Telecommunications (26.10- 31.10.2009)

According to the data provided by the State Statistics Committee of Azerbaijan, in January-September 2009, the communication enterprises provided population and businesses with services worth 731.8mln manat, or 10.4% more than the same period of 2008.

Some 78.6% or 575mln manat of all communications services accounted for population.

Rise was by 3.4 percent in economic zone of Guba-Khachmaz, 2.2 percent in Upper Shirvan, 1 percent in Sheki-Zakatala, 1.7 percent in Aran, 0.9 percent in Lankaran, and 11.8 percent in Absheron.

Major indices reflecting activities of communications enterprises in Azerbaijan

Source: State Statistics Committee

Amount of income received by enterprises owned by the Ministry of Communications and Information Technologies (MCIT) over nine months amounted to 182.9 million manat, which is 9.6 percent more than the projected 166.9 million manat. According to the Ministry, during the reported period, Ministry's enterprises invested 26.9 million manat in the development of the telecommunications sector that is 1.9 million manat more compared with last year.

As of Oct.1 2009, the share of e-ATE (Automatic Telephone Exchange) was 84.2 percent in Azerbaijan, the Azerbaijani Communications and Information Technologies Ministry reported.

This index was is 85.7 percent in Baku and 82.6 percent in other regions , the ministry added.

At present, 15.7 telephones account for every 100 families in Azerbaijan, 34.2 telephones account for every 100 families in Baku and 10.2 telephones in regions, the statistics agency said. According to the ministry, it was achieved through implementing a project "100 phones per 100 families".

Project "100 telephones per 100 families" began in early 2008. The main objective of the project is to triple installation of telephones in Azerbaijan. The project is expected to complete in 2012.

The project is estimated at about 200 million manat, which will be reimbursed the funds are by late 2012.

The project also envisages rendering universal telecommunications services to people (VoIP, IP-TV, Internet services and etc.).

As formerly, mobile communications make up the major part of communication incomes.

Some 71.8% of the profits fell on mobile communications, an increase of 9.9% compared to the same period of the last year.

The number of mobile communication users in Azerbaijan since the beginning of the year increased by 725,000 subscribers, according to data from the Ministry of Communications and Information Technologies. The number of mobile subscribers in Azerbaijan is 7.3 million. Today in the country 82 mobile subscribers is counted for every 100 people.

Currently three GSM operators function in Azerbaijan, including Azercell Telecom (3.7mln subscribers), Bakcell (1.5mln), Azerfon (1.2mln). 

Over the past years, a growth has been recorded in the number of Internet users. The volume of traffic entering the country increased by 84.1 million minutes and reached 428 million minutes for nine months compared to the same period in 2008, the Ministry of Communications and Information Technology said.

According to the ministry, the volume of outgoing traffic increased by 7.2 million minutes, totaling 117.2 million minutes.

Since early 2009, users of broadband Internet increased by 1.5 times. Broadband service is available in 50 regions and cities of the country.

According to the MCIT, 37 Internet users currently and eight personal computers fall to every 100 people.

Currently 30 internet service providers operate in Azerbaijan. The major part of the Azerbaijani Internet accounts for the primary providers - Delta Telecom and Aztelecom. Another part accounts for secondary providers, most of which lease channels mainly from Delta Telecom. The role of primary provider is also claimed by the newly created joint venture Azertelecom, which together with Russian telecommunications company Sinterra has started to design and construct cross-border fiber optic transition between Russia and Azerbaijan.

Since the beginning of September several providers decreased tariffs for broadband internet access. State Internet providers AztelekomNet and BakinterNet reduced cost of Internet on ADSL technology (Asymmetric Digital Subscriber Line), the communication and IT ministry said.

Users' expenses for unlimited high-speed access vary from 15 manat - 256 Kbit/s to 495 manat - 8,192 Kbit/s depending on tariff plan.

AzStarNet company made the first action in this direction late August. The company offered two tariff plans with limited traffic 'Home' and 'Business' with capacity up to 4 Mbit/s.

Tariff plan 'Home' includes 'Standard' and 'Extra' packages. Their cost varies from 25-155 manat depending on traffic (8-20 Gb).  

Currently, Smart Systems has the most minimal tariff on ADSL access (compared to other providers' tariffs). Monthly user's cost for unlimited ADSL varies from 128 Kbit/s - 5 manat to 2,048 Kbit/s - 48 manat upon new tariffs of Smart Systems.

Tariffs for broadband access have been also reduced by Connect, Ultel, Azeronline и Uninet (Stream), IntraNS companies since early September. Avirtel and AzEuroTel plan to offer new tariffs for ADSL services soon.

Tariffs were reduced due to next reduction of tariffs for the channels rented by initial provider Delta Telecom. Tariffs were reduced from 275 manat to 110 manat per 1 Mbit/s. New tariffs have come into force since September 1. The last reduction of tariffs was fixed in February 2009.

Thus, IT products and services made up 766.1 million in January-September, or 9.2 percent up than the last year figure (data by the Azerbaijani State Statistical Committee).

Profit received from information-communication sector and postal communication increased 9.3 percent and hit 778.6 million within nine months compared to the same period of 2008, the Communication and IT Ministry said.  

The ministry said that rate of growth of information-communication technologies hit 9.1 percent, telecommunication sector - 10.3 percent, postal communication - 17.8 percent compared to 2008.

About 80.3 percent of income falls on non-state enterprises. About 71.8 percent of income falls on mobile operators. Their growth hit 9.9 percent compared to the same period of 2008.

Over the past nine months, the Ministry of Communications and Information Technologies issued 12 licenses for providing postal services and 14 licenses to provide telecommunications services, the Ministry said.

According to the ministry, in order to improve the quality of TV and radio in the republic during the reporting period, Teleradio Production Unit put into operation 54 equipment for various purposes, 51 of which are designed to transmit radio and television, two for satellite channels and an antenna-feeder system .

During the reported period, Azerpocht postal operator put into operation 44 new post offices. Number of internal transfers carried out by Azerpocht was 180,875 totaling 15,674,797 manat. Compared with the same period last year, the number of received transfers increased by 17,323 (2,711,268 manat).

Azermarka company presented 24 postal marks, three marked envelopes and eight post cards.