Achievements and main indicators made in information and communication technologies life of Azerbaijan can be very interesting. And expectations for 2007.

Annual growth rate in the ICT sphere has exceeded general growth rate by 2 or 3 times in Azerbaijan during recent years. Gross Domestic Product growth hit 30% in 2005 and 2006, which changed the ratio. The growth in communications sphere was 30% in 2006. Recently the internet users increased by 10-15%, mobile users 30-32 per 100 people, websites reached 10 000 in number. We intend to turn to the leader of the region in this sphere. 80% of postal networks will be centralized in a computer center. As from next year posts will offer banking services. At present AzTV covers 98% of Azerbaijan's territory and ITV (Public TV) covers 88%. Coverage of the other broadcasters is between 50% and 60%. According to these indicators, Azerbaijan is not behind in the world. Telecommunication field will be the top priority following the oil sector.

What about creation of innovation zones. What are the expectations?

We have great targets. If we can implement these projects, the incomes of this sector will overtake petrodollars in 2012-2015. These ideas failed in some countries. Ireland, China, Malaysia, India and South Korea succeeded in this sphere. We are consulting with Monitor and AlimBus. We plan to forward our proposals to the Government and Parliament by March 31, 2007. The proposals reflect privileges in taxes and customs duties. President Ilham Aliyev declared ICT sector the new priority of Azerbaijan while addressing Bakutel international exhibition in October. These plans attracted many foreign companies to Azerbaijan. CISCO, Intel and other famous companies want to take part in the creation of technoparks. Ericsson, Siemens and Huavey are among the interested.

Will innovation zones be created in one region or a number of regions for Phase 1?

We speak about privileges which can also be misused by some companies. We want to remove imbalance between Baku and regions. We think the project should cover all over Azerbaijan and the companies have privileges in the operating activities.

Which components does the innovation zones project include and is it possible to differentiate the privileges among regions?

We are negotiating with both the Government and he companies in order to satisfy the both parties at the same time. Creation of technoparks will be followed by production and export of electronics. At the next stage Azerbaijan will be a bridge between the West and the East. The prices of western imports will fall by five times. Azerbaijan will form a giant info market. Submarine optical cable should also be laid in the Caspian, which will be a shortcut between the West and the East. Creation of Azerbaijan Technologies University for development of education and human capital is also under discussion, of which founder is not the Government but ICT giants like CISCO, Ericsson who want to qualify personals for themselves.

Will Azerbaijan participate in funding the project?

The Government can allot some activities for companies free or with privileges. Also, the government investment is vital for creation of e-government, adoption of new laws, improvement of legislation and necessary infrastructure. Foreign companies are planned to finance creation of new ventures, installation of new systems. Foreign investors demand security for their investment, like international oil contracts, the innovation zone project contracts should be ratified at parliament. And in this case, protection of investment and the commitments of the foreign companies can be ensured. As in oil contracts, these contracts should reflect percentage of revenues. If we can send the proposals to parliament in March, the first investment will flow to Azerbaijan in fall.

All TV broadcasters should convert to digital system by 2015. How will this project be realized?

There is almost no digital system in the South Caucasus and Central Asia. According to the demands of International Telecommunication Union, all countries to convert to digital system. We prepared a program envisaging transition to digital system by 2015. The Cabinet approved our program and it seems to me the program will be implemented successfully.

What difficulties do you experience in transmission of foreign broadcasters in Azerbaijan?

5 foreign TV and 7 radio channel broadcast in Azerbaijan. Some violate our laws. According to the legislation, a foreign broadcaster can transmit if there is a intergovernmental agreement. There is no problem with Russia broadcasters. We also have agreement with Turkey. In reality, TRT doesn't pay for broadcasting, but the problem will be solved next year.

Iranian, Russian and Central Asian broadcasters interfere in the airspace of Azerbaijan. The Government blames private channels of Azerbaijan for this interference. What measures are being taken?

It is impossible to completely prevent electromagnetic waves. The broadcasting can reach 300km, but 500km in sea. International Telecommunication Union has rules. For instance, if Iran has a channel in 25th channel near the border, Azerbaijan is not allowed to broadcast in 25th channel. Countries should show tolerance. We are concerned that foreign broadcastings coincide with ours. I met with Iranian minister in Antaliya and we agreed to sign an agreement on this field. The channels will be distributed after this agreement is signed. Our private broadcasters are guilty sometimes because their broadcasts are weak. All broadcasters, in particular privately-owned channels should strengthen broadcasting.

Armenians use our transmitters in the occupied lands and interfere in Azerbaijan's airspace. What pressures can the ITU exert on Armenia about this problem?

Our transmitting stations were left in Shusha, Jabrail, Gubadli and Zengilan. I brought up this issue and put forward demands in the ITU conference. There are some conflict zones in the South Caucasus as well. But, the Union has no experience in this sphere, Azerbaijan was the first to raise this question.

Communications enterprises are planned to be privatized within the public properties privatization program. How the process is going on?

First, joint enterprises are privatized and, then, the state-owned enterprises. The Government's participating interest in Azercell Telecom was planned to be privatized this year, but the process was put off for next year. There are problems with assessment and privatization of this high-income enterprise. AzEuroTel and Catel are in privatization auction now. We will also take a step in privatization of the state-owned enterprises in 2007. Mechanism for assessment of telecommunication system has changed recently.

With what kind of succession will the privatization be carried out?

Teleradio Unit will not be privatized so far. The Government's participation in television and radio activities is necessary because there are lots of problems in this field. Azerpocht will not be privatized so far either because it is not considered profitable. Aztelecom and Bakitelecom can be privatized. Internet providers- Bakinternet, Aztelecominternet and Azerin can be privatized. Telephone outlets will be privatized earlier than Teleradio and postal ones.

Customers complain about tariffs of cellular providers and many wait for Azerfon - the third operator.

Azerfon doesn't have so great potential as Azercell and Bakcell have in the market in order to reduce prices. Azerfon's first step will cover price-related activities. Azerfon's coming on line will have positive influence on market prices. Bakcell's price policy has influenced the market greatly. I think Azerfon will take concrete steps in this direction.

Are you satisfied with the tariffs offered by internet providers?

They try to keep the current prices unchanged. I don't understand their policy, they can't expand their customers stock without reducing prices. Unfortunately, their appeals sent to us suggest that the existing prices remain unchanged. The State can offer financial resources. They should be capable of borrowing long-term loans which will enable them to reduce prices. At present, the providers' incomes only consist of the tiny payment of the customers.