Internet in Azerbaijan

Access to the Internet in Azerbaijan is growing, supported by a national strategy to develop the country into an information and communication technology (ICT) hub for the Caucasus region. The Azerbaijani government actively seeks to attract foreign aid to help boost the telecommunications and ICT sectors. While the government claims 85 percent of the population was online in 2013, service provider Baktelekom has provided free Wi-Fi zones in several points of Baku like the National Flag Square, the Boulevard, Old City, the park around the Heyder Aliyev Centre, parks of Sahil, Sabir, Samad Vurghun, Winter Park, as well as Port Baku Residence and Port Baku Mall.

Azerbaijan ranks first among the countries of Post-Soviet region for the level of broadband internet penetration. Thus, Azerbaijan left behind Russia, Georgia, Kazakhstan and other CIS countries.

Moreover, Azerbaijan is the 58th country in the world over number of its Internet users. Statistical project Internet Live Stats noted that the number of Azerbaijani Internet users has exceeded 6 million, accounting for 61.1 percent of the country's population.

The signal of the digital broadcasting covers approximately 99 percent of Azerbaijan, while over 75 percent of the country's population has access to the Internet.

Internet penetration and Internet Service Providers (ISPs)

During the Soviet era, Azerbaijan was a major center for IT development, especially regarding process control systems. This legacy left the country with a reasonably large and well-developed technical infrastructure, including several research institutes and a political leadership savvy about the importance of the ICT sector. Internet development is following the pattern typical of many developing countries, with access centered on major cities, particularly the capital city, Baku. Overall Internet penetration is rising as a result of the support of the government's ICT strategy as well as the large Azerbaijani diaspora, for whom the Internet is increasingly an important channel for maintaining contact with their homeland. The number of Internet users has grown over the last several years to 3.7 million users, or 44 percent of the population, as of June 2010, estimated by the International Telecommunication Union.

Many Azerbaijanis access the Internet from shared connections, such as their place of work or study, or from Internet cafés (with the latter providing access for 19 percent of users in 2007). The rate of ownership of computers is low (2.4 units per 100 inhabitants), and Internet usage in homes is moderate, accounting for 41.6 percent of the total usage for 2007, up from 36.4 percent in 2006. For connectivity, some individual subscribers rely on mobile telephony, though access remains expensive, with most using dial-up services as their primary means. Official survey results for 2007 indicate that economic and educational barriers are the main contributing factors for these low figures, with 31.4 percent blaming the high cost of computer equipment and 21.8 percent indicating a lack of necessary skills.

The Ministry of Communications and Information Technologies (MCIT), together with the Ministry of Education, Microsoft, and Hewlett Packard, has started the pilot stage of the National PC Initiative. This program aims to provide conditions for a rapid increase of PC penetration rates and e-society development. The state-backed Program on Information of the Education System (2008–2012) plans to provide Internet connectivity to all schools of Azerbaijan. Currently, more than 200 secondary schools have been connected to the Internet via ADSL.

The cost of Internet service is steadily decreasing: as of 2010, monthly unlimited ADSL connection of 1 Mbit/s cost around US$20–25 per month. While the cost of international traffic has gone down over the last several years, the cost for usage of the local infrastructure remains unchanged. Approximately 50 percent of the expenses of small ISPs are local connection costs paid to the state-owned company controlling the market. Because these expenses are the same for all providers, they agreed among themselves to charge end users the same price for unlimited monthly dial-up service. Larger providers temporarily blocked the ISPs that tried to contravene the concerted practice. In December 2007, for example, two small providers—SuperOnline and AvirTel —were blocked by local ISPs (Adanet and IntraNS) while trying to provide service at a lower price for customers. Shortly after the providers agreed to bring the price of their services into line, the block was lifted. For similar reasons, the larger ISPs blocked another smaller local ISP, Azeronline.

In Azerbaijan, fixed-line telephony is largely centralized in the hands of the state-owned telecom provider AzTelecom, which also acts as a commercial ISP. Delta Telecom (previously operating as AzerSat) is the main ISP in the country, supplying international connectivity to at least 90–95 percent of all users. Delta Telecom also owns the Internet international gateway and sells international traffic to almost all ISPs. The nonprofit AZNET/AZRENA project provides connectivity to the educational and research community and benefits from a satellite channel built under NATO's "Silk Road" project. AzEuroTel started commercial activity as a telecommunications company and thus managed to establish a relatively wide network infrastructure. AzEuroTel and Adanet also have satellite channels to Russia. AzerOnline, which is funded predominantly by the largest mobile operator, Azercell, has an additional satellite connection to Turkey. The cost of satellite connection is very high because of the monopoly regime set by the MCIT.

Since the second half of 2007, Azerbaijan has not had a free Internet Exchange Point (IXP). Delta Telecom controls the only IXP, and charges the same amount for local and international traffic. Providers have not been able to agree on setting up another IXP. The external traffic of Azerbaijan is now 6 Gbit/s, which is a notable increase from the 155 Mbit/s capacity of 2006. Delta Telecom has external fiber optic connections with Russia via TransTelekom and with Turkey via Rostelecom (Indirectly, Delta Telecom serves Georgian users because a local ISP, TransEuroCom, buys international traffic from Delta and carries it by fiber to Georgia. Through the TRACECA line, TransEuroCom is connected also to the TurkTelecom in Turkey. State control over domain name registration is limited. The assignment of the country code domain name ".az" is controlled by AzNic, Ltd., a joint venture among three Azerbaijani firms. The cost for a one-year registration is US$34. Network Technologies (a subsidiary of IntraNS) is the company that carries out registration and administration of the top-level domain (TLD) in the country. Domain name registrations cannot be done online. Instead, a client is required in most cases to go in person to the offices of the domain name holder. Since 2002, the number of registered domain names has rapidly increased, with approximately 3,000 first-level and more than 6,000 second-level domains registered under the .az TLD.

Mobile telephony is increasingly popular among the younger population. This is especially true in rural areas, where the fixed-line infrastructure is poor and people are increasingly subscribing to mobile services. The major mobile operator in the country is Azercell, with more than 35 percent MCIT participation. Bakcell, the second operator, is relatively small. Azercell recently started offering mobile e-mail services. Both operators provide coverage across all Azerbaijani territory (except the territory of Nagorno-Karabakh). In March 2006, the MCIT agreed to grant a license to a third GSM operator, Azerphone. Catel started operation earlier. The state telecom, AzTelecom, has participation in the two new mobile operators. Azercell, Bakcell, and Azerphone provide WAP and GRPS services. Mobile providers also use Delta Telecom's external channel for Internet.

Legal and regulatory frameworks

Even though Azerbaijan made telecommunications and Internet national development priorities, the telecom regulatory framework remains insufficiently developed. The MCIT acts as both regulator and operator. In 2008, the MCIT moved to separate the two functions but has not yet completed this process. Some telecommunications services must be licensed, including VoIP.

The major public telecom operators are the government-owned AzTelecom, Azeronline, IntraNS, Adanet, and AzEuroTel (50 percent owned by the MCIT and 50 percent by a British company). Around half of the telephone lines in Azerbaijan are analog, and more than 85 percent of the main lines are in urban areas. The MCIT has adopted a program for development of telecommunications aimed at modernizing the telecommunications infrastructure.

Under foreign pressure, the government has taken steps to liberalize the ISP market. Compulsory state licensing for ISPs was eliminated in 2002, although the MCIT has continued to ignore this provision on isolated occasions. The MCIT continues to hold about a 50 percent share in a few of the leading ISPs in Azerbaijan. Azerbaijan applied for World Trade Organization (WTO) membership in 1997, and even though some progress in liberalization of services was made, the country still remains on the accession agenda. It has been suggested that there is not enough political will to join the WTO, mainly because local businesses fear the loss of their advantageous position in the internal market.

From a regulatory perspective, the Internet is treated as mass media, and is included on the list of telecommunications services regulated by the 2005 Law on Telecommunications. Azerbaijani law does not provide for mandatory filtering or monitoring of Internet content. However, as Web sites that criticize governmental policies have emerged, the government has considered introducing a law that will impose restrictions on Web sites with obscene or unpatriotic content, thereby strengthening already existing defamation laws. Content filtering is practiced by AZNET, the education and research ISP, but is regulated by an accepted usage policy and is restricted to filtering out pornographic content. Anecdotal accounts claim that filtering of specific Web sites occurs, which is seemingly the result of informal requests to ISP managers by state officials from the Ministry of National Security (MCIT), or the presidency. These instances have been infrequent, and the resulting public outcry has led to the swift unblocking of affected sites.

YouTube is also becoming increasingly popular among Azerbaijani Internet users. Several youth groups post videos online, and are using YouTube as a platform to communicate with other members or members of the public. The popularity of the multimedia site prompted the head of the National Council on TV and Radio Broadcasting of Azerbaijan, Nushirevan Magerramli, to announce the government's intention to regulate Internet TV and Internet radio.

The Telecommunications Act is expected to prohibit the same legal entity from merging more than three publications under one TV and radio company. In 2007, the government announced that in some regions of the country, TV signals from neighboring Armenia and Iran are stronger than the national TV broadcast. As a result, the National Television and Radio Council ordered a discontinuation of the broadcast of Russian and Turkish TV stations on Azerbaijani territory. In October 2008, the council announced its decision to suspend the licenses of some international radio channels, such as the BBC
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