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Georgia as the Regional ICT Hub and Ecosystem for Partnership

Ministry of Economy and Sustainable Development of Georgia. Georgia as the Regional ICT Hub and Ecosystem for Partnership . Irakli Kashibadze Head of Communications, IT and Innovations Department.

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Georgia as the Regional ICT Hub and Ecosystem for Partnership

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  1. Ministry of Economy and Sustainable Development of Georgia Georgia as the Regional ICT Hub and Ecosystem for Partnership Irakli Kashibadze Head of Communications, IT and Innovations Department

  2. Georgia's geographic location makes it attractive as a regional center for the South Caucasus and Caspian regions; • Due to their geographic location, proximity to the EU and the Middle East, Georgia has access to a much wider market opportunities of ICT services for less and not limited only to the Caucasus and Central Asian regions to be shipped. • Flight time to Istanbul, Kiev, Moscow - 2 hours, Dubai –3 Hours, Berlin and Prague 4 hours.

  3. According to 2011 data, exporting of automobiles is on first place among other products in the export list of Georgia

  4. Economic Reforms • Min 4o minute - Max. 3 days are needed for running a new business in Georgia; • On the ground of tax code changes, based on a simplified tax system converted 21 tax payments into 6; • The corporate income tax has been lowered to a 15% rate. The VAT single rate was reducedfrom 20% to 18% in 2005. No of taxes 21 in 2004 6 in 2013

  5. The rank of Georgia according to economic reforms among world organizations • According to the research, of “The Global Information Technology Report of the World Economic Forum 2013”, Georgia is on 65th on network readiness index rankings among 144 countries. • According to indexes of The World Bank 2013, Georgia has occupied 21st position in terms of economic freedom, and the 11th position in the European Region.

  6. The rank of Georgia according to economic reforms in the world • According to the research of “Transparency International 2012”, with 52 points Georgia is on 51st position among 176 other countries. Where 0 means extremely corrupted, while the 100 - means very clear public sector. • According to the World Bank’s report 2013 on doing business, Georgia ranked as No.9 among 185 countries. on 2006 ranking was 112

  7. Georgia's ranks of ICT, ITU andEBRD report • Compared to the CIS and Caucasus region countries, ICT field in Georgia is one of the most rapidly developing and expanding. • According to the European Bank for Reconstruction and Development(EBRD) research result 2012, regarding the 31 countries electronic communication sector Comparative Assessment, Georgia has received the high evaluation.

  8. Statistical indicators of the ICT sector • In 2012 fixed networks subscribers number increased 1 440 000 and subscribers density for 100 inhabitant reached 32.7 % • In 2012 mobile networks subscribers number increased 4 800 000 and subscribers density for 100 inhabitant reached 109 %

  9. Statistical indicators of the ICT sector of Georgia • In 2012, the number of Internet users reached 1.7 million and subscribers density for 100 inhabitant reached 38.6 %.

  10. Fiber-optic infrastructure in Georgia In the country actively growing urban coverage zone by fiber-optic backbones, actually 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

  11. Implementation of different events for ICT industry development by the government of Georgia • 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, licensing is needed only for acquiring radio frequencies. This has also eased procedures for companies willing to start operation in this field consequently, has promoted competition on the market. • IT zones have been created since 2011 in Georgia. At the moment there are 37 different companies Export oriented IT software companies and the income is 10 million of total revenue, from services rendered by exports, but the potential is much bigger; • Since 2010 in Georgia has been carrying out IT Startup Days, with the aim of providing technical assistance IT startup companies by the government; • The Government of Georgia supports to developing of e-services, such as: e-government, e-learning, e-health, etc. • In Georgia was implemented "Deer Leap” project, according to that, all schools of the country was equipped with computer classes interconnected to internet network (from 2005 much then 37 000 computers are delivered in all schools in Georgia;

  12. Implementation of different events for ICT industry development by the government of Georgia • Georgia has established a national numbering system of electronic communication networks, which is elaborated by the standards and guidelines of ITU, CEPT, and ETSI requirements. The increasing numbers promote attracting new business companies in Georgia; • Data center development works are underway in Georgia. The low cost on electrical energy promotes Data Center construction in Georgia. • In 2011 there was established Google Developing Group in Georgia, which was ranked at 5th place with its activities among the other groups working on Google issues in specific countries. • The switchover process from analog into the digital broadcasting is in its active phase in Georgia;

  13. Brands such as TeliaSonera, Deltacom, Beeline, Microsoft, Lotto, Hyundai, Marriott, Radisson, Puma, Ferrero, Lebek, Sheraton, etc. are presented in Georgia;

  14. Thanks for your attention! Irakli Kashibadze Head of Communications, IT and Innovations Department Ministry of Economy and Sustainable Development of Georgia ikashibadze@economy.ge

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