KEY INFORMATION ABOUT AZERBAIJAN REPUBLIC

AZERBAIJAN IS SITUATED BETWEEN GREAT CAUCASUS AND BEYOND CAUCASUSUS IN THE WEST OF CASPIAN SEA WITH 86.9 SQV. KM NEIGHBORS: IN THE NORTH RUSSIAN FEDERATION, IN THE NORTH-WEST GEORGIA, IN THE WEST ARMENIA, IN THE SOUTH IRAN. AZERBAIJAN HAS ALSO AN 11 KM LONG BORDER WITH TURKEY THE POPULATION ACCORDING TO 2002 CENSUS IS 8.500.000. THE POPULATION OF BAKU-THE CAPITAL IS over 2 MLN90% OF THE POPULATION IS AZERI, THE OTHER 10% CONSISTS OF DIFFERENT NATIONS (TALISHS, LEZGIS, AVARS, TATS, KURDS, JEWS, ETC.) 54% OF THE POPULATION LIVES IN CITIES, 46% IN THE COUNTRY.AZERI AND RUSSIAN ARE SPOKEN IN THE COUNTRY. EDUCATIONAL LANGUAGE IS AZERI, BUT RUSSIAN & ENGLISH ARE TAUGHT AS A SECONDARY LANGUAGES. 98% OF THE POPULATION IS LITERATE

Source: State Statistical Committee of Republic of Azerbaijan, USACC investment Guide to AZ 2002 Document being processessedNational IT Policy

Being developedNational Information Infrastructure 6.44 Mobile Cell Phone/100 1.5 PCs/10012Telephone/100

25.9TV/10024.7 Penetration of ICT ,%

1 US $ = 4920 ManatCurrency Units (Manat) (APRIL / 2004)679.6 International Reserves (US$ in million) (2003)

162.00 (4.38%)ICT in Merchandise Trade (in US$ million)1.40Imports (2003) (US$ billion)2.30Exports (2003) (US$ billion)3.7 Merchandise Trade 2003 (US$ billion)

59.7% Services 25.2% Industry

15.3%Agriculture GDP Distribution (2003)

9.9%GDP (% change2000/2003)US$ 875 Per Capita GDP (2003) (US$)

86,900 Area (sq.2)8,141,400Population (January 2002)

4406.9

86.9

1569.31231.4

0.00

500.00

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

4000.00

4500.00

2003

State Oil Co Azeriqaz JSC Azerenerji JSC Communications

Sectors’ percentage in GDP, ( bilion manat, 1 $= 4900 manat )

Share of ICT industry in Economy

30,338

46

59,5 6268 68 68

4

50,355,3

62,2 62,2 62,2

5,5 7,5

26,4

37,343,7 43,7 43,7

26,1

4,5

18,3

1995 1996 1997 1998 1999 2000 2001 2002

%

GDP Transport & Communication Industry

MINISTRY OF COMMUNICATIONS & INFORMATION TECHNOLOGIES

MAIN STRUCTURES & JOINT VENJURES

NAHCHIVAN AR MC

BAKUTEL PM

AZEUROTEL JVULTEL JV

AZTELECOM PM

AZERPOST SE

BAKCELL JV

AZERCELL JV CATEL JV

Public Switched Telephone Network

688,4 695.8 683.5 697 706.8 735,4 741,8787 801,9

869,2934,4 972.1

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

01/01

/2004

thous,.lines

1.046,0

GSM MOBILE TELEPHONES LINES, tsd.

2 5 14.7 38.3 81.8

209.6

420.4

730870 950 1200

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Mobile phones per 1000 people in CIS countries (for 2003)

0.836.11

22.470.10.81.66

16.8

5.3518.97

4.922.14

106.9

0 20 40 60 80 100 120

Azerbaijan

Armenia

Belorus

Georgia

Kazakhistan

Kyrgyzstan

Moldova

Russia

Tajikistan

Turkmenistan

Uzbekistan

Ukraine

38,11 38.02 37.16 38.68 39.12 39,7 40,55 42,3645,91

50,8855,0 56.9

61

1991 1993 1995 1997 1999 2001 01.01.2004

9,8 9,28 9,1 9,1 9,08 9,1 9,2 9,28 9,42 10,23 10,84 11,28 12

2002

100 INHAB. 100 Family 10

Percentage of PSTN’s digital systemsIn The Whole Country, %

48.449.7

1.9Step by step

Cross-bar

Digital

01.01.2004

SDH CIRCLED NETWORK OF BAKUTELECOM

А-91А-90

А-94/95

А-32

А-38/39А-74/75

А-79

А-77

STM-16

А68/69

А-61

STM-16

STM-4

STM-4

STM-4

STM-16

STM-4

STM-16

К-5

К-2

К-7

STM-16Баш мцтяхяссис20/04/01

К-9

К-6

К3

STM-16

ENM

T0ll

Щювсан

А-92/97

STM-4

STM-1 А-64

А-55

А-53

А-54/59

А-56

А-57(20)

А-23

А-27

А-25/26

А-47

А-45

А-42

К-4

622Мб/с

622Мб/с

622 Мб/с

155Мб/с

2,5 Гб/с 622Мб/с

622 Мб/с

2,5Гб/с2,5 Гб/с

2,5 Гб/с2,5 Гб/с

TRANS-ASIA- EUROPE FIBER OPTIC CABLE

KАЗАKHСТАН

Юзбякистан

АшгабадТцркмянистан

Актау

Тещран

Тифлис

Поти

Новоросийск

Аксай

Москва

Лондон -Нйу- Йорк

Белгород

Харков

Кийев

Одесса

Минск

Варшава

Франкфурт

ВенаБудапешт

Бухарест

МангалиаИстанбул

Анкара

Чимкянд

Ростов

RUSSIA

ИРАН

TURKEY

УКРАЙНА

GERMANY POLAND

РУМЫНИЙА

GEORGIA

AZERBAIJAN

300 км

300 км

600 км

ARMENIAн

Астара

TRANS-ASIA- EUROPE - TRANS CASPIAN FIBER OPTIC CABLE

380 k

m

Bakэ

Еъкльцтифжэ

ФлефгЗщеш

360 ль

331 ль

589 ль Ышнцяцт112 km

ARMENIA

GEORGIA

IRAN

RUSSIA

AZERBAIJAN

TURKEY

TURKMENISTAN

KAZAKHSTAN

TAE backbone within the countryTAE backbone within the country

INTERNET DEVELOPMENT

Internet society

ISP 16Dial-up users 250 000Active users 350 000Internet centers&café 250

in Baku 200Access centers in all regionsDial-up access Business access - 0.3 - 1$(hourly): Night access - 0.15 - 0.25$

Note : Internet services are not licenced