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29.08.2014 12:27

TASIM participants to introduce business model of project

Baku, Azerbaijan, Aug.26

By Huseyn Veliyev - Trend:

Participants of the project of the Trans-Eurasian Information Super Highway (TASIM) construction will soon introduce the business model of the project, a source in the telecommunications market of Azerbaijan reported to Trend Aug. 26.

According to the source, it is expected to hold a meeting of the participants in the near future to reveal the contours of the further implementation of the project, to determine the legal status, powers, role of the participants and the financial costs of the project.

Parties involved will introduce their own vision of the business model of the project and of the traffic management, as well as investments and incomes distribution.

Laying of the Caspian segment of cable line is an integral part of the TASIM project, and negotiations with Kazakhstan are underway.

Recently, the World Bank (WB) offered participants of the TASIM project to create a third alternative route through the territory of Turkmenistan, which also has an outlet in China with the continuation of the East Asian countries (Indonesia, Vietnam, etc.), where demand for Internet content is high.

He said that the construction of the offshore section of TASIM has always been a matter of geopolitical nature.

"It is encouraging that today the countries of Central Asia can make independent decisions despite the absence of decision on the issue of determining of the status of the Caspian Sea. They can implement the projects on their own segments," said the source.

According to the source, the Kazakh side has not sought to publicize the TASIM project in the media due to the lack of willingness of the new vendors emerging. It is assumed that this may affect the timing of the project, which is already delayed.

"Apparently, Kazakhstan has already identified its vendors. Political will is an important aspect in the construction of the underwater segment. Azerbaijan has such a will. Regarding the proposal of the WB for the construction of TASIM alternative route in the direction of Turkmenistan, it is a positive step welcomed by the project participants. However, the situation with this country is more complicated. For example, attempts by Azerbaijan to cooperate in this area [construction of the underwater segment] remained unanswered," said the source.

TASIM project provides the creation of a major transit link from Frankfurt to Hong Kong. The network, which will bring together the largest information exchange centers in Europe and Asia, will run through China, Kazakhstan, Azerbaijan, Georgia and Turkey to Germany.

The TASIM project involves countries such as Russia represented by Rostelecom, Kazakhstan (KazTransCom), Turkey (TurkTelecom), China (China Telecom). Azerbaijan is represented by the Center of International Relations and Calculations Ministry of Communications and High-tech.

According to preliminary estimates, the cost of the project is estimated to $100 million, and after approval of certain aspects it can be adjusted. The investment will be distributed equally between the project participants. Construction is scheduled for 2016.

TASIM project aims to reduce poverty, accelerate economic growth, and can also play a leading role in the development of the region. Its implementation will eliminate the "information gap" between Western Europe and the Pacific.

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