Romania ~Alison Abraham~ ~Steve Koreck~ ~Thomas Maruszewski~

There’s more to Romania than just: DRACULA!!!!

History - Timeline 13 th Century – Walachian/Moldavian principalities emerge 14 th – 19 th century – Region aligned with Hungary & Ottoman Empire 1878 – Treaty of Berlin recognizes Romania’s independence 1881 – Kingdom of Romania formally proclaimed 1945 – Communist-dominated government installed 1967 – Ceausescu becomes President of the Council of State 1989 – Countrywide protests begin in Timisoara Ceausecu and wife are executed National Salvation Front takes over government 1990 – National Elections Held

Life in Romania Geography People Government Economy Communication

Geography

IT in Romania Yesterday & Today 1997 – Approx. 25,000 Internet Users 1999 – Approx. 650,000 Internet Users 2003 – Over 1 Million Internet Users 1999 – 28 Internet Service Providers (ISP) 2003 – Over 100 ISP’s

Comparison In 2002 – Over 50% of Population has Cell Phone Less Than 5% have Personal Computer (PC) 1997 Price of PC More than Half a Year’s Salary 2000 Price of PC was Nearly $800 (USD) Internet Access: $25-$60/month (dial-up access) Plus $2/hour Local Call

Television Cable TV is Booming in Romania 50% of Population has TV 48% have Cable High Speed Internet (Cable Modem) –Kappa (ISP)

Telephones Existing Lines are Poor in Quality But… Romania Laying Groundwork for Fiber Optic Lines

Laying Groundwork in Other Ways… EOS Educating for an Open Society

Today in Romania Many Internet Services that offer Business Solutions in IT World Romania Encourages External Investment 130 Countries have Invested in Romania

Is Romania a Good Place to Invest in IT?? Environmental Parameters Economic Stability IT Infrastructure Industrial Policy The Master Plan

Environmental Parameters Political/Social –Premier Adrian Nastase (elected Nov, 2000) –Bureaucracy/Corruption Still Affects Efficiency –Widespread Poverty Economic –3 rd Year of Stable Economic Development –GDP Grew by 5% in 2003, Forecast More Growth 2004 –October, 2003 expected to sign 1 st Joint Program with IMF

IT Infrastructure

Industrial Policy Long-Term Telecommunication Development Program –Extension of Analogue Networks –Intro to Digital Technology –Digital Microwave Links/Fiber Optic Cables –High Speed Data Transmission Network

Industrial Policy Con’t National Broadcast Council –Independent Regulatory Body –Issues Licenses for Broadcasting companies Ministry of Communications (Technical Authorizations) General Communications Inspectorate (GCI) –Enforces/Monitors Regulations –Similar to FCC

The Master Plan Intensive Development of Telecommunications Sector Quantitative Targets for 2005: –Main Line Penetration of 30 lines per 100 Inhabitants –Nearly 7 Million Lines –Full Completion of Network Digitalization

Reasons Against Investment High Poverty Rate (44.5%) 40% of Labor Force is Agricultural Major Industries: –Mining, Timber, Metallurgy Limited Access Under-Developed Infrastructure

Reasons for Investment Developing Country (Access is Improving) Sound Economic Policies Nastase’s Focus on Foreign Investment 98.4% Literacy Rate Gini Index 31.1 (vs for USA) Involvement with the IMF Many Potential Opportunities

Should We Invest?? YES!

Resources