The Potential of Information Economy in Lithuania and Co-operation in the European Union
Association “infobalt”, Mr. Džiugas Juknys
The new frontiersThe new frontiers of the European Union of the European Union
2 June 2003, Athens
The ICT market and the state of LithuaniaThe ICT market and the state of Lithuania
Implementing the achievements of Association Infobalt in the state sector under the conditions most favourable for Lithuanian ICT companies:
Developing new services and products;
Implementing the concept of the electronic government and the new telecommunications law of the Republic of Lithuania;
Applying the financial means of the structural funds;
Developing export and two-way business contacts;
Seeking new investments into the ICT business.
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Mediation on behalf of members
Establishing the international business contacts: export programmes;
International fairs and forums;
Promoting business (el. conferences), disseminating information and other on-line services;
Assistance to participation in the EU ICT programmes, consultation on the use of the EU structural funds, seminars, etc;
Initiating the projects of ICT business and drawing the Lithuanian ICT companies into the international consortiums;
Representing the interests of the companies belonging to Association Infobalt with respect to legal and other business-related issues;
Informing the Lithuanian and foreign societies and media about the operation of Association Infobalt members.
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DevelopmentDevelopment
Increasing the number of association members: new business sectors;
Declaring the interests of Association Infobalt members and assisting in implementing these interests;
New research of the Baltic markets and the international acknowledgement of the results;
Consultation on business provided for the potential partners of the Lithuanian ICT companies and the preparation of export projects.
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RepresentationRepresentation
Associating Infobalt as a trade mark of the Baltic region with the trade mark Baltic;
Influence via the international alliances of ICT structures in seeking for establishing the improved conditions for the Lithuanian ICT companies to develop international business;
Participation in the infra-structural and educational projects of the EU ICT programmes (e.g. TELEBALT, Baltic IT cluster and others).
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EventsEvents
Infobalt 2003 fair, Conference 2003 and WITFOR 2003 are the means of international co-operation. Targeting and providing information for the Lithuanian and foreign consumers.
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Competition by co-operation!Competition by co-operation!
1. Incentivising the export
2. Structural funds – ERDF
3. Innovation projects
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The markets to be adopted by Lithuanian The markets to be adopted by Lithuanian ICT companies:ICT companies:
Scandinavian countries
Germany
Latvia
USA
Denmark
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The trends of the Lithuanian ICT product The trends of the Lithuanian ICT product export and outsourcing projects:export and outsourcing projects:
EU members
Russia
Byelorussia
Ukraine
USA
Asian countries
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Achievements in export and success historyAchievements in export and success history
In 2002 the Lithuanian ICT companies increased the export of product and service by 88 %
7,9 % on total IT sales
2 % on total ICT sales
The export of ICT and electronics sector products reached 300 ml Euros in 2002.
In 2003 the export is forecasted to increase up to 450 – 500 ml Euros
The Lithuanian ICT companies develop new ICT products in conjunction with the world-leading ICT companies such as SAAP, Bently systems, CA, HP and others.
The leader of the ICT export in Lithuania ALNA signed the agreement with Microsoft in May 2003 for licensing the software programme of Alna. Microsoft will be using the software inside its information system.
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EU ICT and structural fundsEU ICT and structural funds The development of a company’s institutional structure – management
appraisals, certificates
Acquis communautaire – the adoption of the EU legal context
Implementing the innovative solutions in search of new business niches, export. Operating within the context of eEurope 2005 programme http://europa.eu.int/informationsociety/eeurope/indexen.html
Public service for individuals and business. 20 public services in total: 12 services for individuals and 8 for business corporations which are accurately positioned within the programme eEurope
Active co-operation in business, government and education projects in developing new and modern economy in Lithuania
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The agenda of businessThe agenda of business
ICT market in Lithuania
Members of Association Infobalt
State
Society and media
Education and science
International representation and export
Association INFOBALT:Association INFOBALT:
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The agenda of businessThe agenda of business
Telecommunications
Sales
Programming service and other services related with IT solutions
Public organisations, universities and colleges
The breakdown of ICT market in Lithuania by interest:The breakdown of ICT market in Lithuania by interest:
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The agenda of businessThe agenda of business
Hardware, components and services 150
Computer network 94
Technical and educational software 59
Software, consultation and service 310
Telecommunications 79
Office tools 61
Banking, financial and business technologies 17
Security 25
Other 20
The breakdown of Association Infobalt members by interestThe breakdown of Association Infobalt members by interest
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Sales of notebooks in Lithuania, 2002Sales of notebooks in Lithuania, 2002
13,10%
3,40%
46,20%
11,60% 11,30%
5,40%9%
Compaq Fujitsu HP IBM Acer Dell Toshiba
Total, units 7510
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Dynamics in notebooks marketDynamics in notebooks market
21003200
7510
17000
2000 m. 2001 m. 2002 m. 2003 m.
Market volume:
2002 – EUR 13 million
2003 – EUR 30 million
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NK sales index, reflecting the dynamics of wholesales marketNK sales index, reflecting the dynamics of wholesales market
66,4787,28
113,29143,9
175,56
219,36
274,28
1999 year 2000 year 2001 year 2002 year 2003 year 2004 year 2005 year
EUR (million)
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Dynamics in computer sales in Lithuania, unitsDynamics in computer sales in Lithuania, units
50000
75000
120000
145000
2000 year 2001 year 2002 year 2003 year
Items
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2002 year Lithuanian ICT market size2002 year Lithuanian ICT market size
Million Euro
300
629
300IT – appr.
Communications – appr.
Communication equipment,other IT services andcomplex solutions – appr.
In total – appr. 1 229 million Euro (appr. 4 240 million Litas).
Note: Data on communication equipment and complex IT solutions market are tentative and approximate.
0,07
34,39
13,89
51,65
Comliet
Bite GSM
Tele 2
Omnitel
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The main trends of Lithuanian telecommunication marketThe main trends of Lithuanian telecommunication market
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Lithuania manufactures high technology products and services
Potential for applied research is in place
Lithuanian industry uses fundamental technologies:
information technologies
Biotechnologies
laser industry
Nano technologies
Sufficient industry and science concentration
Integration into the EU technological area accelerates and cheapens investments
Prerequisites for R&D progress in Lithuania
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Potential fields of Lithuanian ICT industry and science technologies for the next 5 years
Implementation services of traditional hardware (programming).
Programs (PKI, etc.) of e-signature for e-business, e-government and e-education
Development of such systems like Intellect-House, social security, hospital, transport, etc.
Protection of e-accounting and m-accounting systems by e-signature and bio-metric voice and finger-pint technologies.
Development of e-business applications in ERP, SCM and CRM fields.
Development of open source technologies creating business applications.
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Potential fields of Lithuanian ICT industry and science technologies for the next 5 years
Electronic sensors for food, security and other industrial sectors of Lithuania.
Laser technologies related to ITT.
Scientific computer applications for biotechnology sector – development of databases and hardware instruments.
Development of multimedia products (applications, encyclopedia, multilingual programs, Internet sites, CDs, DVD, etc.).
Implementation services of traditional hardware (programming).
Programs (PKI, etc.) of e-signature for e-business, e-government and e-education
Development of such systems like Intellect-House, social security, hospital, transport, etc.
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ICT Share in Lithuania’s GDP in 2000ICT Share in Lithuania’s GDP in 2000 -- 2015 2015 according INFOBALT Strategyaccording INFOBALT Strategy
5%
1,40%
17,50%
7,70%
2000 2015
Services
Production
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INFOBALT AssociationINFOBALT Association
The INFOBALT activities in the ICT frameworks of the European Union serve as a catalyst for the growth of the information society in Lithuania.
Established in 1994.
154 members of Association INFOBALT include:
Lithuanian information technologies, telecommunications and office equipment companies.
Higher education and research institutions and other education institutions.
Public organizations and concultancy firms.
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Mission of the Association InfobaltMission of the Association Infobalt
Consolidate, within the framework of the Association, Lithuania-based companies engaged in such fields as the IT, telecommunications, office supplies, and production of electronics to operate jointly.
Seek to ensure favourable conditions for the development of the IST industry with an aim of raising its share in the national GDP to 20%.
Partake and promote joint partnership initiatives together with science, culture and business communities as well as authorities.
Boost the flow of foreign investments to the Lithuanian IST sector.
Enable the Lithuanian IST sector to fulfil its potential on the global markets.
Support education, science and programmes promoting development of the information society.
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1. Representation of the members of INFOBALT in Lithuania and abroad;
2. Development of Lithuanian ITT market;
3. Services to the members of INFOBALT;
4. Development of information society (IS) of Lithuania:
Events
IS projects
International activities
Activities of the Association INFOBALTActivities of the Association INFOBALT::
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Аssociation INFOBALT takes part or prepares the following Аssociation INFOBALT takes part or prepares the following EU and Lithuanian projectsEU and Lithuanian projects::
Phare BSP I and BSP II of the EU – participation in the European ITT activities.
TELEBALT – promotion of distance learning and work in the Baltic States (2002-2003); development of virtual societies in order to render assistance to small and medium enterprises and organizations in projects of IST EU.
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Project on strengthening the copyright in Lithuania with support of Phare EU (2001).
Project on establishment of Information Service Center (ISC) in Visaginas with support of the Government of Lithuania and Phare (from 2002).
International conference “Information Society 2003” and Investors’ League (21 October).
The largest exhibition of information technologies in the Baltic countries, INFOBALT 2003 (22-25 October)
Аssociation INFOBALT takes part or prepares the following EU Аssociation INFOBALT takes part or prepares the following EU and Lithuanian projectsand Lithuanian projects::
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EU IST Project TELEBALTEU IST Project TELEBALT
Teleworking as a Tool for Information Society Programme promotion to Baltic States
www.infobalt.lt/telebalt
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Mobile phones penetrationMobile phones penetration in the Baltic Statesin the Baltic States (‘Global Mobile’ Data)(‘Global Mobile’ Data)
0
10
20
30
40
50
60
70
80
90
Lithuania Latvia Estonia
Mobilepenetration in2002
Penetrationgrowth comparedwith 2001 3rdquarter
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Mobile Mobile industryindustry in Lithuania in Lithuania
Mobile penetration is already higher then fixed line phones
Mobile penetration (over 50 %) is much higher then Internet (26%)
Over 80 % of businesses using mobile services
Usage of mobile data (SMS, GPRS, WAP) increases
Competition in prices contrast between mobile market and fixed line market up to 2003
Difference in mobile market players size direct them to different client groups and stimulate variety in services
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Foreign Investment In Lithuanian Mobile MarketForeign Investment In Lithuanian Mobile Market
Owning Company
Company Name Owned Company % Share
DK TDC Mobile international AS
Bite GSM 100%
Sweden Net Com AB Tele 2 100%
Finland Sonera Omnitel 27,5%
Sweden Telia Omnitel 27,5%
US Motorola Omnitel 35%
Private holders Omnitel 10%
Organisation for Economic Co-operation and Development, Centre for Co-operation with Non-members Trade Directorate
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Mobile operators promote Information Society: Alliance Window to the Future
In May 2002 Omnitel together with Fixed Telecom company Lietuvos telekomas and two largest Lithuanian banks Vilniaus Bankas and Hansa-LTB launched alliance Langas į Ateitį (Window to the Future) that later was joined by two IT sector leaders – Alna and Sonex.
Main idea: business suport to Information society development in Lithuania
Main goal: in three years to gain European average internet penetration
Main activities: establish 65 public internet access points in 54 settlements in Lithuania
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According to the preliminary project citizens will be enabled to spend 1,5 million hours in the Internet
Widely supported by public sector
Close collaboration with the local governmental institutions is practiced while establishing public Internet access points. They grant the public Internet access points with premises, take care of their administration, and cover 50 per cent of a monthly subscription fee, while the alliance installs the Internet connection, donates computers, and provides technical servicing
Mobile operators promote Information Society: Alliance Window to the Future
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SWOT analysis of Lithuanian ITindustrySWOT analysis of Lithuanian ITindustry
Human factor suitable for innovative activity and knowledge-based production
Healthy economy, growing most rapidly among the CEE (5-6% for 2001-2005)
Well-developed IT universities producing over 500 specialists in IT and other disciplines annually
Well-trained & low-cost human resources available
Modern telecom infrastructure with a digitalisation ratio of 100% and mobile penetration of 45%
Versatile in English, Russian, German and Polish
Open economy with rule-based system aligned to the EU & WTO – economic stability
StrengthsStrengths
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SWOT analysis of Lithuanian ITindustrySWOT analysis of Lithuanian ITindustry
Developed financial institutions & intermediaries
Location between the EU, Nordics, Belarus & Russia.
Capacity to promptly adapt to rapidly changing IT & knowledge based economy
Privatization accomplished; industry re-structured based on comparative advantages
Institutional support to SME development
Well developed IT infrastructure across the region
Sound linkage between academia and industry for development applications
EU and NATO integration to provide large market opportunities for IT-enabled services
StrengthsStrengths
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Association INFOBALT,
Vokiečių str. 28/17 – 16, 2001 Vilnius, LITHUANIA
Phone. +370 5 262 26 23, fax +370 5 262 26 29
e-mail: [email protected]
www.infobalt.lt
ContactsContacts