Telecommunications

Telecommunications can be specified a dynamically developing sector of Azerbaijani economy. In 2006 the share of communications sector in a total 34.5%-rise of Gross Domestic Product (GDP) СЃС'раны РІ 2006 was 1.8%.

In 2006 the communications enterprises provided population and economic subjects with services worth 571.8mln AZN, or 24% more than 2005. Of them 72.4% was rendered to public enterprises, 24.1% - private companies. The rest 27.6% of telecommunications services were rendered to public facilities.

Incomes of the Ministry of Communications and Information Technologies made up 170.8mln manats. The figure exceeded the last year's indicator 14.2mln manats, or 9.3%. Incomes from community payments made up 62.8mln manats. The figure exceeded the last year figure by 4.5mln manats, or 7.7%.

Major indices reflecting activities of communications enterprises in Azerbaijan

2006

2005

As compared to 2005

Incomes from compunctions services, in mln manats

571,8

461,1

124,0

Including community services

428,8

345,2

124,2

Source: State Statistics Committee of Azerbaijan

In 2006, the Ministry of Communication and IT of Azerbaijan put in use 280,594 phone numbers, or 116,409 numbers more than 2005. 179,091 of all numbers fell on Production Association Baki Telefon Rabitasi (BTRIB), and the rest 101,502 вЂ" Aztelekom PA.

Considerable investments are put in this sector to improve the quality of services. In 2006 the Ministry of Communications and Information Technologies invested 41.67mln AZN in the telecommunications sphere, which is 10.16mln manats more than 2005. In this period Aztelekom invested 19.7% manats in the development of the communications sector, Baki Telefon Rabitasi вЂ" 16mln manats, Teleradio вЂ" 2.19 manats, Azerpocht вЂ" 2.17mln manats.

The funds were directed the reconstruction of communications facilities, construction of new telephone lines in outskirts of Baku and region of Azerbaijan.

The level of transfer to electron telephone networks also increased in Azerbaijan. In 2006 the figure was 76.1%, whereas in 2005 the figure was 63.5%. In this period 84.7% of all telephone networks in Baku and 66.8% in other places were transferred to electron stations.

Significant rise was observed in regions: the telecommunications services in the Absheron region rose 9.7%, Guba Khachmaz вЂ" 13.7%, Shirvan вЂ" 9.6%, Shaki вЂ" Zakatala вЂ" 25.9%, Ganja-Gazakh вЂ" 15.2%, Nakhchivan вЂ" 11.9%, Lankaran вЂ" 15.2%, Aran вЂ" 16.8%. The volume of telecommunications services rose 24.6%.

Incomes from mobile communications comprise 65.4% of entire incomes, obtained in the communications sector, or 23% more than 2005.

The number of cellular subscribers rose 1.1mln and consequently, exceeded 3.3mln. the number of mobile phone number owners is 39 per 100 people.

A leading mobile operator of Azerbaijan - Azercell Telecom вЂ" has publicized the number of its subscribers in 2006. The company has over 2.3mln subscribers.

The number of subscribers since the commencement of its activities:

Year

Azercell

SimSim, GencSim, BizdenBize

Total

1997

20 371

0

20 371

1998

54 013

1818

55 831

1999

51 079

128 561

179 640

2000

39 363

341 494

380 857

2001

40 954

478 392

519 346

2002

45 548

623 050

668 598

2003

53 873

858 264

912 137

2004

69 917

1 238 723

1 308 640

2005

84 035

1 622 123

1 706 158

2006

91 362

2 242 025

2 333 387

Azercell currently holds 76% of the market share in mobile telecommunications.

In order to provide qualitative communication in every corner of the country to its subscribers, which number has been constantly growing, Azercell increased number of its stations. During 2006 the operator has installed 328 stations in various regions of the republic. Until now Azercell has installed 2 Home Location Registers, 13 Base Stations Controller Systems, 16 Mobile Services Switching Centers and 1,078 base radio stations.

According to Bakcell, another mobile operator, said that in this period the number of its subscribers reached 800,000. Thanks to steps taken by Bakcell from October 2005 to January 2007, the users of Bakcell's cellular communications increased 2.5 times.

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