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Telecommuncations (January 2010)

Analysis Materials 12 March 2010 12:09 (UTC +04:00)

E-government is being successfully introduced in Azerbaijan, and introduction of "single window" system in the customs system indicates the successful implementation of the system. At present, an automated system of border passage, as well as risk assessment and other processes have been introduced in the work of Azerbaijani customs authorities. Azerbaijan adopted the National Strategy of ICT development in 2003 and it is based on establishment of an information society and introduction of ICT in all fields, particularly in the customs sphere. The main work within "e-government" in the customs sphere is the application of a "single window", which is successfully implemented and appraised by both local and international organizations. Integrated operations are being held in Azerbaijan to introduce "e-government", particularly in state bodies.

According to the data provided by the State Statistics Committee of Azerbaijan, in January 2010, the communication enterprises provided population and businesses with services worth 72.1mln manat, or 18% more than the same period of 2009. Some 76.7% of all communications services accounted for population.

Index of services provided by telecommunication and post departments in January 2010, %

Compared to previous month

Compared to previous year

2009

January

62,4

107,9

February

102,5

102,3

March

126,6

106,2

April

122,2

111,7

May

91,5

116,9

June

101,6

114,0

July

107,0

114,9

August

91,9

114,0

September

104,5

113,3

October

106,5

113,7

November

86,0

112,8

2010

January

118,0

118,0

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

Some 71.4% of the profits fell on mobile communications, an increase of 28% compared to the same period of the last year. Currently three GSM operators function in Azerbaijan, including Azercell Telecom (3.7mln subscribers), Bakcell (1.5mln), Azerfon (1.5mln).  

A new wave of broadband market development takes place on the market of Internet services. Internet access service market in Azerbaijan has been demonstrating steady growth over recent years. The level of Internet penetration in Azerbaijan reached 37 percent. Over the past two years, the Internet tariffs have declined by nine times. Such a sharp decline in the cost of the connection is due to lower prices of foreign channels, cheaper equipment and increasing competition between providers. Competition can play an important role in further reducing the cost of access and increasing quality of service. Together with the development of the market, there are also problems for the development, for resolving which the providers make investments. Further reducing the tariffs for Internet can bring material to the providers.

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