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IT sector of Azerbaijan (January-July 2010)

Analysis Materials 7 September 2010 12:06 (UTC +04:00)

The amount of information and communication services rendered to business entities in Azerbaijan in January-July amounted to 619.4 million manat, or 31.3 percent more than the same period of last year. About 74.1 percent fell on share of paid services provided to population.

According to the Ministry of Communications and Information Technologies, the amount of income received by the information and communication technologies sector in Azerbaijan over the past six years have increased 4.4 times. If in 2008 the income share of ICT in the country's GDP amounted to 1.6 percent, in 2009 the figure was two percent. In general, the share of ICT in non-oil sector of the Republic has increased from 4.2 percent in 2008 to 4.4 percent.

Index of services rendered by telecommunication and postal divisions in July 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

June

114,2

128,2

July

110,9

131,3

About 68.3 percent of the revenue fall to mobile services, of which growth, compared to the same period of last year, hits 17.5 percent, totaling 423.2 manat.

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

As a result of six months, Azerbaijani mobile communication operators' subscriber base increased by 9.3 percent, amounting 8.5 million 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).   

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.

For number of Internet users, Azerbaijan outstrips Armenia, Georgia, Kyrgyzstan, Tajikistan and Turkmenistan. According to Internet World Stats's (IWS) new report, number of Internet users in Azerbaijan reaches 3.69 million. According to IWS, Internet penetration rate in the republic is 44.4 percent. In the Internet World Stats's previous report (in 2009), the number of Internet users in Azerbaijan was indicated at 1.48 million people.

Azerbaijan ranked 59 on the speed of outgoing Internet traffic in Ookla company's Net Index rating. This company created Speedtest service. The results were received on the basis of experimental studies from June 15-July 14. About 59,160 unique IP-addresses were chosen for the tests. According to the rating Net Index, the average speed of outgoing traffic in Azerbaijan is 1.12 Mbps. Azerbaijan is ahead of Singapore (60), UAE (62), Great Britain (70), Italy (76), Spain (87), Israel (99), etc. on outgoing traffic. The first three countries include South Korea (19.32 Mb / s), Lithuania (13.11 Mbps) and Latvia (12,44 Mb / s) on the speed of outgoing traffic. Azerbaijan ranks 81 with traffic speed of 2.82 Mbps, leaving behind Armenia (86) - 2,55 Mb / s, Malaysia (101) - 2,12 Mbps, Mexico (103) - 2.06 Mb / s, Uzbekistan (124) - 1.51 Mb / s, Iran (153) - 0.61 Mb / s, etc. The first three countries include South Korea (32.47 Mb / s), Latvia (23.78 Mbps) and the Aland Islands (22.01 Mbps).

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