TELECOMMUNICATIONS

The telecommunications sector in Azerbaijan is very dynamic sector.

In January to June 2006 the communications enterprises provided population and economic subjects with services worth 250.1m AZN, or 27.1% more than 2005. Of them 29.3% was rendered to public enterprises, 70.7% - private companies, which rose 21.4% and 29.6% respectively. A total of 75% of all services was delivered to people.

During January-June 2006, the Ministry of Communication and IT of Azerbaijan put in use 112,286 phone numbers. From this quantity 78,396 numbers fell for PA Baki Telefon Rabitasi, and the rest 33,890 for PA Aztelekom.

Over the first 6 months of 2006 the Ministry of Communications and Information Technologies invested 13.25mln AZN in the telecommunications sphere. The funds were directed the reconstruction of communications facilities, construction of new telephone lines in outskirts of Baku and region of Azerbaijan. Significant rise was observed in regions: the telecommunications services in the Absheron region rose 9.7%, Guba Khachmaz 14.1%, Shirvan 11.6%, Shaki Zakatala 34.5%, Ganja-Gazakh 20.0%, Nakhchivan - 19.6%, Lankaran 16.5%, Aran 21.5%.

In this period Aztelekom invested 4.96m manats in the development of the communications sector, Baki Telefon Rabitasi 5.22 AZN manats, Teleradio 1.48 manats, Azerpocht 431,100 manats.

In the first half year of 2006 incomes of the Ministry of Communications and Information Technologies made up 92.5m manats. According to the Ministry, incomes from community payments made up 28.3m manats. The figure exceeded the last year figure 22.7m manats and 3.4m manats respectively.

Major indices of communications enterprises activities

Incomes from mobile communications comprise 64.1% of entire incomes, obtained in the communications sector. The amount of services rose 29.5% and attained 160.4m manats. According to Veliyev, the head of the State Statistics Committee, stationary telephone comprise 58 per 100 families, while mobile telephones constitute 31 mobile telephones fell on 100 people, which is highest figure in CIS.

The first cellular communications provider in Azerbaijan Bakcell, which was founded in 1994, succeeded to double its subscriber network. According to Bakcell, by July the clientele base of Bakcell exceeded 700,000 subscribers. Bakcell plans further expand the clientele base and with this respect carries out measures for improvement of the network, which is behind Azercell for quality parameters. A year ago Bakcell has 350,000 subscribers and the company planed to double its clientele base. At present hey are keen to double the number of clients.

Over the past month the total number of clients of mobile companies did not change (1.8 million subscribers), which can mean the outflow of clients from Azercell to Bakcell due to flexible tariff policy of the latter. The aspiration of subscribers to reduce the expenses for mobile communications open development opportunities for the third operator of the cellular communications (Azerphone JV) and CDMA operator system.

An operator of the mobile communications of Azercell TeleСЃom installed additional 35 new stations in the country. 15 of them have been installed in Baku, 4 in Absheron, 3 in Bilasuvar, 2 in Guba, rest 12 in Masally, Astara, Hajigabul, Kurdamir, Siyazan, Sheki, Gakh, Ali Bayramly, Guba, Balakan, Shamkir and Zardab Districts. Azercell increases the number of stations to delivery high quality services to its subscribers.

In January to June the company installed 97 new stations in the country, with the majority in the regions. By the end of 2006 the operator plans to install 250 stations in the country.