Broadband in Azerbaijan

BROADBAND IN AZERBAIJAN By 2020 Azerbaijan's ICT sector should become one of the main contributors to ACCELERATING GROWTH OF HIGH-SPEED INTERNET SERVICES non-oil GDP and facilitate the country's transition into a knowledge economy. г Current share of ICT sector 4,75% in non-oil GDP in 2012. SERVICES BROADBAND COMMUNICATIONS ONLINE ENWLEME TLUGOMMENIATOS BROADBAND. SERVICES. COMMUNICATIONS WIFI BROADBAND= ICT SECTOR GROWTH IN 2005-2012- WEB WI WEB KNOWLEDGE... TELEPRONY Telecommunications liberalisation, modernization FTELEPHONY INFRASTRUCTURE DEVELOPMENT KNOWLEDGE SERVICES INNOVATIONS TELEPHONY MOBILE WEB and extension of the national telecom infrastructure, WIFI INKOVATIONS implementation of e-government, and other sector-specific policies have helped stimulate the growth of local ICT in 2005-2012, at a rate of 25-30% per year. WIRE MOBILE TECHNOLOGIES 25-30% INTERNET I INTERNET INTERNET TECHNOLOGIES =WIFI INTERNET WIRE "MODENIZATIONE LIBERALISATION TELECOMMUNICATIONS- TECHNOLOGIES mu KNOWLEDGE WIFI "ONLINE SECTOR=SPECIFIC POLICIES E-GOVERNMENT ONLINE EMOBILE INTERNET ONLINE INNOVATIONS WIRE WEB ONLINE INTERNET WIRE 1/3 OF PEOPLE GAINED MOBILE BROADBAND COwMIATIONS TELECOMNUNICATIONS WIFI SERVICES NTERNET WIRELESS ACCESS DOUBLED 30% OF HOUSEHOLDS SUBSCRIBED TO WIRED BROADBAND STATE OWNED TELECOMMUNICATION Telecom sector, which is a backbone of the ICT sector, is In 2013, income of ICT services peaked at US$1,960 mln, out of which 56% dominated by two state-owned enterprises with over 56% of the market share. 88% the revenues of telecommunication services accounted for 88% of the total income. SHARE OF REVENUES PER COMMUNICATIONS SERVICE IN AZERBAIJAN IN 2005 AND 2012 2012 18% 4% 68% 2005 7% 25% 5% 67% Trunk & International telephony Fixed telephony Mobile telephony Internet access services Data services Other x13 In Azerbaijan, prices on broadband throughout 2009-2012 decreased 13 times. 73% 13.8% 62% 17% 25% The price of the cheapest average fixed broadband package with the connection speed of 1Mbps accounts for 13.82% of the average disposable monthly income. 2008 2013 2008 2013 INTERNET USERS HAVE COMPUTERS oo 13.8% The quality of broadband service is low: about 10% of all connections are over 4Mbps, with a very slow increase over the last two years. High computer prices are listed among main reasons that hinder usage of Internet across the country, followed by the high broadband service price. 38.8% 7% IMPROVING QUALITY IMPROVING LITERACY Prevalence of low speed broadband connections holds back arrival of IMPROVING REGULATIONS Development impediments are additionally influenced by low understanding of the value of broadband Internet and its Regulatory bottlenecks at the wholesale level and low fixed socioeconomic benefits associated with higher speed broadband rollout, including, but not limited to, online job creation, human skills development, attraction of FDI, etc. value-added services (e.g., online payments, consolidated billing, content delivery, and messaging. broadband infrastructure coverage outside of Baku further impede private sector deployment of the access networks. THE WORLD BANK IBRD. IDA | WORLD BANK GROUP Source: SECTOR ASSESSMENT - ACCELERATING GROWTH OF HIGH-SPEED INTERNET SERVICES IN AZERBAIJAN DOWNLOAD OR READ ONLINE AT WWw.WORLDBANK.ORG/AZERBAIJAN