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Economic Metrics	(Jan-May) 18/19
(Jan-May) 18/17
GDP	102,2	101,1
GDP per capita	101,3	100,2
GDP from ICT sector	114,9	106,3
Average monthly nominal salary	107,9	103,5
Unemployment rate	5.2%	5.0%
Inflation rate	2.3%	2.5%

In concordance with the German Trade Invest the evaluation of the Azerbaijan Market Analysis in the Y 2019, the ICT sector got over the industrial stagnation and will show the progress in the nearest future. The growth rate of the telecom and IT sector is expected 12% average annual growth until 2022. (Market Analysis, Azerbaijan 2019)
Social.
The social life of the Azerbaijan population has been modified with the integration and enhancement of the telecom sector players. Comparing with the previous decades, the emergence of wireless telecommunication and internet has changed the communications habits of the population.
According to the statistics of the State Statistical Committee of the Azerbaijan Republic, the public switched telecommunication networks the considerable expansion started from Y 2005, and within the particular period, the penetration level of the fixed-line per 100 inhabitants reached to 16 on average. (stat.gov.az, 2018) Furthermore, the successful launch of the national “100 Phones for 100 Households” project by MCHT in Y 2008 boosted the fixed-line penetration across the residential areas of the country. (International Communication Union) However, the annual growth rate of fixed-line started gradually express the adverse outcomes and based on Azerbaijan Telecom, mobile and broadband statistics and analysis report by A Buddecom the fixed-line penetration achieved the highest indicator in Y2015 by reaching 19%, but since then the negative turning point occurred and penetration level fallen to 17 % in Y2017. The negative trend
in the position of the fixed-line caused by the rise of wireless communication penetration and in consequence of the mobile network availability across the country diminishes the importance of fixed-line usage. The substitution of the PSTN within mobile usage became clear from a comparison of the average rate of 100 inhabitants for fixed and mobile line communications. (stat.gov.az, 2018). The growth of wireless telecom communications impacted the fixed-line position in the communication arena and the PSTN usage substituted by the mobile one. The development in the wireless telecommunication network expansion and the achievement of the new advanced technological tools enhanced the mobile telecommunication position in the telecom market. The deployment of high-speed network intelligence outperformed the mobile market proliferation. Besides the substitution of the featured phone by smartphones boosted the addiction of users to mobile communication and the internet. Based on GSMA data the features phones lose the market share, and the smartphone penetration compound annual growth rate is 37 % in the last three years. (GSMA, Intellegence, 2018)

Technical.

The substantial integration of the ICT sector occurred after the emergence of mobile and internet services in Azerbaijan telecommunication industry. The internet emerged in the ICT market of Azerbaijan in Y1996, but the substantial expansion of the fixed- broadband was achieved in Y 2005 after the development of the national telecom infrastructure through the adoption the sector-specific policies. The government sustained the extension of the broadband through the National Broadband Development (FTTH) Plan. In the period 2014-2016 the government established fiber optic cables across the whole country, including underserved rural regions. Besides, the elimination of the licensing for the internet services providers refined favorable entrance conditions. The number of Internet Service Providers (ISP) reached 40, and the rise of competition positively influenced the service availability and the affordable pricing strategy. Together with the expansion of fixed broadband, mobile broadband experienced pivotal changes starting from Y2011. The deployment of the new advanced technologies and extension of the 3rd and 4th generation mobile network across the residential areas of the country intensified the broadband penetration. The access to the fixed broadband reached 71% in 2014 (stat.gov.az, 2018) and after the emergence of 4G to the mobile network operators` portfolio in Y 2012, the total number of mobile internet user increased around 90%. Overall, according to the Buddecomm Y 2017 and the Asia bank Mobile and Broadband Y2018 report the number of internet users reached to 8 million from total 10 million and the penetration rate was around 80% through the whole country population. (internetworldstats.com, 2019), (Asian Development Bank, 2019).
Figure.2 Internet Users

In addition to the internal development, In Y 2009 Azerbaijan has launched a Trans-Eurasian Information Super highway (TASIM) after the acceptance of the resolution by United Nation Assembly. Azerbaijan leads the project within co-sponsorship of 30 states. In the first stage, all participating countries worked on the integration of the high-speed internet and establishment of the transit infrastructure for connection of the West and East. In the second stage, it is projected to use established transit infrastructure for spreading connection with Central Asia countries by providing high-speed internet. Due to the requirement of TASIM, the national infrastructure should be updated by upgrading the existing lines and establishing the new fiber- optic line. (Trans-Eurasian Information Super Highway, 2017)

Ultimately the integration of the broadband is being supported by sustainable government plans and private sector deep intervention. As a positive outcome of all these operations Azerbaijan was ranked ICT development index 65 out of the 175 countries by The International Telecommunication Union (ITU) and this is the highest result among the South Caucasus Republics. (ICT Development Index , 2017)
The evaluation of the industry from the different perspective approves that political and economic conditions are lucrative for the integration, and government put enormous efforts for the development of the industry and support readiness for further progress. Considering supportive government intervention and the development of knowledge-based technology together with fixed and mobile broadband penetration, the influence of the industry to the country economy will continue within an upward trend, and the existence of advanced technologies can maintain the integration of the total business environment.

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