Opportunities of ICT sector

The Ministry of Information Technologies & Communications Ms. Dona ŞCOLA, Deputy Minister

ICT development assessment & benchmarking

ICT sector performance & key figures

Opportunities for electronic communication & IT

Increasing demand for ICT usage (e-Government)

Outline

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

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

2002 2007

IDI Rank IDI Rank

Sweden 6.05 1 7.50 1

Estonia 3.93 31 5.97 26

Slovenia 4.47 22 5.88 28

Croatia 3.19 42 4.68 43

Bulgaria 2.74 51 4.37 45

Romania 2.48 60 4.16 46

Ucraine 2.50 59 3.80 51

World (average) 2.48 60 3.40 66

Moldova 2.13 74 3.31 68

ICT Development Index

2007-2008

(127 countries)

2008-2009

(134 countries)

NRI rank NRI rank

Denmark 5.78 1 5.85 1

Estonia 5.19 18 5.12 20

Slovenia 4.47 30 4.57 31

Croatia 4.06 49 4.09 49

Romania 3.86 61 3.97 58

Ukraine 3.69 70 3.88 62

Bulgaria 3.71 68 3.80 68

Moldova 3.21 96 3.30 99

Networked Readiness Index

2008ICT PB

valueRank

GNI (US$) PPP

Singapore 0.4 1 32470

Slovenia 1.2 22 20960

Estonia 2.0 43 13200

Croatia 2.1 46 10460

Romania 3.0 54 6150

Bulgaria 3.8 64 4590

Ucraine 5.2 76 2550

Moldova 11.2 99 1260

World (average) Butan 15.2 107 1770

ICT Price Basket

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)

European harmonized legal framework 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

European Union Directives for ICT development

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

20.500 employees

ICT sector performance

Source: USAID CEED

Electronic communications industry (EC)

Fixed line penetration 32%19 companiesSales 1.9 bn. LeiARPU 143 lei

EC represent 5,76% of GDP Total sales 5,6 bn. lei, Investment 1,75 bn. Lei

Mobile penetration 78%4 wireless providersSales 3 bn. Lei ARPU 97 lei

Internet access BB penetration 5.27% 50 ISPsSales 436 ml. lei

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)

Investment opportunities in EC industry

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

IT industry performance

Near shore and offshore operations for foreign IT companies

Outsourcing services for foreign companies

Back office and shared services for foreign companies

Opportunities of InformationTechnologies industry

Creative mindset

Language proficiency skills

Western cultural similarities

Convenient time zone

Geographical proximity

Inexpensive and skilled labor

Good communication infrastructure

IT industry potential to export more

Challenges

Increase local companies competitiveness– Quality Lab– Innovation Center– Tech Park

Unique country proposition– Formulation– Promotion

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

Thank youThank you

Dona Dona Şcola, Şcola, Deputy Deputy ministerministerdona.scoladona.scola@mtic.gov.md@mtic.gov.md

tel: +373 22 251 155tel: +373 22 251 155fax: +373 22 229 128fax: +373 22 229 128