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It sector in Azerbaijan (January-May 2010)

Analysis Materials 9 July 2010 11:07 (UTC +04:00)

The volume of information and communication services rendered to business entities in Azerbaijan in January-May amounted to 419.1 million manat, or 25.1 percent more than the same period of last year.

About 74.1 percent of the revenue fall to mobile services, which growth, compared to the same period of last year, hits 24.9 percent.

Index of services rendered by telecommunication and postal divisions in May 2010, in percent

As compared to previous month

As compared to the 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

February

119,5

127,9

March

110,4

124,8

April

127,2

124,9

May

92,0

125,1

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

About 69.4 percent of revenue falls on mobile services. The growth hit 19.5 percent compared to the same period of last year.

As a result of the first quarter, Azerbaijani mobile communication operators' subscriber base increased by 56,000, amounting 7,813,128 subscribers.

The overwhelming part of mobile users in Azerbaijan accounts for GSM standard. Currently three GSM operators function in Azerbaijan, including Azercell Telecom (3.7mln subscribers), Bakcell (1.5mln), Azerfon (1.5mln).  

In January-May, computer, electronic and optical equipment, and electrical equipment was produced in Azerbaijan to the amount of 25.3 million manat.

During that period, computer, electronic and optical equipment was produced to the amount of 10.4 million manat, which is 54.3% less than the same period last year.

Electrical equipment was manufactured to the amount of about 14.9 million manat, which is 29.4 percent more than in January-May last year.

A new wave of development of broadband communication market is observed in the market of internet services. Internet access market has been demonstrating sustainable growth over recent years.

The number of broadband Internet access connections in Azerbaijan reached 80,000. The ministry conducted monitoring to assess the country's Internet market. Based on the results, the ministry reported that pricing in this segment corresponds to the level of tariffs for Internet services in the region. The monitoring shows the tariffs of Internet providers to connect to ADSL technology.

Presently, the cost of this technology in Azerbaijan at speeds up to 1 Mbit / c varies from 25 to 94 manat. In other regional countries (Georgia, Ukraine, Belarus, Moldova, Russia, Kazakhstan, Armenia and Kyrgyzstan), the cost varies from 20 to 200 manat.

Over the last year, Internet prices fell five times in Azerbaijan. As of April, nearly 10,000 Internet resources were registered on the national .az domain. The registration cost is 20 manat.

More than 30 Internet service providers operate in Azerbaijan.

Internet penetration in the country has reached 41 percent, taking into account dial-up, Wi-Fi, ADSL, WiMAX, CDMA and mobile phones. The country is developing wireless broadband technology WiMAX and Wi-Fi, and the volume of traffic in Azerbaijan is 10 Gbps.

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