ALI ABBASOV: ICT SECTOR INCOMES TO EXCEED PETRODOLLARS BY 2015 IN AZERBAIJAN

Azeri Press Agency, Azerbaijan
Dec 5 2006

Communications and Information Technologies Minister Ali Abbasov
interviewed by APA

– 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.

AZERI FOREIGN MINISTER DISCUSSED NAGORNO-KARABAKH CONFLICT WITH CO-CHAIRS OF OSCE MINSK GROUP
Author: E.Huseynov

TREND Information, Azerbaijan
Dec 5 2006

A meeting was held in Brussels between the Azerbaijani Foreign
Ministers Elmar Mammadyarov and co-chairs of the OSCE Minsk Group,
the Head of the Press and Information Policy Department of the
Azerbaijani Foreign Ministry, Tahir Tagizade, informed Trend.

The meeting focused on the present stage of the process of peaceful
settlement of the Nagorno-Karabakh conflict and the plans for the near
future. In addition, despite that the meeting of the Azerbaijani and
Armenian Foreign Ministers were planned, it did not take place due
to the rich working schedule of the Ministers.

Mammadyarov met in Brussels with his Portuguese colleague, as well
as the Chairman of the OSCE Parliamentary Goran Lennmarker.

MEETING OF AZERBAIJANI AND ARMENIAN FOREIGN MINISTERS IN BRUSSELS WILL NOT TAKE PLACE
Author: A.Ismaylova

TREND Information, Azerbaijan
Dec 5 2006

The meeting of the Azerbaijani and Armenian Foreign Ministers
in Brussels within the meeting of the Council of the OSCE Foreign
Ministers will not take place, the Head of the Press and Information
Policy Department of the Azerbaijani Foreign Ministry, Tahir Tagizade,
informed Trend.

He said that the meeting was cancelled due to the full working
schedules of the Ministers.

It should be mentioned that the Foreign Ministers of Azerbaijan Elmar
Mammadyarov and Armenia Vardan Oskanyan participated at the meeting
of the Council of OSCE Foreign Ministers on December 4-5 in Brussels.

Within the visit, a number of meetings, including the next round of
the consultations with Armenian Foreign Minister and co-chairs of
the OSCE Minsk Group, were planned.

FINNISH FOREIGN MINISTER ERKKI TUOMIOYA: OSCE MINSK GROUP CO-CHAIRS PLAY AN IMPORTANT ROLE IN SETTLEMENT OF NAGORNO KARABAKH CONFLICT

Azeri Press Agency, Azerbaijan
Dec 5 2006

"European Union considers that OSCE Minsk Group co-chairs play an
important role in the settlement of Nagorno Karabakh conflict",
Finland Minister of Foreign Affairs Erkki Tuomioya announced at 14th
OSCE Ministerial Council conference in Brussels, APA reports.

He said that OSCE, which plays an important role in the settlement
of South Osetin and Abkhazia conflicts, will intensify its role in
the settlement of Nagorno Karabakh conflict as well.

"European Union has signed an action plan with Armenia, Georgia and
Azerbaijan within Europe Neighborhood Policy and is satisfied with
this cooperation. We hope that this cooperation will consolidate
Europe-South Caucasus relations and bring stability to the region",
he said.

GUAM COUNCIL OF FOREIGN MAKES STATEMENT CONDEMNING SO-CALLED "REFERENDUM" IN NAGORNO-KARABAKH

Today, Azerbaijan
Dec 5 2006

The GUAM Council of Ministers of Foreign Affaires expresses its
serious concern over a so-called "constitutional referendum" in
the Nagorno-Karabakh region of the Republic of Azerbaijan, Foreign
Ministry Press center told.

The Council emphasizes that holding the so-called "referendum"
violates the Constitution of the Republic of Azerbaijan as well as
relevant norms and principles of the international law, APA reports.

"Thus, it will have no legal effect and the results of the so called
"referendum" will be considered as null and void."

The Ministers underline that the so-called "referendum" interferes
with an ongoing peace process, is designed to impose a fait accompli
situation in the region and misleads the international community.

The GUAM Council stresses that such an act runs contrary to the
universally recognized standards and values of democracy, rule of
law and human rights.

Any constitutional document envisaging a self-rule for the population
of the Nagorno-Karabakh region can only be elaborated through a
legal, democratic and peaceful process with a full, equal and direct
participation of the entire population of the region consisting of
the Armenian and Azerbaijani communities.

"The GUAM Council of Ministers of Foreign Affaires calls on the OSCE
participating States and other international organizations to condemn
such an illegal act and to support the ongoing efforts aimed at finding
a peaceful resolution of the conflict on the basis of the territorial
integrity of Azerbaijan within its internationally recognized borders."

URL:

NO-ONE WANTS A LASTING SETTLEMENT TO NAGORNO-KARABAKH CONFLICT MORE THAN WE DO – ARMENIAN FM
Author: A.Ismaylova

TREND Information, Azerbaijan
Dec 5 2006

No one wants a lasting settlement to the Nagorno-Karabakh conflict
more than we do, the Armenian Foreign Minister Vardan Oskanyan stated
at the 14th meeting of the Council of OSCE Foreign Ministers,Trend
reports. He said that the last meeting between the presidents of
Armenia and Azerbaijan gives us hope that agreement may yet be found
even on those principles around which we still don’t see eye to eye.

"We know that a lasting solution will depend on the security and status
of the people of Nagorno Karabakh. That is how this conflict began –
when their security was violated, and their right to self-determination
trampled over," Oskanyan said. The Minister underlined that the
principles under discussion seek to satisfy the right of the people
of Nagorno Karabakh to self determination while at the same time
eliminating the consequences of the conflict. We anticipate that
indeed Azerbaijan will find the will to acknowledge and respect the
right of the people of Nagorno Karabakh to determine its own future,
its own status, its own security arrangements. In just a few days,
Nagorno Karabakh will hold a referendum to adopt a Constitution,
Armenian Foreign Minister said. Oskanyan emphasized that so-called
"referendum" will take place in Nagorno-Karabakh several days later.

He spelled out that over the recent 15 years, they have built
political institutions, through elections they have selected their own
authorities and developed a legislative framework. They recognized
the need for a basic law, and recognized that a referendum is the
only acceptable way to collectively adopt that basic law.

STATEMENT BY THE COUNCIL OF MINISTERS OF FOREIGN AFFAIRS OF THE ORGANIZATION FOR DEMOCRACY AND ECONOMIC DEVELOPMENT – GUAM

AzerTag, Azerbaijan
Dec 5 2006

The GUAM Council of Ministers of Foreign Affaires expresses its serious
concern over a so-called "constitutional referendum" scheduled on
December 10, 2006, in the Nagorno-Karabakh region of the Republic
of Azerbaijan.

The Council emphasizes that holding the so-called "referendum" violates
the Constitution of the Republic of Azerbaijan as well as relevant
norms and principles of the international law, and, thus, shall have
no legal effect and its results shall be considered as null and void.

The Ministers underline that the so-called "referendum" interferes
with an ongoing peace process, is designed to impose a fait accompli
situation in the region and misleads the international community.

The GUAM Council stresses that such an act runs contrary to the
universally recognized standards and values of democracy, rule
of law and human rights. Any constitutional document envisaging a
self-rule for the population of the Nagorno-Karabakh region can only
be elaborated through a legal, democratic and peaceful process with
a full, equal and direct participation of the entire population of
the region consisting of the Armenian and Azerbaijani communities.

The GUAM Council of Ministers of Foreign Affaires calls on the OSCE
participating States and other international organizations to condemn
such an illegal act and to support the ongoing efforts aimed at finding
a peaceful resolution of the conflict on the basis of the territorial
integrity of Azerbaijan within its internationally recognized borders.

POLAD BULBULOGLU: ARMENIANS’ CONCERT IN MOSCOW AIMED TO CAST SHADOW ON CLOSING CEREMONY OF RUSSIAN YEAR IN AZERBAIJAN

Azeri Press Agency, Azerbaijan
Dec 5 2006

"Armenians wanted to raise the flag of separatist regime and sing its
hymn in the concert held in Moscow. But we did not allow them. We
sent a very serious note to Russian Foreign Minister on behalf of
the embassy.

As a result of our reaction all symbols of false state were gathered
from the concert hall," Polad Bulbuloglu Azerbaijani Extraordinary
and Plenipotentiary ambassador to Russia told the APA exclusively.

The ambassador estimated the Armenians’ concert "Golos Artsakha"
in Moscow as diversion.

"This is Armenians’ diversion. Solemn closing ceremony of Russian
year in Azerbaijan was held on December 4. Armenians’ concert in
Moscow aimed to cast shadow on closing ceremony of Russian year in
Azerbaijan. But nothing serious happened in the concert," he said.

The ambassador said that the Azerbaijani students detained during
the event have already been released.

"We had asked the young men not to participate in the event. But
40 students were taken to the police and released after offering
explanation," the ambassador said.

MINISTER: ARMENIA REMAINS ONE OF MAJOR ENERGY PLAYERS IN THE REGION

Regnum, Russia
Dec 5 2006

Despite the fact that 80% of Armenia’s energy capacity is under
control of Russian companies, the country lost nothing, moreover,
it gained, Armenia’s Energy Minister Armen Movsisyan said in an
interview to Golos Armenii newspaper. According to him, Armenia
depended on Russian energy carriers on 80% even before, so it depended
on Russia’s policy. "Our nuclear power plant was functioning thanks
to the nuclear fuel delivered from Russia, and thermoelectric power
stations were directly dependant on supplies of the Russian gas,"
the minister noted. He added that all Russia’s profit completed on the
border with Armenia: it was not interested in anything further. "Now
we have made their profit closer to our power generating facilities
and tied it to solution of our problems," Armen Movsisyan believes.

The energy minister said that if before only two of the four energy
reactors of the Hrazdan NPP could be enacted, today, after handing
the NPP over to Russia, all the energy reactors can be launched due
to works carried out by the new owner. If the Russian side was only
delivering nuclear fuel for the NPP, now, after receiving it under
its financial control they need to provide for its profitable and
sustainable functioning.

Besides, Armen Movsisyan noted that "whoever owns our power generating
facilities and other energy facilities, one cannot act in contradiction
to our national policy, as one will have no ways of influencing
our national interests," the minister said adding that according
to the national energy policy, the NPP, power lines and control
over electricity supply networks are owned by the state and cannot
be privatized.

The energy minister also said that Armenia was and is one of major
independent energy players in the region. "The region, let me remind,
where from year to year deficit of electricity is only increasing,
and Iran and Georgia, and even Russia need electric power. There is
no deficit in Armenia only," Armen Movsisyan concluded.

From: Emil Lazarian | Ararat NewsPress

SERBIAN FM ACCUSES WEST OF DOUBLE STANDARDS

Serbianna.com, MI
Dec 5 2006

BRUSSELS, Belgium-Serbian Foreign Minister Vuk Draskovic accused the
international community of applying double standards in its dealings
with Kosovo and urged the Organization for Security and Cooperation
in Europe not to trample over its own principle of respecting the
territorial integrity of its members.

Draskovic told a meeting of foreign ministers from the OSCE’s 56
member states that Serbia will not accept independence for Kosovo
and complained that all proposed solutions of the final status of
the province ignore Serbia’s interests.

"We are victims of double standards. Serbia is being considered
a unique case. No borders can be changed except those of Serbia,"
Draskovic said. "This summit should send a clear message that Serbia
is a state like any other state and that its internationally recognized
borders cannot be altered or renamed against its will."

The two-day conference of the trans-Atlantic security group focused
on Europe’s "frozen" conflicts in ex-Soviet republics and Kosovo,
which has been run by a U.N. administration as an international
protectorate since 1999, after NATO airstrikes ended a crackdown by
Belgrade on separatist ethnic Albanian rebels.

The United Nations has been mediating talks on the province’s
future status. A solution has been postponed until after Jan. 21
parliamentary elections in Serbia for fears a decision unfavorable to
Serbia could bring radical forces back to power, but Draskovic said
U.S. undersecretary of state Nicholas Burns told him there would be
no more delays.

The meeting also centered on long-running disputes in ex-Soviet
countries, the so-called "frozen" conflicts in the breakaway Georgian
regions of Abkhazia and South Ossetia, where Russian peacekeepers are
accused by Georgia of siding with the separatists; on the pro-Russian
separatist Trans-Dniester province of Moldova; and on the disputed
Nagorno-Karabakh region of Azerbaijan.

Russia clashed with the United States and western European nations over
its military involvement on Georgian and Moldovan territories, refusing
to discuss its commitment to withdraw troops and effectively ruining
chances of a common declaration at the security conference Tuesday.

The OSCE also assessed Kazakhstan’s candidacy for 2009 chairmanship
of the trans-Atlantic security group, but was likely to recommend that
the Central Asian country takes over the rotating annual presidency a
year or two later to have more time to implement democratic reforms,
despite Kazakhstan’s refusal to accept a delay to its bid.

Russian Foreign Minister Sergey Lavrov accused the OSCE of one-sided
efforts to push through what he called "politicized solutions" to
conflicts in former Soviet republics where the Russians are heavily
involved.

"They don’t like to be nailed down and told by others what to do," an
OSCE official said, adding that Russia refused to discuss withdrawal
from Trans-Dniester and the two Georgian regions despite being
pressed by many countries to do so. The official spoke on condition
of anonymity because the meeting continued.

Belgian Foreign Minister Karel De Gucht, whose country holds the
Vienna, Austria-based OSCE’s rotating presidency this year, also said
a possible solution was emerging on the conflict in Nagorno-Karabakh.

"We have made substantial progress, if not a breakthrough," De
Gucht said. "Trust between the two countries has grown considerably,
therefore it is highly possible that next year you will see a solution
to Nagorno-Karabakh."

Armenia and Azerbaijan are discussing terms of holding a referendum
on the status of the mountainous region in Azerbaijan that has been
under control of Armenian and ethnic Armenian Karabakh forces since
the 1994 end of a separatist war.

De Gucht said no agreement was possible on the situation in Georgia
at the current conference.

"There is a clear refusal on the Russian side to even discuss it,"
he told reporters.

The OSCE, a leading international security organization founded in
1975, is concerned particularly with conflict prevention, election
observing, crisis management and rehabilitation of post-conflict areas.

From: Emil Lazarian | Ararat NewsPress