Tag Archive for: moldova

Stadion, Ukraine

Under the GBI contract, Integra team members recently conducted a series of workshops in both Moldova and Ukraine, to support the governments of each country in their assessment and planning to introduce Universal Service Funds, and to promote Broadband ICT development.  These countries, like much of the former Soviet Union region, have established a strong level of telecommunications infrastructure, including nearly universal mobile phone coverage, extensive fixed telephone networks, and reasonable extension of Internet access and even Broadband.  However, significant gaps remain in access to computers, Internet, and Broadband connectivity, particularly outside of urban centers.

In Moldova, the Ministry of Information Technology and Communications (MITC) hosted a workshop attended by about 25 government and industry officials, to address questions surrounding the current legal mandate to establish a Universal Service Fund, and the goals and options for such a Fund.  GBI experts David Townsend and Daniel Espitia presented international experience on the best approaches and priorities for creation of a USF, and the key issues that Moldova would have to address.  Given that Moldova has already made considerable progress in establishing well functioning mobile networks as well as broadband services in many parts of the country, the challenge would be to close remaining gaps in access to ICTs, with emphasis on providing all schools in the country with broadband connections as well as low-cost PCs for students.  Also, rural villages without adequate network capacity would be upgraded to broadband.  The Ministry acknowledged that new legislation would be required to authorize a USF that could fully address these objectives, and pledged to move ahead in drafting such a statute.

In Ukraine, a public workshop was held in Kiev over two days, hosted by the National Commission on State Regulation of Communication and Information (NCCIR), and attended by about 30-40 officials and private sector representatives.  There has been considerable debate in Ukraine about establishment of a USF, with strong resistance from the mobile operators, who must already pay 7.5% of their revenues into a national social security fund.  Representatives of several operators attended the workshop, along with Commissioners and other government personnel.  GBI’s David Townsend together with Parvez Iftikhar, former CEO of the Pakistan USF, presented ideas and examples of how an effective USF could work, yielding benefits both for the country and for the ICT industry itself.  A range of options were discussed for the launching of a Fund, including starting out on a pilot basis to test the concept.  Ukraine must also pass new legislation to mandate a USF, and will be working toward such a law.

Integra’s team will continue to assist both countries as they develop their USF legislation and policies.

The ICT sector is one of the most dynamic in Moldova’s economy.  Recording a vibrant growth over the past years, today it represents nearly 10% of the national GDP, on par with agriculture production.

There are about 40,000 people employed directly and indirectly in ICT, making the ICT sector one of the major employers in Moldova.  It is also one of the highest paying industries, as jobs in ICT pay on par with those in the financial sector, historically the best paying jobs in the country.  Most importantly, the ICT industry employs the young generation, offering an exciting, fast-growing and rewarding career for the next generation.

Moldova has already chosen the pathway of ICT.  All players – the Government, the business community, the citizens and the ICT industry itself – have acknowledged the importance of information technology as a catalyst for growth, and as a tool of growth enhancement in all other economic sectors.

Technical assistance from USAID Moldova through the Competitiveness Enhancement and Enterprise Development (CEED) project over the past five and a half years has enhanced the competitiveness of the ICT sector through initiatives meant to consolidate the quality of companies, to strengthen ICT education so that it meets the needs of business, and to align the industry towards common goals.

Just last month, USAID Moldova sponsored the Moldova ICT Summit 2011, featuring the Association of Private ICT Companies in Moldova, as well as the recently launched national E- Government Center.  The event focused on the e-transformation of the Moldovan economy, and the importance of e-transparency, among other topics.

Since the initiation of the first phase of the CEED project, USAID Moldova has been involved in numerous efforts.  They facilitated the formation of the Association of Private ICT Companies in Moldova, established relationships between the national government and the private companies in the ICT sector, helped private firms to become IT-Mark certified ICT companies under CMMI methodology (encouraging foreign investment and trade), and set up talks respecting the formation of a “Cloud-Moldova” e-government system.

Additionally, a need for more trained and educated IT professionals in Moldova has arisen.  To meet this need, USAID Moldova connected the Moldovan Minister of Education with large ICT firms.  The ministry signed memorandums with Microsoft, Cisco, and i-Carnegie (Carnegie Mellon University).  New IT focused courses and degrees are being offered in the Moldovan education system, providing the ICT industry with the professional staff it requires.

A man and a woman watch as a man repairs a computer.

Photo: Sergiu Botezatu

Despite these advancements, a few large boulders block continued development of the ICT sector in Moldova.  The national government’s telecommunications company, Moldtelecom, still controls the majority of the market.  Additionally, Moldova is unknown in the region as a destination of IT, this holding back investment.  Thankfully, however, steps are in place to remove these barriers.  The national government is beginning to investigate selling Moldtelecom and a strategy for ICT sector positioning and promotion is underway, which is intended to put Moldova on the regional and global ICT map.

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