IT sector of Azerbaijan (January 2011)

Today the ICT sector in Azerbaijan is the fastest growing sector of the national economy. Thus, the amount of information and communication services rendered to business entities in Azerbaijan in January 2011 totaled 77.3 million manat, or 15 percent more than the same period of last year. About 52.4 percent fell on share of mobile communication.

In January, the total revenues of the ICT, information and postal sector in Azerbaijan totaled 92.9 million manat compared to 76.6 million manat in January 2010. The amount of services in the IT-sector in January grew 2.5 times to 13.2 million manat. Revenue growth in the sector of postal services and information totaled 12.5 percent (1.7 million manat), and 80.6 percent (0.7 million manat) respectively.

The amount of information and communication services provided to organizations and population in Azerbaijan in January amounted to 85.6 million manat, which is 19.4 percent more than the same period of the last year. Of the total amount, 74.6 percent accounted for services rendered to population.

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

About 70.4 percent of the revenues accounted for mobile services, of which growth, compared to the same period of last year, hits 17.2 percent, totaling 52.4 million manat. The subscriber base of mobile operators in Azerbaijan during the last year increased by 1.2 million people.

This is due to the tense activities of the mobile operators in the country that constantly raise the quality of their services. Thus, the number of active subscribers of Bakcell mobile communication company in Azerbaijan reached 2.5 million. The company's network operates 2,000 base stations, allowing to cover 98.7 percent of the Republic's territory, including remote regions. The network of Bakcell covers more than 95 percent of the population and 82 percent of the country's territory. In general, due to investments, the capacity of the network infrastructure of Bakcell was increased four times.

Azercell Company has been operating in the mobile services market since 1995, today the number of company's subscribers has reached 4.2 million people, of whom 300,000 joined the network of operator last year. At present Azercell's network covers 80 percent of the territory and 99.8 percent of the population of Azerbaijan.

Amount of income of the Internet market in Azerbaijan in January grew 1.6 times and amounted to 4.89 million manat. Growth was also recorded in the production of IT-products, which, according to indicators of the SSC, grew by 2.5 times in the first month of this year. This figure rose by 7.9 million manat compared with the same period last year, and reached 13.2 million manat.

The greatest growth in the production sector of IT-products in the first month of the year was recorded in the production of computers, peripherals, devices receiving record sound and images, and optical media. The decline was recorded in the field of wholesale of software, computers and peripheral equipment.