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Azerbaijani IT sector (january-june 2015)

Analysis Materials 13 August 2015 15:59 (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 771.8 million manat were rendered for Azerbaijan's population and organizations in January-June 2015 or 10.7 percent more than in the same period of 2014, the Azerbaijani State Statistics Committee's report says.

Around 72.5 percent of the total volume of information and communication services accounted for the services rendered to the population.

Some 55.1 percent of a total volume of obtained income accounted for mobile services.

A total volume of revenues obtained from mobile services in Azerbaijan hit 425.4 million manat in January-June, which is 3.1 percent less than in the same period of 2014.

The enterprises and structural subdivisions of the ministry invested 48 million manat in the ICT sector of Azerbaijan as of six months.

The volume of investments in the ICT sector of Azerbaijan amounted to 158.3 million manat in January-June 2015.

The investments, made in the ICT sector of Azerbaijan, have hit 2 percent of investments in the country's economy since early 2015 and 2.5 times more than in the same period of 2014.

Some 24 new automatic telephone exchanges were put into operation through these investments. Three automatic telephone exchanges were reconstructed. Some 29 automatic telephone exchanges were modernized.

As a result, the numbering capacity of the automatic telephone exchange network throughout the country increased by more than 10,900 numbers and exceeded 1.85 million units, while the number of the main telephone sets - 1.49 million.

A 162.9 kilometer-cable line was laid through the investments. The number of ADSL ports increased by more than 96,300 and hit 708,500 units as of July 1.

The volume of income received in the ICT sector and postal services of Azerbaijan, amounted to 809.6 million manat in January-June 2015, which is 12 percent more than in the same period of 2014.

The share of the ICT sector in Azerbaijan's GDP for the period amounted to two percent, while three percent in non-oil GDP. Some 80 percent of revenues received in the ICT sector accounted for the private sector. Some 61.7 percent of income received in the country's telecommunication sector accounted for mobile operators.

e-commerce

E-commerce market volume amounted to 6 million manat in Azerbaijan as of January-June 2015, the Azerbaijani Statistics Committee said.

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

Some 93 percent of goods purchased in electronic form by the population of Azerbaijan in January-June 2015 accounted for legal entities and 7 percent - physical entities.

Non-food items accounted for 96.5 percent of e-commerce market turnover.

The total retail trade volume amounted to 12 billion manat in Azerbaijan in January-June 2015. The sales of consumer goods in the country increased by 13.4 percent compared to January-June 2014.

About 49.5 percent fell to food. The share of non-food items increased by 1.3 percentage points compared to January-June 2014.

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