Bakcell wins dispute with Azercell on interconnect

Azerbaijan mobile operator Bakcell reported that it has won a legal dispute on interconnect rates with the mobile operator Azercell. The Baku Administrative Economy Court upheld the appeal from Bakcell on entering into force the amendment to the interconnect agreement between the mobile operators, as well as ordered AZN 15 million compensation to be paid by Azercell.
Azercell refused to reduce the interconnect rates to the ceiling imposed by the government in 2009.

According to Bakcell, the Baku Administrative-Economic Court found that Azercell Telekom had broken the 2006 interconnection contract and ordered the payment of over AZN 15 million (US$19 million) for caused damage.

The lawsuit dates back to a decision by the government in April 2009 to reduce the interconnection rate to AZN0.02 per minute, but Azercell Telekom retained its rate at the older AZN0.05 per minute.

“We are very pleased with the court decision and the fact that the justice is served. Azercell has abused its dominant position and placed smaller operators at a disadvantage. The Court has remised this situation and punished Azercell for its abusive behavior,”, says Mr. Richard Shearer, Bakcell CEO.