1. The Ministry of Information &Communication Technologies Ms. Violeta EPUREANU, Minister’s advisor Mr. Viorel MUNTEANU, Director Moldova ICT overview. Accomplishing Sustainable Development of Wireless Mobile Communication

2.  Moldova country profile  ICT sector performance & policy implication  Assessment & benchmarking  ITU key indexes: ICT DI & ICT PB  Opportunities for investment in Moldova  Final remarks & conclusions Outline

3. Moldova country profile Location: Eastern Europe Population - 4.3 million Territory 33.800 km 2 Metropolis: Chisinau GDP per capita (2010) - $2.500 (PPP) GDP real growth rate (2010) - 6.5% ICT share in country’s GDP – 9.5% Life expectancy at birth: 71 years Unemployment rate (2010) - 6.5% Literacy rate - 99% Source: CIA world fact book

4. Ministry of ICT mission & core value  ICT is the key driver of economic growth, efficiency, productivity enhancement, and transparency  Our mission is to ensure sustainable growth of ICT sector through free market and export oriented policy  We create business opportunities and encourage investments by promoting fair competition and developing appropriate legal framework

5. Policy implication  Law on electronic communication  ICT strategy  National Broadband Program  Digital switchover

6. Current status of Telecommunications in Moldova ICT market overview (2010) Total Sales – 530 ml. US $, 9% Investments - 150 ml. US $, 1.4 3 wireless mobile providers 17 wireline providers 54 ISP Figure 2. ICT penetration rate Source: NRA Moldova Wireless ISP Wireline 2004200520062007200820092010 BB (Fixed) Internet 2.43.14.45.77.6 Fixed line 25.327.429.930.131.231.932.6 Wireless 23324053687889 OperatorTechnologyNetwork status MMT NMT 450i Launched 1995 Closed 2000 ORANGE GSM 900/1800 UMTS (W-CDMA) Launched October 1998 Launched Fall 2008 MOLDCELL GSM 900/1800 UMTS (WCDMA) Launched April 2000 Launched Fall 2008 UNITE CDMA-2000 UMTS (WCDMA) Launched March 2007 Launched December 2009 EVENTIS GSM 900/1800 Launched December 2007 Closed 2010 Figure 1. Historical landmark Figure 3. ICT Market share

7. Current status wireless mobile Source: NRA Moldova Voice service Interconnection Wireless cellular  Total Subscribers - 3.2 ml., 14%  BB Mobile Subsc. 122 k, 50%  Network coverage 96% -99%  Postpaid / Prepaid 3:7  ARPU - 9 US $ Figure 4. ICT Market share Figure 5. Wireless revenue stream Closed in 2010

8. Global trends in wireless mobile industry By the end of 2010,  there were 5.3 bn. mobile subscriptions worldwide  including 940 ml. subscription to 3G services  access to mobile networks have 90% of world population  143 countries were offering 3G services commercially

9. Key indexes for assessment  ICT Development Index captures the level of advancement of ICT worldwide, compares progress made and evolution over time of ICT developments in countries  ICT Price basket (based on 2009 tariffs in 161 countries) monitor the cost of ICT services, tracks prices of ICT services, and measures ICT affordability  ICT PB and the ICT DI are, implicitly, related: lower prices may increase access and use, and higher levels of ICT access and use may bring down prices

10. 2008 IDIRank Sweden 7.801 Slovenia 6.2626 Romania 4.7344 Russia 4.5448 Turkey 3.9057 Ucraine 3.805858 Moldova 3.3773 Georgia Iran Uzbekistan Tajikistan 3.32 3.08 2.25 80 84 110 111 ICT Development Index Figure 6. ICT DI conceptual framework

11. Value Rank Macao (China) 0.231 Slovenia 0.9531 Figure 7. ICT PB conceptual framework Russia 1.0234 Ukraine 1.7950 Kazakhstan 1.8251 Turkey 2.3962 Iran 3.6483 Moldova 6.65103 Georgia 8.62110 Kyrgyzstan 25.2125 Uzbekistan 34.1130 Source ITU Tajikistan 35.8134 ICT Price Basket

12.  Creative mindset  Language proficiency skills  Appropriate legal framework  Convenient time zone  Geographical proximity  Inexpensive and skilled labor  Good communication infrastructure IT industry potential to export more

13.  In order to keep sustainable development of IMT2000 systems the government should play a role of matchmaker between supply and demand sides  The most critical factors for successful deployment of 3G are coverage, handsets availability, and attractive pricing strategy  Wire less mobile systems create new business opportunities and offer innovative value added services  It is necessary to invest more in R&D projects to catch up with developed countries  ICT Public awareness programs should be promoted because ICT is a key enabler towards knowledge based society Final remarks

14. Thank you for your attention!