Opportunities of ICT sector. The Ministry of Information Technologies & Communications Ms. Dona ŞCOLA, Deputy Minister
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1 Opportunities of ICT sector The Ministry of Information Technologies & Communications Ms. Dona ŞCOLA, Deputy Minister
2 Outline ICT development assessment & benchmarking ICT sector performance & key figures Opportunities for electronic communication & IT Increasing demand for ICT usage (e-government)
3 Ministry of ICT mission & core value ICT is the key driver of economic growth, efficiency, productivity enhancement, and transparency Our mission is to ensure sustainable growth of ICT sector through free market and export oriented policy development We create business opportunities and encourage investments by promoting fair competition and enhancing international competitiveness
4 Key indexes for assessment ICT Development Index captures the level of advancement of ICT worldwide, compares progress made between 2002 and 2007 Networked Readiness Index measures the propensity for countries to exploit opportunities offered by ICT ICT Price basket monitors the cost of ICT services, tracks prices of ICT services, and measures ICT affordability
5 ICT Development Index IDI Rank IDI Rank Sweden Estonia Slovenia Croatia Bulgaria Romania Ucraine World (average) Moldova
6 Networked Readiness Index (127 countries) (134 countries) NRI rank NRI rank Denmark Estonia Slovenia Croatia Romania Ukraine Bulgaria Moldova
7 ICT Price Basket ICT PB value 2008 Rank GNI (US$) PPP Singapore Slovenia Estonia Croatia Romania Bulgaria Ucraine Moldova World (average) Butan
8 European harmonized legal framework for ICT development Law on personal data protection (2006) Law on electronic document and digital signature (2006) Law on state registers (2006) Law on electronic commerce (2006) Law on electronic communications (2007) Law on cyber crime prevention (2008) Law on scientific-technological parks and innovation incubators (2008) ICT development strategy (draft) Broadband program (draft) Digital TV strategy (draft)
9 European Union Directives for ICT development Framework Directive 2002/21/EC Authorization Directive 2002/20/EC Access Directive 2002/19/EC Universal Service Directive 2002/22/EC Competition for electronic communication Directive 2002/77/EC Privacy on electronic communication Directive 2002/136/EC Mutual recognition on telecom. equipment Directive 1999/5/EC Information Society services Directive 2003/98/EC Re-use of public sector information Directive 2002/19/EC Framework for e-signature Directive 1999/19/EC Regulatory framework for radio spectrum Decision 676/2002/EC Spectrum use for mobile on aircraft Decision 2008/294/EC
10 ICT sector performance Major pillar of the Moldovan economy (9,5% of MD s GDP) 25% average sales growth (2007) One of the highest paying sector 5% of MD s export employees Source: USAID CEED
11 Electronic communications industry (EC) EC represent 5,76% of GDP Total sales 5,6 bn. lei, Investment 1,75 bn. Lei Fixed line penetration 32% 19 companies Sales 1.9 bn. Lei ARPU 143 lei Mobile penetration 78% 4 wireless providers Sales 3 bn. Lei ARPU 97 lei Internet access BB penetration 5.27% 50 ISPs Sales 436 ml. lei
12 Investment opportunities in EC industry Broadband infrastructure deployment (targeted at 20% in fixed and mobile locations by 2013) Digital switchover (completed by June 2015) Policy challenges Digital Evolutional transformation of telecommunication infrastructure overcoming existing digital divide Balancing incumbent prosperity with market development Motivation to implement advanced ICT-Business Models (ex: Virtual Services Providers)
13 IT industry performance IT has shown a ten-fold increase in growth in exports over the last 5 years from 2.6 mln. $ US to 26 mln. $ US IT represents 0.76% of Moldova s GDP IT is 1% share of Moldovan exports 78% average sales growth (2007) 519 IT companies in Moldova 6,600 employees
14 Opportunities of Information Technologies industry Near shore and offshore operations for foreign IT companies Outsourcing services for foreign companies Back office and shared services for foreign companies
15 IT industry potential to export more Creative mindset Language proficiency skills Western cultural similarities Convenient time zone Geographical proximity Inexpensive and skilled labor Good communication infrastructure
16 Challenges Increase local companies competitiveness Quality Lab Innovation Center Tech Park Unique country proposition Formulation Promotion
17 E-Government: Increasing demand for ICT usage Transformational government is enabled by ICT Better public ICT project management Active involvement of private companies in egov projects Increased internal demand for ICT products and services, both in public and mass market consumption Increased demand for communication infrastructure
18 Thank you Dona Şcola, Deputy minister tel: fax:
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