Introduction to the Croatian ICT Sector Prague, Czech October 22nd, 2004FISTERA Workshop Marijan Frkovic, M.Sc. Director of Informatic Sector in CCE Vice-president of Croatian IT SocietyInstitute of Computer Science Academy of Sciences of the Czech Republic

CROATIA ICT

MODERN ICT STARTED MID 1960

THERE WERE NO POLITICAL BARRIERS TO THE IMPORT MODERN

EQUIPMENT FROM THE WEST

CROATIA AND SLOVENIA WERE THE SIMILAR DEVELOPMENT until 1990

EARLY 1990 STAGNATION, WAR AGAINST CROATIA

LATE 2002 - 1581 ICT COMPANY

20.492 INFO EXPERTS IN ICT COMPANY

7.830 IT EXPERTS IN THE COMPANIES WHERE IT NOT CORE ACTIVITY

Republic of Croatia basic business indicators, 1999 2003

1999.

2000.

2001.

2002.

2003.

GDP (bn USD)

19,91

18,43

19,86

22,81

28,81

GDP per capita

4.371

4.153

4.476

5.141

6.493

Foreign investments (m USD)

1.467,2

1.089

1.561

1.124

1.356

Inflation (retail prices, %)

4,2

6,2

4,9

2,2

1,5

Unemployment (%)

19,1

21,1

22,0

22,3

19,1

Commodity exports (m USD)

4.302

4.432

4.666

4.904

6.164

Commodity imports (m USD)

7.799

7.887

9.147

10.722

14.199

Foreign debt (bn USD)

10.0

11.1

11.3

15.4

23.5

Foreign exchange reserves (m USD)

3.025

3.525

4.704

5.886,4

8.191

Average rate HRK/USD

7,11

8,28

8,34

7,9

6,7

Source: Croatian Chamber of Economy, 2003.

Potronja u IT sektoru

IT market in Europe , 2003

CountryIT marketIT/GDPIT market

(u mil.eura)(u %)per capita (Euro)

Total West Europe286.7403.1735

Total New Eu Countries11.5552.3111

Bulgaria3121.840

Czech2.6203.3254

Estonia2163.1150

Hungary1.9563.5193

Litva2571.773

Letonia2202.592

Poland3.9922.0104

Romenia7191.532

Slovakia7572.4141

Slovenia5072.1255

Croatia (m USD)5502.4125

Izvor: EITO, IDC* u $

V.L.-Poslovni svijet,31.03.2004.

Sheet2

Sheet3

DEVELOPMENT OF THE INFORMATION SOCIETY IN CROATIA

THE STABILISATION AND ASSOCIATION AGREEMENT CROATIA AND EU

IMPORTANCE AND NEED TO DEVELOP INFORMATION SOCIETIES

PREPARING THE SOCIETY FOR THE DIGITAL AGE

ATRACTIVE INVESTMENT

INTERCONECTING NETWORKS WITH SERVICES

INFORMATION SOCIETY CROATIAS ACTIVITIES

ENCOURAGEMENT OF ENTERPRENEURSHIP

LEGISLATIVE ADJUSTMENT

INTELECTUAL PROPERTY

STANDARDISATION

ADAPTATION BY IT ASSOCIATIONS

PROMOTION OF THE INFORMATION SOCIETY

MEASURES FOR INFORMATION SOCIETY PROGRES MONITORING

IT trite u Hrvatskoj, 1996. -2005. ($M)Croatian IT market, 1996 - 2005 (m USD)

IDC Confidential

TELECOMUNICATION INFRASTRUCTURE IN CROATIAFixed lines ( 01.01.2004. ), HT, demonopolisation 1.1.2005.

capacity2.331.774 subscribers 1.736.395

Mobile ( 01.01.2004. )

T - HT ( 098,099 ) 1.640.000 subscribers VIPNet ( 091) 1.510.000 subscribers Internet (ISP)

HT Hinet, Iskon, VipOnline, Net4U, EuroProNet, ZadarNet, Global Net, CEETEL, AT&T

CARNet

TELECOMUNICATIONS

Three companies dominate

CROATIAN TELECOM / still monopol - fixed telephony

VipNet mobile telephony services

Odailjai i veze ( Transimilars and telecomunications )

formerly part of Croatian RTV

CroatiaHousehold with PC and household with mobile phone (2002.-2003.)

kuanstva

0.290.37

0.690.81

2002

2003

INTERNET

443447.64

454533.831

473010.816

569091.138

602349.711

650390

934935

BROJ KORISNIKA INTERNETA U HRVATSKOJ / sijeanj 2001. - travanj 2003./

Sheet1

TREND KORITENJA INTERNETA U %procijenjeni N%NPopulacija 10 - 74 god

1.1.-30.4.2001.443448123,695,3971. kvartal 2001.I / 2001

1.5.-31.8.2001.45453412.32. kvartal 2001.II / 2001

1.9.-31.12.2001.47301112.83. kvartal 2001.III / 2001

1.1.-30.4.2002.56909115.41. kvartal 2002.I / 2002

1.5.-31.8.2002.60235016.369832. kvartal 2002.II / 2002

1.9.-31.12.2002.65039017.669963. kvartal 2002.III / 2002

1.1.-30.4.2003.93493525.3171751. kvartal 2003.I / 2003

20022003

RAUNALA29%37%

MOBILNI TELEFONI69%81%

20022003

PC29%37%

MOBILE TELEPHONE69%81%

Sheet2

Sheet3

GfK Online Monitor

Internet users in Croatia ( January 2001 April 2003 )

Diagram 5.3. shows the increase in the number of Internet users in Croatia

_1150008038.ppt

G f K G R O U P GfK Croatia

Media Research Department

30 October 2003

Internet korisnici u Hrvatskoj (sijeanj 2001 - travanj 2003)Internet users in Croatia (January 2001 - April 2003)

Internet Infrastructure in Croatia, 1999. 2003.

1999

2000

2001

2002

2003

A) Home users

102,600

268,750

347,000

395,000

420,000

B) Home only

users

61,560

142,437

173,500

242,000

295,000

C) Work users

48,000

88,900

140,000

220,000

285,000

D) Education

users

50,000

68,043

194,000

355,000

450,000

Total users

( B+C+D )

159,560

299,380

507,500

817,000

1,030,000

Total users

( A+C+D )

200,600

425,693

681,000

970,000

1,155,000

Source: IDC, 2004

Providers of Internet services in Croatia

Currently, there are eight commercial and one academic provider of Internet services (CARNET):

EuroproNET - www.europronet.hr

GlobalNet www.globalnet.hr

Croatian Academic and Research Network (CARNet) - www.carnet.hr

Croatian Telecom Htnet www.htnet.hr

Iskon www.iskon.hr

Net4u www.net4u.hr

VIPNet www.vipnet.hr

Vodatel - www.vodatel.hr

IT companies by number of employees, total revenue

and profit from 1994 2002

Year

No. of companies persons

No. of employed persons

Total revenue in 000 HRK

Profit

000 HRK

$ = 6.01 HRK

1994.

1.326

5.468

1,925.480

69.872

1995.

1.610

5.646

2,381.228

99.976

1996.

1.711

6.594

2,955.643

153.097

1997.

1.772

7.114

4,212.443

190.381

1998.

1.746

7.178

3,724.621

183.075

1999.

1.713

7.413

4,077.682

211.638

2000.

1.704

7.693

4,862.740

323.381

2001.

1.509

7.943

6,284.422

316.937

2002.

1.538

8.180

7,783.520

381.949

Source: Infotrend no.10/2003.

IT companies on the ranking list of the 400 largest in Croatia 2002

Ranking on the 400 largest list

Performance indicators by Privredni vjesnik

Profit share of

total rev.

Profit share of

balance sheet

2002.

2001.

%

Ranking on the 400 largest list

%

Ranking on the 400 largest list

M SAN GRUPA

74

97

4,2

97

12,0

42

RECRO

135

174

3,5

111

13,3

35

ELEKTROMAGIC

217

322

4,0

101

13,6

30

MEGATREND

254

237

4,9

90

22,0

14

IBM HRVATSKA

266

354

8,8

46

14,0

28

VE-MIL

271

352

1,8

183

10,6

52

HERMES PLUS

277

-

6,3

71

14,0

29

EUROTRADE

279

-

-

-

-

-

COMPUTECH

306

315

-

-

-

-

COMBIS

320

310

8,9

44

15,7

24

SENSO

356

-

3,2

119

6,5

99

INFOSISTEM

389

-

1,0

211

1,7

220

Source: Privredni vjesnik no. 3312/2003.

Leading IT companies in Croatia in 2002 software

manufacturers

Total revenue

(m HRK)

Growth

2002/2001 (%)

Total revenue per

employee (m HRK)

1. IN2

36,2

4

0,389

2. LOGOS

34,8

78

2,486

3. ORACLE

34,8

0

1,933

4. MICROSOFT

33,3

57

1,850

5. GISDATA

26,6

50

0,887

6. INFODOM

23,6

n/a

0,674

7. SV GROUP

17,8

242

2,967

8. PIS

16,1

13

0,519

9. AZELIJA

15,2

62

0,362

10. ENEL

13,7

22

0,240

11. MICROLAB

12,7

4

0,793

12. PICA SUSTAVI

11,9

177

2,380

13. POMAK

11,8

9

0,738

14. SOFTPRO TETRAL

11,8

-6

0,621

15. INFO PLUS

11,4

20

0,265

Source: Infotrend no. 10/2003.

Leading IT companies in Croatia in 2002 system integrators

Total revenue

(m HRK)

Growth

2002/2001 (%)

Total revenue per

employee (m HRK)

1. IBM HRVATSKA

177,9

49

1,617

2. HERMES PLUS

170,3

66

3,096

3. COMPUTECH

157,2

18

7,860

4. COMBIS

150,1

12

1,706

5. INFOSISTEM

126,0

65

1,135

6. OPTIMA GRUPA

112,0

45

2,947

7. ECS

86,3

11

1,798

8. CS COMPUTER SYSTEMS

73,8

16

2,109

9. STORM COMPUTERS

66,5

20

1,750

10. KODEKS

55,5

25

2,523

11. SPAN

55,0

27

1,122

12. B4B

54,6

57

0,975

13. COMPING LDA

53,4

-5

1,571

14. ARBOR

51,3

139

2,052

15. BDS

49,3

15

1,409

Source: Infotrend no. 10/2003.

Leading IT companies in Croatia in 2002 manufacturers

( PC assemblers )

Total revenue

(m HRK)

Growth

2002/2001 (%)

Total revenue per

employee (m HRK)

1. HG SPOT

130,9

47

3,273

2. KING RAUNALA

103,1

140

12,888

3. AUTRONIC COMPUTERS

38,3

-13

1,532

4. VENTEX

36,4

25

2,600

5. COMEL

25,4

7

1,058

6. NETCOM

23,0

-3

1,150

7. FENIKS KOMPJUTORI

22,0

98

2,000

8. MELCOMP

21,5

-7

1,194

9. PENTAGRAM ECOM

20,3

-14

1,450

10. FORMEL

18,9

-29

1,718

11. PROCESOR

18,2

33

2,600

12. MIT ELEKTRONIKA

14,8

36

1,644

13. ZIT

12,9

11

1,290

14. ZINAM

8,3

5

0,922

15. ZAGRIA

7,2

9

1,800

Source: Infotrend 10/2003.

Leading telecommunications companies in Croatia in 2002

Company name

Total revenue

(m HRK)

Growth

2002/2001

(%)

Total revenue per employee

(m HRK)

T - HT d.d.

7931,3

9,81%

0,736

VIPnet d.o.o.

2310,4

23,52%

2,329

Odailjai i veze d.o.o.

134,7

100,00%

0,354

PRINTEC CROATIA d.o.o.

22,1

24,25%

1,697

CROATEL

12,4

-12,91%

1,242

MARKOT.TEL. d.o.o.

10,8

21,67%

0,468

TRANSINTERCOM d.o.o.

9,6

-43,95%

0,686

AT&T HRVATSKA, d.o.o

9,3

-21,01%

4,639

CABALLUS-NET d.o.o.

7,2

100,00%

1,205

VIA TEL d.o.o.

2,9

9,97%

0,974

VODATEL d.o.o.

2,9

89,70%

0,416

CEETEL D.O.O.

2,7

83,12%

0,679

STUDIO FENICE d.o.o.

2,4

100,00%

1,204

ADRIATIC KABEL d.o.o.

2,2

82,85%

0,159

KABELSKO DISTRIBUTIVNI SUSTAV

2,2

14,82%

0,223

Croatian Government accepted 2001-11-22 Strategy of the development of ICT in CroatiaSignificant progress is only possible through the co-ordinated effort of the business community, public sector, Croatian Chamber of Economy, science, the Croatian National Bank and others, with the support of the Croatian Government,

The development of an information society in CroatiaTHE DEVELOPMENT OF AN INFORMATION SOCIETY IN CROATIA

THE GOVERNMENT

e-CROATIA 2007 Office e-CROATIA 2007

EXPERT GROUPS(Legal and tech frameworks)Expert BodiesGovernment AgencyPolitical Body

Legislative adjustments

Electronic Signature Act (NN 10/02) and accompanying rules

Rules for the Record Keeping of Providers of electronic Signature Certification Services (NN 54/02)

Rules for the Register of Providers of Electronic Signature Certification Services that Issue Qualified Certificates (NN 54/02)

Rules for the Measures and Procedures for the Use and Protection of Electronic Signatures and Advanced Electronic Signatures, of Devices for the Production of Electronic Signatures, Advanced Electronic Signatures, and of Systems for the Certification and Compulsory Insurance of Issuers of Qualified Certificates (NN 54/02)

Technical Rules and Requirements for the Interconnection of Electronic Signature Certification Systems (NN 89/02)

Legislative adjustments

Consumer Protection Act (NN 96/2003)

Telecommunications Act ( NN 122/2003)

Electronic Commerce Act (NN 173/2003)

Personal Information Protection Act (NN 103/2003)

Copyright and Related Rights Act ( NN 167/2003)

Legislative adjustments

The following laws or groups of laws need to be formulated or adjusted:

Intellectual Property Protection Act

Electronic Documents Act

Freedom of Information Act

Public Information Act (NN 83/96)

Tariff, customs and tax laws

E commerce in Croatia ($), 2000 2003

2000

2001

2002

2003

Business to Consumer ($)

224,000

480,000

1,320,000

12,700,000

Growth (%)

---

114.3%

175.0 %

862.1%

Business to Business End-use ($)*

25,000

60,000

380,000

4,500,000

Growth (%)

---

140.0%

533.3%

1084.2%

Business to Business Process ($)**

8,075,000

12,000,000

15,000,000

40,000,000

Growth (%)

---

48.6%

25.0%

166.7%

TOTAL

e-Commerce ($)

8,324,000

12,540,000

16,700,000

57,200,000

Growth (%)

---

50.6%

33.2%

242.5%

* B2B End-use refers to purchase of products and servrices that their final use in the

company

** B2B Process include products and service that enter into companys supply-chain

Source: IDC,2004.

European commision: All citizen need to know use Internet

Croatian IT Society - umbrella organization of IT professionalsCITSBusinesses, Public Sector, Schools, UniversitiesNew Groups

CITS and international co-operation

CITS is a member of the following international organisations IT STAR- www.ifip.or.at/it-star

CEPIS- www.cepis.org CEPIS Programs ECDL- www.ecdl.com EUCIP - www.eucip.com (soon) IFIP - www.ifip.or.at