The history of Iskratel’s presence in Azerbaijan goes back to 2003, when the first sales activities began. Over the years activities have expanded, with the modernization of the telecommunications network being one of the priorities of the local government. Last year Iskratel’s turnover amounted to €2m, and for 2009 and 2010, contracts to the value of €5m have been closed. Some business deals – with system integrators as well as with telecoms – are still open and await the appropriate financial schemes. The reason why Iskratel decided to increase its presence and open a local company, Iskratel MMC, in this market was the favorable development of operations and the good geographical position. Iskratel is aware that Azerbaijan is a strong regional center with a rapidly developing society that follows all modern trends, especially those in the field of telecommunications, which is the second most important industry in Azerbaijan, after oil. The latest telecommunications technologies, e.g., IP protocol, will ensure enormous developments and an increased sales potential. Azerbaijan puts great emphasis on education, which shows in the high level of the technical knowledge of Iskratel’s partners. Baku is rapidly becoming the center of the Caspian basin. From here, Iskratel plans to expand its operations to the other countries of the region. A presence in Baku is a must for all companies that have long-term ambitions in the region.