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Broadband Internet development project kicks off

24 June 2014 14:10 (UTC+04:00)
Broadband Internet development project kicks off

By Nigar Orujova

A pilot project for the development of broadband Internet infrastructure in the regions has launched in Azerbaijan, a source in the telecommunications market of Azerbaijan told Trend on June 20.

Aztelekom Production Association under Communications and High Technologies Ministry has started the works according to the decision of the ministry as part of the project "Development of the national broadband internet".

The project is implemented in the regions with the greatest demand for broadband services.

A preliminary study of the project has been conducted in accordance with the proposals of manufacturing companies, using new technologies and in areas where there are currently a potential need.

The project is planned to be completed until this autumn, and then the project for national broadband Internet development will start and will be implemented over three years with the support of the State Oil Fund.

The Fund is going to allocate about 103 million manats (about $131 million) to the implementation of the project in the first stage.

The cost of the 'Fiber to the home' project is estimated at more than 450 million manats ($573 million). The project is considered highly profitable. Around 30-35 percent of its total cost will be financed through reinvestments beginning at the second year of its implementation.

The ultimate goal of the project is to provide the whole country, including remote rural settlements, with high-speed Internet in the range of 30-100 Mbit/s, and bring the number of broadband Internet users up to 85 percent from the current 70 percent.

This will allow Azerbaijan to reach the level of developed countries by 2017.

At present, the penetration rate of broadband Internet among the population is 50 percent.

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