ICT policy and development trends and challenges in Bulgaria Georgi Prangov Acting Head of Department State Agency for Information Technology and Communications

Outline of presentation ICT Development – overview and perspectives ICT Policy in Bulgaria ICT State Policy Results State Agency for Information Technology and Communications

1. ICT Development – overview and perspectives State Agency for Information Technology and Communications

Macroeconomic Environment Indicator 2005 2006 2007* 2008* GDP Growth, % 6.2 6.1 GDP per capita (PPS, EU25=100) 33.8 35.7 38.2 40.6 Productivity per employed (GDP in PPS) -% of EU25=100 32.8 34.0 36.1 38.0 Unemployment, % 10.7 9.1 6.9 6.5 Budget Surplus, % of GDP 1.9 3.3 3.8 3.0 FDI, % of GDP 14.2 17.4 15.0 13.0 High and sustainable economic growth of around 6-8% per annum Maintaining macroeconomic stability Continuing with the structural reforms Enhancing fiscal consolidation Strong fiscal stance in view of curbing the current account imbalance: Reaching surplus of minimum 3 % Keeping budget expenditure below 40% of GDP * Forecast data Source: BNB, Austria-Kreditanschtalt Bank, NSI and Agency for Economic Analysis and Forecasting State Agency for Information Technology and Communications

Bulgaria: connectivity Danube River Sofia Varna Black Sea Bourgas Plovdiv Mobile network penetration: 3 GSM networks 99% territory coverage 98% population coverage 130% mobile users Fixed telephone penetration: 21 telecom operators IT penetration: 40%, access to computer 38%, internet penetration 31% of households and 88.1% of enterprises 24.8% of households use broadband for 2007 in comparison with 12 % for 2006 State Agency for Information Technology and Communications

State Agency for Information Technology and Communications ICT Sector in Bulgaria More than 5 000 ICT companies 33.9 % growth of Bulgarian ICT Market for 2007 (expected) Fast development of ICT export market with 57.7 % for 2005 and 63.6 % for 2006 80% of Bulgarian software companies’ revenues result from contracts with European and US partners More than 90 000 ICT specialists in the country 12% of IT specialists in Eastern Europe are Bulgarians Bulgaria is one of the centres of outsourcing for 2007 (study from Tholons) Analysts believe Bulgaria is excellent for offshoring State Agency for Information Technology and Communications

State Agency for Information Technology and Communications Future Perspectives ahead of ICT Market by 2011 ICT market to reach 10 % of GDP IT expenditure to top 2.5 % of GDP High and sustainable IT market average growth of around 14.5 % 300 M EUR coming additionally from EU Structural Funds 27 % average growth of ICT export segment Software market reaching 140 M EUR 20 % average growth of computer market State Agency for Information Technology and Communications

State Agency for Information Technology and Communications 2. ICT Policy in Bulgaria State Agency for Information Technology and Communications

Bulgarian Strategic Documents 2007 - 2013 National Reform Programme (2007-2009) National Development Plan National Strategic Reference Framework Operational Programmes State Policy on Accelerated IS development (2007-2010) National Program on Accelerated IS development (2008-2010) ICT State Agency for Information Technology and Communications

National Program for Accelerated Information Society Development ICT networking and affordability Quality of life and competitiveness Human capital Information Society for all Impact ICT Infrastructure and Security Society and Culture Economy and Employment Research & Technological Development Branding of ICT sector Education and Training Directions State Agency for Information Technology and Communications

Triangle of knowledge education – research - innovation Abandoning the linear model Ensuring active stakeholders’ participation in the Community Programmes Implementation of National Projects in support of Innovation and R&D State Agency for Information Technology and Communications

State Agency for Information Technology and Communications Establishment of National Supercomputing Applications Centre - Blue Shadow The Bulgarian IBM Blue Gene/P is among top 100 most powerful supercomuters in the world Main target areas where IBM Blue Gene/P's computing power will be used: for high-end computing-intensive projects in life sciences new drugs discovery financial modelling and education New! State Agency for Information Technology and Communications

State Agency for Information Technology and Communications IPv6 Laboratory The first IPv6 Laboratory in South East Europe Joint project between SAITC and Cisco Open environment for testing, network set ups and applications based on IPv6 Provision of trainings, distance and direct access to the laboratory resources New! State Agency for Information Technology and Communications

National Innovation Centre Promotes more innovative environment Supports ICT companies participation in IT Programs Promotes ICT implementation and usage in the business sector Offers branding, marketing, and business development tools to companies State Agency for Information Technology and Communications

State Agency for Information Technology and Communications Focal Points of Future Perspectives - Leadership and Business Opportunities Building up a stable basis for a talented and innovative young generation Strategic partner to the business in the following areas: e-Governance solutions Raising the ICT skills and encouraging the use of e-services Creation of trans-regional centers of excellence Development of joint infrastructure projects Creation of valuable e-content in all social-economic fields Identification of strategic ICT markets/niches where our country has competitive advantages State Agency for Information Technology and Communications

State Agency for Information Technology and Communications ICT Policy Results More effective institutions (combat corruption, modernisation (eGovernance), value for money and etc.) Higher share of ICT investment on total investment Enhanced investments in R&D activities both the whole economy and the ICT sector Successful PPP models Competitive, export-oriented ICT industry Well-developed ICT infrastructure From passive to active labour market State Agency for Information Technology and Communications

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