1. The Potential of Information Economy in Lithuania and Co-operation in the European Union Association “infobalt”, Mr. Džiugas Juknys The new frontiers of the European Union 2 June 2003, Athens

2. The 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. The new frontiers of the European Union

3. 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. The new frontiers of the European Union

4. Development  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. The new frontiers of the European Union

5. Representation  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). The new frontiers of the European Union

6. Events  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. The new frontiers of the European Union

7. Competition by co-operation! 1. Incentivising the export 2. Structural funds – ERDF 3. Innovation projects The new frontiers of the European Union

8. The markets to be adopted by Lithuanian ICT companies:  Scandinavian countries  Germany  Latvia  USA  Denmark The new frontiers of the European Union

9. The trends of the Lithuanian ICT product export and outsourcing projects:  EU members  Russia  Byelorussia  Ukraine  USA  Asian countries The new frontiers of the European Union

10. Achievements 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. The new frontiers of the European Union

11. EU 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 The new frontiers of the European Union

12. The agenda of business  ICT market in Lithuania  Members of Association Infobalt  State  Society and media  Education and science  International representation and export Association INFOBALT: The new frontiers of the European Union

13. The 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 new frontiers of the European Union

14. The agenda of business  Hardware, components and services150  Computer network94  Technical and educational software59  Software, consultation and service310  Telecommunications79  Office tools61  Banking, financial and business technologies17  Security25  Other20 The breakdown of Association Infobalt members by interest The new frontiers of the European Union

15. Sales of notebooks in Lithuania, 2002 Total, units 7510

16. The new frontiers of the European Union Dynamics in notebooks market Market volume:  2002 – EUR 13 million  2003 – EUR 30 million

17. The new frontiers of the European Union NK sales index, reflecting the dynamics of wholesales market

18. The new frontiers of the European Union Dynamics in computer sales in Lithuania, units

19. The new frontiers of the European Union 2002 year Lithuanian ICT market size 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.

20. The new frontiers of the European Union The main trends of Lithuanian telecommunication market

21. The new frontiers of the European Union 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

22. The new frontiers of the European Union 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.

23. The new frontiers of the European Union 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.

24. The new frontiers of the European Union ICT Share in Lithuania’s GDP in 2000 - 2015 according INFOBALT Strategy

25. The new frontiers of the European Union INFOBALT 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.

26. The new frontiers of the European Union Mission 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.

27. The new frontiers of the European Union 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 INFOBALT:

28. The new frontiers of the European Union Аssociation INFOBALT takes part or prepares the following EU 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.

29. The new frontiers of the European Union  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 and Lithuanian projects:

30. The new frontiers of the European Union EU IST Project TELEBALT  Teleworking as a Tool  for Information Society Programme  promotion to Baltic States www.infobalt.lt/telebalt

31. The new frontiers of the European Union Mobile phones penetration in the Baltic States (‘Global Mobile’ Data)

32. The new frontiers of the European Union Mobile industry 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

33. The new frontiers of the European Union Foreign Investment In Lithuanian Mobile Market Owning Company Company NameOwned Company% Share DKTDC Mobile international ASBite GSM100% SwedenNet Com ABTele 2100% FinlandSoneraOmnitel27,5% SwedenTeliaOmnitel27,5% USMotorolaOmnitel35% Private holdersOmnitel10% Organisation for Economic Co-operation and Development, Centre for Co-operation with Non- members Trade Directorate

34. The new frontiers of the European Union 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

35. The new frontiers of the European Union  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

36. The new frontiers of the European Union SWOT 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 Strengths

37. The new frontiers of the European Union SWOT 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 Strengths

38. The new frontiers of the European Union Association INFOBALT, Vokiečių str. 28/17 – 16, 2001 Vilnius, LITHUANIA Phone. +370 5 262 26 23, fax +370 5 262 26 29 e-mail: office@infobalt.lt www.infobalt.lt Contacts