ICT revenues to reach $9 bln by 2020
By Nigar Orujova
Azerbaijan's economy is less prone to negative global economic disruptions due to rational use of oil and gas revenues and its main task is transferring revenues from the energy sector to the development of the non-oil economy, including ICT, Communications and Information Technologies Minister Ali Abbasov said on Tuesday at a meeting with students and faculty of the Baku High Oil School.
The ICT sector of Azerbaijan is developing rapidly and 2012 revenues exceeded $1.7 billion, which is 18 percent more than in 2011, Abbasov said.
According to the minister, this rate in previous years was 25-30 percent and the main task is to maintain the figure at 20 percent. While maintaining such a pace, earnings from the sector will reach $8-9 billion by 2020.
Abbasov also touched upon the project on the development of broadband internet throughout the country, implemented with the support of the State Oil Fund.
Work on the implementation of the three-year project worth $450 million has already begun.
According to Abbasov, successful implementation of the project will increase the level of internet penetration to 85 percent from the current 70 percent.
He also noted that the increase of Internet coverage for the population will expand the number of users of electronic services.
"Today, e-services are used by seven percent of the population. By 2020, this figure will reach 100 percent," Abbasov said.
ICT revenues up
Azerbaijan's State Statistics Committee reported earlier that information and communications services worth 116.3 million manats ($148.3 million) were rendered to organizations and Azerbaijani population in January 2013 -- up 13.6 percent from the same period of 2012.
72.1 percent of the total volume of information and communications services fell to the services provided to the population.
Mobile services accounted for 59.1 percent of the total amount of revenues, which is 4.8 percent less compared to the same period of 2012.
The total amount of revenues received from mobile services in the country amounted to 68.7 million manats ($87.6 million) in January 2012.
Azerbaijan is trying to attain developed countries' level in the ICT sector and secure the leading positions in the region.
2013 was declared the year of information and communication technologies in Azerbaijan in accordance with a presidential decree.
Some 325.3 million manats ($414 million) were invested in the ICT sector in 2012, which accounted for two percent of the total investment in the country's economy.
Moreover, some 103 million manats (about $131 million) were allocated for the implementation of the broadband Internet development project in Azerbaijan in 2013.