Overview of the Georgian ICT sphere and the role of G2B

1. Ministry of Economy and Sustainable Development of Georgia Overview of the Georgian ICT sphere and the role of G2B Communications, IT and Innovations Department Irakli Kashibadze 2011 Caspian Telecoms 2011

2. Georgia is undertaking a number of reforms aimed at achieving highest possible level of integration of the country into Euro-Atlantic structures; • We determined to create favorable conditions for entrepreneurship, enhancement of external trade and attraction of investment; • According to the World Bank’s assessment, Georgia is at 12th place out of 183 countries in the ease of doing and starting up business ; • Georgia has also improved its rating in many international indexes in which is assessed the country's economic freedom; • Since the reforms, the number of licenses and permits reduced by 84% and for the license applications was established "one window principle” and "Silence means consent“; • With simplified tax code from 21 taxes payment remained only 6 and time for property registration decreased by 75% and the cost by 70%; • In the country there are no barriers to private sector development.

3. Overview of the Georgian ICT sphere, its challenges and advantages • In Georgia for several years in ICT field is simplified licensing procedures; • New entrants on the market only needs to authorize to start an operation; • Government’s basic tendency is the globalization of business and approach with world market economy standards; • International and regional relations are vital for our country; • We have close relations with ITU, UPU and CEPT; • In order to deepen close relations with foreign countries in 2010 had been continuing signing up the Agreements and Memorandums on cooperation in the field of Electronic Communications, IT and Post.

4. New numbering system • The Government of Georgia has been approved regulation of National Numbering System of Electronic Communications Networks of Georgia; • Deployment of National Numbering System will be implemented stepwise in 2011. • In June 2010 was approved the provision of subscriber number portability; • Since November 2010 mobile networks subscribers got opportunity with maintaining their own number connect preferred mobile company's networks; • Introduction number portability in fixed telephone networks is planned by the end of the year.

5. Migration from Analogue to Digital Broadcasting • Radio Regional Conference (RRC-06) of the ITU adopted a regional agreement Geneva 2006, according to this plan countries located in the radio frequency planning first zone (Europe, including Georgia) by the year 2015 should implement transition from analog broadcasting into the digital broadcasting; • in 2010 ITU providing us experts assistance on migration from Analogue to digital broadcasting; • Considering adopted recommendations from experts we are elaborating Digital TV-Radio Development Technical complex project; • Digital TV-Radio broadcasting will be implemented until 2015 in the country.

6. IT Startup Days in Georgia The Ministry started project “IT Startup Days in Georgia” which is focused on improving the IT environment in the country and creating the competitive IT startups in order the IT Startup projects become competitive in local and international market; Such kind of events are held once in every two months; Has already held two events of IT Startup Days, many interesting and innovative interpret ideas were presented in the framework of invent and finally best of them were funded from the investors.

7. IT Shared Services Centers Our ministry and Hewlett-Packard signed the MOU, according to which HP is planning to create the IT Shared Services Centers for remote usage with server capacities and software. On the first stage it is planed that consumers of the Center become all the state-owned organizations. Transfer of Governmental entities’ IT service in Cloud and Data Center is based on the best practices. Through this Center HP is also planning provide services abroad. Through this Center there is planned reduction of IT expenses by 20% in the governmental entities, productivity growth which according to the request, in case of peak load, in organizations will make possible to grow the productivity, also will significantly rise degree of data protection from attacks. HP side also is planed other activities, which will encourage the development of IT in Georgia, including training of IT specialists, support of IT innovations in Institutes and active cooperation in the process of development IT incubators.

8. Public Workshop: Creating favorable conditions for an e-Society was held in Georgia organized by our Ministry and supported by EBRD. • In the course of public workshop was discussed what the view of different stakeholders is regarding the way forward to create the e-Society in Georgia with the infrastructure that will deliver universal high-speed internet and also making available the benefits of an e-Society in the future; • Investors, consumers, ministries, regulatory and industry experts came together to consider the issues, with the aim of developing common views on the way forward for Georgia. • In Georgia is successfully developing various E- commerce applications and also we are actively working on E-commerce development issues; • In the ministry was held a round table on the issues" Electronic commerce development in the Georgia”; • On meeting considered existing problems of e-commerce in the country and were set their resolution ways; • Farther development of the e-commerce will be one of the significant factors for socio-economic growth of Georgia.

9. E-services • In our Country Different Ministries and Governmental agencies introduced many e-services : • Archive of Technical Records; • Lien and Tax Lien/Hypothec Registry; • interactive and Cadastral Maps, • Applying for Citizenship; • Consular Registration; • Georgian Passports; • Certificates of Civil Acts; • Activation of E-Declaration via Video Call; • E-Auction; • E-Budget; • E-declaration; • Information on Entrepreneurs; • Online Payments; • Property Tax Rates/Coefficients; • Shipping Information and Customs; • Constructions: Determination of Permission Necessity, Determination of Building`s Red Lines, General Statement from Tbilisi Arch, ect.

10. Introduction of digital technologies and “digital modernization” of Georgia is of the highest priority of our country. We have a big experience of cooperation with ITU. One of our future intensions is to elaborate an urge-scale project to introduce “electronic government” in Georgia; We take active steps towards implementation of Government 2.0 to fully utilize resources of new technologies which will give possibility to population and businesses to enter into full interaction; It is planned to have a governmental project at the Ministry of Economy and Sustainable Development of Georgia open for the population to generate their own ideas and suggestions.

11. The Law of free IT Zones and Creation of Export Oriented Software Market • The Law of free IT Zones was approved by Parliament of Georgia and since 1st January 2011 becomes effective; • Law aims at development of information technology and creating a favorable environment for those that are in the field of information technology and focused on creation of software products; • One of the priorities of Georgian Government is to support creation of export oriented software market; • Ministry is actively working on development of the above and creation of Technological Parks oriented at software production in the country; • Georgia has good human resources; young Georgian programmers had good results in many international programming contests; • Prepared strategy and action plan of export-oriented programming and IT innovation market development; • Prepared Teleworking developing strategy in the country.

12. IT education • Currently is going implementation of project “Black Sea Interconnection” The project aims development of research and educational network, which will connect Georgian and South Caucasus countries networks to European countries; • The large part of above project is funded by the European Commission and the rest by the partner companies. The Research and Educational Networking Association “GRENA” is a project partner. • Successfully has been developing schools’ computerization project “Deer Leap” which will end by 2011; • It will give us the opportunity to provide all schools with computer classes interconnected to the internet network; • By utilization of this project e-learning systems will be established throughout the Georgia. • Intel Corporation, together with Georgian IT company “Algorithm” – plan to produce the first Georgian Net books that will be distributed to all first graders by the initiative of the President; • Delivering Net books to schoolchildren is aimed at establishing modern standards in Georgia’s education system; • Georgia has developed new IT education programs in higher education Institutions as well. As a result, many Georgian students were awarded with different medals at international Olympiads and contests. Participation of Georgia in establishment of a global information society is a crucial component of international cooperation.

13. Fiber-Optic Backbones • In the country actively growing urban coverage zone by fiber-optic backbones; • Most of the cities are covered by high-speed optic backbones; • Georgia has several interconnections with Europe through the Black Sea, Turkey and Russia. We have optic interconnections with other neighbors including Armenia and Azerbaijan. • In the nearest future government of Georgia is planning to start the project “Broadband for all” and it will aim at coverage of commercial organizations’ less profitable directions with high-speed internet interconnections and coverage of regions with internet network; • In the project will be used the potential that means the construction of fiber optic backbones in parallel with construction of roads.

14. Development of ICT field in the country • In 2010 has been developing Georgian ICT networks by using modern technologies; • Internet users increased up to 1 200 000; • ISP’s offering broadband internet services to users (DSL, FTTH, Wi-Max), Most Internet users use DSL internet but now they are actively moved to the optical internet (FTTH) and at the end of the year majority of internet users will be connected to the fiber optic internet; • Also some ISP’s offering IP TV to individual and business users. • Increased active subscribers in mobile networks - 3 193 012 and subscribers in fixed telephone networks- 937 521 ; • Three company has fixed wireless telephone services based on CDMA, The number of fixed wireless telephone services subscribers is increasing intensively. 3.5G technologies have been already developed in Georgia. Some of the companies are preparing introduction 4G system in the Country; • We are planning to liberalize radio-frequencies spectrum that will enable to create new mobile operators and new innovation services on the market, also is preparing testing zones for 4G networks.

15. Main Objectives • Objectives of Ministry of Economy and Sustainable Development of Georgia in 2011 are the following: • Formation of Export-oriented IT industry in the of Georgia; • Decentralization of working places by development remote working (Telework); • Foundation of business Incubators; • In the course of infrastructural projects considering capacity for fiber-optic networks (legislative proposal); • Promote the establishment of international Data and IT service centers in Georgia (in partnership with HP, Cisco, Oracle); • Development of blogging and social media; • Organization of International ICT seminars and workshops; • Organization of meetings in the field of Telecommunications for investment opportunities (China, France, Turkey, Ukraine, etc.), • Supporting attraction of investments in the field of electronic communications, IT and Postal sphere; • Development of digital broadcasting; • Implementation of National Numbering System of Georgia; • Legislative initiatives for developing electronic communications, information technology and postal sphere; • E- reintegration of occupied regions (telephone codes, e-mail, Internet).

16. Thanks for your attention! Irakli Kashibadze Head of Communications, IT and Innovations Department Ministry of Economy and Sustainable Development of Georgia TEL: + 995 32 99-10-15 MOB : +995 95 91-99-11 E-mail :ikashibadze@economy.ge