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Azerbaijani IT sector (January-February 2017)

Analysis Materials 12 April 2017 17:12 (UTC +04:00)

Information and communication services worth 257.6 million manat were rendered for Azerbaijan's population and organizations in January-February 2017, which is by 2.4 percent less than in January-February 2016. Some 80.4 percent of income received through the communication sector accounted for the non-state enterprises during the reporting period.

Around 71.2 percent of the total volume of information and communication services accounted for the services rendered to the population. Some 48.7 percent of a total volume of obtained income accounted for mobile services.

Around 125.5 million manat were obtained from the mobile communication services in Azerbaijan in January-February 2017.

The revenues increased by 2.7 percent in the mobile communication sector in January-February 2017 compared to January-February 2016.

Mobile communication market

Over 56,800 mobile devices were registered in the IMEI-code system in February 2017, which is by 26.8 percent more than in February 2016. Over 44,800 mobile devices were registered in the IMEI-code system in February 2016.

Over 121,000 mobile devices were registered in the IMEI-code system in January-February 2017, which is by 30.1 percent more than in January-February 2016.

The total number of IMEI-codes registered via e-government portal has exceeded 1.45 million after the system was launched.

Internet

According to Azerbaijani primary provider Delta Telecom, the volume of incoming Internet traffic in Delta Telecom’s network decreased by 5.2 percent and reached 180 gigabits in early March compared to early February.

The dynamics of the network load varies depending on the time of day and the maximum load is observed in the evening (22:00 - 00:00) - 180 gigabits. In the morning this index reduces up to 20 gigabits.

According to Delta Telecom, volume of outgoing traffic depending on the time of day ranges from 5 gigabits to 30 gigabits.

Delta Telecom’s traffic is divided among 25 telecommunications operators (state and private Internet service providers, mobile operators and others).

As of March 1, the largest volume of Internet traffic delivered to the end users accounted for BakinterNet with a 24.2 percent share. Aztelekom state Internet service provider ranked second with a 19.6 percent share, while AG Telecom with an 8.8 percent share ranked third.

The remaining 47.4 percent are distributed among such companies as AZUninet, Azintex, BakinterNet, QlobalNet, Ultel, AlfaNet, AzNet, Caspel, MegaTelecom, Avirtel, Castel, Nakhchivan, Azercell, AzStarNet, Connect, Information and Computing Center (ICC) of the Ministry of Communications and High Technologies of Azerbaijan, Azerin, DATAPlus, Smart Systems, Azeronline, Bakcell, Eurocel and TransEuroCom.

e-signature

The Azerbaijani National Certification Services Center issued 1,514 e-signatures in January-February 2017. According to the center, the number of e-signature users increased by 1.5 percent.

Some 1,060 e-signatures of the total number of issued e-signatures accounted for the state organizations, 360 e-signatures were issued to the legal entities and 94 to physical entities.

In general, as of March 1, 2017, some 101,730 people have used e-signature since the beginning of e-signature issuance. Some 67,042 e-signatures were issued to state organizations, 17,384 e-signatures - legal entities and 17,304 - physical entities.

The number of authentications and transactions carried out by using e-signatures exceeded 1.5 million times in January-February 2017. Over 67 percent of the transactions carried out by using e-signatures were implemented by the state agencies. The number of authentications and transactions carried out by using e-signatures has exceeded 19.4 million times since the beginning of e-signature issuance. In particular, some 81.6 percent of the transactions carried out by using e-signatures were implemented by the state agencies, while 18.4 percent by physical entities and legal entities.

Social networks

According to the Global Stats statistics center, the activity of Facebook users decreased by 5.1 percent in Azerbaijan in February 2017 compared to January 2017. As of March 1, 2017, Facebook's share in the Azerbaijani social media market amounted to 83.5 percent, which is by 8.8 percent less than in the same period of 2016. By popularity Facebook ranks first in the Azerbaijani social media market. By popularity Pinterest social network ranks second. Pinterest users’ activity increased by 77.3 percent in February 2017 compared to January 2017. Twitter with a market share of 4.76 percent ranks third. Twitter users’ activity increased by 27.9 percent in February 2017. V Kontakte social network with a market share of 1.53 percent ranks fourth, followed by Instagram – 1.4 percent, Tumblr – 1.29 percent, Linkedin – 0.9 percent and others.

e-commerce

The volume of electronic commerce (e-commerce) market in Azerbaijan amounted to 6.5 million manat in January-February 2017, said the country’s State Statistics Committee.

Total volume of retail electronic commerce increased twofold in Azerbaijan in January-February 2017 as compared to January-February 2016. The total turnover of retail trade in Azerbaijan amounted to 4.9 billion manat in January-February 2017, which is by 1.4 percent more than in January-February 2016. In January-February 2017, 99.9 percent of consumer goods were sold by non-state business entities, while 11.6 percent - by enterprises which have legal entity statuses.

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