AZERBAIJAN CAN BE TURNED INTO A TRANSIT INFORMATION CENTER
"THE WORLD MUST WITNESS THAT AZERBAIJAN HAS IDEAL CONDITIONS FOR DEVELOPING ICT AREA," DECLARED THE MINISTER OF COMMUNICATION AND INFORMATION TECHNOLOGIES OF AZERBAIJAN ALI ABBASOV AT THE SESSION OF THE CASPIAN INTEGRATION BUSINESS CLUB
A joint session of the Caspian IT Club and Caspian Communication Club of the Caspian Integration Business Club – CIBC took place on February 11 at Baku Entertainment Center. The Minister of Communication and Information technologies of Azerbaijan Republic Ali Abbasov participated in this meeting.
Market values
The session was dedicated to the problems in information technology, communication, and as a whole, the issues of non-oil sector development in Azerbaijan. The President and General Chief Executive of CIBC Telman Aliev noted that Azerbaijan President was the first honorary chairman of the Club established in June, 2002. Today the Club joins interests of three countries – Azerbaijan, Russia and Kazakhstan.
As Telman Aliyev declared the President of Azerbaijan Republic Ilham Aliev is announced the Grand Prix laureate of the International elite platinum premium "Caspian Energy Integration Award-2006", at the main nomination – "THE POLITICIAN OF THE YEAR IN CIS AND BALTIC COUNTRIES", according to the results of the experts poll carried out by the Caspian Integration Business Club from July 15 till December 15, 2005 in 30 countries among top-managers and managers of average level from 1500 companies functioning in the Caspian-Black Sea and Baltic regions (the members of the Caspian Integration Business Club and reader’s audience of Caspain Energy International Publishing House).
The Minister of Communication and Informational technologies of Azerbaijan Republic, Ali Abbasov underlined that this premium was not nominated by a chance. Azerbaijan President Ilham Aliyev targets mainly market values and the private sector development of the country in his social-economic strategy.
Economic increase has started in Azerbaijan since 1997. As the minister noted, GDP increase for the previous years comprised around 10%, in 2005 it comprised 26%, and in 2006 it is forecasted on the level of 30%. However, in spite of the fact that the share of the oil sector will continue climbing up, the petrodollars flow will exhaust in 15 years, and concerning this matter the steps are taken in the Republic on non-oil sector development and mainly in communication and information technologies areas.
As for the minister, it is necessary to develop export components of the non-oil sector in order to achieve higher successes in economy, and today Azerbaijan is seeking such a potential. The agriculture, machinery-building, chemical industry, tourism, and also IT – technologies and communication areas can be considered as some of the perspective directions of developing Azerbaijan economy. As the minister noted, today the most favorable conditions have been created for developing the communication and information technologies in Azerbaijan.
Export ICT
As for him, the government and the parliament of the country will discuss the possibilities of producing and exporting information-communication technologies (ICT) and electronic equipment in the near future. Softening Azerbaijan’s fiscal policy and applying different benefits is set as a goal to implement these possibilities. "If our proposals are accepted, then export-import operations will not be imposed with customs duty, and the taxes will be minimized," Ali Aliev continued.
"As different communication networks in Azerbaijan interwine closely, it is possible to produce not only ICT, but also sell information, and thus Azerbaijan can be turned into a transit information center," the minister underlined. Corresponding proposals are already being prepared already regarding the above said.
Taking into account that Azerbaijan has kept its essential intellectual potential since Soviet times, there is a necessity for its development. It is planned to establish special economic areas for scientific researches, technoparks and technopolises as well.
Liberalization of the telecommunication market is being worked on, and more favourable conditions will be created in the market segment in the near future for sound competition and introduction of new operators. Regarding this issue, the ministry has already simplified the procedure of licensing, and 2 out of 5 lincences have recently been given at the joint conference for providing mobile communication services. The ministry will continue simplifying licensing, and take new steps on liberalizing the market in this regards. The ministry is preparing new legal documents.
Electronic government
It is decided to implement a big project of electronic management in Azerbaijan according to the results of negotiations with the World Bank (WB). About $60-100 million are required for its implementation, which the WB is going to provide as a credit. And at the same time negotiations with Korean government is being carried out about opening $20 million account for implementing the project.
Establishment of an electronic government is a part of governmental policy and is reflected in the State ICT development program in Azerbaijan for 2005-2008, approved by Azerbaijan President Ilham Aliyev. Understanding that all these are important in the countries transiting to the market economy, as they help to struggle against shadow economy and corruption, develop business and protect human rights, the project of electronic management is a priority for the government.
Reaching average international level
Modernization of the communication and application of new information technologies, including cable television, high-speed broad-band Internet, bank and information infrastructures are on the agenda in Azerbaijan.
The State ICT development program in Azerbaijan includes uplifting of ICT development parameters to the average international level by 2008, and afterwards surpassing even this level will turn into a motto. The main way towards implementation of these plans is carrying out reforms in Azerbaijan, mainly even maintaining of the guiding functions, liberalizing the market, continuation of privatization and etc. Thus, the necessary proposals are being prepared to continue privatization in telecommunication.
The monetary and credit policy carried out in Azerbaijan is one of the directions in this aspect. "As our country is not so large, and there are no opportunities to attract outstanding creditors, we have established a legal basis on protection of foreign investments in Azerbaijan and the government is a guarantor of the foreign investments," the minister emphasized. Along with it, the monetary and credit potential of the country permits to give important and timely credits for the non-oil sector development, though in small size. "All the above mentioned give an opportunity to address optimistically the member companies of CIBC to take part actively at the telecommunication market of Azerbaijan," Ali Abbasov continued.
The results of Tunis summit for Azerbaijan have been mentioned at the session. Ali Abbasob noted that the documents and obligations adopted at Tunis summit in 2005 covered the mutual relations between the countries and first of all within Azerbaijan, and were directed to eliminate the gap in digital information. The second direction of the summit covered the role of ICT in social human development in all countries, the third – financial problems solution for implementing the first two directions. Besides, the issues of Internet management, liberal human development, protection of human rights and freedom of speech were also disussed and agreed upon at the summit.
In this aspect, the minister noted, all decisions have been included into the state ICT development program in Azerbaijan in 2005-2008. At present the highest difference in the country is in the area of digital information, and in this aspect Azerbaijan, as other countries of the region, is below international indicators. Thus, the ration of personal computers per 1,000 people is 20-25, whereas international indicators exceed this figure 10-fold.
At the same time there is a difference in the infrastructure between the capital and the regions. Today our main goal – is to increase the number of computers in Azerbaijan up to the international level by 2008.
Business and government
The issues of competition between governmental and private companies at the ICT market have been also mentioned at the session. The minister does not consider the situation as normal, as the ministry is implementing governmental policy, and regulating policy today, and competes through its companies at the ICT market. These problems exist between governmental and private communication operators as well. So, the governmental operators create certain difficulties for the private structures, retaining the main resources.
As for the minister, in order to solve this situation it is planned to prepare a document package on regulating relations among the operators, by means of which the governmental and private companies will come to an agreement. The document will show that all the resources, which are not privatized yet, and which the governmental operators have, will be equally available. The ministry is ready to legalize these documents, and all the problems among the companies will be solved within the frames of this regulating document.
The minister gave an example of the EU countries, where 40% of the Deutsche Telecom belongs to the government. Today Europe is using a new principle to separate the governmental part from the private sector. Such a step should be taken in Azerbaijan, the minister noted, adding, that it is necessary to separate the automatic telephone systems (ATS) serving the people from the main network. It is necessary to privatize all telecoms (ATS), having separated the main center carrying out main functions. In this case all the problems will be solved, even if the shares of the telecoms remain with the government, the minister underlined. Taking into account that all the processes require a lot of work, in the beginning the ministry set a goal to privatize Aztelecom and Baktelecom, and as a result of which the ministry will be engaged only in regulation functions, and the monopolies will disappear from the market.
Struggle against piracy
At the session the President of the Caspian IT Club (the Pesident of AZEL company) Igor Yakovenko raised the issue of struggle against piracy in the software environment in Azerbaijan. As for him, the session of the Caspian IT Club in 2005, where most of the computer companies of Azerbaijan took part, appealed to Azerbaijan government and the minister of communication and informational technologies with a request to render assistance in struggle against situation with pirated software in Azerbaijan. According to him, the situation in the republic is not worse than in other countries of CIS and certain measures are taken in this direction. Most of the governmental offices and entities are functioning using legal software, Igor Yakovenko noted, but the percentage of unlicensed software used reaches 80% and sometimes 90% among the private companies, in bank sector and in some governmental companies.
This is a very sensitive issue, agreed the Minister of Communication and Informational Technologies. Speaking about establishment of technoparks, specialized economic areas, planning them on extensive scientific products, the software should be also mentioned, Ali Abbasov noted. And in spite of the fact that there are laws in Azerbaijan about protection of the intellectual property and other normative documents, unfortunately, these principles are not always observed in Azerbaijan, CIS countries, Asia and other countries with transitional economy. The forum for the leaders of the governments and its branches arranged by the Microsoft Corporation took place in January in Portugal. A meeting with participation of Chairman of Microsoft Bill Gates took place within the forum. Mr. Gates declared that he can provide assistance in establishing technoparks, but at the same time he made a request that the legislative basis in these countries should permit to develop extensive scientific areas of production.
"Today the 90 % of software programs is not licensed in CIS countries; we want the companies providing software programs to introduce their licensed product at the market. If the pirated products predominate at the market, we cannot speak about any development," underlined Ali Abbasov. Establishment of the technoparks can also initiate creation of a legislative basis in the country and mechanisms of their implementation.
Courier services
The fiscal functions of the government concerning tariffs control of international postal services have also been mentioned at the session. Speaking about the high prices on postal services, the President and Main Chief Executive of CIBC Telman Aliyev noted that today the products of the Caspian Energy International Publishing House are distributed in 30 countries, and the courier services in Azerbaijan are much more expensive that in Russia and in European countries.
The representatives of the courier companies explain their high tariffs with small number of the international airlines functioning Azerbaijan, high taxes and customs duties, increasing fuel taxes by the international companies.
The minister underlined that "today 13 companies are functioning in Azerbaijan, which have licenses for implementing courier services, and which do not even experience any disturbances from the Ministry of Communication and Information Technologies in Azerbaijan".
According to the minister, taxes and duties exist in any country; he brought an example of the privatization of Japan posting system, the biggest posting system in the world, the main funds of which exceed $12 trillion. After privatization it will lose all tax privileges as well.
In the end the minister underlined that he had a fruitful meeting and dialogue with the businessmen, Internet providers, the representatives of the mobile communication companies, IT companies. The minister was awarded a certificate of an honorary member of CIBC at the session. Ali Abbasov gave certificates to the new members of the Club as well. Small presentations about activities of companies-members of the CIBC were given the session.