Preparing for ”Knowledge Economy Phase” Private/public cooperation in supporting Information Society and Knowledge Economy developments Antanas ZABULIS.

Preparing for ”Knowledge Economy Phase”Private/public cooperation in supporting Information

Society and Knowledge Economy developments Antanas ZABULIS

President and CEO Omnitel (Lithuania)

Lithuania already made two major steps towards Euroatlantic Community

- 1990

Regaining Independence, international recognition of the State, establishment of state institutions, creation of

national legal system and consolidation of Democracy.

1990-2002

Creating functioning Market Economy and

euroatlantic (EU and NATO) integration efforts.

Attractive Investment climate, current economy development as well as its strong growth potential gained international recognition by various international business and financial institutions, including Goldman Sachs recommendations to invest in Lithuania.

(prie technologijų lyderės) Neretai “” Lietuvoje įdiegia technologijas anksčiau nei jos pristatomos kitose pasaulio šalyse arba pristato kartu su pasaulio operatoriais.

(prie paslaugų lyderės) Bendrovei svarbu, kad naujausios technologijos duotų labai realią naudą Lietuvos gyventojams, todėl daug jėgų ir darbo spektrą.

(prie investicijų) Šiandien bendrovė yra vienas svarbiausių valstybės ūkio subjektų. Viena didžiausių ir kaip investuotoja, ir kaip mokesčių mokėtoja. Įtakingiausia formuojant Lietuvos ir Baltijos šalių telekomunikacijų rinkas.

šiandien lenkia visas Lietuvos, Latvijos ir Estijos mobiliųjų telekomunikacijų bendroves.

Šiandien “Omnitel” yra nebepralenkiama šalies mobiliųjų telekomunikacijų srities lyderė.

(prie technologijų lyderės) Neretai “” Lietuvoje įdiegia technologijas anksčiau nei jos pristatomos kitose pasaulio šalyse arba pristato kartu su pasaulio operatoriais.

(prie paslaugų lyderės) Bendrovei svarbu, kad naujausios technologijos duotų labai realią naudą Lietuvos gyventojams, todėl daug jėgų ir darbo spektrą.

(prie investicijų) Šiandien bendrovė yra vienas svarbiausių valstybės ūkio subjektų. Viena didžiausių ir kaip investuotoja, ir kaip mokesčių mokėtoja. Įtakingiausia formuojant Lietuvos ir Baltijos šalių telekomunikacijų rinkas.

šiandien lenkia visas Lietuvos, Latvijos ir Estijos mobiliųjų telekomunikacijų bendroves.

Šiandien “Omnitel” yra nebepralenkiama šalies mobiliųjų telekomunikacijų srities lyderė.

Today is time to prepare for Tomorrow Challenges

Today is the time not to rest with the achieved, but to concentrate towards future developments and look forward towards future challenges.

Convergence phases

Regaining Independence,

establishing Democracy

Consolidation of Market Economy,

candidate into EU and NATO

EU post accession period

Knowledge Economyphase

2002 –200? 20101990

What is perspective of Lithuania Economy during

EU post-accession Period?

Lithuania on the Crossroad - between Nordic, Central and Eastern Europe

• Domestic development processes favorable for the investments:– Stable prices and low interest rates create necessary financial environment for

business development;– Stable monetary politics, proved by the fluent process, when Litas was

unpegged from USD and pegged to EURO – essential condition of foreign investment growth;

– Totally privatized and run almost by Western banks banking sector;– Rapidly growing industry and export;– Increasing investments of industrial and service enterprises to ITT, advanced

business management methods;– Continuously increasing consumption potential;– Rapidly developing sectors of telecommunications and information

technologies.– The best infrastructure of telecommunications and roads in the region.

Perfect starting positions

Development of GDP per capita projected on the basis of 2001: EU vs. Lithuania

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The presumable framework of the more rapid GDP growth during post-accession period, providing current positions and potential of Lithuanian economy

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We believe that Lithuania will also succeed in challenges of post-accession period

WHAT ELSE?

In 8-10 years of extensive development, the further opportunities of extensive growth will be exhausted

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In approx. 2010 – 2015 the opportunities of extensive development will be

exhausted. Therefore it is critical to base the development of economy branches on modern technologies by 2010, which

will allow to switch from extensive economy development to intensive.

In case Lithuania will be ready for Knowledge Economy Phase and have innovative economy branches developed

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The further GDP growth will be ensured

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To ensure consequent growth of country’s economy and convergence, the vision of further development of the economy was formed. It was accepted by all main political powers, business community and the society. The vision will make the basis for continuous and forbearing work of all social powers.

NATIONALLY ACCEPTED FUTURE VISION OF THE COUNTRY

Vision of Lithuania beyond EU post-accession period: well developed Knowledge

Economy and Information Society

KAUNASUniversity of Technology

University of Agriculture of LithuaniaVytautas Magnus University

Kaunas University of MedicineAcademy of Physical EducationLithuanian Veterinary Academy

Lithuanian Energy Institute

VILNIUSVilnius University

Gediminas Technical UniversityVilnius University of Pedagogic

Law University of LithuaniaVilnius Academy of Fine ArtsAcademia Musicalis LituaniaeLithuanian Military Academy

Šiauliai University

Klaipėda University

Source of KE potential - Strong Study and Research infrastructure

ITT sector is booming

• In 2001 Lithuanian IT market increased more that 30%

• 2002 1Q sales grow 23% compared to 11% in 1Q of 2001

• Cellular penetration to overcome the density of fixed lines in 2002

• 2001 50% increase in PC sales compared to 2000

• Internet penetration grew 5.1% during last 6 months

• Internet Banking grew 300% during last 6 months

• In 2001 Omnitel increased its customer base by 73%, turnover 43% and became biggest mobile telecommunication company in Baltic States

We cannot just wait for the year 2015

The further growth could only be ensured by basis of innovative

economy branches during EU post-accession period

Preparation for Knowledge Economy Phase

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It is only coordinated efforts of Government and Business will create a synergy effect, which

will help to transform the Vision into Reality

•Knowledge Council lead by President of the Republic of Lithuania Council consists of top level governmental and private business executives dedicated to set-up of strategic priorities developing knowledge economy and society•Knowledge Economy Forum Association, creating and promoting knowledge economy development strategies, consist of 40 leading innovative private enterprises representing IT, biotechnologies, leaser technologies, and telecommunications•Development of Long-Term Strategy for Lithuanian Economic Development in 2001-2015 Strategy was developed by leading experts from public and private sector and went via electronic community consultation by internet. Industry development strategy include target to achieve 25% of GDP generated by ‘knowledge rich’ industries by 2015.

Private/Public Initiatives

Private/Public Initiatives

•“Window to the Future” initiative Alliance of biggest private enterprises of Telecommunications, Banking and IT sector, aiming to stimulate development of Information Society and force Internet penetration growth in the country•Development of National Agreement on Economic Development Memorandum of understanding was signed by all major political parties and leading business associations

KNOWLEDGE ECONOMYand

INFORMATION SOCIETYdevelopment

are top priorities in current private/public cooperation activities in Lithuania

Knowledge Economy Forum

Association of more than 40 leading IT, Biotechnology, Leaser technology, and Telecommunication companies.Promoting knowledge economy development strategies

INFORMATION SOCIETY DEVELOPMENT INITIATIVE

Alliance, joining leading ITT companies and Banks

WINDOW TO THE FUTURE

GOALAchieve average Internet

penetration of the European

Union in Lithuania Within three years

WINDOW

TO THE FUTURE

FIELDS OF ACTIVITY

• ACCESSAccess to the Internet for broadest levels of the society

• TRAININGTraining of the society in using computers and the Internet

• E-SERVICESDevelopment of the electronic content and services relevant to the society

WINDOW

TO THE FUTURE

FIRST 2002 Project

• Public Access Internet Centers 65 centers in 45 different cities and regions,covering all Lithuania this year

Strategic shift in understanding of countries development future happened in the minds of political and business establishment.

Lithuania is going via strategic planning phase towards everyday developments and investments into next decade future of the Country.

CONCLUSION

THANK YOU!

[email protected]@omnitel.net

For this presentation visit : www.omnitel.lt