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The construction of TASIM will provide a major boost to the ICT sectors of all the countries it impacts and aims to bring affordable high-speed internet to Azerbaijan.
As the ICT sector continues to grow in size and importance in Azerbaijan, there have been a number of directives designed to promote technology in the country. The newest project is sure to introduce a new age of opportunity, and construction of the Trans-Eurasian Information Super Highway (TASIM) is underway.
TASIM will be “super” in every definition of the word, with plans to connect Frankfurt to Hong Kong through a new, low-latency fiber-optic route. With an initial cost of $100 million, the current 11,000km route for this project is to pass through China, Kazakhstan, Azerbaijan, Georgia, Turkey, and then through Europe to Germany. The initial bandwidth of TASIM is 2 TB/s. A reserve transit line will pass through Russia, Ukraine, and Poland.
The TASIM project will provide innumerable benefits to Azerbaijan and other countries in the region. In addition to improving regional and global internet connections, TASIM also introduces route diversification, offers greater resilience in the wake of disasters, and will bring about innovation and ICT modernization capabilities to the region. TASIM will connect the largest information exchange centers of Europe and Asia.
The construction of this megaproject will proceed in two different stages, as highlighted in a 2013 MoU signed by all participating countries. The first stage, which has been in progress since 2013, is devoted to readying the infrastructure of the region. Azerbaijan and other key countries in the project will construct modern transportation and transit pathways that will eventually connect TASIM from Asia to Europe. New infrastructure modifications are necessary to make TASIM a commercially sustainable service in the quickly growing and international IP transit network.
The second phase will be carried out in connection with a 2013 UN general assembly resolution, which supported Azerbaijan's motion for the establishment of the Eurasian Connectivity Alliance (EuraCA) in the construction of TASIM. EuraCA works to facilitate the exchange of knowledge and experience and is a platform that encourages regional cooperation and partnerships. It also helps promote policy dialogue between the Eurasian countries that are involved in the TASIM project.
In the second phase, with the essential transit infrastructure in place, countries can leverage this service to enjoy access to more affordable internet rates. This has the greatest positive effect on landlocked Eurasian countries that do not have access to the ocean. Countries with access to the ocean have the luxury of accessing fiber-optic networks that are laid across oceans via underwater lines. These underwater connections allow for a direct fiber-optic connection to other continents, from Europe to North America, for example. Countries that are landlocked, on the other hand, cannot utilize this marine fiber optic network and consequently end up paying more for internet access. The TASIM project will change that.
Speaking on the monumental impact that this project will have on the future of Azerbaijan, the Minister of Communications and Information Technology Dr. Ali Abbasov has been quoted as saying that once TASIM is completed, it will be “as important as TANAP,” referencing the $10 billion Trans Anatolian Natural Gas Project. The Minister's remarks are born out of the far-reaching implications of this project. TASIM will provide an international foundation from which further ICT ventures can come to fruition in Azerbaijan.
In the finance realm, the already burgeoning e-commerce industry in Azerbaijan will receive a boost as a result of the widespread broadband web connectivity that TASIM will offer. E-services, including e-government initiatives, will be bolstered in importance and enjoy greater accessibility at cheaper rates. Facilitating a new range of e-services will encourage industrial development and expansion in the country at a time when diversification is paramount. As more companies will be able to offer e-services, economic competition will increase as well, driving up efficiency and quality to the benefit of consumers. The increase in ICT services will also bring additional benefits to the agriculture, health, and education sectors of Azerbaijan. Along with these tangible benefits comes an increase in the human development potential of the country. TASIM, at its most basic, will help create an information society in Azerbaijan.
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TABLE OF CONTENTS
Year In Review
Good Times Ahead
<strong></strong><strong>In a year dominated by the overarching theme of low hydrocarbons prices, Azerbaijan showed resilience and verve in putting in place bold measures both to counter the slump in energy prices and put its economy on a surer footing.</strong>
read articleReview: Diplomacy
Operation Outreach
In 2015, Azerbaijan's military budget increased by a notable 27%, to $4.8 billion, or 17.9% of the government's total budget for the year. The first Azerbaijan Defence Exhibition (ADEX 2014), drew over 200 companies from 34 countries, including Russia and the US.
read articleInterview
Rufat Mammadov, President, Azerbaijan Export and Investment Promotion Foundation (AZPROMO)
TBY talks to Rufat Mammadov, President of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), on large-scale events and their ability to attract FDI and the potential Iran may hold.
read articleReview: Banking
More Interest
In a sector faced with relatively flat growth for 2015-16, new opportunities are still there aplenty, led by the nascent Islamic banking sector, e-banking, and microfinance initiatives. Together, these areas should make banking more diversified and less reliant on a buoyant energy sector for its capital inlay.
read articleReview: Capital Markets
Taking Stock
As Azerbaijan grapples with the knock-on effects of low hydrocarbon prices, the Baku Stock Exchange (BSE) finds itself at the center of the country's efforts to stave off a budget deficit this year. In January, the government announced plans to sell $500 million worth of bonds on the BSE.
read articleReview: Industry & Mining
In The Bag
Industry in Azerbaijan is long established, diversified, and, in many areas, fast growing. Together, these qualities make the sector well placed to see through the global slump in commodity prices, while at home, the manufacturing industry continues to find ways to use its hydrocarbons expertise in other fields, including high technologies and research.
read articleInterview
Khanlar Fatiyev, , Chairman of the Supervisory Board, Ganja Automobile Plant Production Association
TBY talks to Khanlar Fatiyev, Chairman of the Supervisory Board of the Ganja Automobile Plant Production Association, on the role of the plant in driving growth in the non-oil sector.
read articleReview: Transport
The New Node
With major new railways linking the region, the opening of the new Baku International Sea Trade Port Complex, the completion of a massive program of road building and upgrading, investment in state-of-the-art fleets ranging from Boeing 787s to rail locomotives, Azerbaijan can rightly claim the title as the Caucasus' transportation hub.
read articleReview: Agriculture
Lots More
Farms across the country are pursuing a policy of increased yields for year-round fruit and in the wheat harvest to stave off an over-reliance on imports. With carefully targeted increases in exports, better routes to port and to market, and greater sophistication of agricultural facilities, farming could soon be the morning star of Azerbaijan's diversified economy.
read articleReview: Health
Under One Umbrella
Life expectancy at birth (2015) is 75 years for women and 70 for men. The median age is 30. For both sexes, longevity increased by six years between 2000 and 2012. Azerbaijan is a relatively youthful country—an important factor in healthcare—with 22% of its populace aged under 15 and just 9% aged over 60.
read articleReview: Education
Baku to School
Azerbaijan's culture has always harbored a deep respect for educational values. This is embodied in the country's Azerbaijan 2020 mission statement, which seeks to raise standards across the sector and introduce ICT as a standard part of the learning experience at all levels.
read articleInterview
Elkhan Mammadov,, Secretary General, Association of Football Federations of Azerbaijan (AFFA)
TBY talks to Elkhan Mammadov, Secretary General of the Association of Football Federations of Azerbaijan (AFFA), on the experience Azerbaijan is gaining in hosting international events.
read article
