Last week the conflict between AzEuroTel JV and the Ministry of Communication of the republic never reached its final solution. After exchanging accusations against each other early in March, the parties now refrain from any comments. The committee established by the Cabinet due to the arisen situation drew up a statement after the conducted work and submitted it to the Cabinet.
    As is known the next opposition began on 1 March when the Ministry of Communication cut off AzEuroTel international channels of communication. One can hardly believe, to be more precisely never believe in AzEuroTel sabotage against itself as alleges the Ministry of Communication. After all in its time it have done everything in its power to assert a right to provide services of international communication.
    Let's remind that AzEuroTel joint venture was established by two founders - "LUKoil Europe" (affiliated branch of "LUKoil" in England) and the Ministry of Communication. The candidacy of its manager was confirmed at the joint meeting of the founders - the Ministry of Communication and "LUKoil". Nuri Akhmedov was chosen not by chance. Nuri Akmedov, the eldest son of Agamirza Mirzali Akhmedov who was one of the leading statesman of Azerbaijan in fifties of XX century, graduated from Azerbaijan Polytechnic Institute the specialty of automation and telemechanics, and after it came to the telecommunication system. He worked as a laboratory assistant, an instructor in the chair of electroconductive communication, head of the industry, transport and communication department of the Research Institute under the State Planning Committee, chief of Central Telephone Node under the Azerbaijan Ministry of Communication. He worked as a director of Baku Communication College over 10 years.
    The grand opening of AzEuroTel JV took place early in May 1996 with the participation of President Heydar Aliyev who got acquainted with its technical capability and highly appreciated it. And the joint venture began to successfully operate in the telecommunication market.
    According to the founders' agreement, the dividends are divided between the founders at a percentage ratio of 50/50. AzEuroTel didn't experience any problems with the first founder: it has never felt any financial, technical or political pressure from "LUKoil". But with the second founder the relations were developing with difficulty and remain the same to date. It even time and again came down to the court. So in June 1998 AzEuroTel applied to the Ministry of Communication for a licence to provide international communication. But the ministry on various pretexts was evading to consider this matter by just providing formal replies. Finally AzEuroTel was sent a reply from the founder with the suggestion to postpone consideration of this matter to 2003.
    Such a reply represented an actual failure to obey the President's decree on licence activity. The Ministry of Communication motivated its actions with allegedly decrease of inpayments received to the state budget. However the committee established by the Cabinet made quite another statement: according to its forecast the earnings received to the exchequer from this service will increase thrice as AzEuroTel being granted a licence is going to significantly reduce tariffs for this kind of communication that will surely attract clients and allow to increase the number of calls.
    As AzEuroTel didn't obtain complete satisfaction of its rightful requirements by means of correspondence, it had to bring a suit against one o its founders to the Economic Court. In August 1999 the court completely satisfied AzEuroTel claim and committed the ministry to issue JV a licence to provide international communication services.
    But the Ministry of Communication does not observe the Economic court decision, and what is more keeps on demanding to cease services of international communication from AzEuroTel. And since JV is not going to cede its legal position in neither direction of its activity, and the last incident of international communication channels cutoff originated from this. The similar situation may be observed with frequency allotment by satellite terminals. There is a court decision, all necessary documents on hand, but the Ministry does not allow to extend the use of these frequencies.
    One more interesting fact: if AzEuroTel achieves issue of one licence only by taking it to court, then another licence that is not even indicated in any document is nearly imposed on JV. The Ministry of Communication demands from AzEuroTel to receive a licence for Internet services and have even fixed a licence fee - 50 million manats.
    The question arises: in what decree or government act is indicated licensing of Internet? And how can the Ministry license that was not created by it? It may issue a licence to channels serving Internet. And from where is this sum 50 million manats, according to which calculation? In this way AzEuroTel Manager commented the Ministry's position on this issue.
    But as the life shows, even the issue of the licence doesn't secure quite life to AzEuroTel. Having such a document on the provision of Data network and telematic communication on hand, AzEuroTel received a letter from the Ministry o Communication with the statement that JV does not have the right to practise Internet. And what is more large-scale users of AzEuroTel were being sent letters which stated that JV is an illegal structure and they had to reconclude agreements with other companies under control of the same Ministry of Communication. Not only local companies, but as well as foreign companies, embassies were drawn into sorting out their relationships.
    It was more than a year ago when a lot of problems began to arise due to fixing additional rate in the amount of 20 thousand manats by the Ministry of Communication for connecting additional facilities like Internet or fax to the telephone network. This innovation was grounded on the fact that Internet users significantly increase loading for telephone exchanges, particularly of old systems.
    It is quite obvious that these over-requirements negatively affected the development of Internet in Azerbaijan that anyway falls behind neighboring states. So all Internet providers, scientists and companies specializing in information technilogies must spare no effort to achieve changes in this field.
- And we started to dispute against the additional rate of 20 thousand manats, -stated Nuri Akhmedov last year in April in his interview granted to "Internet News". But what is most interesting this two "shirvans" turned to be not obligatory for the users of "Baknet" that is under the Ministry of Communication. It means the providers were deliberately laid down unequal conditions. In this case is it possible to talk about fair competition?
- So does it mean that "Baknet" users do not create problems for telephone exchanges? - said AzEuroTel manager in this connection. - Or another point: let's suppose that we'll began to pay this two "shirvans", will it solve station overloading? Surely not! But these problems should be eliminated with the help of experts. And the Ministry of Communication has quite a lot good experts. By the way the second development stage of AzEuroTel provides for installation of the equipment that enables to simultaneously utilize both telephone and Internet on one line.
Fore more that a year the web users were obliged to pay this two "shirvans". And only by the decision of the Tariff Board beginning from 1 January of this year the tariff for Internet access was reduced from 20 thousand manats to 3,5 thousand manats for population and 5 thousand manats for other users. By the way tariffs for other telecommunication services were also reduced.
    Unfortunately the actions of the Ministry of Communication do not promote Internet development in Azerbaijan and improvement of local exchanges' operation quality. The point is that AzEuroTel has a licence to reconstruct 38, 39, 94, 95, 91, and 32 Exchanges and long ago is ready to carry out all planned tasks. But the Ministry of Communication put obstacles in the way of tender, and now it is stopped due to the privatization of AzEuroTel state share. And in Exchange 32 in place of a new equipment the Ministry of Communication installed the old one that had finished its serving 20 years ago.
    The number of suits AzEuroTel brought against the Ministry of Communication is more than fifteen with successful majority. The actions of the Ministry of Communication seem more strange if remember that it has 50 percent from all JV income, but in every possible way tries to prevent AzEuroTel income from rising. Moreover taking into consideration the number of AzEuroTel service customers and technical capability, AzEuroTel in no way may vie with such a giant as "Aztelecom". But it does not even wish to do so. Scope of its activity is clearly defined in Licence #2 issued by the Ministry of Communication on 26 August 1996 for 25 years, and each customer must be given an opportunity to choose a company that mostly suits him for quality and payment terms. But such quite civilized partnership and competition for some reason does not suit one of the founders.
    Needless to say that subscribers and the image of the country suffer from the Ministry's such position and a great material damage is caused. But what is not of less importance is that these continual conflicts hinder the development of telecommunication in our republic that lags behind European countries in this field for ten years.