INFORMATION TECHNOLOGIES AND HUMAN DEVELOPMENT: DIFFUSION AND APPLICATION OF ICT
Chapter 2
2.2. Information Technologies Development Status
2.2.2. Traditional Telecommunications
The ICT development has generated a need for adequate traditional telecommunication links. Of the 420,000 cable telephone lines existing in Baku, the national operator, the production unit Baku City Telephone Station handles 375,000 lines (89 percent share of the market), while Ultel handles 15,000 lines, Catel has 10,000 lines, and AzEuroTel has 20,000 lines.
Currently, digital equipment already covers 37.1 percent of the telephone stations in the country. However, there are considerable regional differences in the modernization of the existing telephone lines. According to the latest available information, although 41.2 percent of Baku stations ensure dial-up connections, only 28.1 percent of regional stations can. It is planned to complete the telephone network's transition to the dial-up system by 2007, simultaneous leveling out differences between Baku and regions at all stages.
The equipment of the international trunkcall system is being upgraded as well. In 1991, there were only 30 direct satellite channels; now the figure exceeds 800. Direct channels currently connect the country with the world's major capitals and other centers.
In line with the project of Trans-Asia-Europe (TAE), a network of fiber optic communication lines has been put into operation, expanding the ability of dial-up technologies in the communication infrastructure. A fiber optic communication line is also being built along the Baku-Tbilisi railroad as part of the project of Transport Corridor Europe-Caucasus-Asia (TRACECA).
Despite some progress in the development of traditional means of telecommunications, the availability of these services throughout Azerbaijan does not meet the demand, and the cost of some of these services limits access for customers. Among the 12 Commonwealth of Independent States (CIS) countries, Azerbaijan ranks No. 8 according to the number of telephones per 100 inhabitants (10.84), but with some differences in capital and rural areas. This is lower than average in the CIS. Rates for international calls from Baku are twice as high as those from the average CIS countries. Azerbaijan ranks No. 11 according to the price of international calls. The monopoly is the main obstacle in decreasing the rates of the international calls. Consequently, the number of outgoing international calls (1 million minutes per year) in Azerbaijan is six times lower than the average of other CIS countries, putting Azerbaijan in next to the bottom of the list.
According to the Ministry of Communications, there are 225 TV stations, which use 339 transmitters to provide broadcasting of national, local and foreign programs (Source: Transport and Communications of Azerbaijan Statistical Yearbook - 2002). The number of TV stations doubled between 1997-2001. Most TV stations have only the capability to transmit with 100 watts or less. Only 19 TV stations have the strength of 1 kilowatt or more. These stations broadcast programs nationwide, as do both national and privately operated channels from Turkey and Russia. Of the 339 transmitters, 38 use main and microwave lines, and 250 use satellite lines.
Table 2.9 Telecommunications in Azerbaijan (January 1, 2003) PSTN (Public Switched Telephone Network)

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