ict sector in bulgaria prospects and challenges by mr. georgi prangov, state agency for ict
DESCRIPTION
Presentation by Mr. Georgi Prangov, State Agency for ICT at the third International Conference e-Society.Mk: ICT Sector in Bulgaria Prospects and Challenges, December 1, 2007, Skopje MacedoniaTRANSCRIPT
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ICT Sector in Bulgaria Prospects and Challenges
Georgi PrangovActing Head of Department
Skopje, 30 November 2007
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1. ICT Sector - overview
2. National ICT Policy
3. Future ICT Prospects and
Challenges for Bulgaria in EU
Outline of presentation
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Macroeconomic Stability and
Growth
Sources: National Statistics Institute, Ministry of Finance, Eurostat
GDP growth (2003 - 2007)
GDP per capita (2003 - 2007)
33693268
28352558
2269
0
500
1000
1500
2000
2500
3000
3500
4000
2003 2004 2005 2006 2007
EUR
6,26,66,16,3
5
6,7
0
1
2
3
4
5
6
7
8
2003 2004 2005 2006 1Q2007 2Q2007
%
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Bulgaria: connectivity
Internet penetration: 34% at present 12% of households use broadband
for 2006 in comparison with 6 % for 2005
Plovdiv
Bourgas
Varna
Bla
ck
Sea
Danube River
Sofia
Mobile network penetration: 3 GSM networks 86 % territory coverage 98% population coverage 70% mobile users
Fully liberalized telecom market, 14 licensed operators
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ICT Industry in Bulgaria2003-2007 (EUR M)
1.375
1.757
2.0462.164
2.372
CAGR 15%
Source: EITO 2006, Arthur D. Little Analysis
20032003 2007e2007e CAGRCAGR
Fixed Fixed VoiceVoice 328328 355355 2%2%
Fixed DataFixed Data 8181 157157 19%19%
MobileMobile 366366 805805 24%24%
CaTVCaTV 5454 8080 10%10%
TelecomTelecom 829829 1.3971.397 14%14%
EquipmentEquipment 295295 499499 14%14%
ITIT 251251 431431 14%14%
ITCITC 1.3751.375 2.3722.372 15%15%
328 340 356 355 355
98 116 136 157
557686 762 805
54
60
6773 80
295
403
449449
499
251
298
373389
431
81
366
0
500
1000
1500
2000
2500
2003 2004 2005 2006e 2007e
Fixed voice Fixed data Mobile CaTV Telco Equipment IT
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Future Perspectives ahead of ICT -
a part of competitive Europe ICT sector - one of the leading sectors in
the economy
Bulgaria - best location for High-Tech investments in Europe in R&D, software development, telecom services
Telecommunications sector – modernized and competitive
ICT industry – skilled and competitive
Information Society – Bulgaria catching up the old EU member states
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2. National ICT Policy
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Bulgarian strategic documents 2007 - 2013
Real convergence is not automatic, it depends on establishing a sound policy framework
EU Funds can accelerate convergence if the preconditions are right placed
Key challenges: (i) reform public sector, (ii) reform labor markets, (iii) create a flexible business environment
National Strategic Documents 2007-2013: National Reform Programme 2007-2009 National Development Plan National Strategic Reference Framework 2007-
2013 Operational Programmes 2007-2013
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National Programme for Accelerated Information Society
Development
Gu
idelin
es
Imp
act
ICT Accessibility and Security
Quality of Life andCompetitiveness
Human Capacity
Information Society for All
Information Society for All
ICT Infrastructure and Security
Society and Culture
Economy and Employment
Research and Innovation
Information Society Awareness and ICT industry Branding
Education and Training
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3. Future ICT Prospects and Challenges for Bulgaria in EU
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Future Prospects Potential GDP growth rates in EU 25, new Member States and
the euro area
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2004 2025
2050
in
%
EU 25
NMS
Euro Area
Source: Commission Services
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Effective use of the European Structural Funds in 2007-2013
Active participation in the Community programmes and initiatives (7-th Framework Programme, CIP and etc.)
Investment in ICT R&D and wider ICT take-up in the public and private sector
Strengthening innovation in ICT Building up a stable ground for effective
mobility of young researchers in ICT area Involving experts who are able to capitalise on
past experience and new knowledge Better coordination and cooperation between
more and less developed EU regions
Key factors for ICT competitiveness Challenges
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ICT Policy Results Failure is not an Option!
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
