The main component of modernization

An interview given by the minister of communications and information technologies Ali Abbasov about achievements attained and prospects for the development of the ICT sector in Azerbaijan was published in the Russian newspaper “Rossiyskaya gazeta” under the title “The main component of modernization.”

According to the minister, the share of ICT sector in the country’s GDP will reach 10 percent during the next 10 years. “ICT and high technologies have served for many years as the main criteria for measuring the level of development of the economy and infrastructure in Azerbaijan. Significant achievements have been made in such fields of ICT as telecommunication, TV and radio broadcasting and internet infrastructure as a result of the policy that have been successfully and consistently conducted by the state over the past years. Since the beginning of 1990, necessary legislative acts have been adopted in Azerbaijan in order to coordinate and regulate activities taking place in ICT sphere.

At the same time, all necessary conditions have been created for the implementation and expansion of mobile communication services in the country, and an internet infrastructure has been built for the first time in the Republic.

In 2003 Azerbaijan adopted the National Strategy for Development of ICT, which outlines measures and activities to be implemented in the country for switching to an information society. A number of important legislations have been adopted, and large-scale state programs, like “Electronic Azerbaijan”, have been implemented. In 2008 Azerbaijan was first among CIS countries to provide all residential areas with telephone services. 3 years later, the Republic switched to a 7-digit numbering system. Azerbaijan has taken a proper place in the international ICT development rating. To continue with this tendency, the President of the Republic of Azerbaijan Ilham Aliyev declared 2013 the year of information and communication technologies.” In his interview the minister Ali Abbasov also spoke in detail about the launch of Azerbaijan’s first national telecommunication satellite into orbit. He noted that by 2015 the Republic will launch a low-altitude optic satellite and in 2015 the second telecommunication satellite into orbit. “These satellites will help to increase the efficiency and lower the cost of communication services in the country. At the same time, they will strengthen security of information in the Republic.

The Ministry of Communications and Information Technologies, together with the Azerbaijan National Academy of Sciences, has prepared Action Plan in which activities for further development of ICT in the country were outlined. The implementation of the Action Plan will start this year with the launch of a large-scale “Fiber-to-Home” project, which will insure the expansion of the fiber-optic infrastructure, according to FTTH model. The State Oil Fund will support the realization of this US$ 500 million project. 132 million US dollars have been already allocated to this end. Next year 30-35 percent of the total value of the project will be covered by reinvestments.

The main goals of the project are to increase the density of broadband internet users up to 85 percent, to raise the speed of the Internet in the country to 10-100 Mb/s, and, ultimately, to bring by 2017 the Republic to the level of developed countries. Trans-Eurasian Super Information Highway (TASIM) and Europe-Persia Express Gateway (EPEG) are other international projects in which Azerbaijan will participle this year. Realization of these projects will allow Azerbaijan to turn into the main information centre in the Caspian region.” In his interview the minister also provided information about the Azerbaijan Service and Assessment Network (ASAN) service, which was launch in the country this year. A.Abbasov said that by 2020 all state agencies will switch to electronic services, and this will insure the full transparency of all government’s activities. As a result of these measures, citizens and business owners will no longer have to face any red-tape-related problems. Under “Azerbaijan 2020: Look into the Future” Development Concept, the volume of Gross Domestic Product is expected to double by 2020 on account of the non-oil sector, including the ICT sector. If this target is met, the volume of the ICT market will increase by 4-4.5 times and will reach 8 billion US dollars.

The state will spent 3.6 billion US dollars on realization of the project. Roughly the same amount of money is expected to be spent by the private sector and foreign investors to this end. According to international investors’ optimistic estimations, the preferential regime created for potential investors will make it possible to increase the country’s GDP 10 times by 2025, which will bring Azerbaijan to the level of developed countries.

At present, there are 20 computers for every 100 people in Azerbaijan, and the density of internet users makes 70 percent in the Republic. According to “Global information technologies – 2012” report released by the World Economic Forum, Azerbaijan is now holding the 61st place among 142 countries in the world and the 1st place among CIS countries in terms of the density of internet users.”