Azerbaijani IT sector (january-june 2014)

Analysis Materials 12 August 2014 17:07 (UTC +04:00)

The Azerbaijani information and communication technology sector (ICT) is one of the most dynamically developing sectors of the national economy due its profitability and total profitability of this business. Although the main catalyst for the growth of Azerbaijan's economy is the oil and gas sector, the ICT sector also increases its capacity every year.

Information and communication services worth $722.4 million manats were rendered for Azerbaijan's population and organizations in January-June 2014 or by 12.6 percent more than in the same period of 2013, according to a report from Azerbaijani State Statistics Committee.

Some 72.4 percent of information and communication services were rendered for the population, while 60.8 percent of the total income was received from mobile services.

Total revenues from mobile services rendered in Azerbaijan hit 438.9 million manats in January-June, which is 10 percent more than in the same period of 2013. "Baku Telephone Communication" Production Association under the Azerbaijani Ministry of Communications and High Technologies registered 15,770 new telephone lines (including 545 lines of CDMA standard) in Baku in the first half of 2014.

During this period, some 15,009 new phone numbers were connected to the fixed network. At the same time, some 12,900 telephone numbers were disconnected from the general network for various reasons in the first six months.

Currently, there are 24 CDMA-stations on the balance of the production association. The volume of using CDMA-stations was brought to 9,754 numbers (5,046 limited numbers and 4,708 - unlimited) in January-June.

Currently, the automatic telephone exchange total capacity in the operator's network is 820,080 numbers.


According to the Azerbaijani Ministry of Communications and High Technologies, 73 of every 100 people in Azerbaijan are Internet users, 55 - broadband Internet users. Some 62 of 100 people in Azerbaijan are computer users. The total capacity of international Internet channels reached 250 gigabits per second due to the people's growing needs of the Internet and as a result of technical operations.

Currently, 10-12 digital television channels are freely broadcast at 97.5 percent of the country's territory. Some 110 mobile numbers fall to every 100 people in the country.


As of January-June 2014, the volume of e-commerce market in Azerbaijan stood at 1.3 million manat, according to the Azerbaijani State Statistics Committee.

The total volume of retail e-commerce in Azerbaijan rose by 15.8 percent compared to the same period of 2013. E-commerce market participants are legal and physical entities who are buyers of goods and services and engaged in e-commerce.

Some 78.7 percent of goods purchased in electronic form by the population of Azerbaijan during reporting period, was bought by legal entities and 21.3 percent - by physical entities. Non-food products accounted for 90.6 percent of e-commerce market turnover.