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Azerbaijani IT sector (January-August 2014)

Analysis Materials 14 October 2014 16:33 (UTC +04:00)

The Azerbaijani information and communication technology sector (ICT) is one of the most dynamically developing sectors of the national economy due its profitability and total profitability of this business. Although the main catalyst for the growth of Azerbaijan's economy is the oil and gas sector, the ICT sector also increases its capacity every year.

The Azerbaijani information technology sector has doubled for the last five years. The average annual growth rate of information technologies was 17 percent.

Information and communication services worth 988.9 million AZN were rendered for Azerbaijan's population and organizations in January-August 2014 or 10.5 percent more than in the same period of 2013, according to a report from Azerbaijani State Statistics Committee.

The statistics committee said some 72.6 percent of information and communication services were rendered to the population, while 60.2 percent of the total income was received from mobile services.

Total revenues from mobile services rendered in Azerbaijan stood at 595 million AZN in January-August, which is 8 percent more than in the same period of 2013.

The role of Azerbaijani mobile operators - "Azercell", "Bakcell" and "Azerfon" is significant in the development of the ICT sector. As a result of their work, a mobile communication segment expanded. The number of mobile subscribers per 100 people reached 110.

e-signature

The total number of issued Asan İmza mobile e-signature certificates in Azerbaijan increased by approximately 2.5 times in January-August, the Azerbaijani Ministry of Taxes said.

The Asan certification service center issued over 32,400 certificates in eight months, the ministry said. The total number of issued Asan İmza mobile e-signatures is 54,914 units. Some 26,599 units were issued to legal entities, while 27,366 to physical entities and 949 to civil servants.

Around 3.5 million transactions were conducted by using a mobile e-signature.

Asan imza platform has been integrated into the Azerbaijani mobile operators' platforms ("Bakcell", "Azercell Telecom" and "Azerfon").

The cost of connecting state servants, legal and physical entities engaged in entrepreneurial activity, to ASAN-imza service in mobile networks is 18 AZN. A monthly fee for using ASAN-imza service is set at 0.5 AZN.

The Asan certification service center received accreditation from the Azerbaijani Ministry of Communications and High Technologies on April 9, 2013. The center is authorized to issue advanced certificates for an enhanced electronic signature to public and local self-government bodies, legal and physical entities.

e-commerce

The e-commerce market volume amounted to 1.7 million AZN in Azerbaijan in January-August 2014, the Azerbaijani State Statistics Committee said.

The total volume of retail e-commerce in Azerbaijan increased by 6.9 percent compared to the same period of 2013.

E-commerce market participants are legal and physical entities engaged in e-commerce and buyers of goods and services.

Some 78.4 percent of goods purchased in electronic form by the population of Azerbaijan during reporting period accounted for legal entities and 21.6 percent - physical entities. Non-food products accounted for 88.9 percent of e-commerce market turnover.

The total retail trade volume amounted to 13.6 billion AZN in Azerbaijan in January-August 2014. The sales of consumer goods in the country increased by 9.3 percent compared to the same period of last year.

About 50.3 percent fell to consumer goods (food, beverages and tobacco), and 49.7 percent AZN - to non-food products. The share of non-food products increased by 3.4 percentage points during the reporting period.

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