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Internet fees to fall in Azerbaijan this year

26 February 2013 18:52 (UTC+04:00)
Internet fees to fall in Azerbaijan this year

By Nigar Orujova

Internet fees are expected to go down considerably in 2013, Azerbaijan Web Community chairman Galib Gurbanov said on Monday.

This expectation is cited in the action plan on the information and communication technologies sector for 2013, which was prepared and submitted for the government's approval.

"A cut in service fees will become a notable event on the web-market," Gurbanov said. "The action plan includes an article requiring a decrease of channels' lease for internet service and communication providers, which will definitely affect internet service tariffs for end-users."

Remarkably, 2013 was declared a year of ICT in Azerbaijan, according to a decree signed by President Ilham Aliyev in January. According to the presidential decree, the Communication and Information Technologies Ministry jointly with the Azerbaijan National Academy of Sciences were empowered to prepare and submit a plan of relevant activities to the president.

A package of relevant proposals is expected to include a number of social and organizational activities which will cover development of the ICT regulatory framework, strengthening the ICT sector's potential, expanding the information-oriented society and human resources, and international cooperation issues, Gurbanov said.

The action plan also envisions working out a new law on information and information security, as the current law adopted in 1996 is outdated. The new law will include legal control of the e-government and electronic services provision issues.

Another important aspect of the plan is increasing TV and radio broadcasting quality, transition to digital broadcasting, expansion of broadband services, further development of electronic services and simplification of access to e-services.

Azerbaijan has maintained its leading position among the CIS countries in terms of broadband Internet penetration over the past three years.

Internet penetration rates increased from 65 to 70 percent in 2012. Work was carried out to improve the quality of data transmission services. The capacity of international communication channels more than doubled compared to 2011 and fees were reduced by 35 percent.

At present, Internet fees for connection speed of 1 Mbit/s account for about 3 percent of the average wage in Azerbaijan. For comparison's sake, the fees are up to 20 percent of wages in developing countries.

Some 103 million manats (about $131 million) have been allocated for the implementation of a broadband Internet development project in Azerbaijan in 2013, which means further spread of broadband Internet in the country and an increase of Internet users to 85 percent.

Thus, Azerbaijan is expected to reach the level of developed countries on this indicator by 2017.

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