"Independent
Republic should have independent communication."
"At the present time communications is proved
to be necessary for everyone."
"Recently in Azerbaijan communications is in
a speedy progress and attained achievements are
considered to be satisfactory."
"Exploitation of automatic telephone exchange
(ATE) installed by means of a technology of high
level is enormous event in the industry of our Republic
as well as in the life of the society."
The Late President of Azerbaijan Republic,
His Excellency Mr. Heydar Aliyev.
Investment policy of the Ministry of Communications |

After gaining State Independence, the Azerbaijan
Republic, according to international law and universal
norms carries out independent economic and social
policy in interests of the citizens.
One of main principles of economic independence
of Republic is attraction in economy of local
and foreign investments and their protection.
From this point of view in Republic the structural
and investment policy directed on radical technological
updating of manufacture and branches of an infrastructure,
with the help of the scientific and technical
policy directed on highly effective accelerated
development of economy, corresponding to national
interests and requirements of the world market
is spent.
The large-scale economic policy spent in Azerbaijan
Republic has influenced also one of the biggest
branches of an infrastructure - communication.
In the field of communication attachs great importance
to investments, both due to internal resources,
and by attraction of foreign investors.
The investment policy spent by the Ministry of
Communications in the field of communication of
Azerbaijan is carried out according to laws of
the Azerbaijan Republic " About investment
activity ", " About protection of foreign
investments " and other normative-legal acts.
For last five years in republic on expansion of
an existing telephone system, reconstruction morally
and physically out-of-date telephone exchanges,
expansion of a zone of a radiotelevision announcement
and increase of its quality, for development of
mail, the Internet and other new kinds of services
of communication is enclosed investments for the
sum more than 300 million US dollars.

Simultaneously with the enclosed investments
due to internal opportunities of the enterprises
and the organizations of communication, there
is created to foreign investors the favorable
investment climate for capital investments in
communication of Azerbaijan.
Process of attraction of foreign investments
into branch of communication of Azerbaijan began
in 1991. By creation of joint ventures by all
kinds of services of communication with participation
of the various companies the Ministry of Communications
of the Azerbaijan Republic aspired to bring development
of telecommunications into accord to the international
level.
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For 01.01.2003 years in the field of communication
the volume of the involved investments by creation
of joint ventures has made more than 250 million
US dollars, number of working joint ventures -
10. Due to means of the state enterprises of communication
in 1998-2002, it was enclosed 104 million dollars
of investments, it was handed over in operation
Electronic Automatic Exchanges with capacity of
408574 numbers, it was digitalised 42,1 % of the
general capacity on republic.
Now the Ministry of Communications spends a system
investment policy for attraction in the field
of communication of republic of new investments.
Economic Policy of Ministry of Communications
of Azerbaijan Republic |
Just after when Azerbaijan Republic gained its
State independence, the large-scale economic policy,
which it pursued, has also comprised the communication,
one of the biggest infrastructure sectors. The
earnings of the Ministry of Communications for
2002 were 425,3 billion Azeri manats as compared
with 22,1-29,9 billion Azeri manats of earnings
in 1993-1994, and 316,2 billion Azeri manats of
earnings in 1997, as well as 390,2 billion manats
of earnings in 2001.

The total amount of payments dedicated to state
budget comprised 0,6 billion manats, however in
2002 it was 82,2 billion Azeri manats.
Under constant supervision and guidance of our
President, the development of national communication
toward the level of International standards can
be said to date from 1997.
The total number capacity of telephone networks
in the Republic was 735402 by the latest 1996,
at present it comprises over 1 000 000 numbers.
The number of telephone sets per 100 families
is as follows: from 1991 to 1996 the growth was
1,6 piece which totaled 39,7 pieces per 100 families,
whereas comparing, during the last 6 years it
grew as high as 17,3 piece which totaled 57,0
pieces per 100 families by the latest 2002.
By 1997 the communication enterprises in regions
were operating with low profit, however, commencing
from first half-year of 2002, the profitable operation
of all communication enterprises were ensured
as a result of constant analyses and works done
in the field.
In recent years varieties of service types has
been increased by using opportunities of accessing
all communication enterprises to computer networks
through ON-LINE regime in all regions of the Republic,
constant analyses were carried out and recommendations
were provided, and consequently, the increase
of earnings in all fields of services was achieved.

As a result of recent policy of economy pursued
over the Republic, the volume of communication
services in the structure of services provided
to population was 4% in 1995, however, at present
the above-mentioned indicators reached to 27%.
Remarkable works has been done in the field of
communication commencing from 1997 with the help
of relevant tariff policy on the bases of scientific
justifications in the direction of reducing prices.
Thus international telephone calls tariffs were
reduced by 40% in the direction of Iran and Turkey,
by 46,7% in the direction of European countries,
and by 50% in the direction of the USA and other
countries during 1998-2003. With effect from January
2003, tariffs on about 200 city, rural, long-distance
and international telephone communication services
were reduced.

The policy, which is pursued by our President
targets at improving social welfare and financial
well being of people, comprises the communication
field as well.
In 1993 the average monthly salary in the Republic
was 2,300 manats, whereas it was raised up to
132,000 manats in 1996, and raised up to 428,800
manats in the latest 2002. Average monthly salary
is planned to have reached up to 500 000 by the
end of 2003.
Under the decision taken by the Board of Ministry
of Communication, 663 new workplaces were opened
in 2001 and additionally 295 workplaces were opened
in 2002.
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