Tue 01 December 2009 | 10:11 GMT Text size:

Ali Abbasov

News.Az interviews the Minister of Communications and Information Technologies of Azerbaijan Ali Abbasov.

How do you assess the level of Information – Communication Technologies (ICT) sector development in Azerbaijan?

The strategic line of the ICT sector development in Azerbaijan has been specified in the adopted National Strategy and state programs. This strategic line comprises the compliance of the legislation on the sector with the EU legislature and the requirements of the World Trade Organization, liberalization of the telecommunication basis and establishment of mechanisms of effective regulation, development of telecommunication infrastructure and introduction of e-government and e-services in our society.

New operators of fix and mobile communication, ICT manufacturers and broadcasting companies entered the sector and healthy competitive environment needed for development formed in our country thanks to the policy conducted in the past five years. Thus, the state share in five telecommunication companies was privatized, licenses were issued to about 40 operators for arrangement of international communication and provision of other telecommunication and postal services, licenses needed for provision of a number of services, including internet services, were cancelled, fair distribution of restricted numbers and frequency reserves was ensured. In the result of the project “Institutional reconstruction of the Ministry of Information and Communication Technologies” implemented under support of the US Trade and Development Agency the regulation department was set in 2005 that ensured regulation of chaotic contacts between the operators by means of the most advanced practice and we started to license the software used in the state bodies to protect authors’ rights.

In the result of this, in the past five years the average yearly revenues in the ICT sector grew 30-35%, while the share of the private sector in revenues rose from 67.3 to 80.3%, consumer tariffs, especially on international communication and internet services, dropped from 5 and 45 times, while the penetration of fix communication, mobile and internet users increased 2.6 and 9 times respectively.

This continues to promote the formation of information society in Azerbaijan which helps ordinary citizens and the whole people to enjoy advantages of an information society. Today the possibilities of the ICT sector are successfully applied in the systems of education, students’ admission, public health, insurance and pensions, taxes, customs, justice, elections and protection of public order.

Among these possibilities is the creation of conditions for citizens’ applications on the presidential website, formation of the state register of population, provision of e-services to taxpayers, registration of entrepreneurs, control of customs, application of one-window system for expanding the automated systems of migration services, creation of e-health cards services, information system for regulating education, submission of admission applications to high schools via internet, establishment of the system of live watching of election process via web cameras installed at polling stations.

The development dynamics of the ICT sector can also be seen from the assessments given by different international organizations. Thus, Azerbaijan preserved leading position among the CIS countries in the Global Information Technologies report of the World Economic Forum in Davos and raised 13 positions taking 60th place among 134 countries as compared to 2005. Moreover, Azerbaijan was among top ten countries for ICT development dynamics in the reports of the International Telecommunication Union in 2002-2007. Azerbaijan ranked 89th among 182 in UN E-government Survey 2008 report for its e-government readiness index. To compare, in 2005 rating Azerbaijan was on the 101th place among 191 countries.

Is it possible to make the information and communication technologies sector as profitable as the oil sector?

The information and communication technologies have a great impact on the effective and innovative development of all spheres of global economy and play an irreplaceable infrastructural role. ICT has become an important condition of the development of all spheres of global economy and on the other hand it is also an indicator of development of these spheres. Practice shows that information technologies play a special role in the development of the nonoil sector.
Along with being a catalyzer of the industrialization of the present-day world and socioeconomic growth, ICT is a sphere that is most developed in Azerbaijan after oil industry.

In general, a number of reforms including the privatization of mobile and fix communication operators, market liberalization, creation of favorable competition and mechanisms of effective regulation in order to ensure the steady development. In the result of these measures, the revenues from the ICT sector continue to grow dynamically.
At the same time, much is to be done for the development of this sector. In this regard, the development and launching of the first telecommunication satellite of our country, creation of regional innovation zone of Azerbaijan will promote steady development of the ICT sector in the country and raise the profits from this sector.

What can you say about the implementation of the projects of creation of the regional innovation zone and development of space technologies?

The creation of special innovation zones on production of information and communication technologies and electronic facilities is considered an important component for ensuring steady development of the ICT sector in our country, creation of alternative sources of profits, raising attractiveness of local markets for foreign investments as well as the steady development of nonoil sector.

The experience of most developed and developing countries shows that the establishment of special innovation zones aimed only at propagating the production do not always give the expected results. In this respect, under the due decree of the president of Azerbaijan,  the project of the Regional Innovation Zone developed in cooperation with Booz Allen Hamilton, US leading consulting company, envisions creation of techno parks to encourage innovative entrepreneurs, regional markets for production and export of electronic facilities and software, transit information area between East and West to offer wide range of e-services to the regional countries, as well as a university to develop human resources.
The implementation of the project will raise the role of ICT in country’s economy, attract foreign and local companies as well as potential investors to the ICT market of the country, create new jobs on production and export of e-facilities in the country and, most important, turn Azerbaijan into an ICT sector by raising its export potential.

Presidential order 101 on application of the law of the Republic of Azerbaijan “On special economic zones” dated 3 June 2009 created a legal basis for the establishment of special economic zones and was a great stimulus for acceleration of works carries in this direction. In this connection, the government was applied for consideration of possible implementation of the regional innovation zones project during application of special economic zones on priority directions in our country. 

The launching of Azerbaijan’s geostationary telecommunication satellites is important for the higher quality and wider arrangement of satellite communication services in our country. Definite works have already been held in this direction. Thus, the purchase of orbital position was coordinated, the feasibility study of the project of launching the first telecommunication satellites was prepared and tender on the production of the satellite was held and the winner company was declared. Currently, we discuss the final version of the draft contract on production of a satellite with the producing company and plan to launch the first telecommunication satellite on the orbit already in 2011.

Is internet as popular in Azerbaijan as in western countries?

Purposeful actions were held for acceleration of application of information technologies in our country in the past few years at the stage of Azerbaijan’s integration with the global information community, especially in the direction of developing internet services in the region.

Thus, establishment of AzDataKom networks with the transmission speed of 10 Gb/sec in Azerbaijan in the past years has raised the potential of the internal telecommunication capacity dramatically. At the same time, due to the growth in demand for wideband network services that made it important to expand of the intercity and international telephone traffic and raise the capacity of the channels of application of IP-protocol services, the speed of connecting to the international internet network in the country was increased 6 times as compared to 2003 up to 10 Gb/sec.

Much has also been done in the past years to reduce the internet tariffs in our country and raise the number of internet users. Thus, the tariffs on connecting to digital channels and their monthly fees in the country were reduced 90%, use of intercity physical channels – 20%.

Under decision of the Tariff Council of the Republic of Azerbaijan taken at its gathering on 30 December 2008, the cost of connecting to city digital channels were cut 59%, monthly fees were reduced by 6.3% and the costs of connecting to the digital communication channels arranged inside country as well as the tariffs for the use of 2 Mb/sec at a full or incomplete distance of 50 km dropped 16.7%. This decision promoted the decline in the net cost of internet services and in the result this created conditions for internet providers to reduce tariffs for internet services.

In the result of the purposeful measures taken in our country in the past few years, we observe a dynamic growth in the number of internet users. In 2004-2008 the internet market grew 4.4 times, its annual growth rate was 45%. In the result of the speedy development of wideband connections, the number of internet users grew twofold raising the number of internet users for 100 people to 37. It should be noted that the average indicator for 2008 was 23.
 
Was the state program of electronic Azerbaijan implemented in 2005-2008 successful?

As is known, the recent achievements in the ICT sector were laid in the National Strategy (2003-2012) on information and communication technologies for the development of the Azerbaijani Republic signed by our national leader Heydar Aliyev on 17 February 2003. To ensure fulfillment of tasks specified in the National Strategy, the state program for 2005-2008 for development of communication and information technologies in Azerbaijan adopted by our President Ilham Aliyev by decree of 21 October 2005 completed successfully last year. In the result of comprehensive measures fixed in the state program the legislative basis on the sphere has been improved, the existing ICT infrastructure reconstructed and expanded on the basis of digital technologies, investments to the sphere been raised, new jobs created and the quality of services and level of the use by the population increased with introduction of ICT by the state bodies. The works carried for improved state regulation in the sphere of communication and information technologies created favorable conditions for formation of free competition on the ICT market and development of private sector.

It should be noted that the country’s telecommunication network was modernized and 80% of regional centers were linked with fiber optic communication thanks to the works held for creation of the modern ICT infrastructure with application of modern technologies. The most important result was that all residential houses were provided with telephones in 2008. To this end, we applied different technologies and ensured telephone communication even to the most remote areas by means of wireless and satellite technologies.

Azerbaijan was first among the CIS countries to apply the new generation technologies. The whole infrastructure of the Shamakhy region was reinstalled on the basis of digital technologies within the framework of the state program. Currently the reconstruction of the Sumgayit and Ganja telephone networks on the basis of the NGN technologies as well as electronization in Baku are nearing completion. The telephone communication network of Nakhchivan has also been electronized and measures to apply NGN technologies are carried there. The information transmission network – AzDataKom- was created in Baku within the framework of a project implemented in cooperation with UNDP and currently this network is expended to regions. This promoted the rise in the quality and the improvement of the structure of telecommunication services.

The development of ICT infrastructure and wider application of new technologies greatly influenced the spread of internet in the country. In the result of the works carried in the past four years, the number of internet users in the country has grown, the internet tariffs reduced and the speed of connection to the global internet network reached 10 Gb/sec. Moreover, the number of wideband internet users in the country continues to grow and most of these users use telephone and television communication from the same channel along with high speed internet.
Definite works were also carried in the information of the state bodies. It can be said that websites were created and located in gov.az domain and the creation of a single multiservice network started to be created for ensuring the reliable and safe exchange of information between the state bodies.

The wider application of ICT in the activity of state bodies promoted the improvement of services they provide to the population and business sector. As an example, we can list provision of e-services to taxpayers, submission of e-applications for test examinations at different stages of higher education and online presentation of debts for communal services. Today the information system created in customs, taxes, banks, health, justice, education and social insurance covers the activity of different state bodies.

These measures laid a reliable foundation for the execution of the next stage in the National Strategy.

Which moments in the new development program of ICT for 2009-2012 will be a priority?

Before answering your question, I would like to note that state program has been prepared for the phased execution and is a continuation of the State Program of “Electronic Azerbaijan” for 2009-2012.

The priority tasks set in the state program include passage to an information society in the country, establishment of economy based on information and knowledge by means of the ICT development and their wide application, raising effectiveness of state regulation mechanisms, meeting the demand in social information and services.

This program was developed with respect to the world experience, the recommendations of the International Telecommunications Union and World Postal Union and considering the current socioeconomic state in the country and combines projects that cover wide range of spheres. The state program will be conducted in four main directions.
The modernization of the national telecommunication and postal infrastructure on the basis of new technologies, provision of access of the country’s population and organizations to the telecommunication and postal services, expansion of radio and television, including digital television broadcast, development of national segment infrastructure of internet, enhancement of country’s transit information corridor are the integral parts of the activity on the first direction. I would like to give brief information about the projects of republican concern that are planned to be implemented.

As you know, Azerbaijan was the first in the South Caucasus and Middle Asia to establish the digital TV system and already 10 TV programs are broadcast in Baku as a test. Under the new state program, the digital television broadcast will be arranged in all regions of the country.

The existing infrastructure of national operator, Azerpocht, has been reconstructed within the framework of the project of financial services development implemented under support of the World Bank for the purpose of creating conditions for the use of postal services complying with world international standards. After completion of works implied by the project, the post offices will start provision of financial and banking services.

The recently adopted state program on creation of space industry in Azerbaijan envisions launching the national telecommunication satellite onto the orbit. Launching of Azerbaijan’s satellite will meet the growing communication and TV-radio demand and create conditions for the infrastructure that cover the area of the country. At the same time, our country may also become a reliable information transit center between East and West,

The project of Transnational Eurasian super information line covers Eastern Europe, CIS, Turkey, Iran, Central Asian countries, including Afghanistan and Pakistan and envisions creation of the transnational information line in this region. This project may also promote the economic development in the countries it covers and the overall region. The Baku Declaration on the transnational Eurasian super information line was adopted at the meeting of the ICT ministers held within the framework of the BakuTel conference held last year.

The state program also envisions projects on improvement of state regulation in the sphere of communication and information technologies, creation of favorable condition and projects connected with privatization and regulation.
The implementation of the program of actions on formation of e-government will optimize activity of the state bodies.
Moreover, the new program envisions development of information systems and resources of the state bodies, wide application of e-signature and e-document turnover as well as application of e-government solutions for raising the quality of services provided by the state bodies to the population and business sector and provision of e-services on the basis of “one-window” principle.

The formation of information economy, prevention of “digital differences”, expanded use of ICT, including internet by all categories of population, including the poor and measures aimed at improving human resources on modern specialties in ICT sphere will create conditions to move to information society.

Along with the aforementioned, we will also work to create favorable and transparent conditions for establishment of techno parks on high technologies within the framework of the state program, development of small and middle informative enterprises, encouragement of production and export of electronic facilities and software and attraction of investments to this sphere.

Jamil Bayramov
News.Az