From: Justin Burke (JBurke@sorosny.org)
Date: Tue Dec 23 2003 - 17:42:32 EST
Azeri telecom expert complains about state monopoly on Internet services
Text of report by Azerbaijani news agency Turan
Baku, 19 December: The state of the Internet market in Azerbaijan is
unsatisfactory. As compared to other states, information technologies,
especially the Internet, are developing very slowly in Azerbaijan, Osman
Qunduzov, head of the Multimedia centre for information technologies and
president of the Azerbaijani Internet forum, has told our agency.
A monitoring carried out by local public organizations and the findings
of international institutions confirm this, he said. According to the
findings of international organizations in the information technologies
sphere, especially in the Internet, the situation in Azerbaijan is worse
than in other countries of the CIS [Commonwealth of Independent States].
Qunduzov believes that the main obstacle to the development of the
Internet market is the state monopoly. "Given that the entire telephone
communications is state property, the Communications Ministry can
technically influence the performance of the Internet service by
blocking communication channels," Qunduzov said.
The situation is complicated because of lack of an alternative Internet
infrastructure in Azerbaijan, and everybody uses the existing
communication infrastructure which is fully owned by the state, namely
the Communications Ministry.
Issues pertaining to the development of the Internet in regions can be
resolved only through the Communications Ministry since all the
international communication channels (the Aztelecom production
association) and the TAE [Trans-Asia-Europe] project of fibre-optic
cable communication are subordinate to the ministry.
Moreover, the state itself in the person of the Communications Ministry
is engaged in providing Internet services (the provider is Bakinternet)
which leads to unfair competition on the market. "After all, the status
of the Communications Ministry should be resolved, which is
simultaneously the regulator and a commercial structure," Qunduzov said.
He pointed out a fewer number of active Internet users in Azerbaijan
than in other neighbouring countries. Although there are 14 Internet
providers in Azerbaijan, only three companies (AzEuroTel, AdaNet and
Azeronline) have independent access to the Internet via satellite
communications. All the remaining providers have access to the line via
AzerSat which is a joint venture of the ministry. Until now the status
and role of the ministry in joint ventures are not clear.
Azerbaijan has the highest tariffs for Internet access, for Internet
links via the VSAT aerials, hosting services and the registration of
national domains. If unlimited services in the neighbouring and European
countries cost 20 to 30 dollars, in Azerbaijan this they cost 50-60
dollars.
Legal reforms in this sphere are also very sluggish. The approval of the
draft laws "On electronic signature" and "On electronic shopping" has
been delayed for three years, which, in turn, hinders the development
and investment in the Internet business in the country.
It is also necessary to adopt a programme or a law "On developing the
Internet in Azerbaijan", as well as on the development of regional
information and communications infrastructures. It is also necessary to
improve the law "On communications" and implement the presidential
decrees on privatization and liberalization of the telecommunications
industry.
Source: Turan news agency, Baku, in Russian 1207 gmt 19 Dec 03
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