The telecom sector
has been undergoing a significant transition phase
for the past 10 years. Can you briefly come back
on the main achievements reached by your government
over that period?
15 years ago, the telecommunication sector was
suffering from underdevelopment and corruption.
But today, we don't have anymore corruption and
anybody can install as many lines as he wants.
We even provide credit facilities to allow the
people to get access to our telecommunication
services. We also try to provide the same service
anywhere in the country. There is no region of
Azerbaijan where you cannot have access to a telephone.
This development could only happen through gaining
the country's independence and the high commitment
of late President Heydar Aliyev to the telecommunication
sector.
15 years ago, the telecommunication sector was
suffering from underdevelopment and corruption.
But today, we don't have anymore corruption and
anybody can install as many lines as he wants.
We even provide credit facilities to allow the
people to get access to our telecommunication
services. We also try to provide the same service
anywhere in the country. There is no region of
Azerbaijan where you cannot have access to a telephone.
This development could only happen through gaining
the country's independence and the high commitment
of late President Heydar Aliyev to the telecommunication
sector.
Also, you will find an internet club anywhere
in Azerbaijan. Internet service providers are
growing. In Baku, you have high speed connections
(up to 90Mbit) but unfortunately still a lot of
people don't use this service. The penetration
is only around 35%. That's because we are in our
transition period. Also, one important factor
is the fact that computer technology is still
too expensive for Azeri people and students. So
we are trying to buy those computers and provide
them to the population at a lower price and now
we can feel that internet users are increasing.
At the Ministry of Communications, we pay special
attention to e-communication. We provide services
through our cables to the 15 existing ISP in the
country and our wish is to develop the internet
faster.
We are witnessing the privatization of Backcell
as well as Azercell on the GSM market. Can you
give us a brief overview of the development policy
your ministry is implementing in the telecommunication
sector in that respect?
As far as the privatization of the telecommunication
sector is concerned, I would say that it has been
completed a long time ago as 65% of the telecommunication
services are currently provided by private companies,
which is a significant figure. We have indeed
completed the privatization of Backcell now belonging
100% to an Israeli company. Our strategy was to
start privatizing joint-ventures. This plan, which
was set up 2 years ago, took some delay but now
we are trying to catch up and accelerate the process.
We have around 10 JV in Azerbaijan: Azercell,
AzEurotel and others
. Following the privatization
of Backcell, we are now preparing the privatization
of Azercell, which should be completed by end
2004. We are also confident that other JV's privatizations
will be completed by the same time. Obviously,
we give priority to the original private shareholder
of the JV when it comes to sell the State's shares.
All companies in the sector are ready for privatization.
They provide good-quality services but as far
as the State-owned company is concerned, AzTelecom,
the Government is fully involved in modernizing
its infrastructure and services.
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Digital systems can be applied to our infrastructure
and we target a 60%-implementation of digital
systems by the end of 2004 and this will be the
highest percentage among all CIS countries. We
really feel that Azerbaijan is experiencing a
transition period and we are doing our best to
fully get involved in that process.
Being a Regulation Authority, does your Ministry
plan to offer new telecommunication licences in
the near future?
In Azerbaijan, we have 2 mobile operators and
they can provide the country with the best services.
But if anyone addresses to us in order to implement
new licences, we would consider this opportunity.
We actually think that within one or two years
we can bring in new generations of mobile services
in Azerbaijan. We will of course try to involve
private companies in the process.
How do you plan the restructuring of the AzTelecom?
The privatization of AzTelecom will be done through
a tender. We will open the market to existing
Azeri operators as well as foreign companies or
any individual. However, we will have to prevent
the creation of a monopolistic situation. We want
to enhance competitiveness.
What would be your personal message to our
readers?
7 years ago, Late President Heydar Aliyev declared
the Azeri market open to foreign investors. Today,
for a foreign investor, there is no major obstacle
to investing in Azerbaijan. The only concern is
that there must be a clear mutual interest from
both sides. We understand that foreign investors
are coming here to make profits. But we need to
be honest and protect Azeri people's interest.
So, we are ready to cooperate with any foreign
investor keeping in mind this principle.
On the other hand, one of our priorities is to
get credit lines at low interest rates, around
7 or 8% for 3 or 5 years. The telecommunication
sector has a need to set up companies that can
produce modern equipment technologies and we can
provide support to any foreign investor ready
to set up production units in the country as well
as to importers of new technologies.
Could you tell us more about your professional
experience and how you became minister of Telecommunications?
Yes! I got appointed as Minister in 3 hours.
I was Deputy Minister and I one day I got a call
from the presidency. I did not know why the President
Heydar Aliyev wanted to see me. Then the President
started talking to me about his disappointment
over the situation in the Telecommunications sector.
He insisted on the need to dramatically improve
the situation and then asked me if I could make
it. His plan was to appoint me as minister. So
I answered that if he really trusted me he could
count on me to solve that issue. And half an hour
later, the decree was prepared so that I could
be officially appointed as minister of Telecommunications.
Late President Heydar Aliyev gave a great contribution
to the development of the telecommunication sector
in Azerbaijan. A book has even been written but
it is in Azeri. In the '80s, when he was 1st Secretary
of the Communist party in Moscow he had drawn
a plan for the telecommunication sectors but unfortunately
it did not get applied. And it is upon his election
in 1993 that he raised that issue again for Azerbaijan
and personally instructed me to implement a new
concept for the development of telecommunications
in the country.
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