The ICT is one of the most attractive and dynamic sectors of economy for investors. It is the fastest growing non-oil sector in terms of increasing revenues. The number of consumers is growing rapidly. Azerbaijan recognizes that high technology is a key contributor to its future prosperity. It has high ambitions to inspire the younger generation that are the main users of technology. The Internet Penetration in Azerbaijan is 79%. Currently, there are four mobile operators in the country. Three of them provide mobile services in 2G, 3G and 4G frequencies. 3G technology has been operating in Azerbaijan since 2009. Azerbaijani consumers started using 4G technology from 2012.
The Azerbaijani government seeks to develop the country's IT market, having launched education and e-government programs, increased digital resources available to schools and universities outside of Baku, and expanded e-services. The government also established several technological parks throughout the country that offer tax breaks and exemptions for companies. These incentives include profit, land, and property tax breaks and VAT exemptions for imports for the first 7 years after a company begins operations at the technological park. Despite these projects and government plans to liberalize the telecommunications sector, the regulatory framework governing telecommunications and information technology needs improvement.
The ICT sector is pioneering the application of innovative technologies into Azerbaijan. The 'ASAN' services is a 'one-stop-shop' for the delivery of public services, which has been commended by the Asian Development Bank for reducing corruption. Azerbaijan owns two satellites, which provide communication services including digital broadcasting, the Internet access, data transmission and VSAT multi-service network to public and private sector representatives in Azerbaijan, Central Asia, Europe and Africa. The government wants to encourage entrepreneurship in ICT. As a result, the ICT Development Fund was established with financing in the form of soft loans and grants. The Fund started financing projects in 2014.
Azerbaijan announced a Strategic Road Map for the development of the telecommunication and information technologies sector. The document was approved by a decree of President of the Republic of Azerbaijan dated December 6, 2016. According to the Road Map, the long-term vision for the period up to 2025 in the information and communication technologies sector is to continue the innovation-driven reform in this sector. This will increase the range and scope of modern services, to expand the coverage of broadband networks, and to ensure the country's development through the standards of international telecommunication standards, and improve the level of technical literacy of the society to achieve the formation of a digital economy.