Azerbaijan National Human Development Report 2003
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INFORMATION TECHNOLOGIES AND HUMAN DEVELOPMENT: DIFFUSION AND APPLICATION OF ICT

Chapter 2


2.2. Information Technologies Development Status

2.2.4. Internet

Currently, 14 Internet Service Providers (ISPs) are rendering Internet services across the country. An estimated 2 percent of the country's population are currently permanent Internet users. Practically all the providers are rendering the full spectrum of services on access to Internet both dial-up access and line access. On average, the users are provided with the speed ranking from 56 k/second to 2 M/second. The cost for one-hour access to the Internet, which was approximately $2.00 in 1997, has dropped to $0.40 as of April 1, 2003.

Reduction of the price is one reason for the growth of the number of Internet users in Azerbaijan. Currently, it is cheaper for individuals and organizations to opt for unlimited monthly access to Internet, which can be purchased for about $30 to $50, depending on the provider. All in all, prices for Internet access in Azerbaijan are declining (Figure 2.2).

At the same time, the development of the Internet market has been hindered and slowed down by Aztelecom's monopoly. As a result, major ISPs have begun using satellite channels to ensure affordable services. However, regional access to the Internet is highly disproportionate compared to Baku. There is very little access throughout the countryside. Of the 14 ISPs, 13 (private providers) service only Baku. Poor business development and low household income throughout the provinces limit the demand of Internet services. Only Bakinternet (the Internet provider of the Ministry of Communication) operates in the provinces, covering the entire territory of the country with its services, according to the Ministry. It should be noted that young people constitute the overwhelming majority of Internet users. Thanks to subsidies from incomes in other monopolistic segments of communication, the Ministry can compensate the negative cost balance in providing this service in the regions.

Over recent years, an intensive growth in numbers of Internet users in Azerbaijan has been observed, not only at home but also at Internet cafes and Internet clubs.

One of the factors positively promoting the growth of users among youth is linked to free Internet access provided by various universities. In addition, some secondary schools have also begun to provide this opportunity. This trend is fostered by the implementation of educational programs in the country through cooperation of the Ministry of Education with international organizations, such as UNDP and diplomatic missions. The government of the Azerbaijan Republic and UNDP signed a joint project to establish up an National Information Communication Technologies (ICT) Development Strategy and its implementation in Azerbaijan. The use of ICT will create opportunities to upgrade many spheres of public life and accelerate Azerbaijan's integration into the international community. Educational programs in the field should also focus on informing users about the potential of the Internet in order to expand usage beyond chatting and e-mailing to fields related to personal training, life-long learning, information search and democratic participation. Currently, the Internet is mainly used for chatting and sending e-mails, a fact which is also influenced by the age of the users.

The international oil companies operating in Azerbaijan are also partaking in capacity building for spreading new ICTs through equipment and training. In line with human development tasks within the Azerbaijan International Operating Company (AIOC) in their Azeri-Chirag-Gunashli oil field (ACG) Project on the expansion of the oil terminal in Garadagh, their Human Development Center has been engaged in spreading ICTs both through the transfer of equipment to schools and libraries and in training as an element of human potential development in the framework of their social investment program. This activity has contributed not only to spreading ICTs but also to reducing regional disparities in this field. In addition, it should be noted that practically all local employees of energy companies have access to modern ICTs and possess the required knowledge and skills in this field.

Companies, which provide Internet services, are eager to increase the number of their users. To achieve this goal, they organize various training courses for potential users to work at the Internet. For instance, the Baku Scientific Training Center, jointly with the Network Technologies and the Internet News newspaper has prepared Microsoft Office 2000, an educational multimedia product in Azeri. The training course has been designed to enable every user to test his/her knowledge of the system after every lesson. The training course has been designed for users with minimum experience using computers. The cost of this product, recorded on 3 disks, comes to about $8. At the same time the Baku Scientific Training Center offers permanent courses for a price to train professional specialists using Microsoft products. A 240-hour training course costs $50.

Since August 2002, in order to facilitate access to the Internet, “IntraNS” company has been providing a new kind of service access to the Internet via a plastic card. Recently other providers also have begun offering such services, which enable every user to set up a computer and modem and to be registered on the Net. The cards cost between $5 and $55 and contain (ID) dial-line information and offer limited (between 10-50 hours) or unlimited access to the Internet along with a free mailbox.

Despite the achievements in the business environment and in the private use of Internet, Azerbaijan cannot yet be viewed as having successfully made the transition to an information society. The adoption of the National Strategy is an important step to eliminate this lag.


Table 2.11 Data on telecommunications of Azerbaijan for 2002


Figure 2.2 Internet access rates in Azerbaijan, in US dollars, per hour (1997-2003)


Figure 2.3 Growth in numbers of Internet users


Table 2.12. Age of Internet Users (2002)


Table 2.13 Structure of Internet contacts



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