ORDER OF THE PRESIDENT OF THE AZERBAIJAN REPUBLIC

of October 21, 2005 No. 1055

About approval of the State program on development of communication and information technologies in the Azerbaijan Republic for 2005 - 2008" (Electronic Azerbaijan)

For the purpose of ensuring development of communication and information systems and technologies in the Azerbaijan Republic and implementation of National strategy for development of information and communication technologies I decide:

1. Approve "The state program on development of communication and information technologies in the Azerbaijan Republic for 2005 - 2008" (Electronic Azerbaijan)" it (is applied).

2. The coordinating body of the State program approved according to Item 1 of this order to determine the Ministry of Communications and Information Technologies of the Azerbaijan Republic.

3. Charge to the Cabinet of Ministers of the Azerbaijan Republic to perform necessary measures for financing of the State program approved according to Item 1 of this order and to resolve other questions following from this order.

4. This order becomes effective from the date of publication.

Approved by the order of the President of the Azerbaijan Republic of October 21, 2005 No. 1055

The state program on development of communication and information technologies in the Azerbaijan Republic for 2005 - 2008" (Electronic Azerbaijan)

I. Introduction

In the Azerbaijan Republic the many-sided activities directed to the state construction, creation of strong economy, democratization of society, growth in prosperity of the population and ensuring human development are performed.

The performed works at the same time serve expansion of international backgrounds of Azerbaijan in political, legal, economic, social and other spheres, to strengthening of line item of the reliable partner in the globalized world, and also to increase in defense capability of the country, recovery and preserving territorial integrity, ensuring sustainable development.

In permission of the above-noted questions of communication and to information technologies the special place belongs, and the level of development of industry is one of the factors influencing achievement of effective objectives. In the different states, and, in particular, in the developed states efforts for forming of the economy based on information society and knowledge are made, and these activities will completely be approved with the development purposes determined at the Millennium Summit of the UN.

In the Azerbaijan Republic also in this direction purposeful activities are carried out, and the area of information technologies was included in number of priorities of development of the country. "National strategy for information and communication technologies for development of the Azerbaijan Republic (2003-2012)", approved by the order of the President of the Azerbaijan Republic of February 17, 2003 No. 1146, determined the general line of works for the next 10 years.

These steps laid the foundation of increase in efficiency of use of information and communication technologies in state bodies of the country, simplification of engagement of the population with these bodies and elimination of bureaucratic obstacles, interconsistency of the information systems of different function created in the country.

The law of the Azerbaijan Republic "About the digital signature and the electronic document", accepted in 2004, created conditions for creation in the country of electronic document management and development of new processes where the digital signature, and also the new fields of economic activity is applied.

The assignment given by the Presidential decree of the Azerbaijan Republic of August 10, 2004 to No. 111 "About approval of the Regulations on the Ministry of Communications and Information Technologies of the Azerbaijan Republic" about preparation "The state program for the purpose of ensuring development of communication and information technologies according to modern requirements in the Azerbaijan Republic" became the next step taken by the country leaders in consecutive development of modern technologies.

"The program of providing comprehensive schools approved by the Order of the President of the Azerbaijan Republic of August 21, 2004 No. 355 in the Azerbaijan Republic (2005 - 2007) once again confirmed with information and communication technologies role of modern technologies in improvement of quality of education in 2005 - 2007, development of youth and, in general, progress of Azerbaijan.

This prepared State program provides effective use of the existing capacity of Azerbaijan and its development, upgrade of the sphere of communication and information technologies from the organizational, legal, technical, personnel point of view, forming of the industry of IIT, attraction in this sphere of new investments and expansion of entrepreneurship, respect for the principles of the free market and healthy competition, implementation of projects of the social importance and, as a result, the different measures aimed at providing in Azerbaijan transition to information society.

Due to the bystry development of the sphere of communication and information technologies accomplishment of initial stage for 2005 - 2008 of National strategy till 2012 is provided in the State program. Measures at the following stage taking into account the results of accomplishment of the State program and changes which happened in the field of will be determined.

The law of the Azerbaijan Republic "About telecommunications", adopted in 2005, determined legal, economic, organizational basis of telecommunication activities in the country and created conditions for purposeful planning and regulation of fair use of telecommunication resources.

II. Current situation

In recent years in the Azerbaijan Republic the sphere of communication and information technologies consistently develops. For these years the amount of general investments into this sphere made about 500 million US dollars from which 70 percent - foreign investments. It should be noted especially that the amount of internal investments grows from year to year. The new joint businesses operating in different spheres were as a result created. In the country were created and Azevrotel, Katel and Ulysses joint businesses are effective as operators of mobile phones of the JV Azersel Telecom of MMM company and Baksel LTD LLC, and in the field of local telephone communication.

The share of the sphere of communication in GDP in the republic constitutes 2, percent, and this indicator is equal in developed countries to about 5 - 7 percent. Upgrade of communications infrastructure is one of the main issues. As a result of the carried-out works about 50 percent of telephone network - electronic type. In Baku this indicator constitutes 57,8 of percent. In a number of regions of the republic - in the Nakhchivan Autonomous Republic, the city of Mingachevir, Absheronsk, the Shaki, Zagatalsky, Balakensky, Hyzinsky, Siyazansky, Yevlakh districts telephone networks for 100 percent of electronic type were provided.

As a result of these measures over the last 10 years general reservoir of telephone network increased approximately for 50 percent, quality of the rendered services grew, and the assortment extended. Now the number of the main telephone sets falling on each 100 people makes 12,81 of pieces, including in the city of Baku of 28,92 of pieces, and on other territories of the republic - 8,2 of pieces. In other 14,6 areas of pieces, and in villages - 3,6 of pieces.

In the territory of the Azerbaijan Republic the fiberoptichesky cable Trance — Asia — Europe (TAE) highway 1161 kilometer long was carried out. This network was even more expanded at the expense of internal resources, other areas of the country were connected to the main line and the construction of the optical line to northern border is provided.

Over the past few years in Azerbaijan mobile communication dynamically developed, and the number of subscribers annually increased on average in time 2,1. If in 1994 the number of subscribers of mobile communication in Azerbaijan made 2000 people, then now this figure exceeds one million 1,7. Now in Azerbaijan 20,03 of mobile telephone sets is the share of each 100 people approximately, and on this indicator Azerbaijan is in the sixth place among the CIS countries.

From 1997 to 2005 indicators of the income of the sphere of communication and IF increased from 32 percent up to 73,8 of percent on private sector.

In the country, 1,5 of pieces of computers is the share of each 100 people (this indicator across Azerbaijan below average of the countries of the world). The majority of these used computers is in state bodies and private structures, and are used, mainly, in the works connected with clerical work. The number of the computers used by the population in houses in the individual purposes are not enough, however in recent years this tendency changes, and the number of individual users constantly grows. It is caused by expansion of use of the Internet and reduction in cost of services.

In Azerbaijan the Internet develops since 1995 and now the number of users reached about 400 thousand people. Approximately 5 users are the share of each 100 people (below universal indicators). In the city of Baku and some areas more than 450 Internet clubs are opened. They are created, mainly, by private sector, however there is also network of the Internet centers created on the state line. In about 20 centers located in different regions along with Internet connection, training of the population in computer knowledge is performed.

Now in Azerbaijan 22 Internet service providers from whom only two are the state companies provide services. As a result of the services rendered by the state Internet service providers of Bakinternet and Aztelekomnet in all regions of the republic the possibility of Internet access was created.

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