IT sector of Azerbaijan (January-June 2012)

Analysis Materials 8 August 2012 11:06

Azerbaijani IT market has been experiencing dynamic growth since early 2012. According to the Azerbaijani State Statistics Committee, the volume of information and communication services rendered to the organizations and people in Azerbaijan in January-June totaled 643.5 million manat.

The rate of growth of this sector over the past period in comparable prices amounted to 17.9 percent. About 72.3 percent of the total volume fell to the share of services rendered to the population.

About 65.4 percent of the income received from the communication services fell to the share of mobile telephony. The volume of income received by the mobile sector increased by 15.9 percent and hit 395.8 million manat compared to 2011. Today, three GSM-operators: Bakcell, Azercell, Azerfon operate in Azerbaijan.

There are no changes in the number of mobile phone users for the beginning of the year. Every 100 people account for 110 phone.

Revenues in information and communication technologies in the information and the postal sector amounted to 673.74 million manat, which is 19 per cent more compared to the same period last year. In particular, ICT increased by 19.2 per cent (in the telecommunications sector - 20.5 per cent), in the postal sector - 9.3 per cent and in the information sector - 21.9 per cent.

The share of the sector in GDP amounted to 1.74 percent in non-oil GDP - 3.7 per cent.

Associations and enterprises under the Ministry of Communications and Information Technology had revenues of 180 million manat, increasing by 14.3 per cent compared to the same period.

These structures paid 20.2 million manat to the state budget in the first half of the year.

Some 72.9 million manat was invested during the reporting period whilst bringing the communication system of the country to international standards and the introduction of modern technologies which is 18.7 per cent more compared to the first half of last year. In total 178.3 million manat, which amounts to four per cent of the total investment in the country was invested in the sector during the first half of the year.

Azerbaijan expands the coverage of broadband internet services. According to the Ministry of Communications, the level of Internet penetration in the capital reached 89.5 percent, this figure exceeds 60 percent in the regions,. This figure for the whole country is 65 percent, of which 30 per cent accounts for the category of broadband Internet access. According to statistical estimates of the Ministry of Communications and Information Technologies of Azerbaijan, in the metropolitan area every 100 people accounts for 78 PCs, and every 100 people accounts for 48 PC's in the regions.