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Investing in Azerbaijan’s workforce
Ten years of exponential growth has placed Azercell at the forefront of the mobile communications sector. Now with 3G technology in the pipeline, global expansion is calling

en years ago, President Heydar Aliyev made the first digital mobile call using GSM technologies on Azerbaijani soil. This small but significant step signaled the first wave of the digital GSM mobile revolution to sweep this young nation. A decade later, Azercell Telecom JV quickly emerged as the leader in digital mobile technology in Azerbaijan. Its services are available from the crests of the Caucasus Mountains to the shores of the Caspian Sea – and beyond.

Today, Azercell controls 75 percent of the Azerbaijani cellular communications market. Throughout its ten years of success, new advancements in technology and reduced tariffs have boosted Azercell’s consumer appeal. In recent years, its subscriber base has grown exponentially. The latest milestone was achieved in July 2006, when the company registered its two millionth subscriber.

Azercell is contributing to the growth of Azerbaijan’s nascent information and communications technologies sector. General Manager A. Halim Ates (INTERVIEW) underscores that “employees in the ICT sector have a very high level of education and are very keen to develop and improve. Investing in people always gives us an immediate return. Last year, the company spent half a million dollars in training.” This equates to over 39,000 hours of personal development training in the past two years.

In total, Azercell has invested more than $500 million in the development of digital cellular communications in Azerbaijan and around the world. Goals to approach Western levels of mobile technology are quickly being achieved and the operator’s intricate network of cutting-edge technology remains at the heart of its success. During 2006, 328 new radio base stations were installed, adding to the 750 already in operation. In total, Azercell has installed two home location registers, 13 base station controller systems, 16 mobile services switching centers, and 1,078 base radio stations.

By implementing Enhanced Data Rates for GSM Evolution (EDGE) technology, data transmission rates and reliability have improved significantly. Most importantly, Azercell is working diligently to obtain a 3G license to further advance its services.
This investment in high-end technology has not only attracted a strong customer base, but it has also spurred the launch of high quality services and products. The operator’s RoamCell service allows subscribers to make calls in 135 countries around the world. The newly launched ZengimCELL service enables customers to personalize ringtones from choices on a website at the touch of a button. Three years ago, Azercell Express opened its first store as a “one-stop shop” for sales and customer service.

Azercell has devoted more than $500 million to digital telecoms and subscribers can make calls in 135 countries.

As one of the largest companies in the country, Azercell understands its socio-economic responsibilities and commitments to the country. The company is the largest taxpayer in the non-oil sector of Azerbaijan, and in 2005, Azercell payments to the state budget were equal to 4.09 percent of the total.

Azercell is also the only mobile operator in the country to present an ecological assessment of its services and its impact on social economic life.
If service-based performance and technology lies at the heart of Azercell, investing in people is its soul. In March 2006, it became the first company in Azerbaijan and in the CIS region to receive the prestigious international Investor in People award for its unending commitment to human resources development.

Over the past ten years, the operator has donated $5 million to charity organizations to extend a helping hand to internally displaced persons, orphans and low-income families. House of Hope, a center for disadvantaged children, has greatly benefited from these philanthropic activities. For its continuing outreach, the Azerbaijan Alliance for Children’s Rights presented the company with its Leave No Child Out award.

‘Investing in people gives us immediate returns. People are keen to develop and improve’

Azercell also spreads the joys of Azerbaijan’s vibrant cultural and artistic life. It is a key sponsor of the Baku Jazz Festival, which this year featured American legend Herbie Hancock. As a cultural benefactor, the company continues to bring masters of Azerbaijan’s rich musical legacy to rapturous audiences at renowned institutions across the country, including the Azerbaijan State Philharmonic. Approaching its second decade of service, Azercell continues to position itself as a quality operator, and a fundamental pillar of the community.

Global services

Azercell Telecom JV belongs to a family of trend-setting mobile providers. Majority shares are controlled by Fintur Holdings, a pioneer of mobile telecommunication services spanning Eurasia. The network coverage of Fintur reaches 23 million mobile users in Kazakhstan, Georgia, and Moldova.

Expert partners

Fintur Holdings is a partnership of Stockholm-based TeliaSonera and Turkey’s largest mobile provider TurkCell. The two European telecom leaders control 58.55 percent and 41.45 percent of Fintur’s shares respectively. General Manager of Azercell Telecom, A. Halim Ates, brings years of expertise working in Fintur Holdings to shape Azercell’s vision for excellence. As a valued component of the Fintur group of companies, Azercell sets the benchmark for standards of excellence in Eurasia.

A private affair

The Ministry of Information and Communications Technologies of Azerbaijan owns 35.7 percent of Azercell. In 2007, these remaining shares will be auctioned off to investors. According to market analysts, the company may fetch up to $240 million, becoming Azerbaijan’s largest privatization to date.

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