TELECOMMUNICATIONS

In January to August 2006 the communications enterprises provided population and economic subjects with services worth 345.9m AZN, or 25.1% more than 2005. Of them 28.2% was rendered to public enterprises, 71.8% - private companies, which rose 25.9%.

During January-July 2006, the Ministry of Communication and IT of Azerbaijan put in use 133,158 phone numbers. 88,764 of all numbers fell on Production Association Baki Telefon Rabitasi (BTRIB), and the rest Aztelekom PA.

Considerable investments are put in this sector to improve the quality of services. Over the first 8 months of 2006 the Ministry of Communications and Information Technologies invested 19.7mln AZN in the telecommunications sphere. In this period Aztelekom invested 7,675,5m manats in the development of the communications sector, Baki Telefon Rabitasi 8,349,4 manats, Teleradio 1,574.3m manats, Azerpocht 765,500 manats. The funds were directed the reconstruction of communications facilities, construction of new telephone lines in outskirts of Baku and region of Azerbaijan.

Significant rise was observed in regions: the telecommunications services in the Absheron region rose 7.6%, Guba Khachmaz 13.1%, Shirvan 10.3%, Shaki Zakatala 29.9%, Ganja-Gazakh 17.1%, Nakhchivan - 15%, Lankaran 14.2%, Aran 17.5%.

Major indices reflecting activities of communications enterprises in Azerbaijan

In the first 7 months of 2006 incomes of the Ministry of Communications and Information Technologies made up 104m manats, 23.2m manats. According to the Ministry, incomes from community payments made up 34m manats. The figure exceeded the last year figure 4.1m manats.

76.2% of all incomes obtained from the delivery of telecommunications services fell on community incomes in January to August 2006. Incomes of the Ministry of Communications and Information technologies made up 118.4m manats against the forecast of 96.76m manats. In particular, the incomes from community payments constituted 39,803,700 manats against the forecast of 36,967,000 manats, or 26.9 % and 15.3% more than 2005.

Incomes from mobile communications comprise 65.4% of entire incomes, obtained in the communications sector, or 25.7% more than 2005.

At present Azercell Telecom covers 76% of the Azerbaijani cellular market. The company's network covers 74.5% of the country's territory, as a result of which 98% of population use Azercell's services. The subscribers of Azercell Telecom exceeded 2 million people.

The new mobile operator - Azerfon - also intensified its activities. The company is carrying out work on the installation of basic stations in the capital and regions of the country, including the Nakhchivan Autonomous Republic (NAR). The Ministry of Communications and Information Technologies issued a license for Azerfon for rendering of mobile services on 28 December 2005. The founders of the company are the Production Association Aztelekom (10%), German company Siemens (30%) and British companies (60%). Major demand for the operator is provide the mobile communications in the 85% of the territory of Azerbaijan. Investments in this period is to comprise $300m.