Azerbaijan, Baku, Dec. 20 / Trend /
Despite the global financial crisis, the Azerbaijani ICT sector entered 2010 with optimism due to stable dynamics in recent years.
In contrast to fears, 2010 was no less successful for the local ICT market. The growth rate of 25-30 percent is customary for the Azerbaijani ICT market, and it is expected that in 2010, despite the global crisis, market growth will be about 30 percent.
The main aspects that have a positive impact on market growth in 2010 was the state support to large-scale projects realization, growing need of players in the financial sector, telecommunications and other major companies to introduce advanced technologies and growing market for retail and home users.
2010 was remembered with a number of important decisions in building the information society, large-scale projects in the field of telecommunications, etc.
Electronic Azerbaijan
The "State program on development of communication and information technologies in Azerbaijan for 2010-2012 (Electronic Azerbaijan)" was approved by President Ilham Aliyev on Aug.11, 2010. According to the Azerbaijani President's decree, the Communications and IT Ministry will coordinate the execution of the state program.
The state program will be implemented in four main areas, including development of telecommunications, postal infrastructure and services, introduction of information and communication technologies and development of electronic services in state and local bodies, creation of conditions for the transition to an information society, as well as enhancement of export potential and competitive ICT.
After the state program is implemented, conditions for the development of information society will be created. The Internet segment will be developed. The circle of computer users will be expanded. The "digital inequality" will be liquidated. Solutions of "electronic government" will be introduced. Digital signatures and others will be applied.
A plan of actions within the "Electronic Azerbaijan" program includes measures to develop the network infrastructure of operators, full electronization of the network, establish an independent regulatory body of the telecommunications industry, provide services based on satellite communication and develop e-commerce.
To date, Azerbaijan has implemented a number of projects to create "Electronic government ". This opportunity to receive information about the activities of a state institution without having to visit it, application of e-payment systems for utilities, services, service providers and others, e registration of business organizations on a "single window", submission of e- tax declaration and e-applications to the State Student Admission Commission. These services will continue to receive the state support in implementing the concept of "Electronic government ".
In general, under the creation of "Electronic government" in Azerbaijan, there will be introduced 20 basic e-services, 12 of which are designed for people and eight - for the business sector.
The East-West super information highway
A resolution submitted by Azerbaijan to create an information superhighway was adopted by the U.N. during its sixty-sixth plenary meeting. The organization expressed support for the project, which aims to reduce poverty and increase economic growth. The project will serve as an engine for regional development.
East-West is intended to connect a total of 20 countries. The project will eliminate the information gap existing between countries in Western European and the Pacific basin.
The resolution allows Azerbaijan to act as project coordinator, both regionally and globally, as well as to attract additional funding. The project cost is estimated at hundreds of millions of dollars.
Major regional operators like China Telecom, Turk Telecom, Rostelecom and Kazakhtelecom, as well as Azerbaijani operators, are interested in this project. A memorandum on the formation of a consortium to design the East-West super information highway is expected to be signed in 2011
A consortium will launch the commercial project.
Space Industry
Today, Azerbaijan works on creation of the space industry and launching the first national telecommunications satellite Azerspace.
OJSC Azerkosmos was established under the Azerbaijani Communications and IT Ministry to launch the satellite into orbit, manage and implement maintenance works. The company is completely owned by the state.
The establishment of JSC has two objectives. The first objective is to lay the groundwork for the formation and use of outer space for peaceful purposes. The second goal is the use of outer space for commercial purposes. One of the important points of the state program is a launching the telecommunications satellite Azerspace into orbit.
Azerspace's manufacturer is American company Orbital Sciences Corporation. An orbital position for Azerspace has been leased from the Malaysian MEASAT satellite operator.
French company Arianspace has started to manufacture rocket carrier Ariane 5 ECA, which will launch the first Azerbaijani telecommunications satellite Azercpace into orbit in late 2012.
Azerspace is designed to provide digital broadcasting, Internet access, data transmission, VSAT multi-service networks, and governmental communications. Its service area will cover Europe, Central Asia and Africa.
Azerbaijan's capital investment in the project is approximately 319 million manat; 127 million will be spent on operating costs. The payback period is six years, and the income will reach 176 million manat.
The income from the satellite will reach roughly 495 million manat. Incomes will amount to 176 million manat. The revenue will be directed to the technological development of the country.
One of the priority issues facing the ministry is the realization of satellite resources. The ministry intends to withdraw 80 percent of Azerspace resources to the international market, and to use the remaining 20 percent on the intrarepublican level.
Electronization of the PSTN
Azerbaijan is the first country in the post-Soviet space which achieved installation of telephones throughout the republic in 2008 . In the near future telephone networks throughout the territory of Azerbaijan will be converted into electronic form.
The share of electronic ATS in Azerbaijan reaches 93 percent. This figure is 95 percent in Baku and 90 percent - the country's regions.
At present, the total number of phones falling for every 100 people throughout the country is 16.2 units. . This figure is 34.6 units in Baku and 10.7 units - the country's regions.
Since early 2010, about 17 million manat was invested in the reconstruction and increase of assembly capacity of regional and metropolitan telecommunications nodes.
Mobile market
The Azerbaijani mobile connections market has been experiencing rapid growth in the past two years. Every year, the competition for less solvent population increases, and the index of average revenue per subscriber is reduced. This trend has encouraged mobile operators in Azerbaijan to introduce content services that are designed to raise incomes and increase the index of average monthly service revenue per subscriber (ARPU). This figure now stands at $15-$17.
The mobile communication penetration rate in Azerbaijan makes up 94.7 percent. As of Jan.1, the figure was 86.2 percent. The share of mobile operators account for about 74 percent of total income received by the telecommunications sector.
A number of positive trends have been observed in the market in recent years. This is a significant subscriber growth, the introduction of new services, deployment of 3G mobile networks, etc.
The first operator to have deployed 3G is Azerfon, which was licensed last year.
It is expected that Azercell, which has already declared its readiness to transition to the 3G standard connection, will soon receive a license to provide 3G services. Work on installation of base stations supporting third generation communication standard is also being conducted by Bakcell.
Internet-market
The Azerbaijani internet market in recent years shows a steady increase in the number of Internet users. The penetration rate of Internet in Azerbaijan is more than 44 percent, of which 12 percent are users of broadband access.
The total throughput of traffic in the segment AzNET is 35 Gb/s. Only 10-11Gbit/s has been loaded. The rest part is in reserve to increase the stability of a segment from external factors. The country gets traffic via the optical lines from Iran, Russia and Turkey. Data transmission speed in the country hits 40 Gbps with the use of transport technology DWDM (Dense Wavelength Division Multiplexing).
About 40 Internet service providers operate in Azerbaijan. Almost all of them added integration services to the list of services to get more profit. Providers began to develop methods of wireless broadband connection. The most common types are Wi-Fi, iBurst and WiMAX.
Rates on the Internet over the past two years declined an average of six to seven times which is linked with lower prices for external feeds (both satellite and terrestrial), reduction in the cost of equipment and increasing competition between providers.
Regarding the cost of connection, subscribers' costs to get access to ADSL vary from 10 manat - 256 Kbps up to 140 manat - 8192 Kbps depending on the chosen tariff plan. The minimal cost of Dial-up-skrech card for 12 hours is one manat, and unlimited access for a month - from 12 manat.
Azerbaijan has developed a strategy for development of broadband Internet in 2011-2013, which aims to extend its use and make them more accessible for the end users.
The new strategy provides for tariff reductions and increase in the number of proposed tariff plans (primarily public internet service providers), and increase the number of ports on the nodes of telecommunication operators.
E-digital signatures
The country has completed the construction of infrastructure for the issuance of digital signatures. Azerbaijan has finished work on drafting legal documents for the issuance of digital signature and the final document is under the governmental consideration.
Pre-issuance of e-digital signatures to businesses and individuals will be carried out in the first quarter of 2011.
Azerbaijan plans to use three centers for issuing digital signatures, one of which will lead the project and two of which will carry out maintenance of public and private entities. The issuance of e-digital, according to accepted international standards, will be implemented on a fee basis, is underway.