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Over $370m to be allotted for broadband internet development in Azerbaijan

25 December 2012 15:17 (UTC+04:00)
Over $370m to be allotted for broadband internet development in Azerbaijan

Some 291 million manat will be directed to expansion of broadband infrastructure in the regions of Azerbaijan in 2013, the director general of Aztelekom production association of Azerbaijani Communications and Information Technologies Ministry, Magomed Mammadov, said in an interview, published on the website of the ruling Yeni (New) Azerbaijan Party, Trend news agency reported.

Mammadov said the project of Aztelekom has been submitted to the ministry. These funds are provided to expand the coverage of broadband access (BBA) and its deployment on the basis of multimedia services.

"The project provides for a phased transfer of the operator's regional telecommunications center to the Next Generation Network (NGN), alternate routing of optical telecommunication lines and construction of high-speed IP- lines based on MPLS technology over DWDM network. Necessary conditions will also be created for transfer of private providers' traffic, " Mammadov said.

Aztelekom director general said the possibility of using GPON technology is considered in order to bring the optical telecommunication lines to the end users in major cities, while the possibility of using CDMA 1x EV-DO and WiMAX standards is considered to provide broadband services to people living in remote regions.

To date, automatic telephone systems of regional telecommunication centers have been replaced by electronic systems. The length of the fiber optic lines laid by the production association since the beginning of year to connect automatic telephone systems, reached 2,000 kilometers. Creation of broadband infrastructure drew the interest of private providers, encouraging them to expand their business in regions. 19 operators are currently providing internet services outside of the capital.

At the same time, seven providers are involved in the project on development of broadband services, initiated by Aztelekom. Due to efforts of these providers optical communication lines with a total length of 500 kilometers were laid in rural areas.

Mammadov said expansion of optical infrastructure lead to increase in the number of broadband connections in regions. The number of broadband connections in the Aztelekom network has doubled since the beginning of year, reaching 110,000, while the monthly volume of broadband services has increased by 75 percent compared to the beginning of the year.

At present, the share of earnings from broadband services in the total profit of the operator reaches 20 percent. In 2011, this figure amounted to 8.7 percent.

The official exchange rate on December 25 is 0.7848 AZN/USD.

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