1. Opportunities of ICT sector The Ministry of Information Technologies & Communications Ms. Dona ŞCOLA, Deputy Minister

2.  ICT development assessment & benchmarking  ICT sector performance & key figures  Opportunities for electronic communication & IT  Increasing demand for ICT usage (e-Government) Outline

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. 20022007 IDIRankIDIRank Sweden 6.0517.501 Estonia 3.93315.9726 Slovenia 4.47225.8828 Croatia 3.19424.6843 Bulgaria 2.74514.3745 Romania 2.48604.1646 Ucraine 2.50593.8051 World (average) 2.48603.4066 Moldova 2.13743.3168 ICT Development Index

6. 2007-2008 (127 countries) 2008-2009 (134 countries) NRIrankNRIrank Denmark5.7815.851 Estonia5.19185.1220 Slovenia4.47304.5731 Croatia4.06494.0949 Romania3.86613.9758 Ukraine3.69703.8862 Bulgaria3.71683.806868 Moldova3.21963.3099 Networked Readiness Index

7. 2008 ICT PB value Rank GNI (US$) PPP Singapore 0.4132470 Slovenia 1.22220960 Estonia 2.04313200 Croatia 2.14610460 Romania 3.0546150 Bulgaria 3.8644590 Ucraine 5.2762550 Moldova 11.2991260 World (average) Butan 15.21071770 ICT Price Basket

8.  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

9.  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

10.  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

11. Electronic communications industry (EC) Fixed line penetration 32% 19 companies Sales 1.9 bn. Lei ARPU 143 lei EC represent 5,76% of GDP Total sales 5,6 bn. lei, Investment 1,75 bn. 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.  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

13.  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

14.  Near shore and offshore operations for foreign IT companies  Outsourcing services for foreign companies  Back office and shared services for foreign companies Opportunities of Information Technologies industry

15.  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

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 dona.scola@mtic.gov.md tel: +373 22 251 155 fax: +373 22 229 128