1. ICT policy and development trends and challenges in Bulgaria
Georgi Prangov
Acting Head of Department
State Agency for Information Technology and Communications

2. Outline of presentation
ICT Development – overview and perspectives
ICT Policy in Bulgaria
ICT State Policy Results
State Agency for Information Technology and Communications

3. 1. ICT Development – overview and perspectives
State Agency for Information Technology and Communications

4. Macroeconomic Environment
Indicator
2005
2006
2007*
2008*
GDP Growth, %
6.2
6.1
GDP per capita (PPS, EU25=100)
33.8
35.7
38.2
40.6
Productivity per employed (GDP in PPS) -% of EU25=100
32.8
34.0
36.1
38.0
Unemployment, %
10.7
9.1
6.9
6.5
Budget Surplus, % of GDP
1.9
3.3
3.8
3.0
FDI, % of GDP
14.2
17.4
15.0
13.0
High and sustainable economic growth of around 6-8% per annum
Maintaining macroeconomic stability
Continuing with the structural reforms
Enhancing fiscal consolidation
Strong fiscal stance in view of curbing the current account imbalance:
Reaching surplus of minimum 3 %
Keeping budget expenditure below 40% of GDP
* Forecast data
Source: BNB, Austria-Kreditanschtalt Bank, NSI and Agency for Economic Analysis and Forecasting
State Agency for Information Technology and Communications

5. Bulgaria: connectivity
Danube River
Sofia
Varna
Black Sea
Bourgas
Plovdiv
Mobile network penetration:
3 GSM networks
99% territory coverage
98% population coverage
130% mobile users
Fixed telephone penetration:
21 telecom operators
IT penetration:
40%, access to computer
38%, internet penetration
31% of households and 88.1% of enterprises
24.8% of households use broadband for 2007 in comparison with 12 % for 2006
State Agency for Information Technology and Communications

6. State Agency for Information Technology and Communications
ICT Sector in Bulgaria
More than 5 000 ICT companies
33.9 % growth of Bulgarian ICT Market for 2007 (expected)
Fast development of ICT export market with 57.7 % for 2005 and 63.6 % for 2006
80% of Bulgarian software companies’ revenues result from contracts with European and US partners
More than ICT specialists in the country
12% of IT specialists in Eastern Europe are Bulgarians
Bulgaria is one of the centres of outsourcing for 2007 (study from Tholons)
Analysts believe Bulgaria is excellent for offshoring
State Agency for Information Technology and Communications

7. State Agency for Information Technology and Communications
Future Perspectives ahead of ICT Market by 2011
ICT market to reach 10 % of GDP
IT expenditure to top 2.5 % of GDP
High and sustainable IT market average growth of around 14.5 %
300 M EUR coming additionally from EU Structural Funds
27 % average growth of ICT export segment
Software market reaching 140 M EUR
20 % average growth of computer market
State Agency for Information Technology and Communications

8. State Agency for Information Technology and Communications
2. ICT Policy in Bulgaria
State Agency for Information Technology and Communications

9. Bulgarian Strategic Documents 2007 - 2013
National Reform Programme ( )
National Development Plan
National Strategic Reference Framework
Operational Programmes
State Policy on Accelerated IS development ( )
National Program on Accelerated IS development ( )
ICT
State Agency for Information Technology and Communications

10. National Program for Accelerated Information Society Development
ICT networking and
affordability
Quality of life and
competitiveness
Human capital
Information Society for all
Impact
ICT Infrastructure and Security
Society and Culture
Economy and Employment
Research & Technological Development
Branding of ICT sector
Education and Training
Directions
State Agency for Information Technology and Communications

11. Triangle of knowledge education – research - innovation
Abandoning the linear model
Ensuring active stakeholders’ participation in the Community Programmes
Implementation of National Projects in support of Innovation and R&D
State Agency for Information Technology and Communications

12. State Agency for Information Technology and Communications
Establishment of National Supercomputing Applications Centre - Blue Shadow
The Bulgarian IBM Blue Gene/P is among top 100 most powerful supercomuters in the world
Main target areas where IBM Blue Gene/P's computing power will be used:
for high-end computing-intensive projects in life sciences
new drugs discovery
financial modelling and
education
New!
State Agency for Information Technology and Communications

13. State Agency for Information Technology and Communications
IPv6 Laboratory
The first IPv6 Laboratory in South East Europe
Joint project between SAITC and Cisco
Open environment for testing, network set ups and applications based on IPv6
Provision of trainings, distance and direct access to the laboratory resources
New!
State Agency for Information Technology and Communications

14. National Innovation Centre
Promotes more innovative environment
Supports ICT companies participation in IT Programs
Promotes ICT implementation and usage in the business sector
Offers branding, marketing, and business development tools to companies
State Agency for Information Technology and Communications

15. State Agency for Information Technology and Communications
Focal Points of Future Perspectives - Leadership and Business Opportunities
Building up a stable basis for a talented and innovative young generation
Strategic partner to the business in the following areas:
e-Governance solutions
Raising the ICT skills and encouraging the use of e-services
Creation of trans-regional centers of excellence
Development of joint infrastructure projects
Creation of valuable e-content in all social-economic fields
Identification of strategic ICT markets/niches where our country has competitive advantages
State Agency for Information Technology and Communications

16. State Agency for Information Technology and Communications
ICT Policy Results
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
State Agency for Information Technology and Communications

17. State Agency for Information Technology and Communications
Thank you for your attention!
State Agency for Information Technology and Communications