. The ATS 492/497 established on the basis of SYSTEM X technology of the British company GPT Ltd was started up on May 10, 1996. Having the license on rendering local, long-distance and intercity communication, data transmission and internet access, the company began providing these services through communication channels granted on lease by the Ministry of Communications of Azerbaijan.

Then, the administration of AzEuroTel made a strategic decision to substitute 80% of old distribution and main lines and 100% of subscriber lines. The amount of investments in two city stations (92/97) during the time was estimated at US $6.5 million. But in the course of negotiations, the Ministry of Communications set up a claim about opportunity to provide additional services, laying out of an optical cable etc. Thus, the cost of the reconstruction project grew up to US 412.5 million. After completing the negotiations, AzEuroTel began introducing up-to-date equipment and completely changed operating telephone cables.

SDH transport fiber-optic network that belongs to the company was constructed in 1997, thus laying the basis of a well-run network, which allowed unloading interstation flows of the Baku City telephone communication network. Simultaneously, corporate clients, for the first time in Azerbaijan, were offered access to the switching system of AzEuroTel through dedicated optical channels.

Besides expansion of the exchange capacity, the joint venture decided to extend the scope of rendered services and consistently introduced the following communication services: Movable trunk communication in January 1998 and Wireless DECT standard communication in December 1998.

In September 1998, AzEuroTel JV became a member of the International Electrical Communication Union and the Regional Commonwealth in the field of communication.

In October 1999, AzEuroTel started up its earth terminal and provided the banking sector with access to such commercial information resources such as S.W.I.F.T., REUTERS, DOW JONES Telerate and others.

In October 2002, AzEuroTel commenced rendering services on prepaid phone and IP cards. In March 2003, the company introduced IP-telephony at the company’s dial-up platform.

Nuri Akhmedov, General Director of AzEuroTel JV, actively maintains the use of such technology in the communication field. At the same time it was the latest achievement in the field of technology as the distance voice transmission was very expensive at all times. Obviously, the company was faced with the target of reducing its cost price. But before using and shifting to voice traffic transmission through data transmission technologies, AzEuroTel studied the experience of advanced countries and drew a conclusion that the given technology had a good outlook. As concluded by the administration of AzEuroTel then, IP-telephony could bring about reduction in the price of traffic despite using up-to-date TCPs and also bring the communication quality to the quality of traditional telephony. That conclusion turned out to be correct.

According to statistics, presently, 60% of voice messages in the world are transmitted via IP-telephony. As for AzEuroTel JV, the corresponding figure stands at 70%. The company aims at providing communication between subscribers of future stations of new generation via this technology.

Until recently, the functional activity of the telecoms operator was to provide two core services – data and voice transmission. However, in order to presently define the extent of services, it is necessary to take into account demand of various user groups considering their branch specialty. The long-expected overturn in the traffic structure took place within the last decade, says Nuri Akhmedov. If the ratio between the telephone and non-telephone load within the electrical communication network was 80:20 earlier, today it is 20:80 due to Internet development. Therefore, the current major bulk and properties of traffic are defined by data transmission agencies.

The future of VoIP services is too obvious; with the lapse of time all voice services will finally turn into VoIP. This trend is presently observed both in the networks of traditional telephone operators (who are shifting their services to IP-technologies) and the cellular networks as well.

Until now, information was necessary to provide good functioning of the economy, but it is changing highly demanded product. Information itself is becoming important, thus information storage and transmission technologies create enormous interest.

AzEuroTel JV set the target to construct a switching system with high throughput capacity and opportunity of future reservation, engage numerous trunks and integrate into data transmission systems using TCP.

The joint venture was searching for integration into broadband access networks convergent dial-up platform with the potential of supporting multimedia applications. As a result, AzEuroTel offered its clients broadband multimedia communication service Triple Play (multichannel IP-TV image, data and voice transmission through one copper pair) on the basis of ADSL2+ technology. This service was first successfully tested for two months before officially put into operation on October 1, 2004. The number of subscribers using the broadband services is expected to be raised to hundreds of thousands by 2010.

The company is closely watching changes in needs and preferences of clients with regard to latest achievements of technologies. Regarding this, the company understands their clients’ desire to make maximum use of existing infrastructure and also provides end users with modernized service. As a matter of fact, subscribes do not care how many and which physical channels provide them with info-communication service, they prefer to have one operator rendering all kinds of services. Thus, the company sets a target of providing clients with all necessary services at any place and at any time throughout the territory covered by the company.

AzEuroTel understands that technological lag can cause negative consequences and keeps on constantly searching creatively, purchases the latest up-to-date equipment and simultaneously solves matters related to providing integrated services. Integration of all these services within one server is considerably economical. From the very beginning in 1995, the company decided to establish not just one ATS 92/97 but an info-communications system. As a result, this system was completed and commissioned into operation ten years later.

The joint venture intends to correspond to conditions of the present-day business world and offers its clients qualitative and reliable service. "Today AzEuroTel is not just a telecom operator, but a name in which people trust due to services of the all personnel and our desire to improve, and work constructively," Nuri Akhmedov believes.

In the near future, AzEuroTel will offer its clients the service of interactive television i.e. video on demand. It will allow advance subscription of television programs. For such subscribers, the concept of ‘an electronic house’ will come true, as they will be able to use all the advantages of high-speed internet access to consult with a doctor, obtain education, video-conference, etc.

AzEuroTel JV employs a qualified team of certified specialists that have acquired their skills in Great Britain, Russia, USA, Germany, Spain and Turkey. Out of 300 employees, around 70 % have degrees in the field of telecommunication.

A new stage in the development of the company is associated with introduction of the quality control system of ISO 9001:2000 standard to the general control system of the company. AzEuroTel was accredited ISO 9001:2000 in 2002.

The company presently intends to expand the network outside Absheron and cover other regions of the republic.

AzEuroTel tries to view the market and avoid both acutely traditional and ultramodern approaches. "We always search for some rational compromise, firstly oriented towards peculiarities of the national network infrastructure. We hold on to a rational position that allows us to be a step or two ahead of our competitors," thinks Nuri Akhmedov.

At the moment, AzEuroTel is a rapidly growing national company that has a broad outlook of the Azerbaijan market. "We firmly strive to hold and increase planned rates of development," resumed Nuri Akhmedov.