Azerbaijani IT sector (January-May 2015)

Analysis Materials 23 July 2015 16:13 (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 653.2 million manat were rendered for Azerbaijan's population and organizations in January-May 2015 or 10.6 percent more than in the same period of 2014, the Azerbaijani State Statistics Committee's report says.

Around 72.3 percent of the total volume of information and communication services accounted for the services rendered to the population.

Some 53.4 percent of a total volume of obtained income accounted for mobile services.

A total volume of revenues obtained from mobile services in Azerbaijan hit 348.8 million manat in January-May, which is 2.7 percent less than in the same period of 2014.


The total number of electronic digital signatures (e-signatures) issued by the Azerbaijani National Certification Services Center in May 2015 increased by 8.8 percent compared to April 2015 and hit 34,478, the Information Computer Center under the Azerbaijani Communication and High Technology Ministry said.

The state bodies were provided with 20,845 e-signatures, 6,099 e-signatures were issued to the legal entities and 7,534 to citizens.

Some 333 services of the total number of approved electronic services (454) are available on the "electronic government" (e-gov.az) portal.

The total number of e-services placed on the websites of Azerbaijani state organizations is 481.


E-commerce market volume amounted to 4.9 million manat in Azerbaijan as of January-May 2015.

The total volume of retail e-commerce in Azerbaijan increased by 1.9 times compared to the same period of 2014.

Some 92.8 percent of goods purchased in electronic form by the population of Azerbaijan in January-May 2015 accounted for legal entities and 7.2 percent - physical entities. Non-food items accounted for 96.5 percent of e-commerce market turnover.

A total retail sales volume amounted to 9.5 billion manat in Azerbaijan in January-May. The sales of consumer goods increased by 9.7 percent in the country during this period compared to the same period of 2014. At the same time 50.1 percent accounted for food. The share of non-food items increased by 1.2 percentage points compared to the same period of last year.


The number of broadband connections in the network of the Baku Telephone Communications Production Association under the Ministry of Communications and High Technologies of Azerbaijan has increased by 62.5 percent since the beginning of the year.

Currently, the number of broadband connections in telecommunications nodes of the production association exceeds 650,000 taking into account the subscriber base of private providers.

Every month the number of Internet connections increased by 5,000-6,000. The decline is mainly observed in the summer.

The production association has recently completed the technical renovation of the platform of the state Internet provider BakinterNet.

Renovating of BakinterNet's platform allows the state provider to fully pass to the IPv6 new protocol, if necessary in the short term.

The transition from IPv4 to IPv6 helps eliminate the problems with the lack of IP-addresses. The providers of Internet services face these problems today. The new Internet protocol IPv6 has a tremendous volume of IP-addresses. It allows addressing many more units than IPv4.