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Azerbaijani IT sector (January-October 2014)

Analysis Materials 9 December 2014 15:29 (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.

Azerbaijan's ICT sector has doubled for the past five years. An average annual growth of information technologies was 17 percent.

The ICT sector volume is planned to be increased by 4-4.5 times for the next 10 years to implement the measures envisaged in the "Azerbaijan 2020: Look into the future" concept.

Information and communication services worth 1.3 billion AZN were rendered for Azerbaijan's population and organizations in January-October 2014 or 13.3 percent more than in the same period of 2013, the Azerbaijani State Statistics Committee's report says.

Some 58.1 percent of a total volume of obtained income accounted for mobile services.

A total volume of revenues obtained from mobile services in Azerbaijan hit 761 million AZN in January-October, which is 7.7 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.

The Azerbaijani Ministry of Communications and High Technologies has issued a license to CDMA operator of the Nakhchivan Autonomous Republic - Nakhtel.

Mobile communication network covers virtually the entire territory of the country (except the occupied territories).

3G services are deployed not only at all the stations of Baku Metro, but also in the tunnels. Azerfon (Nar Mobile) has started using 3G network since December 2009. Among three mobile operators operating in Azerbaijan, it was the first to obtain a license for this service.

But Azercell mobile operator has commissioned a high-speed 4G network based on LTE technology since May 2012.

e-signature

The total number of electronic digital signatures (e-signatures) issued by the Azerbaijani National Certification Services Center in January-October 2014 increased by 45.9 percent compared to the same period of 2013 and exceeded 26,000 as of November 1, the Azerbaijani Communication and High Technology Ministry said.

The state bodies were provided with 15,966 e-signatures, 4,207 e-signatures were issued to the legal entities and 5,854 to citizens.

An e-signature enables people to easily use the e-services of state institutions, which are available on the "e-government" portal (e-gov.az).

Some 297 services of the total number of approved electronic services (446) are available on the "electronic government" (e-gov.az) portal. The total number of e-services placed on the websites of Azerbaijani state organizations is 460.

e-commerce

E-commerce market volume amounted to 5.1 million AZN in Azerbaijan in January-October 2014, the Azerbaijani State Statistics Committee said.

The total volume of retail e-commerce in Azerbaijan increased by 2.5 times 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 91.6 percent of goods purchased in electronic form by the population of Azerbaijan during reporting period accounted for legal entities and 8.4 percent - physical entities.

Non-food products accounted for 95 percent of e-commerce market turnover.

The total retail trade volume amounted to 17.5 billion AZN in Azerbaijan in January-October 2014. The sales of consumer goods in the country increased by 9.6 percent compared to the same period of last year.

About 50 percent fell to non-food products. The share of non-food products increased by 3.5 percentage points compared to the same period of 2013.

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