The International Bank for Reconstruction and Development (IBRD) for the Information for Development Program (infoDev)
National Academy of Sciences of Belarus Belarusian Fund of Informatization
ICT Infrastructure and E-Readiness Assessments in the Republic of Belarus
Grant # ICT 015
E-Readiness Assessment Report
April 2003
Minsk
LIST OF RESEARCHERS
1. Victor I. Dravitsa, Contact Person of the Grant – Belarusian Fund of Informatization
2. Uladzimir V. Anishchanka Deputy Contact Person, Coordinating Group executive – United Institute of Informatics Problems, National Academy of Sciences of Belarus 3. Vladimir V. Basko – IT Companies Association 4. Yury I. Vorotnitsky – Belarusian State University 5. Sergey V. Yenin – NGO “Information Society” 6. Yuriy A. Zisser – TUT.BY Belarusian Portal (Reliable Software Co.) 7. Alexander N. Gorbach – State Center of Information Security 8. Valery E. Kratenok – Ministry of Health 9. Leonid V. Semenenko – Institute of Applied Physical Problems 10. Oleg I. Tavgen – Academy after Degree Education 11. Vladimir A. Labunov – Belarusian State University of Informatics and Radio Electronics 12. Nikolay I. Listopad – Ministry of Education 13. Alexander N. Kurbatsky – Association “National Infopark” 14. Gennadiy P. Chepurny – Ministry of Economics 15. Boris N. Panshin – National Centre of Marketing and Price Study 16. Michael M. Makhaniok – National Centre of Information Resources & Technologies, National Academy of Sciences of Belarus 17. Artour I. Savitsky – Belarusian Fund of Informatization 18. Ivan A. Korol – Ministry of Labour and Social Assurances 19. Anatoly L. Rodtsevich – Ministry of Industry 20. Anatoly N. Morozevich – High Attestation Committee 21. Michael M. Kovalev – National Bank 22. Oleg F. Seklitsky – RA “Beltelecom” 23. Oleg T. Manaev – Independent Institute of Socio-Economic & Political Studies in Minsk, Belarus 24. Alexander V. Karymov – Translation 25. Valentina I. Galko – Account support 26. Artyom U. Anishchanka – Software support 27. Dmitry L. Mozneyko – Software support 28. Aliaksandr U. Chekan – Software support 29. Katsiaryna V. Kurian – Translation, English edition
2 ABSTRACT
The report comprises 144 pages, 19 references, 88 tables, 66 figures, 1 annex.
INFORMATION AND COMMUNICATION TECHNOLOGIES, NETWORK ACCESS, NETWORK LEARNING, NETWORKED SOCIETY, ELECTRONIC COMMERCE, TELECOMMUNICATIONS REGULATION, INTERNET, PERSONAL COMPUTERS, WIRELESS TELEPHONY, ELECTRONIC READINESS, INFORMATIZATION PROGRAM, ELECTRONIC BELARUS.
The object of research is the sector of information and communication technologies (ICTs) of the Republic of Belarus by network access, network learning, networked society, networked economy, network policy. A purpose of the research is to carry out a comprehensive combined assessment on the basis of actual data of the advancement of Belarusian community in most critical ICT usage fields and in its most relevant applications by using the international methodical guidelines [1-3] to reveal weak points in the development of informatization processes in the Republic of Belarus. During research the analysis was made regarding: - Information infrastructure, stage of Internet Availability and Internet affordability; - Network speed and quality of the information transfer while accessing the Internet; - Hardware and software availability and service and supports for ICTs; - Schools' / education institutions access to ICTs and enhancing education with ICTs; - Developing the ICT workforce and ICT employment opportunities; - Remote on-line access to organizations and locally relevant content of information resources; - Level of using ICTs in everyday life and in the workplace; - Developing electronic commerce and electronic government; - Telecommunications regulation and ICT trade policy. As a result of research a detailed description or a detailed charted map of ICT potential of the Republic of Belarus, as a point of reference in ICT development planning has been obtained.
3
CONTENT
Introduction 5 1. Network Access 10 2. Networked Learning 49 3. Networked Society 62 4. Networked Economy 86 5. Network Policy 117 6. Belarus Networked Readiness Index 129 Conclusion 141 References 142 Annex 1. Background of participants of the special on-line poll at TUT.BY site 143
4 Introduction
Ever-evolving and increasingly powerful information and communication technologies (ICTs) have fundamentally changed the nature of global relationships, sources of competitive advantage and opportunities for economic and social development. Technologies such as the Internet, personal computers and wireless telephony have turned the globe into an increasingly interconnected network of individuals, firms, schools and governments communicating and interacting with each other through a variety of channels. The explosion of this technologically mediated global network has resulted in a world in which virtually everyone, everywhere, has the potential to reap the benefits of connectivity to the network. Success in the Information Age depends upon the widespread integration of ICTs into society-at-large. The new ICTs are a powerful yet neutral tool that can be used to address a host of issues in every community – their real power, therefore, lies in their ability to support holistic development that promotes long-term social and economic benefits. If information and communication technologies are used effectively, they can help to create a trained, educated and healthy workforce that can build a vibrant and successful economy. The value of a network increases as its number of users grows. By participating in the global information network, developing nations not only add value to the rest of the world, but also benefit from the ability to use the network to communicate and trade with all other users. For this reason it becomes ever more important for the Republic of Belarus to get ready for the Networked World. Readiness to face such world creates new opportunities for organizations and individuals in the countries with transitional economy, lifts barriers, which have been traditionally an obstacle to information and goods flows from CIS countries, and also promotes activity efficiency. The involvement in the networked world may provide for new ways for Belarus in terms of improving economical and social welfare and political well-being. These opportunities for positive changes become even more essential and are accessible due to an increase of ICT capacities and reduction of its service rates. The welfare of the countries in a modern world is determined in many aspects by a stage of development of a country’s informational infrastructure and the level of penetration into all publicly- significant areas of human activity by the advanced ICT. In this respect, a necessity to carry out an trustworthy expert assessment of the ICT infrastructure and estimate readiness to use up-to-date information technologies in all fields of the society vital activities is gaining special importance for each country. "The Information Readiness" or e-Readiness is a level, which a community reached and is prepared to integrate into the informatively networked world. It is assessed by estimating advancement of the community in most critical fields for ICT usage and in its most relevant applications. Such assessment grounded on the said elements, provides a clear description of E-readiness of the community by considering it jointly in a context of the discussion about strategic planning. National Academy of Sciences of Belarus (NASB) was vested with power of a republican state management body by the Decree of the President of the Republic of Belarus (Decree No7 dated March 5, 2002) headed «On improving governmental management in the field of science», which is concerning its specific functions, including that of providing support and facilitate development of informatization and a scientific and technical information system. Set-up and development of ICT in the republic according to priority guidelines is envisaged for the years of 2001-2005 within the framework of some already approved or pertaining approval programs, namely State Programs of Basic Research, Programs of the Community (Belarus-Russia), State R&D Programs (SRDPs) and Branch Scientific and Technical Programs as below:
5 1) State Program of Informatization in the Republic of Belarus for 2001-2005; 2) Intellectual Information Technologies and Systems Program of the Community (Belarus- Russia) for 2003-2005 (is not approved); 3) Development of model family of high performance computing systems with parallel architecture (supercomputers) Program of the Community (Belarus-Russia) for 2000-2003; 4) Development and use of space means and technologies of reception, processing and display of the space information for 1999-2002 and Development and use of perspective space means and technologies in interests of economic, scientific and technical development for 2003-2006 Programs of the Community (Belarus-Russia); 5) Protection of the common information resources of Belarus and Russia Program of the Community (Belarus-Russia) for 2000-2003; 6) The state program of basic researches “Theoretical bases of new information technologies for 2001-2005”; 7) SRDP “Advanced information and telecommunication technologies” (Information Technologies) for 2001-2005; 8) SRDP “Development of methods and tools of complex information protection system (Information Protection) on 2001-2005; 9) SRDP "Complex Informatization of Belarus public health services” for 2003-2012 (is not authorized); 10) The state branch scientific and technical program “CAD/CAM technologies of new production for 2001-2005; 11) The state branch scientific and technical program “Telecommunication Tools” for 2001-2005; 12) The program of works on Development of the Research and Information Computer Network (NIKS) of Belarus for 2001-2003; 13) The Communication Development Program in Belarus on 2001-2005 (with scientific maintenance). Belarusian Informatization Fund has already carried out tentative assessments of ICT infrastructure in state sector while elaborating and implementing the above-listed programs as well as while tackling and solving the matters pertaining to Year 2000 Problem of in the Republic of Belarus. Methodology. The e-readiness assessment report is a tool to identify strategic priorities of the Republic of Belarus in order to integrate into a networked world. The present studies and research has been carried out by using officially approved and advised international methodologies to estimate a networked readiness to obtain comprehensive reports and derive appropriate conclusions for taking effective decisions related to fostering development processes of informatization in the country. To collect first-hand primary data about ICT situation in Belarus, two questionnaires were elaborated with reference to methodologies of Harvard University's Center for International Development: 1) Readiness for the Networked World. A Guide for Developing Countries [1]; 2) CHAPTER 2: The Networked Readiness Index: Measuring the Preparedness of Nations for the Networked World [2]. The goal of the assessment is to evaluate the rating of information infrastructure development in Belarus and its readiness to integrate to the networked world. The assessment would serve as a basis for developing the National Action Plan for introduction of modern ICT solutions aimed at fostering socio- economic development of Belarus, and be used as a guide for national and international organisations in the area of E-Development. The assessment according to [1] measure 19 different categories (sub-indexes), covering the availability, speed, and quality of network access, use of ICTs in schools, workplace, economy, government, and everyday life, ICT policy (telecommunications and trade), ICT training programs, and
6 diversity of organizations and relevant content online. All this data were processed in a way to ensure comparability with the similar data for the countries assessed in the Global Information Technology Report 2001-2002: Readiness for the Networked World [2]. An ‘e-ready’ Belarusian society is one that has the necessary physical infrastructure (high bandwidth, reliability, and affordable prices); integrated current ICTs throughout businesses (e-commerce, local ICT sector), communities (local content, many organizations online, ICTs used in everyday life, ICTs taught in schools), and the government (e-government); strong telecommunications competition; independent regulation with a commitment to universal access; and no limits on trade or foreign investment. To collect additional items of information a third questionnaire was used, with the said questionnaire containing questions formulated according to some variables approved for an estimation in the course of implementation of e-Europe program [3]. To ensure that a trustworthy assessment of the state of an ICT infrastructure and e-readiness in Belarus has been made, the information was collected from various sources, which follow: - ad-hoc on-line poll at site TUT.BY (1759 participants); - members of the Republican non-governmental Information Society (60 questionnaires); - comprehensive training institutions and regions departments of educational (68 questionnaires); - higher educational institutions (10 questionnaires); - Internets Service Providers (9 questionnaires); - participants of 4th Belarusian Internet forum by2002 under title «Internet for Business Benefit», November 29-30, 2002 (36 questionnaires); - members of Belarusian non-governmental associations of the IT companies and National Infopark; - republican state management bodies (ministries, committees, etc.); - publications in mass-media and Internet databases; - the national public opinion polls conducted by the Independent Institute of Socio-Economic & Political Studies, Minsk, Belarus (1,500 respondents of age 18+ were face-to-face interviewed, marginal error did not exceed 0.03). A comprehensive combined assessment carried out on the basis of actual data by using the international methodical guidelines [1,2] has allowed to reveal weak points in development processes aimed at informatization in the Republic of Belarus with regard to the following combined variables (see results in Parts 1-5): 1) Network Access; 2) Networked Learning; 3) Networked Society; 4) Networked Economy; 5) Network Policy. The basis of data of 5 combined indexes (component indexes) shows the estimations which measure 19 different categories of indicators (indexes) ranging each index by levels of advancement from 1-st (least-advanced) to 4th (most-advanced). These categories are interdependent, each one influences other category by a definite way. The approach has been accepted, comprehending the situation that it is inappropriate to focus efforts at one field of ICT alone in the country, but it is essential to pay attention to each of them. It is then marked where, among different categories, proper efforts ought to be exerted. Network Access (see results in Part 1). A defined total assessment of the readiness stage by Network Access component index (Table 1.39) shows, that the capital of the country (20% of the population) has actually reached 3rd stage of development according to ICT indexes taken into account, whereas the regions and other areas are found to be at 2nd stage.
7 Networked Learning (see results in Part 2). A defined average estimation of e-readiness level/stage by Network Learning Component Index is 2.76. However, the present estimation differs essentially for comprehensive schools and high schools, actually by one level/stage: 2.37 and 3.16, accordingly. This practically means, that higher educational institutions have reached 3-rd level of development as assessed by the ICT indexes taken into account, whereas the comprehensive schools are at 2nd level. Networked Society (see results in Part 3). A defined average estimation of advancement level/ stage by Networked Society component index is 2.44. However, the present estimation differs essentially for regions and Minsk, almost by one level/ stage: 2.22 and 3.19 - respectively. It means, that 3rd level/stage of development as assessed by the ICT indexes taken into account, was practically reached in Minsk, whereas the regions are at 2nd level/stage only. Networked Economy (see results in Part 4). A defined average estimation by Networked Economy Component Index is 1.97. It means actually that the country has not achieved 2nd level of development according to ICT e-readiness indexes. The given estimation is low even for Minsk - 2.57, not to mention the regions - 1.86. Networked Policy (see results in Part 5). A defined average estimation by Network Policy Index is 1.91. It means actually that the country has not achieved 2nd level of development according to ICT indexes. The Networked Readiness Index (NRI) [2] transforms the complex dynamics of Networked Readiness [1] into more easily understood quantitative shorthand. NRI (see Part 6) distinguishes factors that determine the usability of the Network (the Enabling Factors) and variables that reflect the extent of Network Use. The Belarus NRI data sources fall under three general categories. First, we collected a variety of measures—mainly “hard” variables but also some “soft” ones—from sources such as the World Bank, the International Telecommunications Union, Freedom House, and the Business Software Alliance. Second, we drew heavily on questionnaire responses from about 50 participants of Fourth Belarusian Internet Forum (November, 29-30 2002) and Belarusian experts of the grant # ICT 015. Third, in the course of research being carried out currently within the framework of infoDev grant 11 “hard” variables were received as a result of special research and analysis of data that is absent in statistical reports of either the Belarusian governmental bodies, or the international organizations.
The defined Belarus Networked Readiness Index is 3.19 (Table 1) that equals to rank 61 from 76 countries according to [2]:
Networked Country Readiness NRI Rank United States 6.05 1 Iceland … 6.03 2 United Kingdom … 5.31 10 Czech Republic … 4.38 28 Lithuania … 3.59 42 Belarus (2002) … 3.19 61 Russian Federation … 3.17 62 Ukraine … 3.05 67 Nigeria 2.10 76
8 Table 1 Belarus Networked Readiness Index Key Facts Population 9,980,000 GDP per capita (PPP) US$ 1,120.- Main telephone lines per 100 inhabitants 30,50 Telephone faults per 100 main telephone lines 35,21 Internet hosts per 10,000 inhabitants 57,39 Personal computers per 100 inhabitants 7,77 Piracy rate 87 % Percent of PCs connected to Internet 7,39 % Internet users per host 15,8 Internet users per 100 inhabitants 9,07 Cell phone subscribers per 100 inhabitants 4,54 Average monthly cost for 20 hours of Internet access US$ 21.45 Rank Networked Readiness Index 61 Network Use component index 51 Enabling Factors component index 65 • Network Access 67 Information Infrastructure 67 Hardware, Software, and Support 63 • Network Policy 73 Business and Economic Environment 66 ICT Policy 76 • Networked Society 51 Networked Learning 66 ICT Opportunities 66 Social Capital 26 • Networked Economy 65 e-Commerce 64 e-Government 72 General Infrastructure 47
Thus, the research resulted in that a comprehensive charted map showing a detailed description of a Belarusian potential in ICT, as a point of reference in ICT development planning was obtained. The draft assessment report data were appropriately used while elaborating the State program of informatization in the Republic of Belarus headed «Electronic Belarus - e-Belarus» to be implemented within the years of 2003 to 2005 and till the year of 2010.
9 1. Network Access
1.1. Information Infrastructure
9 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Information Infrastructure index variables (sub-indexes). The aforesaid IPs - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Beltelecom (www.beltelecom.by), Global-OneBel (www.global-one.by), Business Net (www.bn.by), Forenet (BelSoft CJSC, forenet.by), Unibel (www.unibel.by) BSUnet (www.cit.bsu.by) represent different niches of the Internet Provision market in the Republic of Belarus. The experts assessed the level of Information Infrastructure Readiness (or advancement) of the country, which can range from the 1st (least-advanced) to the 4th (most-advanced) stage, for each micro- index independently, and average data assessment for Information Infrastructure index and generalized data assessment for Network Access component index were evaluated on their basis. Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the Information Infrastructure index are presented below in Table 1.1. Table 1.1 Average Estimation of the Information Infrastructure index Stage No Belarus, % Minsk, % Regions, % 1 10 7.5 17.5 2 42.5 17.5 45 3 45 52.5 35 4 2.5 22.5 2.5 Average Index Estimation 2.4 2.9 2.225
The following Tables 1.1 through 1.5. present the total estimation breakdown (given as share of the total amount of the answers received), assessing the whole republic, the city of Minsk and administrative regions in the context of the four micro-indexes. Table 1.2 1.1.1. Access to Telecommunications Infrastructure Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 There are very few shared facilities for telecommunications 0 0 0 access 2 A small minority in the community has good access to the 30 10 50 telecommunications network, but most of community does not 3 A sizeable portion of the community has good access to 70 60 50 telephone services 4 There is widespread access to telecommunications and 0 30 0 network services
10 Table 1.3 1.1.2. Telephone Density Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 Very low, with a teledensity of less than 2 mainlines per 100 0 0 0 people 2 Telephone penetration between 2 and 8 mainlines per 100 0 0 0 people 3 Teledensity between 8 and 40 mainlines per 100 people 90 40 90 4 There is high teledensity of 40 mainlines or more per 100 10 60 10 people
Table 1.4 1.1.3. Mobile Wireless Penetration Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 Mobile wireless penetration is below 0,5% of the population 10 0 20 2 Mobile wireless penetration is from 0,5 to 3% 70 10 80 3 Mobile wireless penetration is between 3 and 14% 20 90 0 4 Penetration of mobile wireless telephone is higher than 14% 0 0 0 of the population and keeps on growing
Table 1.5 1.1.4. Cable Penetration Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 No cable services are available 30 30 50 2 Cable penetration is below 5% of households 70 50 50 3 Between 5 and 10% of households in the community are 0 20 0 subscribed to cable services 4 Cable penetration is high, reaching 10% of households or 0 0 0 higher
Beltelecom, the republican state-owned association (RSA), is the national telecommunications operator in the Republic of Belarus, which is assigned to provide for functioning and development of the information and telecommunication infrastructure in the Republic of Belarus [4,5]. Beltelecom RSA operates in compliance with the state programs and respective industry schemes of the telecommunication infrastructure development. The Ministry of Communications has elaborated and the Council of Ministers of the Republic of Belarus has approved An Action Program for Communication Facilities Development for the Years 2001-2005. This program is of primary importance for Beltelecom RSA as it is the national telecommunication operator in the Republic of Belarus. The program aims to establish a powerful technical foundation for informatization of the Belarusian community. It stipulates for the development of a modern communication network on the territory of Belarus, which would be integrated with the world telecommunication systems. Beltelecom RSA extensively cooperates with the International Telecommunications Union, The
11 Regional Commonwealth In The Field Of Communications, EUROTELSAT, The European Satellite Telecommunications Organization, INTERSPUTNIK, The International Satellite Telecommunications Organization and INTELSAT. In 2000 Beltelecom RSA became a member of the European conference for Web planning/budgeting, as a result the information on capabilities of the Belarusian digital network became accessible for all operators of European countries - member-states of the above-mentioned conference. Beltelecom participates in numerous international projects (ТЕL/TET, ТАЕ and ITUR) for the transnational fiber optic cable (FOC) systems creation. Beltelecom has built up international lines, which bound Belarus with Poland, Ukraine, Latvia and Lithuania and became the segments of the international projects such as ТЕL/TET, ТАЕ, an Asian - European FOC system, and provided for a connection with ITUR. Several telecommunication cross - border connections to the merging countries and a trunk FOC baseline network has been completed in the recent years. The information and telecommunication infrastructure, which is being built by Beltelecom RSA, should ensure a steady integration of Belarus into the European and Global information structure. A Primary Network of the Republic of Belarus (Fig. 1.1). An intensive upgrading of communications networks, re-equipment with digital means and introduction and promotion of some new telecommunication services take place within the republic. An Action Program for communication facilities development draws much attention to enhancement and creation of long-distance and international telephone lines. Nowadays the Republic possesses a powerful high-speed modern trunk network, which uses SDH- hardware of STM-1, 4 and 16 versions. About 90% of the area telephone exchanges (ATEs) have digital intraband lines of binding, 44 % of ATEs are connected by FOC line. There are about 4 thousand kilometers of FOC line in Belarus, which link all regional centers together and also ensure high quality connection with other countries. The Action Program for communication facilities development presumes 10 thousand kilometers of a 4-fibre optic cable to be laid on by the year 2005. The further optimization of a primary network and reconfiguration of a trunk network are currently under way. The installation work to run STM-4 rings linking Minsk – Gomel – Brest - Minsk was completed in March 2002. The stand-by lines for toll circuit traffic between Minsk - Brest - Gomel and international traffic to Poland and Ukraine was provided. The switchovers were made in order to ensure the operation of Minsk - Brest - Gomel - Minsk linking rings by November 30, 2002. A Belarusian-Polish FOC line, which would connect Byalostok (Poland) and Grodno (Belarus), is planned to be built within the framework of the building schedule for a second communication crossing by FOC line to Poland. Secondary network of the Republic of Belarus. The installed capacitance of the secondary network of an automatic telephone exchange totals 3 million 41 thousand mainlines as of October 1, 2002. Taking into account that the population is about 10 million, this implies 3 citizens per 1 automatic telephone exchange. The Action Program for communication facilities development presumes the growth of teledensity up to 420 thousand mainlines by 2005.
12
Fig. 1.1
As of 01.01.2001 the teledensity throughout the republic averaged 76,0 mainlines per 100 households (in view of that the average family consists of the several members calling from one subscriber's number), at that urban (city) telenetwork (CTN) averaged 88,0 and rural (village) telenetwork (VTN) averaged 47,0, respectively (Fig. 1.2). As for the regions and Minsk (Мinsk UTN) breakdown, the telephone density per 100 households is presented below in Table 1.6.
Table 1.6 Telephone Density per 100 households in Belarus CTN VTN Average Brest Region 93,0 57,7 79,4 Vitebsk Region 91,2 39,6 73,9 Gomel Region 86,6 47,6 74,6 Grodno Region 92,5 42,0 73,3 Minsk Region 84,3 43,5 65,9 Moguilev Region 82,2 41,6 69,6 Minsk CTN 104,6 - 104,6
13
Fig. 1.2 Fig. 1.3
The three-millionth subscriber (one from members of household) was connected to a republican telenetwork in April, 2002 (Fig. 1.3). The teledensity is to reach 32.1 % by 2005. As for teledensity per 100 people, the Republic of Belarus has been in the lead among CIS countries since 1995. The following growth rate (with regard to the quantity of telephone sets per 100 people) is noted thereupon (Table 1.7).
Table 1.7 Telephone Density Growth Rate per 100 people 1985 1990 1995 2000 2002 Belarus 12 17 20 29 30,44 Russia 10 14 17 22 no data Ukraine 11 15 16 21 no data
All the newly commissioned automatic telephone exchanges (station, ATS) are electronic. The Action Program for communication facilities development stipulates for replacement of 376 000 telephone numbers of the level and coordinate hardware with the digital ones by 2005. It will provide for higher communication quality and render a more extended range of services, the Internet access services inclusive. Additionally, the realization of a global project, associated with the extension and up-grading of long-distance and international telephone exchanges as well as the overlapped digital network exchange has been launched by now. At the time of construction these exchanges were not designed for such a swift progress made even by the local networks. Currently, they have to withstand an additional burden, caused by the mobile service subscribers and the Internet users. Therefore, it’s time to upgrade them. The software upgrading will allow to increase operational capabilities of telephone exchanges in processing the growing long-distance and international traffic substantially and to expand a range of services. The upgrading of the long-distance telephone exchanges in administrative regions/areas is scheduled for 2003. Mobile wireless density in the country totaled to 4.5 % as of 30.12.2002 (Table 1.8). BelCell Joint Venture Company (www.belcel.by) was established by the Belarusian communication companies and Cable and Wireless Plc., a British company. The commercial operation of the BelCell network started on May 7, 1993. Within several months the cellular communication reached Brest and Gomel and kept on developing, covering all regional centers. As for today, the BelCell network
14 encompasses more than 60 % of the country’s territory and continues to expand, the sales and services branch offices have been opened in Minsk, Brest, Gomel, Vitebsk and Grodno.
Table 1.8 Mobile Wireless Telephone Density in Belarus Operator Standard and the Number of users at Wireless Internet year of establishment the end of 2002 Access BelCell joint venture NMT: 1993; 20 000 via tele-adapter company cdma2000: since February 2003 Mobile Digital GSM 900: 1999 403 000 WAP Communication joint venture company Mobile TeleSystems GSM 900/1800: 2002 30 000 not available joint share limited company
At present the company is building up a new network in cdma2000 digital standard. More over, the BelCell Company has begun to render Internet access services since 2002. The first six months of 1993 brought merely 320 subscribers, but their quantity increased more than five fold by the end of 1994, equaling to 1725 subscribers. In the first half-year of 1995 each month brought more than 200 new clients, and by the end of the year with the growth rate increased to 400-500 new subscribers per month. In 1998 BelCell joint venture company handled already about 10 000 subscribers, and their quantity have come close to 20 thousand by the end of 2002. The Mobile Internet service offered by BelCell Joint Venture Company is based on the NMT-450i standard cellular telephone. A fee is 60 BYR (about 3 US cents) per minute, with the Internet connection being free of charge. In order to gain Internet access, one should connect a cellular telephone with a modem via a teleadapter, and a modem should be connected to a PC. A fee for using the Mobile Internet service is included in the cellular service rate. Mobile Digital Communication (MDC) joint venture company (www.velcom.by), with Velcom ® and Privet ® being its trademarks, is the first operator of a mobile digital standard in the Republic of Belarus. The company began its commercial operations on April 16, 1999. At present (as of 30 Dec 2002) the company handles 403 thousand subscribers. The number of Velcom subscribers has grown more than 3.35 fold since December 30 2001. As of December 30, 2002, Velcom network embraces over 260 base telephone sets, more than hundred of them provide for communication in Minsk. The service area of Velcom network is permanently expanding; today it covers the area of inhabitance of more than 87% of the urban population of the republic. Velcom cellular communication network is accessible in more than 95 Belarusian cities and settlements, at Minsk 2 international airport, on the major highways such as Brest - Minsk - Orsha, Brest - Gomel. The company carries on operations in order to provide for cellular transmission at Minsk - Grodno, Minsk - Oshmayny, Minsk - Gomel highways, and at customs and border points with Poland, Lithuania, Russia and Ukraine. Velcom network will soon be available at all Minsk underground stations. In 2002 the company created a republican network of the sales and service corporate centers. Today nine Velcom service centers operate in Minsk, Brest, Gomel, Vitebsk, Grodno and Moguilev. Eleven more centers are to be open throughout the republic in 2003. The dealers' network of the company extended to 134 stores within 2002 and comprised 203 dealers' points in 40 towns and settlements. In
15 early 2002 the list of Velcom roaming partners extended by 29 cellular operators in 12 new countries. Currently the roaming agreements with 166 operators enable Velcom subscribers to use an automatic international roaming in 76 countries round the world. WAP service by Mobile Digital Communication Joint Venture Company. WAP (Wireless Application Protocol) service enables subscribers to obtain access to Internet resources by means of a mobile telephone. Thus, the subscriber will not need any other auxiliaries, such as a computer or a modem. WAP is a protocol, or an engineering standard, which transmits the information from Internet to a small display of a mobile telephone. The WAP-site of Velcom presents information about the company itself, currency exchange rates, weather forecasts, TV programs, details of concerts/shows bills, playbills and club bills. Subscribers can participate in WAP-chat, and also learn political, cultural, sports news, etc. Mobile TeleSystems, a joint share limited company, (МТS JSLC, www.mts.by), has been rendering cellular transmission services in GSM 900/1800 standards in the Republic of Belarus since June 27, 2002. The shareholders of МТS JSLC are The International Communications, a republican unitary company (Belarus), which possesses 51% and МТS ("МТS" in Russian stands for 'International Telephone Networks"), an open joint stock company (OJSC, Russia), which possesses 49% of the authorized capital. As of today, the direct investments of МТS OJSC in Belarus have already totaled 5,3 million US Dollars, the investments of МТS JSLC in the telecommunication infrastructure equaled to 32,1 million US Dollars. МТS OJSC paid in 10 million US Dollars to the Belarusian budget as its charge for the license, and МТS JSLC was charged 5 million US Dollars. 6 million US Dollars are still to be paid for the license by the end of 2007. The company intends to invest 60 million US Dollars in the Belarusian economy in 2003. МТS provides roaming to the Belarusian subscribers on the territory of over 40 Russian regions and offers reduced rates for the international calls to Russia. The total number of the roaming partners amounted to 25 operators in 17 countries of the world after the first 5 months of МТS JSLC operation in the Belarusian market. By the beginning of 2003 there must be 150 base telephone exchanges working in the Belarusian segment of МТS network, and this number is to double by the end of 2003. МТS JSLC has managed to cover the whole territory of the capital in less than first half – year of the commercial operation of the first phase of a network and is currently expanding the network towards the regions of the republic. Brest was the first regional centers of Belarus where МТS network started to operate on December 20, 2002. 11 base telephone exchanges were launched in Brest, which should ensure the coverage of the whole city and nearest frontier crossing points. Over 30 thousand subscribers have been using the services of МТS JSLC by the end of 2002. Subscription to leased cable services is rather low for two reasons. At first, people have little free money to spend it on entertainment. A monthly fee for 26 channels is around 30 USD, which is 1/3 of an average salary. Besides, typically 5-10 channels are available at charge per regular TV cables. Regions suffer the most but average income there is significantly lower than the costs of cabling. Hence, there are very few companies in this business. Cosmos TV is the largest, still it operates only in the capital and proposes TV cable Internet access from March, 2003. Summary. Despite the fact that the considerable proportion of the population has good access to mainlines (telecommunication and information networks) - the teledensity amounts to 30.44 main lines per 100 people, the mobile wireless penetration amounts only to 4.3 %, and the subscription to leased cable services for a household (apartment) access to information is not widespread at all. Therefore according to the index of information infrastructure development Belarus should be put on 2nd stage of development.
16 1.2. Internet Availability
9 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Internet Availability index variables (sub-indexes). The aforesaid IPs - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Beltelecom (www.beltelecom.by), Global-OneBel (www.global-one.by), Business Net (www.bn.by), Forenet (BelSoft CJSC, forenet.by), Unibel (www.unibel.by) BSUnet (www.cit.bsu.by) represent different niches of the Internet Providing market in the Republic of Belarus. The experts assessed the level of Internet Availability Readiness (or advancement) of the country, which can range from the 1st (least-advanced) to the 4th (most-advanced) stage, for each micro-index independently, and average data assessment for Internet Availability index and generalized data assessment for Network Access component index were evaluated on their basis. Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the Internet Availability index are shown below in Table 1.9.
Table 1.9 Average Estimation of the Internet Availability Index Stage No Belarus, % Minsk, % Regions, % 1 0 0 0 2 47,5 7,5 55 3 42,5 45 37,5 4 10 47,5 7,5 Average Index Estimation 2,625 3,4 2,525
The following Tables 1.10 through 1.13. present the total estimation breakdown (given as share of the total amount of the answers received), assessing the whole republic, the city of Minsk and administrative regions in the context of the four micro-indexes. Table 1.10 1.2.1. Availability of local Internet Service Providers (ISP) Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 Absence of local Internet Service Providers (ISPs) 0 0 0 2 More than 1,000,000 inhabitants per 1 local ISP. Several ISP 20 0 40 provide only for e-mail access 3 Between 500,000 and 1,000,000 inhabitants per 1 local ISP. 60 20 40 IPS render complete array of internet services 4 More than 2 local ISPs per 1,000,000 inhabitants. IPS render 20 80 20 complete array of internet services. High-speed solutions, digital dedicated lines and cable modem connection are available. The majority of users can subscribe for optional services, which differ in connection speed, grade of service, security, quality and price. IPS provide for the possibility to create personal web-pages.
As of 1.11.2002 the Ministry of Communications issued 56 licenses for rendering data transfer
17 services. As a rule, it means rendering Internet network access services. There are about 30 actual providers. Their main activity is switched network access to the Internet (except for Beltelecom RSA and Business Network joint venture). At the present time the leading Internet service providers in the Republic of Belarus, apart from BelPAK network of Beltelecom RSA, are the following [6]: • UNIBEL Network of the Ministry of Education, comprising 206 educational institutions (as of June 1991); • BASNET Network of the National Academy of Sciences of Belarus, comprising 260 scientific institutions (June 1991 ); • Open Contact Co. Ltd. - 2435 (June 1991 ); • Business Network joint venture - 1880 (June 1991 ); • SOLO Company - 1310 (June 1991 ); • Network Systems CJST - 468 (June 1991 ); • Anitex Co. Ltd. - 244 (June 1991 ); • Belinfonet Co. Ltd. - 254 (June 1991 ); • Belresoursmarket Co. Ltd. - 175 (June 1991 ); • Golden Taller Co. Ltd. - 236 (June 1991 ); • Informatika Company - 147 (June 1991 ). BelPAK Network of Beltelecom RSA [5]. The demand for Internet services in the Republic of Belarus has increased considerably since 1999. The number of the regular BelPAK users has grown more than 14 fold since the beginning of 1999 and now exceeds 100 thousand subscribers. The total throughput capacity of the international gateway-to-Internet has increased more than 34 fold and is now 79 Mbps (Mbit per sec). As of December 1, 2002 17 698 subscribers were connected to BelPAK network of Beltelecom RSA on contractual basis. Among them there are 6045 e-mail subscribers, 55 - Х.25/Х.28 ones, 15 - ADSL ones, 11 583 - Internet ones. About 709 thousand subscribers used a non-password system for the Internet network access during 11 months of 2002, and there were 83307 of them in November 2002 alone (53729 in January 2000) (see Fig. 1.4). Note. Non-password access is a new service provided by the state-owned ISP Beltelecom RSA that is also a state monopolist in the fixed telephone service. Any user of a usual telephone in Belarus can enjoy the unlimited Internet access by very simple customizing of his/her computer and make the modem dialing 8-600-100 special telephone number dedicated to the non-password Internet access. Beltelecom RSA is charging on per-minute basis. No contracts, no pre-payments, no monthly fee, no separate bills. Beltelecom RSA recognizes its every user by the same way as in its any other service such as far calls. Charge is included in the monthly general bill for the telephone service together with other extra services such as far calls, business or personal address search service, telegrams-by-the-phone service, etc. UNIBEL Network of the Ministry of Education of the Republic of Belarus. The UNIBEL network is an independent network, which possesses its own hardware and software resources, operation center and IP addresses; it obtains access to the external networks through the hardware resources of BelPAK network. The basic purpose of UNIBEL network is to provide the educational users with the data transfer services on a non-commercial basis. UNIBEL is registered in RIPE (European registration service for IP-networks), and it is assigned its own IP-addresses. AS5498off-line system is attributed to UNIBEL network. The first node of UNIBEL network was opened in Minsk in 1993. In 1996-1997 Minsk Internet Project was implemented on the basis of the Computing and Analytical Center of the Ministry of
18 Education, it gained financial support from the Open Society Institute. The project resulted in the creation of the backbone network in Minsk, which was based on fiber optic communication lines, had a throughput capacity of 2 Mbps and a total length of about 23 km and was passed through 7 urban automatic telephone exchanges, where network hard-operational hardware was installed.
BelPAK Internet Users Growth Rate within last 5 years
30000 800000
709000700000 25000 600000 20000 500000 17698 15000 400000
300000 10000 Contract subscribers 182350 200000 Non-password dial-up accounts 5000 4686 3921 100000 2724 57476 1263 0 0 01.01.98 01.01.99 01.01.00 01.01.01 01.12.02
Contract Non-password (per year)
Fig. 1.4
With the financial support of the Euro-Asian Fund 6 Internet gateway nodes were established in the regions of Belarus (in the cities of Grodno, Vitebsk, Polotsk, Moguilev, Gomel and Brest), in the course of implementing this project. The cities were connected with UNIBEL backbone network with digital channels of 64 Kbps capacity. Starting 1997, the further development of UNIBEL network was supported by the UN Development Program “Internet” project (project BYE/96/003 «Strengthening of the national information and communication infrastructure for the purposes of fostering democratic reforms, improving state management and market economy development »). The main objective of the Internet project was the development of information and communication infrastructure in the governmental institutions and bodies, as well as in various scientific and cultural establishments, mass media institutions, and public organizations. The project made for the hardware/software upgrading of Minsk backbone network and regional nodes. In 1999 the project was re-titled «Assistance in sustainable development and open society
19 formation in the Republic of Belarus on the basis of new information technologies». A new stage of the project presumed further elaboration and development of the UNIBEL network infrastructure. However, its major task now is to ensure informational fullness of the network, increase efficiency of Internet usage in routine operations of the state management bodies, scientific and social institutions, and also to improve the quality of access by means of new ICT application. Currently UNIBEL network serves more than 200 subscribers, including leading republican universities, specialized secondary educational establishment, schools, public organizations and other social institutions. BASNET Network of the National Academy of Sciences of Belarus (NASB). BASNET, the computer network of NAS (Fig. 1.5) is one of the first networks established in the republic for data exchange between various R&D organizations and scientific teams. BASNET along with the networks of Belarusian State University and of the Ministry of Education is a part of a United Computer Network for Science and Information (titled NIKS) of the Republic of Belarus. BASNET computer network consolidates more than 50 scientific organizations. Around 40 institutes of the NASB, as well as the Committee for Science and Technologies, BelVak Supreme certification committee, Basic Research Fund, Fund of Informatization, R&D Institute for Computers, Ministry of Emergencies, Ministry of Industry, BelCMT, Minsk production amalgamation for Computing hardware, National Library, Central scientific library of the NASB and others are connected to it. BASNET is stationed on seven baseline network nodes, five of which are interconnected with high-speed fiber optic channels providing for data transfer via network with the speed of 10 - 100 Mbit/sec (Mbps). Two nodes are connected to central node with radio relay communication lines, which permits to transfer data via network with the speed of 2 Mbps (Fig. 1.5). Modern local networks bound over 1000 computers in the institutes, connected to BASNET. BASNET possesses a license for an independent satellite gateway to Internet global computer net and another license for rendering services to BASNET and NIKS users. In 2001 a satellite communication ground station with the asymmetric traffic to access Internet with the total throughput capacity of up to 8 Mbit/sec (Mbps) was commissioned. BASNET architecture is designed and implemented in compliance with the international standards, but no more than 10% of its throughput capacity is used today. At the same time a conceived spare capability of the throughput capacity was designed to solve future tasks of the information support automation of scientific research work (these tasks include construction of information servers and databases, library activity automation, scientific research automation, etc.) and will be demanded within coming 3-5 years. Thus, BASNET possesses its own system of high-speed telecommunications in Minsk targeted mainly at the needs of academic institutes, and ensures connection of individual regional scientific centers through Beltelecom RSA lines. The network has an operation center equipped with modern telecommunication and computer hardware, where own information resources have been created. BSUnet corporate network of the Belarusian State University (BSU). The set up of data transfer networks in BSU has started in 1991. In 1996 the information technologies center of BSU designed a BSU information network project, which was largely implemented on the basis of fiber optic communications by 2001. This project has made for a set-up of a high-speed integrated data network, which combined computer and telephone circuits of the scattered department buildings of the university, located in various areas, into a single multi servicing Internet / Intranet. At present all the training departments and faculties of the university have their local computer networks combining class-rooms, chairs, research and development labs.
20 BASNET Network Structural Diagram
NIKS RB BACKBONE
100 Mbit/s
Dedicated lines
Cross station
Fig. 1.5
21 The fiber optic communications lines were laid on in order to interconnect 6 buildings of the university campus, the training buildings of philological faculty, historical faculty, BSU Lyceum, faculty of law, faculty of journalism, Republican institute of higher management training, faculty of international relations, the BSU branch department buildings (located at Kourchatov street), clusters of buildings at Oktyabrskaya and Komsolskaya street. A high speed fiber optic network between the university buildings has a «star»-shaped topology, having its center at the communication node in the main BSU building and providing for a data transfer rate not less than 100 Mbit/sec. A prevailing technology of the backbone network is Fast Ethernet. An АТМ mainline between the site of BSU main building and BSU branch department at Kourchatov Street is being tested at a speed of 100 Mb/sec. As the result, more than 1500 workstations are integrated into a network with an Internet access. An enlarged integrated network diagram is shown in Fig. 1.6.
BSU Integrated Network Structural Diagram
Fig. 1.6
The integration of the university network with the external networks and Internet is ensured by a fiber optic channel in the Internet through a communication node of Beltelecom RSA at a speed of 2 Mbps, via communication line to NIKS communication node at a speed of 100 Mbps with a further gateway to the satellite communication ground station of Information Technologies scientific and research enterprise of the NASB (256 Mbps for transmission and 1 for reception). Scientific and information computer network (NIKS) of the Republic of Belarus. Lately, according to the “Resolution About Setting Up a United Computer Network for Science and Information of the Republic of Belarus” approved by the Council of Ministers of the Republic of Belarus (Resolution
22 No1677 of 18.12.1997) a network of a higher level - United Computer Network for Science and Information (NIKS) was constructed on the basis of the three abovementioned networks (Fig. 1.7).
NIKS Structural Diagram
Fig. 1.7
In compliance with the licenses issued by the Ministry of Communications, the providers for rendering data transfer services using the networks based on NIKS infrastructure, are • The Main information and analytical center of the Ministry of Education, • Information Technologies scientific and research enterprise of the NASB, • The Center of information resources and communications, as a representative of the Belarusian State University. The latter, in its turn, is to administer the NIKS as a whole, according to the Resolution adopted by the Interdepartmental Committee for informatization in the Republic of Belarus under the Council of Ministers of the of Republic of Belarus (Minutes No 05/185 of 1.07.1999). BELNET computer network of the educational system of the Republic of Belarus. The set up of BELNET computer network of the educational system of the Republic of Belarus in compliance with the resolution of the Council of Ministers of Republic of Belarus will obviously promote and increase the Internet usage. The design work for this network is currently under way. The design of BELNET does not duplicate the work carried out for the development of UNIBEL and NIKS networks. The strategic objective for the construction of UNIBEL was to set up a communication infrastructure in order to provide a gateway to the external networks of educational institutions located in Minsk and other regional centers. The main purpose for setting up NIKS was the integration of existing scientific and educational networks, in order to supply scientific organizations and
23 training institutions with high-speed channels, giving access to international nets and to set up information resources for educational and scientific systems. As for BELNET, the aim of setting it up is to provide equal opportunities for the pupils and specialists from various training institutions (first of all, for those from the rural general schools) to gain knowledge and other essential educational information meeting up- to-date requirements, the national and European standards. BELNET is supposed to be set up on the grounds of the operational telecommunication infrastructure of UNIBEL and NIKS networks, regional telecommunications of Beltelecom RSA using NIKS access channels to Russian and other international networks. Thus, the major part of information resources provided by NIKS and BELNET will be available for the users of both networks not only in Minsk and regional centers, but also in other localities of the republic. The operational connectivity diagram of the scientific and educational networks of the Republic of Belarus is shown in Fig. 1.8.
Operational Connectivity Diagram of the Belarusian Scientific and Educational Networks
NIKS of the Republic of Belarus
NIKS Information resources
In- UNIBEL BSU corporate BasNet ter- Education and network NAS of Belarus net science network network
Beltelecom BelNet Information telecommunication resources infrastructure
BelNet Education system Information Computer Network of the Republic of Belarus (in project)
Fig. 1.8
24 Traffic aggregation. All the Belarusian providers, according to the established laws and rules, must lease communication channels, which link Belarusian Internet with the international web, from Beltelecom RSA. The capacitance of a leased channel provides for a definite traffic rate (or speed). This variable indicator is crucial for determining which provider is more important (powerful). There are some hierarchical strata of the Internet providers in the Belarusian market: Beltelecom, the national communication operator, constitutes the upper stratum, i.e. the primary one; secondary ones - 5-6 major Internet providers - make up a medium stratum; and, finally, a wide range of the networked tertiary providers of any form of subordination, specializing in individual services (ASP, residential constructions connection, etc.), form the remaining third stratum. Experts estimate an approximate amount of investments for keeping 5-6 major providers of the country with the group at the level of 1.5 million US dollars for the first 6 months. In the Fall of 2001 one of the providers - the Business Network joint venture company - increased the external communication channel up to 1.5 Mbps, while other two independent providers, namely Open Contact and SOLO, acquired 768 Kbps channels approximately at the same time. Half-year later the competition continued: Business Network managed to reach 2 Mbps, Open Contact and SOLO achieved 1 Mbps. Business Network went for another improvement and increased the channel capacity connected with an international web segment of Internet up to 6 Mbps in November 2002. The remaining part of Belarusian independent providers fails to keep up a pace. On April 25, 2002, one of the top managers of Beltelecom RSA admitted the actual presence of tight partnership between the national providers [7]. A pilot operation of the traffic aggregation system of the abovementioned providers, i.e. Business Network, SOLO and Open Contact had started in the end of 2001. It allowed to more than double a shared operation of the traffic, which is finally profitable for everybody, including the end users. It is obvious, that transition to new operational principles should be thoughtful and mutually beneficial. The traffic aggregation is technically and economically appropriate in the case of a large scale consumption (at least 512 Kbps). More over, "the traffic aggregation" means a joined financing for the shared external communication channel, which must leased from Beltelecom RSA. In the summer of 2001 Business Network provider received an official permission to lease (actually to resell) the external channel to Internet, already leased from Beltelecom RSA, to other providers. National service providers and legal entities’ tariffs/rates for the Internet access, posted on the Beltelecom RSA site (http://www.beltelecom.by/tarif.phtml), imply that since 15.10.2002 "the payment rate for an access point has been reduced: from 40118 to 32282 USD per month (less VAT) for 6-Mbps channel; from 18272 to 15547 USD for 2-Mbps one; from 12064 to 10273 USD for a megabit. The consolidation (enlargement) of the service providing market serves the interests of the major providers and will inevitably lead to the rates reduction, which is profitable for the end users. Public shared posts and Internet-cafes (Cybercafes). Public Internet access category refers to 130 public shared point (PSPs) of Beltelecom RSA and 47 Internets - cafes (i.e. clubs, centers, rooms in libraries, etc.), set up by other organizations of any form of subordination. As of November, 2002 Beltelecom RSA had more than 380 workplaces for Internet access throughout the whole republic [8]. PSPs of Beltelecom RSA were initially built in the districts of the low telephony coverage as the socially significant establishments. The emphasis was made on the development of the automatic long- distance call and wire communication offices/stations network. Due to rapid development of telecommunications and information technologies PSPs have lost their initial function of rendering primary necessity services. At present PSPs of Beltelecom RSA are not only the offices to call any place in the world, to send a telegram, to pay a toll and telephone service bill or to print out a long-distance call listing. Nowadays PSPs give a full array of services, including Internet access (26.8 BYR or 1.3 US cents per minute), e-mail, facsimile transmission, videotelephone
25 communication, «066» service (advertisement and greeting billboard for posting/ publishing them in mass-media, or transmitting message/cable by telegraph), pre-paid telephone plastic cards sale, photocopying, scanning, laminating, computer-aided text typing, basic skills for Internet browsing/usage, printing out the information from the computer, etc. The information with the PSP list, indicating a range of rendered services, working hours and contact telephone numbers is available on the Beltelecom RSA web-page (http://www.beltelecom.by). Table 1.11 1.2.2. Public Internet Access Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 There is no public Internet access 0 0 0 2 There are limited opportunities for public Internet access 70 10 80 (only one from the following: telecenters, libraries, post offices, Internet cafes, computer clubs) 3 There are some opportunities for public Internet access (a few 30 60 20 from the following: telecenters, libraries, post offices, Internet cafes, computer clubs) 4 There are adequate opportunities for public Internet access for 0 30 0 those without access at home, school or work
There are more than 280 Beltelecom PSPs throughout in the Republic, and 130 render Internet access service. This PSP service was developing most intensively in 2001-2002 (just during these 2 years alone 50 PSPs developed Internet - connected workplaces). The number of the Internet - connected workplaces all over the republic has reached 364 by the end of 3rd quarter of 2002. According to the Communication Facilities Development Program Till 2005, Beltelecom RSA plans to open new PSPs and arrange additional Internet - connected workplaces. Following this program, Beltelecom RSA set up 170 new Internet workplaces by the beginning in 2002. By the end of 3rd quarter of 2002 94 % of the plan was fulfilled. Vitebsk region became the leader of the development of this service as over 25% (115 workplaces) of all operational Internet access workplaces at PSPs are situated there. The number of the customers willing to access Internet at PSPs increased almost three fold within last 2 years. Marketing research revealed that the age of PSP customers varied mostly between 20 and 30 years, whereas 30 and 50-aged clients use PSP services less often. One visitor usually uses PSP services several times per month. A great portion of visitors (52 %) uses trunk call services, 21 % employ Internet and e- mail services, the remaining portion come to pay toll and telephone service accounts, to make a photocopy, etc. The share of PSPs with Internet access service, as compared to IPs' Internet-clubs in Minsk totals 48 %, i.e. 36 cafes and clubs and 29 PSPs providing Internet access of Beletelecom in Minsk. The major Internet - clubs of Beltelecom RSA are: Kupalovsky (PSP No 820, 39 Marx str.), Site (PSP No 812, 100 Yesenin str.), Poisk /Search/ (PSP No 818, 9 Logojsky track) and Sputnik /Satellite/ (PSP No 805, 1 Chkalov str.). There is little competition between Internet - clubs in the administrative regions. Apart from Beltelecom RSA, there are 5 providers that render their services there. The immediate task for Beltelecom RSA is to arrange at least one Internet access workplace in each area center of the republic. Another issue to be considered is the replacement of call boxes in PSP with Internet workplaces. Fig. 1.9 contains the generalized results of the Internet-cafe Affordability index analysis. This is one out of eighteen sub-indexes, presented in the survey list at tut.by web site according to [1]. 1759 tut.by site visitors responded, including 492 ICT specialists; 104 representatives of education and science fields;
26 446 students and school-children; 277 managers and 440 people representing other fields. Please see Annex 1 with a background (domicile, occupation, employment, age) of participants of the poll. Here and later on text “Found it difficult” means “none of the options suits" or "no definite answer available".
Internet cafes availability Internet cafes availability is limited
7% 23% 15% Tere are some Internet cafes
Tere is a wide Inernet cafes network
55% Found it difficult
Fig. 1.9
Switched (dial-up) access. Other providers (except for Beltelecom RSA) were not presented for all areas (except for Minsk). The providers’ tariff policy and limited resources of their switched access pools primarily determine the «peak hour» notion. The telenetwork of the republic as a whole has a sufficient resource to put switched network access traffic through to Internet. Fig. 1.10 shows the generalized results of a public opinion poll at tut.by site for the Establishment Quality of a Dial-Up Connection with the Local IP index.
Table 1.12 1.2.3. Available connection opportunities and services Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 There are no local connection opportunities 0 0 0 2 There is an opportunity for limited, bad quality dial-up 40 0 30 connection to a local ISP. Some providers offer only e-mail services. No Competition in commercial leased line provision 3 ISPs provide dial-up connection and full Internet access with 50 70 60 some options between various Internet service packages. There are one or two private providers of leased lines 4 Higher bandwidth solutions such as DSL and cable modem 10 30 10 access are available in addition to reliable dial-up connection. Wireless solutions are available. Most customers can tailor services to meet different demands for speed, service, security, quality and cost
27 Quality of dial-up connection to a local ISP
10% 13% Often it's hard to dial-up 16% Normal, except rush- hours
Connection is fail- safe
Found it difficult 61%
Fig. 1.10 Table 1.13 1.2.4. Availability of Leased Lines for Business Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 Businesses are unable to lease dedicated lines from the local 0 0 0 telephone operator, or there is a multi-year line 2 There is no competition in commercial line leasing. Businesses 60 20 70 can only lease lines from a single telephone operator 3 One or two private providers lease lines to businesses 30 30 30 4 Multiple private providers lease lines to businesses 10 50 0
The only actual owner of cable infrastructure is Beltelecom RSA. The Internet providers are never refused when asking for a connecting line to provide a network coupling to Internet. Currently, any provider having the applicable hardware installed at his node is practically able to render service of a dedicated line connection to the Internet network upon an application to Minsk UTN state unitary company or any other similar regional facilities of Beltelecom RSA. Business Network Joint Venture Co. Ltd. is the only exception among providers, as it is renders the Internet access services on the basis of its own data transfer network using FOC links. Business Network has the gateway server with BelPAK of Beltelecom RSA, a national data network. The main features of Internet access service rendered by Business Network Joint Venture Co. Ltd. are described below. • Permanent dedicated line connection, which ensures permanent (24-7) access to Internet from any user's computer (the computers of a local area network). The users can take advantage of Internet access, whenever required, as well as arrange their own information servers, which will be 24 hours accessible to all users of the Internet; • Non-occurrence of line overstrains and engagements, as it happens with a switched public shared telenetwork; • High access speeds (from 32 Kbps to 2048 Kbps), as synchronous digital channels are used at the transfer speed selected by the user;
28 • Fixed subscriber's rate, which is independent of traffic content/size, as the fixed payments remove usage limitations. The traffic is not limited and is bounded only to speed of Business Network data transfer connection line. The traffic content/size does not affect repayment. Only monthly subscriber's fees (for port, modem and IP address availability) are to be paid; • No necessity to apply to Minsk UTN SUC , Business Network joint venture company ensures a network access and leads up a dedicated digital channel to the user's a site/ location; • High operational characteristics of a web, as the overall performance is ensured by the topology of Business Network data transfer network and is regularly monitored by the centralized monitoring and network control system; • Full scale maintenance (the qualified specialists of Business Network Joint Venture Co. Ltd. ensure an optimum mode of network operation); there is a single contact point for a user to a solve problems, concerning addressing, routing, web hardware, channels and communication lines. The founders of Business Network, Belarusian-British Joint Venture Co. Ltd. are: Beltelecom RSA; Beltechexport, CJSC; Kenwood Corporation Ltd.; Solidex PI Joint venture company. The #1 business priority of Network Joint Venture Co. Ltd. is to render services on the basis of its own data transfer network.
1.3. Internet Affordability
9 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Internet Affordability index variables (sub-indexes). The aforesaid IPs - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Beltelecom (www.beltelecom.by), Global-OneBel (www.global-one.by), Business Net (www.bn.by), Forenet (BelSoft CJSC, forenet.by), Unibel (www.unibel.by) BSUnet (www.cit.bsu.by) represent different niches of the Internet Providing market in the Republic of Belarus. The experts assessed the level of Internet Affordability Readiness (or advancement) of the country, which ranges from the 1st (least-advanced) to the 4th (most-advanced) stage, for each micro-index independently, and average data assessment for Internet Affordability index and generalized data assessment for Network Access component index were evaluated on their basis. Readiness (or advancement) estimation breakdown (in percentage) and average estimation for Internet Affordability index are shown below in Table 1.14. Table 1.14 Average Estimation of the Internet Affordability index Stage No Belarus, % Minsk, % Regions, % 1 10 3,33 13,33 2 53,33 30 50 3 33,33 50 33,33 4 3,33 16,67 3,33 Average Index Estimation 2,3 2,8 2,27
The following Tables 1.15, 1.16 and 1.23 present the total estimation breakdown (given as share of the total amount of the answers received), assessing the whole republic, the city of Minsk and administrative regions in the context of the four micro-indexes.
29 In the Republic of Belarus telephone rates are considered to be of a great social significance thus they are not allowed to reach their self-repayment level. Therefore they are affordable for all citizens of the republic. Flat rate pricing for local phone calls may be applied only in case if time records for local calls are not available. Besides, if there is a time-metered pricing established, each subscriber is granted one rate-free hour for local calls per month. Table 1.15 1.3.1. Telephony Fees № Belarus, Minsk, Regions, Variable (only 1 option out of 4 was possible for each region) % % % 1 Users are charged long distance or international rates for dial- 10 0 20 up access 2 Rates for local telephone calls are high enough (in respect to 30 20 20 the average salary) to discourage extensive Internet use via local ISPs, even among those who have Internet access 3 Reduction of telephone charges for Internet access reflects 50 70 50 emerging competition in the telecom market, yet they are high enough (in respect to the average salary) to discourage extensive use by some users 4 Prices for telephone usage are set competitively and are 10 10 10 affordable (in respect to the average salary) for nearly all citizens
The recently obtained data from the Regional commonwealth of communication (Belarus is one of its members) reveals a decline in the revenues, obtained from publicly shared services of mail, local, long- distance and international telephone calls and a simultaneous growth of documentary and cellular communication. The decrease, for example, in the local telephone service share is caused by the absence of a comparable rate growth for this service (as against the worldwide tendency). On the average, domestic long distance rates in Belarus are the lowest among CIS countries (Fig. 1.11).
Fig. 1.11
30 Table 1.16 1.3.2. ISP Service Fees Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 ISP rates are so high (in respect to the average salary) that few 0 0 0 individuals can afford Internet access 2 Rates for local telephone calls are high enough (in respect to the average salary) to discourage extensive Internet use via 60 40 70 local ISPs, even among those who have Internet access 3 Internet access is priced (in respect to the average salary) within reach of the majority of citizens (over 50% of the 40 50 30 population) 4 Prices for Internet access are set competitively and are affordable (in respect to the average salary) for nearly all citizens (over 90% of the population). Flat rate pricing may be available. Free ISP services may be available, particularly in communities with time-metered pricing of local phone calls. 0 10 0 Higher bandwidth solutions such as DSL services and cable modem access are priced competitively, which may include tiered pricing based on speed of access or usage-based pricing based on total volume. “Always-on” connections are available without time-metered pricing
Comparative statistics of Beltelecom RSA communication service rates. The rates for local (Table 1.17), international (Table 1.18), mobile communication (Table 1.19 and 1.20), as well as dial-up Internet access (Table 1.21) ) services, effective from 15.10.2002, offered by Beltelecom RSA are given below. (http://www.beltelecom.by/tarif.phtml).
Table 1.17 Long Distance Telephony Rates Destination Roubles per min USD per min Minutes for 1 USD Local calls (i.e., within a city) 4,79 0,0025 400 Within a region 12,80 0,0067 149 Within the republic 25,40 0,013 77
31 Table 1.18 International Telephony Rates Roubles per min USD per min Minutes for 1 USD Working Working Working days, days, days, Country Working 21:00 – Working 21:00 – Working 21:00 – days, 9:00 09:00; days, 9:00 09:00; days, 9:00 09:00; – 21:00 weekends – 21:00 weekends – 21:00 weekends and and and holidays holidays holidays Russia 375 250 0,20 0,13 5,0 7,7 Ukraine 309 206 0,16 0,11 6,25 9,1 Germany 435 290 0,27 0,18 3,7 5,6 UK 534 356 0,33 0,22 3,0 4,5 USA 1346 673 0,82 0,41 1,2 2,4
Table 1.19 Telephone Connection with GSM Users (MDC and MTS) Connection Time Roubles per min USD per min Minutes for 1 USD Working days, 06:00 – 23:00 258 0,13 7,5 Working days, 23:00 – 06:00; 129 0,07 14,9 weekends and holidays
Table 1.20 Telephone Connection with BelCel Users Connection Time Rubbles/min USD/min Minutes for 1 USD Working days, 06:00 – 23:00 147 0,077 13,0 Working days, 23:00 – 06:00; 108 0,056 17,9 weekends and holidays
Table 1.21 Dial-up Access to the Internet via Public Line for Individuals Connection Time Roubles per min USD per min Minutes for 1 USD Working days, 8:00 – 20:00 32,3 0,017 59 Working days, 20:00 – 02:00 15,1 0,008 125 Working days, 02:00 – 08:00 10,2 0,0053 189 Weekends and holidays, 09:00 10,5 0,0055 182 – 02:00 Weekends and holidays, 02:00 5,2 0,0027 370 – 09:00
Extra charges to rates. These data are available at the Beltelecom RSA web-page and concern
32 only private subscribers (B2C). An exchange rate of the Belaruisan National Bank as of 29 Dec 2002 was: 1920 BYR per 1 USD. The last change in local and international telephone service rates was on April 20, in communication services rates for the NMT mobile network subscribers - on July 11, in GSM mobile networks services rates - on October 1, in Internet access rates - on October 15, 2002 (in the latter case, Christmas discounts are not included). Basic prices are presented in tables 1.17 through 1.21. There are several reservations to be made, the main among them are: • Local communication. The phone calls are charged for each full or incomplete minute of connection time. In addition, 5 % of the charged amount is levied on every phone call, either from home or business telephones. A rate rising coefficient of 1,5 applies to effective rates whenever international phone calls are rendered with destination automated dialing and order-based servicing system. A free connection time of 60 minutes per month is available. The flat pricing rate ranges between 975 and 1560 BYR per month. • International telecommunications. The rate is charged for each full or incomplete minute of connection time. An extra charge of 50% of 1-minute rate is levied on each international call, either from home or business telephone. • Communication with wireless mobile subscribers. The rate is charged for each full or incomplete minute of connection time. Local calls charges are levied separately. • Dial-up access . The rate is charged for each full or incomplete minute of connection time. In addition, 5 % of the charged amount is levied on every connection. If the connection time is less than 20 seconds starting with the moment the devices/ modems were identified no fee is charged. Analysis. A great dispersion in prices is obvious. 1 US Dollar corresponds to cost to 7 hours of local calls, approximately 10 minutes of calls to mobile telephones and just a couple of minutes of international calls. There is a 281 fold gap between the rate of 4.79 BYR (local call) and that of 1346 BYR (Belarus - USA call). The Internet access rates decline steadily. For example, in the Fall 2000 the highest possible rate was 1.68 USD, and nowadays it is about 1 USD. It has been reduced by 70 %. Moreover, independent ISPs lay down even better conditions for natural persons (See, for example, Table 1.22, www.bn.by).
Table 1.22 Dial-up Internet Access Rates via Business Network Facilities General Access Service Pack Card Connection Time BYR/min USD/min BYR/min USD/min BYR/min USD/min
Working days, 8:00 – 22:00 20,8 0,011 21,6 (24h access) 17,3 0,009 Working days, 22:00 – 12,5 0,0065 0,01125 08:00 5 Weekends and holidays, 12,5 0,0065 (students 0,0026 6,4 0,0033 00:00 – 24:00 access)
33
Table 1.23 1.3.3. Leased Lines Pricing Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 There is no competition in commercial line leasing 20 10 20 2 The lack of competition in the commercial lines leasing is 70 30 60 reflected in prohibitively high leasing fees 3 Competition in line leasing for businesses has been introduced, 10 30 20 prices are falling but still remain high 4 Pricing for leased business lines is set in a competitive 0 30 0 environment featuring multiple vendors. A comparison of Beltelecom old and new rates for the Internet Service Providers is shown in Table 1.24. Table 1.24 Secure Bandwidth Internet Access Rates (for ISPs and legal entities) Channel Access Rates per Month, USD (less VAT) For ISPs and legal entities For educational and scientific Transfer Speed establishments Effective before Starting with Effective before Starting with 15.10.2002 15.10.2002. 15.10.2002. 15.10.2002 1 2 3 4 5 64 Kbps 1207 967 1207 967 128 Kbps 2292 1836 2292 1836 192 Kbps 3378 2705 3378 2705 256 Kbps 4404 3526 4404 3526 384 Kbps 6032 4830 6032 4830 512 Kbps 7962 6376 7962 6376 768 Kbps 9892 8423 9892 8423 1 Mbps 12064 10273 12064 10273 1.5 Mbps 18095 15407 18095 12077 2 Mbps 18272 15547 16508 13993 3 Mbps 25535 20414 23022 18357 4 Mbps 31029 24928 27938 22293 5 Mbps 36475 29317 32811 26386 6 Mbps 40118 32282 37419 30016 7 Mbps 43810 35120 41986 33523 8 Mbps 47397 38079 44799 35964
The rates for the ISPs, which are actually the wholesale buyers of Beltelecom RSA channel capacity, are a few times higher, than those for educational and scientific establishments, which purchase Beltelecom RSA services at retail. In other words, the latter have a definite channel capacity at their disposal, but do not resell the access services to third parties. However, the wholesale prices are typically lower than the retail ones. The new rates offered by Beltelecom RSA to the legal entities and individual entrepreneurs
34 without the license for rendering data transfer services from the Belarusian Ministry of Communications of the Republic of Belarus are shown in Table 1.25. Table 1.25 User's Fees per Month for Internet Access via Leased Lines to the Synchronous Router Port Transfer Speed Fees in USD (less VAT) effective from 15.10.2002г. Up to 64.000 bps 332 Up to 128.000 bps 664
According to the mass media, Beltelecom RSA paid an annual fee of 1 million USD in 2001. It is easy to calculate that a 1 Mbps capacity line cost Beltelecom RSA only 2451 USD per month, and a 64 Kbps capacity line - 153 dollars. Nevertheless, even after the rates reduction of 15-20 % on October 15, 2002 Beltelecom sells its capacity lines to its ISPs for 10273 and 967 USD per month respectively, which is 4.2 and 6.3 times higher, accordingly. Thus, although the channels leasing rates for ISPs were reduced, they still remained considerably higher than the rates for non-providers (ref: Table 1.25, User's Fees per Month for Internet Access via Leased Lines to the Synchronous Router Port). The main argument of Beltelecom RSA in favor of its tariff policy is a necessity to subsidize unprofitable lines development, for instance, in the regions, and huge investments in re-equipment of communication lines. Internet services render 30 % profitability rate for Beltelecom RSA, which doesn’t consider them to be overpriced. In its official report, Beltelecom RSA claims its principal activity to bring 231 bln BYR revenues in 2001 (http://www.beltelecom.by/beltelecom/ bt2001.pdf). The inflation impedes conversion, but an exchange rate of 1500 BYR per 1 USD would show 154 million USD revenues. The profit amounted to 12,3 billion BYR (8 million USD) in 2001. The share of Data Transfer and Telematic Services in the Beltelecom RSA revenue structure was 4.24 % (6.5 million USD) in 2001. The revenues from data transfer network break down as follows: 89.4 % - Internet network; 3.7 % - electronic mail; 2.96 % - newspaper bars transfer; 2.51 % - data transfer network with packet switching; 1.43 % - facsimile transmission. The rate of profitability was 5.56 % in 2001, whereas in 2000 it was 18.40 %. In opinion of ISP's representatives, the international channels currently available for Internet access (as of October, 2002) are loaded by less than 70 %. It can reflect both a lack of demand or an overpricing. However, it is unreasonable to load channels by 100 %, as "jams" are likely to occur. The traffic ratio still remains negative: 20 % goes abroad, 80 % comes from abroad. Though it is noteworthy that 90 % of the external traffic was recorded in May 2001. Such situation boosts expenditures of the Belarusian side, in Beltelecom RSA opinion. The solution might be in the development local networked information resources, located right on the territory of Belarus. Fig. 1.12 shows the generalized results of a public opinion poll (at tut.by site) for “Internet Access Fees for The People of your Region” index.
35 ISP service fees ISP rates are so high (in respect to the average salary) that few individuals can afford Internet access.
Rates for local telephone calls are high 3% 2% 6% enough (in respect to the average salary) to dis-courage extensive Internet use via 29% local ISPs, even among most who can afford Internet access. Internet access is priced (in respect to the average salary) within reach of the majority of citizens (over 50% of the population).
60% Prices for Internet access are set competitively and are affordable (in respect to the average salary) for nearly all citizens (over 90% of the population).
Found it difficult
Fig. 1.12
1.4. Network Speed and Quality
9 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Network Speed and Quality index variables (sub-indexes). The aforesaid IPs - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Beltelecom (www.beltelecom.by), Global-OneBel (www.global-one.by), Business Net (www.bn.by), Forenet (BelSoft CJSC, forenet.by), Unibel (www.unibel.by) BSUnet (www.cit.bsu.by) represent different niches of the Internet Providing market in the Republic of Belarus. The experts assessed the level of Network Speed and Quality Readiness (or advancement) of the country, which ranges from the 1st (least-advanced) to the 4th (most-advanced) stage, for each micro- index independently, and average data assessment for Network Speed and Quality index and generalized data assessment for Network Access component index were evaluated on their basis. Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the Network Speed and Quality index are shown below in Table 1.26.
Table 1.26 Average Estimation of the Network Speed and Quality Index Stage Belarus, % Minsk, % Regions, % 1 0 0 6,25 2 17 6,25 31,25 3 58,25 38,5 42 4 24,75 55,25 20,5 Average Index Estimation 3,08 3,49 2,77
36 The following Tables 1.27 through 1.29 and 1.31 present the total estimation breakdown (given as share of the total amount of the answers received), assessing the whole republic, the city of Minsk and administrative regions in the context of the four micro-indexes. Table 1.27 1.4.1. Telephone Connection Quality Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 Less than half of all domestic telephone calls are successful. 0 0 0 Quality of connection is often unacceptable 2 50-70% of domestic telephone calls are successful. Connection breaks are frequent and extremely disruptive. For 0 0 0 voice telephony, sound quality is acceptable for regular conversation 3 70-90% of domestic telephone calls are successful. Connection breaks are noticeably frequent and are somewhat 83 29 75 disruptive 4 Broken connections are fairly rare and not very disruptive. 17 71 25 Over 90% of local telephone calls are successful
Table 1.28 1.4.2. Number of Faults Registering Annually per Each 100 Mainlines Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 More than 100 faults per 100 telephone mainlines are reported 0 0 25 annually 2 Between 50 and 100 faults per 100 telephone mainlines are 25 25 25 reported annually 3 Less than 50 faults per 100 telephone mainlines are reported 50 25 50 annually 4 Less than 10 faults per 100 telephone mainlines are reported 25 50 0 annually
Table 1.29 1.4.3. Local connection infrastructure/ modem dial-up access speed Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 Local telecommunications infrastructure supports merely electronic mail 0 0 0 2 Telecommunications infrastructure in most areas supports dial-up modem transfer speeds of 9.6 Kbps or less. Some 0 0 43 areas can support speeds of 14.4 Kbps 3 Users have access to dial-up modem transfer speeds of up to 28.8 Kbps 57 11 14 4 There is a widespread access to dial-up modem transfer speeds of up to 56 Kbps, with some access to high speed 43 89 43 solutions such as DSL, cable modems and wireless media
37 In the framework of the Internet development strategy in the Republic of Belarus, Beltelecom RSA continues to expand its capacity and improve the BelPAK network structure. The Belarusian Ministry of Communications adopted a regular Five Year Program for Communication Facilities Development, which was the first to set benchmarks for the increase of port capacity for the Internet network access in 2001. According to target of the Program, the hardware Internet access capacity should be increased by a factor of five by the end of 2005 [4]. By October, 2002 the access switched nodes were set up at all regional centers. Moreover, 160 ADSL-access ports were commissioned in Minsk and in other regions. 3 nodes were developed in Minsk and one node in each region. Beltelecom RSA introduced the Internet ADSL access service in July 2002. It provides for a regular network access at speeds of some Mbps, while maintaining an active capacity of the ordinary phone line. ADSL Nodes in Minsk are connected directly to backbone ring hardware, which ensures qualitative traffic exchange between subscribers' telephone exchange facilities and the international gateway server of the Internet web [5]. The program for communication facilities development for 2005 stipulates to add 15000 ports to the total port capacity of the Internet network access. According to the development program the port capacity growth was 1200 newly commissioned ports in 2001. The port capacity totaled 3145 ports, including 1290 ports of the dial-up switched access system. According to the initial project, over 2400 ports were installed and launched into operation (total 1620 ports commissioned, including 720 in Minsk, 240 in Brest, 120 in Vitebsk, 210 in Gomel, 210 in Grodno, 120 in Moguilev) in 2002. Five-year port capacity development schedule is shown in Table 1.30 [4].
Table 1.30 Port Capacity Development Schedule by Beltelecom Year Capacity (number of ports) 2001 1 200 2002 2 300 2003 3 700 2004 3 900 2005 3 900
As before, the priority is given to the development of switched access. Regional nodes were reorganized and switched access servers were installed right in the regional nodes premises. The capacity of switched access set for each region amounted to 240 ports, with the exception of Brest and Vitebsk regions with 480 ports in each. The Cisco 7206 backbone routers were installed, which increased the capacity of the channels linking Minsk with regions and brought it up to 8 Mbps (about 2 - 3 fold). It provided for bandwidth capability required for load skip and set up a basis for the further network development in the regional nodes. A separate operational node for the regional traffic procession was set up in Minsk. A topology of the network access in Minsk has changed considerably. A backbone ring/loop round the city was built up and the switched access servers were connected straight to the city automatic telephone exchanges. It will permit to use the capabilities of the city telephone network in the most efficient way. There are nine nodes round Minsk, a set backbone protocol is Ethernet, a gigabit one (nodes located at ATE Nos. 262, 234, 251, 271, 224, 226, 221, 247, Minsk Switching Center /MSC/). The backbone network nodes have means to provide for connection of the subscribers via dedicated lines, which enables to connect more subscribers at less cost. The capacity of switched access servers round
38 Minsk has almost doubled and totals 1680 ports. A new hardware and software platform was put into operation for hosting services using Beltelecom RSA equipment. Capacity of the system is 36 GB. For the operation of the hosting platform an individual domain (www.belhost.by) was registered. The modernization/ upgrading of the national traffic exchange node was completed with the installation of a leased switch board, which is to maintain high-speed bandwidth hardware connection at the speeds of 10 Mbps and higher. A high capacity hardware, put into operation by Beltelecom RSA, permitted to serve, on the average, up to 200 thousand subscribers, to the maximum of 300 thousand subscribers per month in 2002. It makes up about 10 % of a telephone capacity. The total switched access capacity is to amount to 15000 ports, when a planned hardware is installed and commissioned in 2005. It will be possible then to serve as much as 450 thousand subscribers per month. In 2003 the emphasis will be laid on the development of the regional nodes network topology. First of all the task of traffic sharing is to be solved: traditional voice traffic and the Internet one, which is generated by the users. All Beltelecom RSA modem pools maintain 56 Kbps speed. Due to regular adjustment work carried out in the public shared telephone networks in order to switch them over to electronic ATEs, percentage of connections at 56 Kbps speed is growing steadily. The connection time at 56 Kbps speed is in the range of 40 to 50 % for an UTN infrastructure, but there is no precise information available about the RTN one. Here follow the generalized results of a public opinion poll for the question: “Are you pleased with a speed of your connection to Internet? The question was put at Computer News On-Line site (http://www.kv.by/vote/voteview.cgi) and the results are as follows: total number of interviewees - 489 visitors, "yes" - 25,8 % , "no" - 74,2 %. Table 1.31 1.4.4. Country backbone facilities Belarus, Minsk, Regions, № Variable (determined 1 from 4 for each region) % % % 1 In order to gain access,large businesses must link their 0 0 0 networks directly to infrastructure backbone outside their country 2 Large businesses and ISPs can link their networks to a local 43 0 57 infrastructure backbone, but backbone capacity is frequently inadequate to satisfy users’ demands. Packet loss is significant and regularly disruptive for any online activities 3 Leased lines with transfer speeds of up to 64 Kbps are widely 43 89 29 available for businesses and ISPs. Limited higher-speed lines are available in some areas. Backbone facilities serving the country are usually sufficient, although regular peak demand periods result in slower network response times. Packet loss by the network may occur but is not generally disruptive 4 High-speed services of 1.5 Mbps are common, with higher 14 11 14 speeds available in some areas. Adequate backbone capacity exists to support country needs without significant transmission delays except for rare periods of high demand. Packet loss by the network is below 10%
39 GlobalOneBel, a closed joint stock company (www.global-one.by) provides financial organizations with the following range of services: - access to Reuters dealing systems; - access to Moscow Interbank Stock Exchange; - access to the international electronic payment and monetary fund transfer systems; - access to S.W.I.F.T. system; - connection between bank hardware and credit cards processing centers; - communication systems for interbank payment transactions and clearing settlements; - access to Dow Jones informational resources. One of the services, rendered on the basis of the data transfer network, operated by Business Network Joint Venture Co. Ltd., is the access to global information and communication resources and standard Internet applications, available in the web from the user's computer or from computers of the local area network. Business Network Joint Venture Co. Ltd. as an ISP offers permanent synchronous connection via a leased line using FR protocol (frame relay, FR) at transfer rate ranging from 32 Kbps to 2048 Kbps (including asymmetric traffic). This method provides for a full-scale operation in the Internet and is perfevt when connecting to the user's local area networks. It gives the user a full access to all resources of the Internet with no time constraints. Business Network Joint Venture Co. Ltd. covers with its services the following cities and towns: Minsk, Brest, Vitebsk, Gomel, Grodno, Moguilev, Baranovichi, Zhlobin, Novopolotsk, Mozyr. Business Network Joint Venture Co. Ltd. render the Internet network access services on the basis of its own data transfer network built up on FOC lines. Business Network has a gateway server linked to BelPAK national data network of Beltelecom RSA. Business Network Joint Venture Co. Ltd. is constantly improving its channel bandwidth capacity for the Internet access, which allows to maintain high quality access capabilities as the number of users is growing. Business Network Joint Venture Co. Ltd. provides for Internet access connection points via leased lines in all business districts of Minsk. For instance, a Business Network user can obtain access to Internet by connecting to the closest telecommunication node of the Business Network data transfer network. The Business Network Joint Venture Co. Ltd. specialists do the whole job package associated with the Internet connection.
1.5. Hardware and Software
9 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Hardware and Software index variables (sub-indexes). The aforesaid IPs - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Beltelecom (www.beltelecom.by), Global-OneBel (www.global-one.by), Business Net (www.bn.by), Forenet (BelSoft CJSC, forenet.by), Unibel (www.unibel.by) BSUnet (www.cit.bsu.by) represent different niches of the Internet Providing market in the Republic of Belarus. The experts assessed the level of Hardware and Software Readiness (or advancement) of the country, which ranges from the 1st (least-advanced) to the 4th (most-advanced) stage, for each micro- index independently, and average data assessment for Hardware and Software index and generalized data assessment for Network Access component index were evaluated on their basis. Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the Hardware and Software index are shown in Table 1.32.
40 Table 1.32 Average Estimation of the Hardware and Software Index Stage Belarus, % Minsk, % Regions, % 1 17 0 25 2 41,5 33,5 41,5 3 41,5 50 33,5 4 0 16,5 0 Average Index Estimation 2,25 2,83 2,09
The following Tables 1.33 through 1.36. present the total estimation breakdown (given as share of the total amount of the answers received), assessing the whole republic, the city of Minsk and administrative regions in the context of the four micro-indexes. Table 1.33 1.5.1. Hardware Market Development for ICT Solutions Belarus, Minsk, Regions, № Variable (determined 1 from 4 for each region) % % % 1 There are no distribution/sales points for ICT hardware within 17 0 17 the country 2 Some off-the-shelf hardware is available locally, but almost 33 17 33 no hand-books are available in the native language 3 Most ICT products stem from abroad, but there is a strong and 50 50 50 growing localization industry, which adapts products to local needs. 4 A vibrant marketplace exists for hardware with a competitive 0 33 0 retail and wholesale markets for these products
Table 1.34 1.5.2. Software Market Development for ICT Solutions № Variable (determined 1 from 4 for each region) Belarus, Minsk, Regions, % % % 1 There are no distribution/sales points for ICT software within 17 0 17 the country 2 Some off-the-shelf software solutions are available locally, 33 17 33 but there are none or very few in the native language 3 Most ICT products stem from abroad, but there is a strong and 50 50 50 growing localization industry to adapt products to local needs. Some software appropriate to local needs and languages is available 4 A vibrant marketplace exists for software with a competitive 0 33 0 retail and wholesale markets for these products
Belarusian ICT market. CIS experts, who consider the ICT markets in Belarus, Russia and Ukraine to develops under identical scenarios, distinguish several key stages on the way from the very conception till the present. The years 1990 to 1992 were the time to abandon common assignment mainframe computers and to turn towards Unix servers and PCs; terminal mode fell to oblivion and a transition to
41 distributed use of server nodes and software took place. Mid'90s were the years to perceive the Client- server relationship. 1996 year was the beginning of the present distributed systems development on the basis of servers and IBM PC servers [9-11]. The competition among Belarusian computer companies becomes more rigorous. In the recent years, they created information technologies and significant infrastructure, which even excel current demands of local businesses. The majority of Belarusian firms are making their first steps towards full-scale application of information technologies in the fields of management, production, marketing and sales. There is an obvious contradiction: on the one hand, there is a strong flow of informatization offers to firms and organizations, on the other hand, the quantity of firms which are able to perceive information (networked) novelties, is definitely limited. Computers and peripherals. According to marketing departments’ assessments, carried out by the leading Belarusian computer manufacturers, about 55 - 75 thousand computers are sold annually to industrial sector and up to 50 thousand - in the end consumers, and it is almost 20 times less than in Russia. The ICT industry turnover is less accordingly (whereas the Russian turnover of the whole ICT industry, as estimated by different sources, totals 2-3 billion US Dollars a year). The market of network hardware, despite of definite difficulties, is expanding [9-11]. Many Western companies work successfully with Ukraine and Belarus for a long time, to tell the truth though, the turnover in these countries is not that great for the present. According to Mr. Serguey Tarasov, the head of the Russian office of Sun Microsystems, the Moscow market still remains the most attractive for Sun, as its share in the last year was about 80 % of its business in CIS countries [12]. On the other hand, a number of representatives of western corporations operating in the CIS consider the market development to differ drastically between countries. Many of them concur that Belarusian ICT market is considerably less advanced, than Ukrainian one. As Mr. Serguey Tarasov put it, " Practically, there is no private property in the republic. Almost all businesses are government-owned. It determines the peculiarities of planning and budgeting. Internet is rather underdeveloped. As for the Ukrainian market, it is on the intermediate stage of development - between Russian and Belarusian markets" [12]. The markets features in the both republics, according to the head of Sun office, influence the business rules in these areas. Mr. Yury Rimejko, the representative of Sony ITE for the PC monitors sales promotion in CIS and Baltic countries, agrees with a rather reserved assessment of the Belarusian market. "The market is especially small in Belarus, profitability is extremely low (although, apparently it can’t be lower — Slav - brothers manage to turn it down)," — he stated. "It is more correct, in general, to speak about cases of sales in Belarus rather than about turnover of sales. Roughly speaking, Belarus is 10 % of Ukraine, and Ukraine is 10 % of Russia." It can explain why Sony does not rush to open up the markets of the former soviet republics. For example, what concerns the monitors sales, there is only one office, located in Brussels, which is responsible for Russian, Belarusian, and Ukrainian sales taken together[11]. There are also other quantitative assessments of the markets of Ukraine and Belarus; however, they are close to the above-mentioned proportions. "All markets differ, first of all, by turnover. For example, the whole Belarusian computer market is much less than 10 % of Russian market, but the Ukrainian one makes up a bit more of this estimate. This implies all the remaining consequences and effects, namely large-scale corruption, severe rivalry, etc.," Mr. Grigor Karchikyan, the general director of the Moscow brunch office of MAS Elektronik AG considers. The main feature of the Belarusian market is a huge number of papers required for any transaction, any payment is possible only under a contract. Even more bureaucratic approach to operation of any company in any business is disclosed by a separate licensing of all kinds of the business activities. At first, MAS company opened its office in St. Petersburg, then in Moscow, later on in Minsk and Kiev [12].
42 In Mr. Grigor Karchikyan's opinion, there is a considerable bureaucratic influence in Belarus, as well as in Ukraine. As a matter of fact, a free commercial market here is at its earliest stage of formation and its main feature is that yet no developed market institutions have been established. Marketing, in its traditional understanding, is underestimated, the markets have not been examined, and many experts look skeptically at their development. According to Ms. Lidiya Grechina, the Oracle marketing manager in CIS countries, the Ukrainian market is more advanced as compared to the Belarusian one. It refers to the industrial sector, and to the private investments both. "It is basically possible to speak about a market in Ukraine, since market institutions are established and operate (at least restrictedly), which is not the case of Belarus. In Belarus, there is practically one customer only, namely the government; and no private property or foreign investments. Therefore market is limited, and the sales turnover is some times less than in Ukraine, " Ms. L. Grechina asserts [11]. In spite of the fact that the majority of representatives of the western ICT companies admit, that the Ukrainian and Belarusian markets are quite promising and develop dynamically, not all the companies consider it necessary to establish representation offices in these countries at the current stage. Moreover, the operation via the business partners turns to be effective enough. Dell Company, for example, adheres to this policy. In Russia It operates through Dell Systems Corporation, by the way, Dell’s only business partner, which was granted the right to use “Dell” trademark. Ulysses corporation plays the same role for Ukraine, and Belsoft CJSC deals in Minsk, but only difference is, that Dell Systems has exclusive rights in Russia and non-exclusive ones in other regions, whereas other Dell partners work, as for now, in the «native» markets only [12]. IBM chose a little bit different strategy, but in this case too, business partners are the core of their activities. According to Mr. Serguey Komyagin, IBM works through the business - partners in Ukraine and in Belarus, which are, in their turn, working with CIS department of the Moscow office. It is well known that each CIS country had its own distinguished operation model: it could be business partners only, IBM service organizations, IBM independent regional employees or agencies. "At present, the representation through business partners strategy is considered to be the most successful one. in «major» countries, small groups of IBM employees are assigned to support local workers, the latter in their turn are subordinate to IBM CIS department. Nowadays such business practice has been successfully adopted in Belarus (by IBA company [12]). Sun Company applied a similar policy in Belarus, but the Ukrainian market was recognized to be large enough to justify the establishment of a local representation office. The Ukrainian office of Sun Microsystems was opened three years ago. Before that the trade with the republic was very scarce as It went through the Ukrainian partners from the Moscow. By now, about 10 companies have been accredited in Ukraine. Sun Microsystems operates in Belarus through the Moscow office. Four partner companies are registered, which are IBA, Solidex, Belsoft and Microexpress companies [12]. Oracle corporation is represented in CIS countries through the Oracle CIS organizational structure. This structure consolidates the Central - Asian office located in Alma-Ata, Kiev office, which is responsible for both the Ukrainian and Moldavian markets, and the Moscow office, which is directly responsible for the business development in Russia and the remaining CIS countries , including Belarus. Such a structure has been set up since the very establishment of the official Oracle representation in the CIS. There is no Oracle office in Belarus, sales and the marketing operations are carried out through the distributors, namely by CompIT Technology and Belsoft companies. The market of system integration. The analysts and the computer companies representatives note the general trends of growth and increasing market activity in the field of ICT solutions, an expanding number of Internet users and quantity of home PCs. the Belarusian market is expected to response adequately, concerning the background of the forecasted growth of Internet - business. At the same time,
43 mass media points out that the demand for the enterprise management systems has fallen noticeably during the last two years. The systems, which were designed in the West and locally adapted by domestic agencies or distribution companies, prevail in the big enterprise market sector of the country. The local integrators (such as Belsoft CJSC, BelABM joint venture, BelHard Group, etc.) achieve the highest success in the Belarusian market. It is mainly due to reasonable pricing as compared to foreign companies. A most vivid market trends are consolidation of the companies and decrease in the number of integrators as small and medium enterprises merge, which allows to increase their market power. Government contracts play a significant role, as the majority of big enterprises are state owned. Tender bidding is obligatory even for the minor contracts. As for constraining factors of the system integration development, the shortage of funds for networked re-equipment of enterprises and inadequate understanding of strategic importance of the networked structure development among the managers of the large-scale companies are among the main. Piracy. The problem of piracy is the main one in the Belarusian software market. In the opinion of Mr. Alexey Badayev, business development department manager of Microsoft in the CIS, «There is a copyrights law adopted in Belarus, but at present there are no mechanisms to enforce it ». The market of the legal software producers is on its stage of conception, and the software companies have to compete, first of all, with counterfeit products. Thus, even low prices for licensed software CDs, which are just about 50 to 80 % over the illegal CD price, does not encourage many retail vendors to include «white» software in their offers. And the legal manufacturers can not lower the prices any further due to the amount of royalties to be paid, which is about 30 % of the prime cost of a CD [10]. As for the general description of the CIS ICT markets, according to Dataquest information they are ranked among the top ten largest in Eastern Europe, with Ukraine’s share being about 4 %, Belarus — about 2%, and Russia — 26 %. Table 1.35 1.5.3. ICT-related Hardware and Software Pricing Belarus, Minsk, Regions, № Variable (determined 1 from 4 for each region) % % % 1 ICT hardware and software are too expensive for all but large 17 0 33 businesses and a small minority of citizens and small and medium-sized businesses 2 Basic hardware and software are affordable for some citizens 50 50 50 and small and medium-sized businesses 3 A variety of hardware and software solutions are available and 33 50 17 affordable for most small and medium-sized businesses, as well as for many private users 4 Hardware and software appropriate to local needs and 0 0 0 languages are widely available and affordable
44 Table 1.36 1.5.4. PCs penetration Belarus, Minsk, Regions, № Variable (determined 1 from 4 for each region) % % % 1 Less than 5 personal computers per 100 households 17 0 33 2 5-15 personal computers per 100 households 50 50 50 3 16-50 personal computers per 100 households 33 50 17 4 Over 50 personal computers per 100 households 0 0 0
Fig. 1.13 shows the generalized results of a public opinion poll at tut.by site, assessing PCs and Software Pricing micro-index.
Hardware and software pricing affordability with regard to ICT
ICT hardware and software are too expensive for all but large businesses and a small minority of citizens and small and medium-sized businesses. Basic hardware and software are 1% affordable for some citizens and small and 6% 3% medium-sized businesses.
A variety of hardware and software solutions are available and affordable to most small and medium-sized businesses, as well as many individuals. 41% 49% Hardware and software appropriate to local needs and languages are widely available and affordable.
Found it difficult
Fig. 1.13 1.6. Service and support
9 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Service and Support index variables (sub-indexes). The aforesaid Ips - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Beltelecom (www.beltelecom.by), Global-OneBel (www.global-one.by), Business Net (www.bn.by), Forenet (BelSoft CJSC, forenet.by), Unibel (www.unibel.by) BSUnet (www.cit.bsu.by) represent different niches of the Internet Providing market in the Republic of Belarus. The experts assessed the level of Service and Support Readiness (or advancement) of the country, which ranges from the 1st (least-advanced) to the 4th (most-advanced) stage, for each micro-index independently, and average data assessment for Service and Support index and generalized data assessment for Network Access component index were evaluated on their basis.
45 Readiness (or advancement) estimation breakdown (in percentage) and average estimation for Service and Support index are shown in Table 1.37. Table 1.37 Average Estimation by Service and Support Index Stage No Belarus, % Minsk, % Regions, % 1 22.33 0 28 2 44.67 44.4 39 3 33 33.8 33 4 0 16.8 0 Average Index Estimation 2.11 2.72 2.05
The following Tables 1.38 through 1.40. present the total estimation breakdown (given as share of the total amount of the answers received), assessing the whole republic, the city of Minsk and administrative regions in the context of the four micro-indexes. Table 1.38 1.6.1. Telephone Line Installation Waiting Period Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 It takes at least four years for telephone mainlines to be installed, 50 0 50 counting from the time orders are placed 2 It takes at least six months to install 50 100 50 3 It take at least one month to install 0 0 0 4 Mainline installation is usually completed within a few days 0 0 0
Table 1.39 1.6.2. Time Necessary to Fix Mainlines Problems Belarus, Minsk, Regions, № Variable (only 1 option out of 4 was possible for each region) % % % 1 It takes over six months for reported mainline problems to be 17 0 17 resolved, if ever 2 It takes over one month for reported mainline problems to be 17 33,3 17 resolved. Providers pay no explicit attention to customer service 3 It takes over one week for reported mainline problems to be 66 33,3 66 resolved. There is a growing customer service ethic among service and support providers, although it is not a priority for the majority. Some ICT maintenance and technical support services are available 4 Service providers can be contacted in a number of ways (e-mail, 0 33,3 0 telephone, and mail). Reported problems are usually resolved within 48 hours. On-line help is available and may allow for immediate resolution. Customer service is considered a source of competitive advantage for the service provider. ICT maintenance and technical support are widely available
46 Table 1.40 1.6.3. Qualified Personnel Availability Belarus, Minsk, Regions, % № Variable (only 1 option out of 4 was possible for each region) % % 1 There are very few or no software developers, programmers 0 0 17 or computer technicians in the community 2 There is a small community of software developers, web 67 0 50 designers, network administrators and other technical personnel 3 There is a nascent software industry in the community, and 33 83 33 there is a growing number of hardware technicians, web designers and network administrators 4 There is a competitive and sophisticated web design market, 0 17 0 incorporating the latest development technology
Hosting Providing. Computer News paper [13] questioned a number of organizations which tender hosting service in the Belarusian market in a survey held in August - September, 2002. The survey intended to study a general situation in the market regarding hosting service and probable perspectives of its development. The survey voters were required to answer 6 questions: 1) What services are provided for customers, 2) What are the main participants involved in this segment of the market, 3) Market shares of the participants, 4) Total hosting market turnover in Belarus, 5) Main trends in the development of this market segment, 6) Recommendations to customers when choosing commercial hosting provider. At the time the survey was carried out there were 16 organizations known to render commercial hosting service. 9 of them participated in the survey: Webcom Design Studio, By.Com Belarus T (Office Technologies CJSC), Tut.By Electronic Business Center, Sunico studio, Currycomb company, Pixelhead studio (division of IBA joint venture), HostTrade (Federation CJSC), CNT Connecticum, Network Systems CJSC – which is about 56 %, i.e. more than half of hosting-providers, including today’s most efficient market players. As the result of the survey 4 groups of hosting providers (HPs) were distinguished: 1. Companies, which consider hosting provision to be their principal activity, namely By.Com and Tut.By; 2. Studios and Web-design companies which are involved in site designing and offer customers and third parties individual Web-design and implementation solutions, ex. CNT Connecticum, Pixelhead, Webcom Design Studio and Sunico studio; 3. Internet Service Providers, the companies that are involved in hosting provision as a logical extension of their principal acticity, ex. Network Systems; 4. IT companies, whose principal activity promotes and encourages hosting providing - Currycomb and HostTrade (Federation CJSC). It was also noted, that there is a multitudinous group of dumping promiscuous dealers which offer cheap American hosting provision in the Belarusian market. The first five companies, in the opinion of professional HPs, are Beltelecom, Open Contact, By.Com, Hosteks and Tut.By. the current distribution of the market is the following: Tut.By - 15-18 %,
47 Hosteks - 5-7 %, By.Com Belarus - 30 %, with petty operators remaining. The total turnover of the hosting provision market was estimated more precisely - within the limits of 10 to 17 thousand USD per month or 120 to 200 thousand USD per year. The method of calculation applied here was the following: quantity of sites was multiplied by an average hosting rate for each customer. In the voters’ opinion, the total number of sites which are taken into consideration, vary between 1000 and 2000, minimum hosting rate - 2 USD per month, ceiling hosting rate - 35 USD, average one - between 10 and 15 USD. The voters concluded, that the very first stage - the stage of a nascent hosting service market - is already over in Belarus. If earlier many HPs actually were only subproviders for major Russian or Western hosters, nowadays they use their own hardware facilities. Proper servicing requires additional investments and expenditures, which naturally brings more profits and permits to reduce the service rates for customers. Hosting companies are integrating, and this tendency means the raising reliability of hosters, allows them to extend the range of services and, again, to tender more attractive rates at the expense of cutting average costs. No considerable changes in hosting provision market are forecasted in Belarus, a steady progressive growth is expected to follow the extension of the Internet usage in the country. Marketing business activity of hosters is still sluggish, due to the low market penetration and minor incomes. Conclusion. The overall score of the above assessment of the readiness stage based on the Network Access component index (Table 1.41) shows, that the capital of the country (20 % of the population) has actually reached the 3rd stage of development according to the index, whereas the regions got stuck at the 2nd stage. Table 1.41 Total Estimation by Network Access Component Index No Sub-Index Belarus Minsk Regions 1.1 Information Infrastructure 2.4 2.9 2.225 1.2 Internet Availability 2.625 3.4 2.525 1.3 Internet Affordability 2.3 2.8 2.27 1.4 Network Speed and Quality 3.08 3.49 2.77 1.5 Software and Hardware 2.25 2.83 2.09 1.6 Service and Support 2.11 2.72 2.05 Total Estimation by Component Index 2.46 3.02 2.32
48
2. Networked Learning
In order to assess electronic readiness according to the methodology [1] using Networked Learning component index the following data were used: 1) data from 104 questionnaires from comprehensive educational institutions and area departments of education, 12 questionnaires from higher educational establishments; 2) statistical information of the Main Informational-Analytical Center of Ministry of Education; 3) expert estimations of the level of ICT equipment of educational establishments. 4) 1759 visitors of the
49
2.1. Schools’ Access to ICT
2.1.1. Computer availability at educational institutions By the beginning of 2002 80.3 % of comprehensive educational institutions in the republic have been equipped with computers. About 22.1 % of the machines are up-to-date modern computers. The majority tends to be outdated and requires replacement. However, educational institutions at all educational levels mostly enjoy access to computers (Fig. 2.1). 8 % of educational institutions have more than one computer class. 11 % of educational institutions use at least one computer in management.
Computer availability at schools
53,7 60 50 40 22,1 19,7 30 20 4,5 0 10 Accordance degree,% 0
There are no computers 1-2 computers There are outmoded computers There are modern computers Found it difficult
Fig. 2.1
Computer availability at higher educational institutions
69 70 60 50 40 23 30 8 20 0 0 10
Accordance degree, % 0
There are no computers at all Computers quantity is insufficient There are enough computers for organization of shift-by-shift training/work There are enough computers for organization of effective training/work
Fig. 2.2
50
Higher educational institutions of the republic are equipped enough to provide for shift-by-shift training (Fig. 2.2). The computerization of the curricular in higher schools is found to be at 69 % level. The same factor for management makes up 71 %. It is noteworthy, that there are much more computers in higher schools for technical sciences as compared to those in higher schools for humanitarian sciences. 2.1.2. Computer affordability at educational institutions The computer access in comprehensive educational institutions is usually available during academic hours. In schools, there are on the average 50 students per compute. A minor quantity of teachers uses computers during off-hour time in order to prepare for classes (Fig. 2.3). The number of educational institutions, which organize computer access in the extracurricular time, (operating with training program packages for different subjects, doing homework, PC game clubs, etc.) tends to increase.
Computer affordability at schools
80 60,29
60
40 20,59 14,71
20 4,41 0
Accordance degree, % 0 Access to the computers is not available or there are no computers
Access to the computer(s) is limited to computer teachers and/or administrators
Computer labs are generally only open for computer studies during the day and closed after school, or may be open to teachers for class preparation but closed to students Computer labs are open after school hours
Found it difficult
Fig. 2.3
The access to computers or computer hardware at higher schools is available both in the curricular and extracurricular time at no additional charge (Fig. 2.4). On the average, there are 22 full-time students per one up-to-date computer used in the curricular in higher schools. However, printers, scanners, digital cameral and other devices are rarely available to students and even to a significant portion of teachers. The network of computer clubs was built up in the republic in order to expand access of the population to ICTs. Thus, there are 63 computer clubs and 25 publicly shared points of ICTs in Minsk, with its population of 1728.9 thousand people as of he beginning of 2003. There are about 8 thousand potential clients per one computer club in Minsk, in the towns of Bobruisk and Baranovichi this indicator exceeds 125 thousand clients. Fig. 2.5 shows the results of the “Computer Access at the familiar To You Educational Institutions” Index assessment, one of the eighteen indexes, set in the poll at tut.by site according to [1]. 1759 visitors of the site (tut.by) responded, including 492 ICT specialists, 104 education and science representatives, 446 students and school children, 277 managers and 440 people engaged in other activities.
51
Computer affordability at higher educational institutions
47 50 40 40 30 13 % 20 10 00 Accordanca degree, 0 There are no computers at all Access to the computers is limited to computer teachers and/or administrators Computer labs are generally only open for computer studies during the day Computer labs are open after school hours Found it difficult
Fig. 2.4
Computer access at educational institutions known to You There are no computers at all
Access to the computers is limited to 2% 13% 11% teachers and/or administrators 19%
Computer labs are generally only open for computer studies during the day and closed after school, or may be open to teachers for class preparation but closed to students Computer labs are open after school 55% hours
Found it difficult
Fig. 2.5 2.1.3. Computers and local networks at education institutions In order to maintain learning process the locally networked computers are usually installed at schools. The networks are basically one-loop. A dedicated server may be installed at some institutions, which provides access to shared resources and configured hardware (hard drive, printers, etc.) (Fig. 2.6). At higher schools, computers are connected into a local network within a study-room. If there are several computerized study-rooms, they are integrated into one high school network (Fig. 2.7). Such networks have different topology, a multi-loop one as a rule, whereby all the existing network operating systems are practically employed. The intensity of network technologies usage varies depending on the training style and specialization of a high school.
52
Computers and local networks at schools
42,6 41,2 50
7,4 7,4 % 1,47 e degree, e degree, Accordanc 0
There are no computers in schools
Computers tend to be old generation, not networked models. Use of the computer(s) is limited to electronic documents that are available on the hard drive or diskettes
Computers tend to be older generation and they are networked with a file and mail server. There may be an internal Local Area Network (LAN) in place
In some cases, students and teachers may have individual laptop computers. Computers are connected to networks and labs are open to students and are open after school hours. The lab may be open to the community and other schools after school and on weeken Found it difficult
Fig. 2.6
Computers and local networks at higher educational institutions
100 62
24,5 50 13,5 0 0 degree, % Accordance There are no computers0 in schools
Computers tend to be old generation, not networked models. Use of the computer(s) is limited to electronic documents that are available on the hard drive or diskettes Computers tend to be older generation and they are networked with a file and mail server. There may be an internal Local Area Network (LAN) in place In some cases, students and teachers may have individual laptop computers. Computers are connected to networks and labs are open to students and are open after school hours Found it difficult
Fig. 2.7 2.1.4. Education Institutions Connectivity to External Networks Currently three republican computer networks are oriented to scientific and educational sector, namely UNIBEL education and science network, BSU network of Belarusian State University and BASNET, the network of the National Academy of Sciences of Belarus. These networks are integrated in the united scientific and informational computer network (NIKS) of the Republic of Belarus. Proper access to external networks is limited due to inadequate quality of communications and low speed of data transfer through data communication lines, albeit these services are offered at high rates. For
53
example, the rates for Internet access in Belarus is about 3-4 times higher than in Russia and 2-3 times higher than in Ukraine. At the same time, there is a positive progress in rates reduction for the data transfer network. Also, the costs differ to some extent (by 10 to 20%) depending on principal activity of the customer - whether it is business or scientific and educational institutions. Mainly store-and-forward e-mail is extensively used at schools. The qualitative access to external networks (Internet network) is usually provided only at urban schools (Fig. 2.8).
Schools connectivity to external networks 50 50
17,6 19,1 7,4 5,9 degree, % Accordanca 0 There are no connections to the external networks in schools.
There may be connectivity for store-and-forward e-mail.
The networked lab achieves connectivity through a dial-up connection to the Internet, which supports limited World Wide Web access. Classrooms may be wired and connected to the school's Wide Area Network (WAN). Clusters of schools may be connected to a regional WAN to share electronic resources. A national school network may be in place. Found it difficult
Рис. 2.8 The majority of high schools has a leased line for Internet access. Some high schools present own educational resources for shared access (Fig. 2.9).
Higher educational institutions connectivity to external networks
80 67 60
40 16 10 7 degree, % Accordanca 20 0 0 There are no connections to the external networks in schools.
There may be connectivity for store-and-forward e-mail.
The networked lab achieves connectivity through a dial-up connection to the Internet, which supports limited World Wide Web access. Classrooms may be wired and connected to the school's Wide Area Network (WAN). Clusters of schools may be connected to a regional WAN to share electronic resources. A national school network may be in place. Found it difficult
Рис. 2.9
54
2.2. Enhancing Education with ICTs
2.2.1. Level of using computers (ICTs) in curricula At comprehensive schools, computers or computer hardware is basically employed only on Computer science classes. About 38% of schools have the software for teaching other subjects using ICTs (in primary forms, while learning humanitarian or natural and scientific subjects). Employment of computers in the learning process is restricted by the lack of modern computers in sufficient quantity, absence of advanced software and ICT-related manuals, and by the teachers with low ICT skills (Fig. 2.10). On the average, 36 % of all subjects are taught using ICTs . Level of using ICT in curricula at schools 57,4 60 44 30,9 40 7,4 20 degree, %
Accordanca 0 0 Computers are not used by any teachers or students.
Few teachers use computers in a very limited fashion. Computers are mainly used at the university level.
Teachers and students widely use computers to support traditional work and study.
Information and communication technologies are fully integrated into the curricula, are used in the classroom and are essential to the learning process. The curricula may feature collaborative, project-based learning activities that enable students to use Found it difficult
Fig. 2.10 In the majority of high schools, teachers use computers during classes and while preparing for them (Fig. 2.11). Printouts of the lectures are rarely available though due to the high costs of printing.
Level of using ICT in curricula at higher educational institutions
100 63
19 50 18 0
degree, % 0 Accordanca 0 Computers are not used by any teachers or students.
Few teachers use computers in a very limited fashion. Computers are mainly used at the university level.
Teachers and students widely use computers to support traditional work and study.
Information and communication technologies are fully integrated into the curricula, are used in the classroom and are essential to the learning process. The curricula may feature collaborative, project-based learning activities that enable students to use Found it difficult
Fig. 2.11
55
Fig. 2.12 shows the total results for the “Level of Using Computers in Curricula at the familiar To You Educational Institutions” assessment carried out during the poll at tut.by. It somewhat differs also from experts’ opinion as it is based on the integrated opinion survey of all population strata.
Level of using computers in curricula at educational institutions known to You Computers are not used in curricula
Few teachers use 9% 7% computers for special 9% courses 0% Teachers and students mainly use computers for studying
Computers are widely used at studies. Studenst use Internet and e-mail without limitatiotions 75% Found it difficult
Fig. 2.12 At present leading higher schools of the republic possess basic facilities for developing distance training technologies. The concept of distance education process elaboration and development in the Republic of Belarus has been already worked out; it presumes creation of a basis for such education. 2.2.2. Level of teachers’ computer skills Most of the schoolteachers have basic computer skills. However, the computers are not widely used since access is rather limited. The computer science teachers, 4 to 5 % of teachers of other subjects and primary school teachers are well trained to employ a computer (Fig. 2.13).
Level of teachers’ computer training at schools
100 60,3
50 25 5,97 7,4 1,5 degree, % Accordanca 0 Computers are not used by any teachers .
Teachers' computer literacy is limited by learning some basic functions.
Teachers are proficient with basic applications and functions. They may employ computers in some basic drill-and-practice lessons. In some cases, teachers access and organize information from the World Wide Web in their work, share information using e- mail, and create information in electronic format to share with others both inside and outside the school. Found it difficult
Fig. 2.13
56
The teachers of higher schools usually have good computer skills and employ machines to prepare for the lectures or during the classes (Fig. 2.14). Usually, the younger the teacher is, the better he / she operates a computer. International experience is another important point. Familiarity with international educational standards promotes their implementation in the motherland.
Level of teachers’ computer training at schools
80 66 60
% 40 16 13 4 20 1 Accordanca degree, Accordanca degree, 0 Computers are not used by any teachers .
Teachers' computer literacy is limited by learning some basic functions.
Teachers are proficient w ith basic applications and functions. They may employ computers in some basic drill-and-practice lessons. In some cases, teachers access and organize information from the World Wide Web in their w ork, share information using e- mail, and create information in electronic format to share w ith others both inside and outside the school. Found it difficult
Fig. 2.14 Fig. 2.15 shows the total results of the “Level of teachers’ computer skills” Index assessment, set in the poll at tut.by site.
Level of teachers’ computer training Computers are not used by any teachers .
Teachers' computer literacy is limited by learning some basic functions. 11% 7%
15% 26% Teachers are proficient w ith basic applications and functions. They may employ computers in some basic drill-and-practice lessons.
In some cases, teachers access and organize information from the World Wide Web in their w ork, share information using e-mail, and 41% create information in electronic format to share w ith others both inside and outside the school. Found it difficult
Fig. 2.15
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2.3. Developing the ICT Workforce
2.3.1. Opportunities for advanced and continuing training for ICT development In high schools, development, integration and support of new networked technologies is carried out by specialized departments: computer system and network divisions (hardware and networked systems), networked computing centers or ICT (informatization) centers. There are four main lines in the operation of the centers: - telecommunications and networked technologies; - software and automated management systems development and support; - computer hardware maintenance and repair; - ICTs in education. 2.3.2. Ways of ICT skilled specialist training The main form of advanced training for comprehensive schools (Fig. 2.16) and high schools (the Fig. 2.17) teachers is a full-time training at special advanced training courses. The ICT specialists undergo advanced professional training at Academy of Post-Graduate Education, Republican institute of professional training, Republican institute of higher school of Belarusian State University, regional and Minsk specialized institutes for advanced professional training and retraining of executive officers and education specialists, at a number of professional skill raising courses at principal high schools.
Opportunities for advanced and continuing training for ICT development at schools 48,5
50 40 20,59 30 19,1
% 11,9 20
10 0
Accordanca degree, degree, Accordanca 0 Training opportunities for programming, maintenance, support, Web design and other ICT professions are virtually non-existent.
There are limited opportunities for training in ICT skills development.
Technical classes and programs on ICT-related subjects are available from a variety of public and private centers.
There are many technical schools w ith specialized curricula in information and communication technologies and computer science. Found it difficult
Fig. 2.16
The advanced training of the teachers and managing staff in ICTs field is carried out on a continual basis at the specialized curricula institutes for advanced professional training and retraining of the executive officers and education specialists. The target courses on the most important issues of ICT development and application are regularly held for the computer science teachers. However, the advanced training for ICT professions is not yet target-guided and systematic (Fig. 2.18). To boost, the newly obtained skills are sometimes hard to implement due to the lack of up-to-date hardware and software at the workplace.
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Opportunities for advanced and continuing training for ICT development at higher educational institutions
48 60
40 27 12 13 20 0 degree, % Accordanca 0 Training opportunities for programming, maintenance, support, Web design and other ICT professions are virtually non-existent.
There are limited opportunities for training in ICT skills development.
Technical classes and programs on ICT-related subjects are available from a variety of public and private centers.
There are many technical schools w ith specialized curricula in information and communication technologies and computer science. Found it difficult
Fig. 2.17
Ways of ICT skilled specialist training at schools
44,1 50
40 27,94 23,5 30 20 4,4 10 0 Accordance degree, % 0 Training opportunities for programming, maintenance, support, Web design and other ICT professions are virtually non-existent.
There are limited opportunities for training in ICT skills development.
Some limited online access to training is available. Some employers offer training in the use of information and communication technologies to their employees. There are a variety of training opportunities relating to information and communication technologies available through vendor certification programs, employers, educational institutions, private training centers and distance learning courses. Found it difficult
Fig. 2.18
The system of high school teachers’ retraining in ICT development and application is available mostly at faculties for advanced professional training at higher educational institutions. There is an Internet education center established in the republic, which provides for Internet-technology targeted training for teachers (Fig. 2.19).
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Ways of ICT skilled specialist training at high schools
51 60
30 40 13
6 20 0 degree, % Accordance 0
Training opportunities for programming, maintenance, support, Web design and other ICT professions are virtually non-existent.
There are limited opportunities for training in ICT skills development.
Some limited online access to training is available. Some employers offer training in the use of information and communication technologies to their employees. There are a variety of training opportunities relating to information and communication technologies available through vendor certification programs, employers, educational institutions, private training centers and distance learning courses. Found it difficult
Fig. 2.19
Overall scores for the Network Learning Component Index estimations carried out at comprehensive and higher schools of the Republic of Belarus are shown, accordingly, in Fig. 2.20 and Fig. 2.21.
Component index "Networked learning" (schools)
37,7 34,1 40 35 30 25 20 12,9 15 8,8 10 6,4 5 Accordance degree, % Accordance 0
1 degree of IT readiness 2 degree of IT readiness 3 degree of IT readiness 4 degree of IT readiness Found it difficult
Fig. 2.20
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Component index "Networked learning" (higher educational institutions)
48,1 50 40 25,2 30 15,8 20 10,8 10 0,1
Accordance degree,% 0
1 degree of IT readiness 2 degree of IT readiness 3 degree of IT readiness 4 degree of IT readiness Found it difficult
Fig. 2.21
An overall estimation of electronic readiness of the Republic of Belarus based on the Network Learning Component Index is presented in Fig. 2.22.
Component index "Networked learning"
50 41,1 40 24,2 30 15,8 20 12,3 6,5 10 Accordance degree, % 0 1 degree of IT readiness 2 degree of IT readiness 3 degree of IT readiness 4 degree of IT readiness Found it difficult
Fig. 2.22
Summary. The described above average estimation of the e-readiness level based on the Network Learning Component Index is 2.76. However, the estimation differs essentially for comprehensive and higher schools, actually by one level: 2.37 and 3.16, accordingly. This practically means, that higher educational institutions have reached the 3-rd level of development as assessed by the ICT indices, whereas comprehensive schools are at the 2nd level.
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3. Networked Society
To gain information, related to Networked Society component index variables (sub-indexes), from the questionnaires drawn up according to the approved methodology [1], the data has been collected from 60 members of the Republican Non-Governmental Organization “Information Society” - the high- level ICT-field specialists being the representatives of different ICT spheres in the Republic of Belarus: Academic, Education, Industry, Government, Private Business, Communication and etc. The results of questionnaire analysis by 14 micro-indexes, combined into 4 indexes under Networked Society Component Index, are presented below. The Networked Society Readiness (or advancement) assessment in the country from 1st (least-advanced) to 4th (most-advanced) stage was carried out by the experts for each micro-index independently, and average data assessment for each index and generalized data assessment for Networked Society component index were evaluated on their basis.
3.1. People and Organizations On-line
3.1.1. Level of Internet awareness (Fig. 3.1) Average readiness assessment in the country from 1st (least-advanced) to 4th (most-advanced) stage by Level of Internet awareness micro-index: regions - 2.4; republic - 2.6; Minsk - 3.6.
Level of Internet public awareness
54,2 59,4 60 50 50 37,5 40,6 40 25 30 20,8 20 4,2 4,2 4,2 10 0 0 0 Regions, % Belarus, % Minsk, %
Much of the population has heard of the Internet, but most people do not know anyone who has ever used it. Most of the population has heard of the Internet, although few have used it. Most of the population is interested in using the Internet and knows others who do. Most of the population is interested and uses the Internet.
Fig. 3.1
On January 1, 2003 the world celebrated a 20th anniversary of Internet birthday (and 30th anniversary of e-mail birthday). Despite quite moderate indicators of world economy growth and devaluation of high tech shares of the world market, the number of Internet users during last two years has grown on almost 250 millions and exceeds 2/3 of billion people or almost 11% of mankind. The billion’s Internet user is expected to appear to 2005. In spring 2002 a number of European Internet users (186 millions) exceeded North American ones (182 millions). But the most growing is the Asian-Pacific region: it has over 170 millions, and will outstrip North America in 2003. Small countries became the
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leaders of Internet use: 70% in Island, 65% in Sweden, 60% in Denmark and Hong Kong (US has 59%). But Americans are the most active Internet users: 43% of the world Internet traffic, China has 6.7%, Japan – 5.3%, UK and Canada – 4%, Germany – 3.7%. 1.000.000.000th PC was sold in April 2002. 2.000.000.000th PC will be produced in 2008 (i.e. just in six years). Over 60% of families use PC at home in the US, 49% - in Western Europe, 38% - in APR. Analysts expect the most growth of PC use in next five years in China, India, Latin America and Eastern Europe.1 On-line media and Internet development in Belarus impresses by its scale and speed as well. The first Web site in BY domain appeared just eleven years ago, and now we face a real boom (Table 3.1 – 3.4). Table 3.1 Dynamics of passing capacity of external channel through Internet in Belarus (Mbit/sec)2 1996 1997 1998 1999 2000 2001, I quarter 2002, II quarter 2002, IV quarter 0.26 1.2 2.3 7.04 16 16 44 79
Table 3.2 Dynamics of Internet use, % * Use Internet: 11 ‘97 03 ‘99 10 ‘01 12 ‘02 Yes 3.8 4.2 12.0 15.9 Including those who use regularly (daily -** -** 3.6 5.7 and some times a week) * According to the national public opinion polls conducted by the Independent Institute of Socio-Economic & Political Studies (IISEPS), Minsk, Belarus (1,500 respondents of age 18+ were face-to-face interviewed, marginal error did not exceed 0.03). ** Data not available Table 3.3 Regularity of Internet use, % Regularity of Internet use All respondents Internet users Yes, daily 2.4 15.0 Yes, some times a week 3.3 20.9 Yes, some times a month 5.3 33.8 Yes, some times a year Regularity of Internet use 4.9 30.8 No 70.0 - Do not know what is that 10.3 -
Table 3.4 Duration of Internet use, % Duration of Internet use All respondents Internet users Less that half an hour 2.8 16.6 From half to one hour 4.8 30.1 From one to two hours 5.2 32.5 From two to three hours 1.6 10.1 Over three hours 0.9 4.6 DA/NA 84.7 x = 75 minutes
Correlation analysis of tabs 3.3-3.4 allows to eliminate deviations (for example, those respondents who gave positive answer to question 3 but negative to question 4, or visa versa) and to select respondents with real Internet use experience (including occasional users) - 15% of Belarusian adult population, i.e. over 1.150.000 people.
1 Web site of Russian Service of Radio Liberty, September 9, 2002. 2 Belorusski Rynok, June 17, 2001.
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The structure of Internet use among general public is shown in Table 3.5. Table 3.5 Purposes of Internet use Purposes of Internet use % To get professional information 62.6 To work with e-mail 52.8 To get entertainment 45.5 To get public-political information 24.2 To get goods and service through Internet shops 1.6
Internet use among Belarusian elite is much more well spread, both in the state and non-state sectors (Table 3.6): almost six times more than among general public (including over two thirds of regular users, i.e. almost twelve times more than among general public). Table 3.6 Regularity of Internet use among elite, %* Regularity of Internet use All respondents State sector Non-state sector Yes, daily 39 38 41 Yes, some times a week 29 31 26 Yes, some times a month 11 6 15 Yes, some times a year 9 9 9 No 12 16 9 * According to the elite poll conducted by IISEPS in February 2003 (66 policymakers, media leaders, analysts and businessmen equally represented both state and non-state sectors were face-to-face interviewed).
The structure of Internet use among general public (Table 3.5) and elite is almost the same (Table 3.7). Table 3.7 Purposes of Internet use among elite, % Purposes of Internet use All respondents State sector Non-state sector To get professional information 71 72 70 To work with e-mail 64 59 68 To get public-political information 44 38 50 To get entertainment 3 – 6 To get goods and service through Internet shops 2 3 – Other purposes 8 9 6
However, Internet boom in Belarus has a very specific character: all Internet communications go through mainly (except academic ISP BASNET) the only one provider – Beltelecom that is a part of the Ministry of Communications. Approximately 30 local providers that got license from Beltelecom (www.providers.by) really provide various services (Internet, X25 Protocol, e-mail), but all providers have to buy channel access to Internet from Beltelecom (and by higher price than final users)3. By this way information flows from inside to outside the country and visa versa go through Beltelecom only (except academic ISP BASNET). Such a monopoly gives the state opportunity to introduce any prices for Internet use as it wants. The regular speed is extremely slow (sometimes users can’t get access even to Belarusian Web sites). Users could get special dial-up lines but should pay for them up to $ 500 per month but with average monthly salary less than $ 100 it is available for a very limited number of institutions and citizens. In any words, information resources of Belarus Internet outstrip the access to Internet. To make
3 Ibid.
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profits as much as possible the state have to develop a public access to Internet (Table 3.8).
Table 3.8 Regularity of Internet use depending on place of use, % Internet use At home In office (class) In library In Internet-cafe Regular users 73.0 49.0 23.1 8.6 Irregular users 24.0 46.9 69.3 68.5
Development of Internet in Belarus is limited by a weak technological basis. For example, most of comprehensive school computers are very old. The Ministry of Education can’t provide funding from the state budget, and appeal to the public. But installation of one informatics class only costs over $ 5.260 and most of parents can’t provide funding either4. Rely upon private business could be possible solution to this problem (thus, 88.4% of Belarusian private companies now use PC, over 70% use e-mail, and almost 30% have their own Web sites)5. Another example is public access to Belarus think tanks information and analysis through Internet. According to the mentioned IISEPS survey 33.3% of adult population are acquainted with Belarus think tanks publications (including 20.2% with IISEPS materials), but much more among Internet users (Table 3.9). Table 3.9 Acquaintance with publications of Belarusian thinks tanks depending on Internet use, %* Internet use Acquainted with publications of Including IISEPS publications (20.2) Belarusian think tanks (33.7)** Internet Users 50.4 35.7 Regular users 52.7 37.6 Non-users 30.0 17.5 * From here read tables horizontally. ** All respondents are shown in brackets.
Another problem for Internet use in Belarus is still unequal opportunities for different social groups (Tables 3.10 – 3.16). Table 3.10 Internet use depending on sex, % Internet use Men (48.5) Women (51.5) Internet users 55.8 44.8 Regular users 59.6 40.4 Non-users 44.4 55.6
Table 3.11 Internet use depending on age, % Internet use 18-19 20-24 25-29 30-39 40-49 50-59 60+ (4.8) (9.8) (9.4) (18.3) (21.0) (14.5) (22.3) Internet users 10.6 32.7 15.9 21.7 15.5 2.7 0.9 Regular users 12.9 30.1 15.1 21.5 18.3 2.2 0 Non-users 3.1 8.1 8.3 17.6 19.8 14.9 28.2
4 Web site of the Belarus Service of Radio Liberty, January 10, 2003. 5 Web site of Belorusskaya Gazeta, January 23, 2003.
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Table 3.12 Internet use depending on education, % Internet use Primary Uncompleted Secondary College High (5.4) secondary (14.8) (35.0) 26.5) (18.2) Internet users 0 2.6 29.3 28.3 39.8 Regular users 0 2.1 25.8 23.7 48.4 Non-users 8.3 17.1 38.8 23.6 12.1
Table 3.13 Internet use depending on social status, % Internet use State Private Retired Students House wives Unem- sector sector (25.8) (7.1) (1.6) ployed (48.8) (12.7) (3.6) Internet users 39.2 30.8 0.4 26.4 0.4 2.6 Regular users 34.0 40.4 0 24.4 0 1.1 Non-users 48.9 9.5 32.1 3.8 1.9 3.8
Table 3.14 Internet use depending on incomes (per family member per month), % Internet use Up to $ 22 $ 22-41 $ 42-63 $ 64-94 Over $ 94 (10.6) (39.3) (31.1) (14.8) (4.2) Internet users 5.8 19.3 31.8 30.9 12.1 Regular users 4.4 11.1 32.2 36.7 15.6 Non-users 11.2 44.1 31.1 11.2 2.5
Table 3.15 Internet use depending on region of residence, % Internet use Minsk Minsk Brest Grodno Vitebsk Mogilev Gomel city region region region region region region (18.4) (15.0) (14.2) (11.8) (12.1) (11.7) (16.7) Internet users 22.9 11.4 15.0 4.0 17.6 15.0 14.1 Regular users 28.7 7.4 16.0 3.2 20.3 10.6 12.8 Non-users 16.3 15.7 14.4 12.6 11.7 11.9 17.4
Table 3.16 Internet use depending on place of residence, % Internet use Capital Regional centre City Town Village (18.40) (16.40) (12.8) (21.3) (31.1) Internet users 22.9 37.9 16.1 12.9 9.8 Regular users 28.7 45.6 8.7 8.7 7.6 Non-users 16.3 14.3 15.1 19.4 34.9
3.1.2. Level of Internet use (Fig. 3.2) Average advancement assessment by Level of Internet use micro-index: regions - 1.9; republic - 2.3; Minsk - 3.3. In the course of research being carried out currently within the framework of grant # ICT 015 a number of the Internet regular users in Belarus as of the end of 2002 has been defined as 905500. This assessment of the Belarusian Internet users has been obtained as the average value of: 1) a figure (1027600), defined by the national public opinion polls conducted by the Independent Institute of Socio-Economic & Political Studies (IISEPS, Minsk), the statistic data of TutBy portal and
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results of the questionnaire survey carried out by Mediareklama, a Belarusian Internet advertising agency; 2) a figure (1041000), reckoned by using results of the questionnaire survey canvassed by Mediareklama, a Belarusian Internet advertising agency (November, 2001) and data collected by Beltelecom RSA;
Level of Internet use
80 65,2 50 46,9 60 40,9 43,8 40 21,7 8,7 9,1 6,3 20 4,3 0 3,1 0 Regions, % Belarus, % Minsk, %
Less than 0.05% of the population has used the Internet at any time during the past three months.
Less than 0.5% of the population uses the Internet regularly.
Less than 10% of the population uses the Internet regularly.
At least 10% of the population accesses the Internet with some regularity.
Fig. 3.2
3) a figure (648000), estimated by using reports of December, 2002 drawn up by a major Russian (Yandex) and Belarusian (Akavita) statistical services:
(1027600 + 1041000 + 648000) : 3 = 905500.
As estimated by the International Telecommunication Union (http://www.itu.int/ITU-D/ict/ statistics/at_glance/Internet01.pdf) there were 422200 Belarusian Internet users registered in 2001. Estimations by the national public opinion polls (reviewed in 2001-2002) by the IISEPS, statistic data collected by TutBy portal and questionnaire survey results canvassed by Mediareklama, a Belarusian Internet advertising agency in November 2001. IISEPS canvasses public opinion during the national public polls and surveys by employing a "face to face" interviewing 1500 respondents at the age of 18 years and older with a representativeness error, not more than 0.03. It is essential to define how many guys (percentage) aged 18 and younger are there among the total number of users since the said Internet users aged younger than or 18 year old constitute a considerable share in the Republic of Belarus (Table 3.17). Each visitor while registering with Mail.TutBy portal fills out log-in form according to an obligatory procedure. Such procedure has been established since October 2000. About 200000 visitors have been registered within this time as of the end of 2002. TutBy users within an range of the age under consideration were divided as follows: users under and 16 year old, inclusively - 8 % a plus 5,8 % 17 years (summer) of 35 % of a category from 17 till 22 years, that is till 18 years - 13,8 %. The Internet users aged under 18 make up 22 % of the total users in the Republic of Belarus according to questionnaire survey results (3107 questionnaires), canvassed from 2 to 23 November 2001 by Mediareklama, the Belarusian Internet advertising agency backed up by the data of BY'2001 Third Belarusian Internet Forum (http://www.belarusmedia.com/?p=article768).
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Table 3.17 Do you use Internet?
October 2001 April 2002 (%) December 2002 (%) Reply Options (%)* thou users ** (%)* thou users ** (%)* thou users ** Yes, every day 0.8 74,8 2.6 242,9 2.4 224,2 Yes, a few times a week 2.9 270,9 3.9 364,3 3.3 308,3 Constant Users, Total 3.7 345,7 6.5 607,2 5.7 532,5 Yes, a few times a month 4.3 401,7 4.2 392,4 5.3 495,1 Regular Users, 8.0 747,4 10.7 999,6 11.0 Total 1027,6 Yes, a few times a year 4 373,7 4.6 429,8 4.9 457,8 Users, 12 1121,1 15.3 1429,4 15.9 1485,4 Total * % of population 18 years and older. **It is assumed for estimation: 1) population of Belarus aged 18 and above equal 7670 thousand users; 2) Internet users younger 18 years of age constitute 17.9 % of the Internet users total in Belarus.
Further in our estimation we assume an average figure of Belarusian Internet users younger 18 years of age which equals 17.9 % = (22 + 13.8): 2. Estimations by using questionnaire survey results canvassed by Mediareklama, a Belarusian Internet Advertising Agency in November 2001 and Beltelecom RSA data. According to questionnaire review results (3107 questionnaires), canvassed from 2 to 23 November 2001 by Mediareklama, the Belarusian Internet advertising agency backed up by the data of BY'2001 Third Belarusian Internet Forum (http://www.belarusmedia.com/?p=article768), there were 26.9 % of BelPak dial-up users who were canvassed. 83307 subscribers employed a dial-up network system to access the Internet as read the data of Beltelecom RSA in November 2002. This number will amount to 266582 of dial-up access potential users (if to have it multiplied by 3.2, the number of average family members, i.e. tentative users calling from one subscriber's number). Or it might raise up to 279911 if to take into account 5 % monthly growth as of the end of 2002. If to assume, that it makes up 26.9 % of the total users, we arrive, under this estimation, at 1041000 Internet users in Belarus. Estimation by Major Russian and Belarusian statistical services. According to data furnished by Yandex, one of the Russian Internet major sites (http://company.yandex.ru/), its internal statistic system (stat.yandex.ru) registered in December 2002 as follows: unique hosts (Hosts - quantity of different IP-addresses, from which users visited Yandex within the indicated period) - 1538945; unique visitors (Visitors - quantity of the different users visiting Yandex within the indicated period. The users will be authenticated by Cookies files. If the latter are not available - by IP-addresses. While counting visitors, unique Cookies plus unique IP-addresses less Cookies are considered) - 6652325 and, hence, average quantity of the visitors per host - 4,32. As regards quantity of hosts as per Yandex geographic report, Belarus is ranking 3rd following Russia (79.29 %) and Ukraine (5.63 %) with 50027 hosts, that aamounts to 2.15 % of total hosts registered at Yandex. Taking into consideration, that 4.32 visitors, on the average, come from one host, the number of Belarusian visitors is about 216000 (50027 х 4.32). The Belarusian Internet attendance at sites - participants of Akavita system was 158007 unique visitors in December 2002, that corresponds approximately to the quantity of the Belarusian visitors at Yandex (216000), cited in the previous paragraph, as reads the Belarusian Internet global statistics report made open to public on 24.12.2002, and posted at http://www.stan.akavita.by. The quantity of sessions thereby generated at Yandex.Ru from Akavita is 34.3 %, i.e. one-third (it corresponds actually to one
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outcome of questionnaire survey, canvassed from 2 to 23 November 2001 by Mediareklama, the Belarusian Internet Advertising Agency (http://www.belarusmedia.com/?p =article768), The outcome is that only 33.1 % of the Belarusian Internet users visit the Belarusian Web-sites daily, so it may be assumed, that the Belarusian users total 648000 people (216000 х 3) on the grounds of Yandex and Akavita statistical data. 3.1.3. Number of registered local domains (Fig. 3.3) Average advancement assessment by Number of registered local domains micro-index: regions – 2.0; republic – 2.2; Minsk – 2.9.
Number of registered local domains
90,9 100 81,8 80 60 35,5 35,5 40 29 18,2 20 4,5 4,5 0 0 0 0 0 Regions, % Belarus, % Minsk, %
No business entity in the country has a registered Internet domain name.
Some local businesses and institutions have registered domain names. There are fewer than two of these domains per 1000 inhabitants. The number of registered domains locally is at least 2 per 1000 people.
The number of registered local domains is at least 20 per 1,000 population.
Fig. 3.3
Since 2000 according to http://www.open.by/2002112807.html, the State Center of Information Security under the President of the Republic of Belarus has registered about 2000 the second level domains in a .BY zone. Now almost 500 from them are suspended, since their owners do not prolong the contract. For information, the quantity of the Internet - addresses registered in the national domain of Russia, in 2002 in comparison with 2001 has grown on 66 %. Now in a zone .RU exists more than 156 thousand domains. A unified system of electronic addressing, which constitutes an aggregate (collection) of unique IP-addresses and corresponding unique domain names, provides for the basis of the Internet system operation as a whole. Domain name system is actually a framework of the Internet web set-up. To control domain name system, IANA (http://www.iana.org/), an international coordinating organization was established, which performs its activity by means of ICANN (http://www.icann.org/), the Internet Corporation for Assigned Names and Numbers, a service for assigning and using unique values of IP parameters, assigning numerical Internet addresses. While considering issues of delegating and re-delegating, IANA is guided by main guidelines and provisions, approved by the following main documents: - IANA TLD "Delegation Practices Document" (ICP-1, http://www.icann.org/icp/icp-1.htm), 21 May 1999
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- Request for Comments 1591 "Domain Name System Structure and Delegation" (RFC 1591, http://www.isi.edu/in-notes/rfc1591.txt/)/ ISI March 1994. On the grounds of IANA appropriate resolutions an administrator is assigned for each of existing top level domains, i.e. TLDs (.com .org .net .ge .ru .by etc.), the said administrator being authorized to register and delegate domain names of lower level in a domain zone, he administers. While taking decision about delegating one or another organization with authority to administer TLDs, IANA sets a number of organizational and technical criteria and requirements for a new administrator to meet with. From the point of view of the organizational requirements, the administrator is obliged to provide a definite level of service, including obligatory operation of such service tools as WHOIS, which would provide access to services enabling the end users to register domain names and ensure transparency of the procedure. Any infringement of the said requirements may entail revision of the decision taken in respect of delegating right on domain zone administration and its subsequent re-delegation to other individual (person). There have been already the similar previous cases in IANA practice. Since May 1999 IANA has satisfied the following inquiries on ccTLD re-delegation: Pitcairn Islands (.pn), Malavi Малави (.mw), Canada (.ca), Australia (.аu), United States (.us) and Japan (.jp). It is essential to state, that currently there are no normative statutory acts regulating the matters related to origination, operation and dispose of domain names in the Republic of Belarus. A single regulative source in the said realm are the Provisional rules of registrating and delegating of the second level domain names in .BY zone (ref: http://www.tld.by/rules.html), approved in February 2000 (with subsequent revisions and addenda of 2002). Just not touching upon a problem of official confirmation, legality and authenticity of the information posted in electronic format in Internet at all, the rules in question are just an internal law-instituting document having legal effect only for the State Center of Information Security (SCIS) under the President of the Republic of Belarus. Actually the said rules are deficient in the main feature of a normative statutory instrument, namely in its standardized force, assuming that the legal regulation thereof would encompass an uncertain circle of the entities. The reason for this, first of all, is that a procedure for adopting the normative statutory documents instituted by the legislation of the Republic of Belarus was not observed, when the rules were adopted. Their registration in the Ministry of Justice of the Republic of Belarus was not made, and they were not published officially. Posting of the information in Internet according to a Belarusian law is not recognized to be an official publication, moreover such information according to the same law of the Republic of Belarus (An Electronic Document Law) cannot be considered as documentary information at all. Thus, the said instrument (the rules) may be considered only as a confined document of SCIS, regulating its internal activity. However, it is obviously contradicting to the legislation of the Republic of Belarus now in force due to this reason, as far as its provisions claim for regulating the legal relations which are beyond the frame of SCIS internal activity and encompass the rights and lawful interests of other legal entities. Multiple questions arise about legality of certain clauses contained in the indicated rules at more detailed learning of the document. The rules establish that a decision about registration or delegating of domain is to be taken by SCIS within 14 days from the date of filing an application. As the result of examination either a favorable decision or a justified refusal is sent to an applicant. The rules do not define the list of grounds, on which SCIS may refuse in registering a domain. It tuns out to be in fact, that the objectivity of «sufficiency of refusal» is determined by subjective perception of persons making a decision, and, in its turn, it creates prerequisites for probable abuses. It is also determined by the rules that in case two or more applications on one and the same domain are filed simultaneously, a decision about registration is taken only after all applicants, except for one, have officially informed about waiving of the applications filed. The applications are considered to be
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filed simultaneously, if they have been registered WITHIN ONE WEEK FROM THE DATE THE FIRST APPLICATION WAS FILED, what is, in general, nonsense both from the point of view of the law and common sense. The rules provide again for conditions for probable abuses and deliberate delay of awarding decision. The provisions of the rules create also conditions for implementing a vicious and faulty practice of so-called STOP - SHEETS, when by virtue of several applications for registration of a domain name that are in hand which were filed «simultaneously», further registration of them may be frozen. It is also determined by the rules, that an applicant while choosing a domain name should avoid the names obviously conterminous to the known trademarks. The organizations having formal documents from the holder of the given trademark reconfirming authorities of the applicant to register a domain with a similar name make the exception. SCIS, in this case, assumes a function, not appropriate to it, to protect the rights of the holders of the trade marks and brands and other objects of intellectual property, whereas the said function should be of an application nature according to the Belarusian legislation (a holder of a trade mark is required to file an application for protection of his/her rights) and it is referred to the competence of the court. There is also Instruction on registration of domains in .BY zone (http://www.tld.by/instruction.html). The said instruction reads that the information about the holders of domain names in .BY zone is not divulged and is not published without official permission of the holder, that it is, ostensibly, a trade secret. To justify non- availability of WHOIS service, the references to clauses of the Civil Code of the Republic of Belarus which regulate the issues of trade secret are made (Articles 140, 1010, 1011, 1012). It is obviously overlooked, at the same time, that the information related to the facts (cases) of creation, change or termination of the rights of possession, application or disposal of, and also registration of the rights can not fall under a trade secret according to the legislation of the Republic of Belarus (item. 3 of the same Article 1010 Civil Code). Thus, the Provisional Rules of registration and delegating of the second level domains in .BY zone effective at present time neither correspond to the conventional international principles of domain name assigning approved by IANA and ICANN, nor conform with the standards of the Belarusian legislation. The effective rules of domain name registration in .BY zone actually are only a formal «legal justification» for infringing the conventional norms and standards in the course of registration of domain names. They create premises for probable abuses, deprive the domain name registration and delegating process of its openness and accessibility to the end users. The solution of negative developments related to the domain name registration and delegating process in many respects depends on transparency and streamlining capability of the given process. Under current circumstances, the elaboration and adoption of our own uniform rules of registration and delegating of domain name, adapted to the Belarusian environment, may serve as an optimum sand alternative solution of the problem, with the said rules envisaging appropriate procedures of the extrajudicial resolution of disputes on domain names by analogy with UDRP (http://www.icann.org/udrp/). Thus, it is worth noting that the development and subsequent enactment of the rules and procedures as above will allow: - to build up a unified system of registering domain names in .BY zone adequate to the requirements of the conventional world standards in this field; - to raise potential attractiveness of .BY domain zone for registration of domains both for the needs of national and foreign users; - to improve reliability of a domain name registration system and quality of user servicing; - to provide for a great accessibility of domain name registration procedures to the end users, and also increase openness and transparency of such procedures;
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- to create an effective, prompt and relatively low cost tool for fighting infringements in the field of intellectual property, suppression of cybersquattering; - to bring the authority of the national logger of domain names in .BY zone to a higher level. 3.1.4. Advertising of the on-line service companies or resources in traditional media (Fig. 3.4) Average advancement assessment by micro-index: regions - 2.3; republic - 2.9; Minsk - 3.3.
Advertising on-line service companies and resources in traditional me dia
91,3 100
80 59,4 60 47,8 34,4 40 26,1 21,7 8,7 20 4,3 6,3 0 0 0 0 Regions, % Belarus, % Minsk, %
There is no advertising in traditional media for online companies or resources. There is no advertising in traditional media for online companies or resources. Advertising in traditional media for online companies or resources is infrequent. Advertising in traditional media for online companies or resources is fairly common.
Fig. 3.4
3.2. Locally relevant content 3.2.1. Web sites providing information on local topics (Fig. 3.5) The present Belarusian Internet segment comprises about 3000 information sites. Out of the sites registered within the Belarusian network (first-level zone by) 95% of the sites are in Russian, 10% in Belarusian and 15% bilingual. About 8% of the sites possess an English version. About 10% of all the Belarusian sites do not use Belarusian hosting: 2% of the sites use foreign hosting and 8% use Russian hosting (mainly the second-level zone by.ru). The rough distribution of the Bynet resources is as follows: • 45% - information on production, goods and services; • 12% - Internet services; • 5% - entertainment; • 6% - electronic versions of periodicals; • 13% - education courses; • 10% - information regarding activities of research institutes; • 1.5% - information of the state authorities. Average advancement assessment by Web sites providing information on local topics micro-index: regions - 1.9; republic - 2.3; Minsk - 3.
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Web sites providing information on local topics
100 84,4 73,9 80 60,9 60 30,4 40 17,4 8,7 6,3 9,4 20 0 4,3 4,3 0 0 Regions, % Belarus, % Minsk, %
Few websites covering local topics exist, and most of them are created and hosted outside the country.
Some local websites are available, though most carry static content and are updated infrequently. Websites provide diverse types of information relevant to different groups within the country. Many websites provide dynamic information on local topics and are updated at least several times per week.
Many websites provide dynamic information on local topics and are updated every day.
Fig. 3.5
Approximately 70 web-sites are registered providing information on health and medical market in Belarus. The text part of these sites exceeds 40 Gb. 83% of servers present medical field of Minsk, 9% - Vitebsk and Vitebsk region, 3% - Grodno and Grodno region, 3% - Gomel and Gomel region, 3% - other regions. As well as in mass media, the most popular among Internet users are Russian rather Belarusian resources, that is explained firstly of all by their quality, and secondly by language situation in the country (Table 3.18). Table 3.18 Use of different Internet resources among elite, %* Internet resources All respondents State sector Non-state sector Russian 32 38 27 Belarusian 26 25 27 European 14 13 15 US 6 3 8 Other 2 – 3 DA/NA 20 21 20 * According to the elite poll conducted by IISEPS in February 2003 (66 policymakers, media leaders, analysts and businessmen equally represented both state and non-state sectors were face-to-face interviewed).
Fig. 3.6 shows the results of the assessment by a ‘Web sites providing information on local topics’ micro-index, one of eighteen indexes, set in poll at tut.by site according to [1].
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Web sites providing information on local topics
Few websites covering local topics exist, and most of them are created and hosted outside the country.
Some local websites are available, though 5% 2% 8% 31% most carry static content and are updated infrequently. Websites provide diverse types of information relevant to different groups within the country. Many websites provide dynamic information on local topics and are updated at least several times per week.
54% Many websites provide dynamic information on local topics and are updated every day.
Found it difficult
Fig. 3.6
3.2.2. Web sites in local or prevailing local languages (Fig. 3.7) Average advancement assessment by micro-index: regions – 2.0; republic - 2.1; Minsk - 2.4.
Web sites in local languages
80 60,9 54,8 60 45,5 40 31,8 13,6 17,4 13 12,9 16,1 16,1 20 9,1 8,7
0 Regions, % Belarus, % Minsk, %
No websites are available in local languages.
Few websites present content in local language.
Many websites are available in local languages.
A significant amount of information is available through websites in local languages
Fig. 3.7
Fig. 3.8 shows the results of the assessment by a ‘Web sites in local languages’ micro-index, one of eighteen indexes, set in poll at tut.by site according to [1].
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Web sites in local languages
No websites are available in local languages.
16% Few websites present 2% content in local language. 3%
Many websites are available in local languages. 26% 53% A significant amount of information is available through websites in local languages. Found it difficult
Fig. 3.8
3.2.3. On-line bulletin-board systems, Usenet groups, newsletters and/or listservs (Fig. 3.9) Average advancement assessment by micro-index: regions - 2.1; republic - 2.2; Minsk - 2.9.
On-line bulletin-board systems, Usenet groups, newsletters, and/or listservs
77,3 80 69,6 61,3 60
40 22,6 13 16,1 20 9,1 8,7 4,5 0 0 0 0 Regions, % Belarus, % Minsk, % There is not use of online bulletin-board systems, Usenet groups, newsletters, and/or listservs
There is little use of online bulletin-board systems, Usenet groups, newsletters, and/or listservs.
There is some use of online bulletin-board systems, Usenet groups, newsletters, and/or listservs.
Local content is generated by citizens at all levels of society, including websites and online bulletin-board systems, Usenet groups, newsletters, and/or listservs.
Fig. 3.9 Fig. 3.10 shows the results of the assessment by a ‘Web sites in local languages’ micro-index, one of eighteen indexes, set in poll at tut.by site according to [1].
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On-line bulletin-board systems, Usenet groups, newsletters, and/or listservs
There is not use of online bulletin- board systems, Usenet groups, (2 respondents) newsletters, and/or listservs
There is little use of online bulletin- 0% 9% board systems, Usenet groups, 34% newsletters, and/or listservs. 25%
There is some use of online bulletin- board systems, Usenet groups, newsletters, and/or listservs.
32% Local content is generated by citizens at all levels of society, including websites and online bulletin-board systems, Usenet groups, newsletters, and/or listservs. Found it difficult
Fig. 3.10
3.2.4. Opportunities for Web-related training (Fig. 3.11) Average advancement assessment by micro-index: regions - 2.7; republic - 2.9; Minsk - 3.1.
Opportunities for Web-related training
85,7 100 72,7 74,2 80
60
40 19,4 4,5 4,8 20
0 Regions, % Belarus, % Minsk, %
There are opportunities for Web-related training, although they may be expensive and accessible only in certain areas. Many affordable opportunities exist for Web-related training.
Fig. 3.11
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3.3. ICT in Everyday Life
3.3.1. Level of using ICTs in everyday life (Fig. 3.12) Average advancement assessment by micro-index: regions - 2.3; republic - 2.6; Minsk - 3.6.
Level of using ICTs in everyday life
67,7 70
60 52,2
50 40,9
40 31,8 26,1 25,8 30 22,7
20 13 8,7 6,5 10 4,5 0 0 Regions, % Belarus, % Minsk, %
People do not normally employ ICTs (telephones, fax machines, pagers, computers, mo-bile phones) in their daily lives. Most social communication is paper based and/or oral.
ICTs(telephones, fax machines, pagers, computers, mobile phones)are used to a limited degree by some members of the community.
ICTs (telephones, fax machines, pagers, computers, mobile phones) are used in most parts of the country . Some households have Internet access at home.
Many people use ICTs (telephones, fax machines, pagers, computers, mobile phones) to assist in their personal lives and for household commerce (online shopping, banking, investing) and for a variety of social and commercial interactions with other people
Fig. 3.12
Fig. 3.13 shows the results of the assessment by a ‘Level of using ICTs in everyday life’ micro- index, one of eighteen indexes, set in poll at tut.by site according to [1].
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Level of using ICTs in everyday life
People do not normally employ ICTs (telephones, fax machines, pagers, computers, mobile phones) in their daily lives. Most social communication is paper based and/or oral.
ICTs(telephones, fax machines, pagers, 2% 2% computers, mobile phones)are used to a limited 18% degree by some members of the community.
ICTs (telephones, fax machines, pagers, computers, mobile phones) are used in most parts of the country . Some households have Internet access at home. 61% 17% Many people use ICTs (telephones, fax machines, pagers, computers, mobile phones) to assist in their personal lives and for household commerce (online shopping, banking, investing) and for a variety of social and commercial interactions w ith other people Found it difficult
Fig. 3.13
3.3.2. Service quality while using ICTs in everyday life (Fig. 3.14) Average advancement assessment by micro-index: regions - 2.3; republic - 2.4; Minsk – 3.0.
Service quality while using ICTs in everyday life
100 84,4 56,5 52,2 43,5 50 34,8 6,3 9,4 0 0 0 Regions, % Belarus, % Minsk, %
There are public telephones in some districts of this region and they are regularly used by the majority members of the community.
Some members of the community have Internet access at home.
Many people use ICTs for household commerce (online shopping, banking, investing) and for a variety of social and commercial interactions with other people (including bartering, consumer-to-consumer trade, online chat).
Fig. 3.14
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3.3.3. Level of employing on-line services in community’s daily life (Fig. 3.15) Average advancement assessment by micro-index: regions - 2. 4; republic - 2.7; Minsk - 3.6.
Level of employing on-line services in daily life
56,5 58,1 60 52,2 41,9 30,4 30,4 40 22,7 13 20 8,7 13 0 0 0 Regions, % Belarus, % Minsk, %
On-line services are practically not used in everyday life.
Personal computers with e-mail capability are made publicly available by some providers, but most users are from outside the country (e.g. tourists and visiting businesspeople). Growing numbers of citizens use telecenters, cyber cafes and other places that offer computer use and online services to the public for a fee. In addition to access to online services at home, schools or work citizens use a variety of public and private Internet access options, including online cafes and community centers.
Fig. 3.15
On-Line Personal Computer (PC) Percentage in Belarus. There are not less than 775,000 PCs that are operated in the country by the end of 2002 (Table 3.19). It is estimated by experts regarding a PC average service life, which is as minimum as 5 years (actually up to 8 years in Belarus), and personal computer quantity of production and delivery to the Republic of Belarus (with the leading computer manufacturers of the Belaruss – Association of IT Companies members being canvassed). Table 3.19 Personal Computers in Belarus 1995- 1998 1999 2000 2001 2002 1998-2002 1997 PC employment by industrial sector, pcs 50 000 55 000 65 000 70 000 75 000 315 000 PC employment by population, pcs 40 000 45 000 50 000 55 000 60 000 250 000 Total, pcs 210 000 90 000 100 000 115 000 125 000 135 000 775 000
Currently, the leading ISPs in Belarus (Table 3.20), except BelPAK network of Beltelecom RSA (the former rendering services to 101005 subscribers via 5545 ports, i.e. it may be assumed, that it is servicing no more than 18.2 visitors from a host; BelPAK users comprise one-third, June 2001; the growth rate within 18 months is 180 % (June 2001 - December 2002), equals 5 % per month), are: Business Network, Open Contact, SOLO ISPs share is 22 % or 7000 subscribers (June 2001) and 12600 subscribers in December 2002. That gives a figure versus 100 % amounting to 57272 hosts in December 2002 in Belarus as a whole, that corresponds actually to Yandex (stat.yandex.ru) geographic report data for December 2002, when 50027 Belarusian hosts were registered. The total, as may be claimed, is 57272 computers having direct connection to the Internet, or 57272 : 775000 х 100 = 7,39 % of Belarusian computers are on-line to the Internet. The quantity of the Internet users per host is rated as follows: 905,500 divided by 57,272=15.81.
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Table 3.20 June 1991, quantity 2001, November 2001, Main IPs Alteration of subscribers % subscribers % subscribers Avilink N/a 0,30% 2,00% 1,70% Anitex 244 3,30% 3,70% 0,40% Atlant Telecom N/a - 1,00% - Basnet N/a 1,10% 1,80% 0,70% BelPAK (non-password) N/a 47,20% 26,90% -20,30% BelPAK (password) N/a 8,20% 8,00% -0,20% BelInternetPage N/a 0,20% 0,50% 0,30% BelINfonet 254 4,10% 5,60% 1,50% Business Network 1880 5,80% 10,00% 4,20% Golden Thaler Provider Ltd 236 0,60% 0,40% -0,20% Open Contact 2435 7,10% 7,20% 0,10% SOLO 1310 5,10% 8,70% 3,60% Unibel N/a 4,90% 6,40% 1,50% Network Systems (NSYS) 468 3,00% 3,50% 0,50% GlobalOneBel N/a 0,10% 0,40% 0,30% Others N/a 9,00% 9,90% 0,90%
3.4. ICTs in the Workplace
ICTs status in actual sector of the economy. One of the problems of the Belarusian IT market is that there is no certain statistics on many parameters available. Partly this gap is filled by the study and research report conducted late last (2002) year by a group of specialists from the Belarusian State Economical University (BSEU) headed by Prof. Boris Zhelezko [17]. It was for the first time that the research of such a large scale, when the managers and experts of 326 enterprises of various forms of ownership and branches of industry answered tens of questions of a questionnaire in the course of study that was held in Belarus. The collected data allow even schematically drawing up an outline of the IT status in actual sector of the economy. So, according to BSEU study, 91.1% of the national top - managers consider that the integration of ICTs would improve economical and industrial indicators of a company. It was the most "unanimous" answer obtained in the course of questionnaire report making. At the same time each fourth respondent only does not see any negative sides during ICT integration, though it is impossible to do without them in practice. About 35 % of the respondents, in particular, have recollected additional expenses involved with purchasing hardware, personnel training; about 10% of them thought of unavoidable redundancy of employees, which would result from introducing modern technologies; about 9% worried about conventionalism, depletion of the labor process, etc. Priorities. If to trust results of the questionnaire reports, the automation of the accounting and calculating tasks is 1.5 fold more significant than automation of information retrieval functions and 1.7 fold more significant regarding IT application aimed for optimization of business processes. Actually all is just accurate the other way round. IТ experts have been quite aware for a long time of the following: no matter how relevant the accounting/ registration and retrieval functions are, they do not exert direct influence on the production growth. It makes not much difference from the point of view of the goods and service output, whether the month balance report was prepared by a computer program or it was reckoned by means of moving counters on the rods of an accountant's abacus, or whether the information was retrieved in Internet or it was found in a public library. Yes, it is more convenient to an accountant or a
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manager to fulfil her/his functions aided by computer, but no more than that. It is another pair of shoes though, when the computer helps to select, for example, a most economical method of fabric tailoring, the best and shortest route of goods delivery, a most favorable, for a particular moment, system of the rate scales and discounts, a most reliable business partner, the least risky project, etc, from a multiple choice of variants. All this is called optimization of different business processes, which is leading, in the long run, to efficiency growth in business as a whole. Such tasks are solved successfully by powerful hardware and software mainframes used in business/enterprise management practice, and, in some cases, by some individually adapted auxiliary additional modules/ units supplied to known accountant's software tools. The Belarusian top - managers have already become familiar with it, though it may be sometimes partial, fragmentary information. To prove it, there were 80 % of positive answers given by respondents, not without reason, when they were asked a question whether it were essential to apply ICTs while preparing an alternate managerial decisions and selecting an optimum variant. Alas, we have to talk about a fragmentariness, inconsistency of Belarusian companies’ policy in the field of ICTs for a while. It becomes more evident from the results of questionnaire reports as stated below. Electronic "Dragon" vs. Paper "Tiger" Battle. It was but 43,5 % of respondents who have noted, that their enterprise requires intellectual tools for automation of their work. This figure is too optimistic to be valid. Suffice it to say that only 6 % of the canvassed enterprises have switched over, to the full extent, to electronic document circulation. At the same time, 3 out of 10 enterprises have adopted in-house paperless document circulation only by 10 %, and percentage of electronic document integration, in general, is not exceeding 30 % with half of enterprises. The problem here is not only that the employees of various services and divisions are carrying papers to each other, like in the days of old, instead of interchanging files via the computer network. It is worth mentioning though that reducing expenses on paper, cartridges for printers, etc. by itself is far from being a "saving-on-matches" economy, even though it may look so at first sight: it is a common knowledge, that the share of total expenditures comprising the similar overheads along with expenditures on information technologies in certain companies makes up to 70 %. The most important advantage of the e-document circulation is that the information system of an enterprise starts to work in on-line [real-time] mode. It means that the manager is able to assess what is going on in any division (or subdivision) at that very moment he checks it, and not just "this week" or "this month", or "this quarter". In other words, the manager looks at and finds his/her business not the way he has done before, when all services submitted the "paper" reports last time, but he finds it alive, real, reacting to any demand of today's market right on the spot. In addition, he is able to analyze current data in real time, to compare efficiency of different variants of managerial decisions (provided that the software tools having similar intellectual functions should be certainly installed in the corporate network to meet end). There is yet an external economic aspect of this problem. As is known, the foreign companies are applying extensively e-commerce methods to expand and enter new markets. However, Belarusian leading ICТ-experts express a view, that one may talk about е-commerce application seriously, only when the internal business processes are fully automated at an enterprise. Е-mail. Other statistical data depict also not less vividly the quality of information systems of the Belarusian enterprises. The local computer networks, in particular, are installed and operational at 62.8 % of the researched enterprises (as for remaining part of organizations, there may be no even talk about e- document circulation before elementary network technologies are installed there). The own databases are available at 69 % of enterprises (the remaining ones, probably, have neither clients, nor business partners and do not need to keep useful records about the business background development accumulated in databases). The e-mail is used by 54.6 % of enterprises, Internet - by 46.9 % only, the own information resources are maintained in the Global Network by 18.7 % of companies. It is, truly, not a rare case, when
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an access to e-mail or Internet connection are available only from a single stand-alone computer at the enterprise, and "the corporate Web-site" looks like an ordinary and unpresentable page with contact information, which is out of control even to be updated occasionally when telephone numbers have been changed. ICT integration and adaptation problems. Respondents have discovered a number of factors that hinder ICT integration and adaptation. First of all, they noted a shortage of funds (72.6 % of respondents). This indicator is much higher at government enterprises and amounts to 78.4 % of the respondents; it makes up 68.1 % at NGOs. 41.7 % of canvassed users have complained about computers and hardware growing up old too fast (meaning that they are becoming out-of-fashion and out-of-date generation). This judgement though might be no more than a sustainable myth, as far as the computers and systems purchased 3 to 5 years ago, are doing a fine job while solving a greater part of modern office tasks despite of prompt development of computer technologies. There were respondents who complained about lack of concern of making any ICТ-advance at an enterprise (38.3 %), about insufficient knowledge of automation advantages (34.3 %), about mismatch between ICT benefits and particular manufacturing and technological conditions of a particular enterprise, under which it is operating (18.4 %), about unwillingness of some services to submit information and to disclose excess or idle production capacities (16.5 %). Management attitude. A success of "the information breakthrough" at a particular enterprise in many respects depends on the psychological set of its managers. About 70% of respondents-managers have agreed that the computer helps to relieve a manager's work. However, it was disclosed, that about 35% of the researched enterprises only are headed by the people having skills and knowledge how to operate a computer and using it in their daily work. There will be hardly a proper e-document circulation established soon, while the services are forced to submit the hard copy reports to director. According to questionnaire report, 7 out of 10 managers or directors spend up to 30% of their time to exercise the duties, which their subordinates could cope with easily. If a director does not rely on the team, he has cast or lined up himself, it is hard to believe that he would trust the "soulless" computer algorithms, even if they have proved to be efficient in practice thousand times. Such a characteristic feature, as "the authority and reputation of the principal", among other factors influencing the quality of managerial decisions, has turned out to be somewhat more valuable and important than "the size and value of the information". The priorities of networked epoch yet have not occupied a dominating place in consciousness of the national top - managers. Personnel and application software. About half of respondents have listed the lack of practical skills with the staff who are not capable to use the ICTs among the factors constraining ICT adaptation. How "to re-forge" people into hard working stuff to meet the requirements of a networked economy? Some respondents have advised, as the main prescription, arranging on-the-job training using real networked database (45.7 %), others recommended conducting joint seminars to be attended by developers and users (15.3 %), those for off-the-job training (out of production) were 12.5 %. 94 % out of the total number of respondents favored the importance of target-oriented practical training and 6 % only were for basic theoretical training.
3.4.1. Efficiency of using ICTs in the workplace (Fig. 3.16) Average advancement assessment by micro-index: regions - 2.8; republic - 2.9; Minsk - 3.6.
82
Efficiency of using ICTs in the workplace
80 68,2 69,6 70
60
40 23,3 13,6 9,1 9,1 13 13 20 4,3 6,7 0 0 Regions, % Belarus, % Minsk, %
Organizations don’t achieve efficiency gains because absence of ICT systems in their internal workings. Employees have limited access to telephones. Organizations achieve sporadic efficiency gains through limited deployment of ICT systems in their internal workings. Some employees have access to telephones. Organizations achieve some efficiency gains through some degree of deployment of ICT systems in their internal workings. Organizations achieve major efficiency gains through widespread deployment of ICT systems in their internal processes.
Fig. 3.16
3.4.2. Deployment of ICT systems in the workplaces (Fig. 3.17) Average advancement assessment by micro-index: regions - 1.9; republic – 2.0; Minsk - 2.9.
Deployment of ICT systems in the work-places
100 86,7 72,7 71,4 80
60
40 18,2 9,1 14,3 14,3 13,3 20 0 0 0 0 0 Regions, % Belarus, % Minsk, %
A small minority of business and government offices has at most a few computers, none of which are networked. Few offices have computers that are networked for internal file sharing and basic enterprise applications.
Many computers in business offices are internally networked for data processing, management reporting, and other enterprise applications. Computers in offices are fully networked. Different office locations are connected to each other through external networks. These networks may extend nationally or internationally.
Fig. 3.17
3.4.3. Degree of using ICTs systems in technological processes / in internal and external communications (Fig. 3.18) Average advancement assessment by micro-index: regions - 2.0; republic - 2.1; Minsk - 3.2.
83
Degree of using ICTs systems in internal and external communica-tions
100 63,6 72,7 60 18,2 18,2 18,2 30 0 9,1 0 3,3 6,7 0 Regions, % Belarus, % Minsk, %
Most business communication takes place in person or by mail. A small number of busi-nesses use telephone and fax.
In offices where there are computers, only some employees use them for their work, though not for electronic communications.
Some employees conduct research and business transactions over the Web, though most often they use a shared workstation to do so. Some employees use e-mail for internal communications.
Most employees have Internet access from their own workstations. Most employees have their own e-mail accounts for internal and external communications. Workers commonly list their e-mail and web- site addresses on their business cards.
Fig. 3.18
Fig. 3.19 shows the results of the assessment by a ‘Degree of using ICTs systems in technological processes / in internal and external communications’ micro-index, one of eighteen indexes, set in poll at tut.by site according to [1].
Degree of using ICTs systems in internal and external communications Most business communication takes place in person or by mail. A small number of businesses use telephone and fax.
In offices where there are computers, only some employees use them for their work, though not for electronic communications. 6% 6% 23% Some employees conduct research and business transactions over the Web, though most often they use a shared workstation to do so. Some employees use e-mail for internal communications. 40% 25% Most employees have Internet access from their own workstations. Most employees have their own e-mail accounts for internal and external communications. Workers commonly list their e-mail and web- site addresses on their business cards. Found it difficult
Fig. 3.19
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Summary. A defined average estimation of advancement level/ stage by Networked Society component index is 2.44 (Table 3.21). However, the present estimation differs essentially for regions and Minsk, almost by one level/ stage: 2.22 and 3.19 - respectively. It means, that 3rd level/stage of development as assessed by the ICT indexes taken into account, was practically reached in Minsk, whereas the regions are at 2nd level/stage only. Table 3.21 Total Estimation by Networked Society Component Index No Sub-index Belarus Minsk Region 3.1 People and Organizations On-line 2.5 3.275 2.15 3.2 Locally relevant content 2.375 2.85 2.175 3.3 ICT in Everyday Life 2.57 3.4 2.33 3.4 ICTs in the Workplace 2.33 3.23 2.23 Total Estimation by Component Index 2.44 3.19 2.22
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4. Networked Economy
8 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Information Infrastructure index variables (sub-indices). The aforesaid IPs - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Global-OneBel (www.global-one.by), Business Net (www.bn.by), Forenet (BelSoft CJSC, forenet.by), Unibel (www.unibel.by) BSUnet (www.cit.bsu.by) represent different niches of the Internet Provision market in the Republic of Belarus. The results of questionnaire analysis of 7 micro-indices, aggregated into 4 indices – components of the Networked Economy Component Index, are presented below. The experts assessed the level of Networked Economy Readiness (or advancement) of the country, which can range from the 1st (least- advanced) to the 4th (most-advanced) stage, for each micro-index independently, and average data assessment for each index and generalized data assessment for Networked Economy component index were evaluated on their basis.
4.1. ICT Employment Opportunities
According to our estimations, there are about 600 companies, firms and organizations operating on the ICT market of Belarus (in such fields as PC and telecommunication hardware manufacturing, assembly and sales; software development and delivery, telecommunications and Internet services), and less than 50 of them, whose share equals to 25 - 28 %, have their brand names - their A Business Directory, posted on Computer News On-line site, which is considered to be one of the oldest and most frequently visited Belarusian Internet sites for ICT experts (http://www.kv.by/sprav/sprav.cgi), included 494 registered firms/corporations as of the end of 2002. Their geographical breakdown is given below: Minsk - 373; Brest and adjacent areas - 28; Vitebsk and adjacent areas - 25; Gomel and adjacent areas - 23; Grodno and adjacent areas - 24; Minsk adjacent areas - 8; Moguilev and adjacent areas - 13. Functional breakdown: Internet - providers - 56; Software developers - 70; ICT application consulting companies- 60; PC and telecommunication hardware manufacturing, assembly and delivery, service support and maintenance - 250. These are, as a rule, private organizations/companies, therefore there must be at least 600 companies operating on the ICT market of the Republic of Belarus, if state institutions and R&D Institutes of the Ministries of Industries, Communications, Education, and others, the National Academy of Sciences of Belarus are taken into account. Software Development. Mr. Dmitry Loshchinin, a managing director of Luxoft company (Moscow) proposed the following description of the Belarusian software market: «The people (programming specialists) in Russia aim to get a job in banks, in other organizations, and in Minsk the programmers have nothing to be occupied with, but off-shore programming» [10].
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The Russian software producers work in the Belarusian market, as a rule, through the local companies; the Belarusian corporations mainly aim at the western customers’ orders. The local customers are state institutions, which feel no need for software and ICT solutions, and financial institutions, banks and corporate customers. So, Softclub, a Belarusian software producer, specializes in banks, the Center of information technologies (under Belarusian state university of informatics and radioelectronics) deals with government contracts. Most of the software producers are set up on the grounds of R&D or higher educational institutes. Personnel problem. In Belarus, there are problems both with programmers, and particularly with ICT managers. According to Mr. Alexey Badayev, «The personnel problem in Russia, in Belarus and in Ukraine is quite acute. Taking into account, that Microsoft sets very high standards for those, who challenge to apply to the company, it is not an easy task for Microsoft managers to select an employee, who meets the requirements». Partly, the core of this problem, in Mr. Badayev’s opinion, is emigration of the qualified specialists. IT-experts go West (sometimes Russia becomes an intermediate destination point on their way). Since the local market is not very much developed yet, consequently, it can not offer many opportunities for professional self-realization of the experts. «If we to talk about programmers, they are jogged to leave because they can’t sell their developments here due to the high level of piracy», — concludes Mr. Badayev [10]. The problem of emigration of programmers to the West (USA, Canada, Germany, etc.) was rather acute some time ago. The situation has changed greatly thanks to the western companies — they do not require human resources so badly at present, as it was earlier, and some major corporations even dismiss software developers. The problem of personnel emigration to Russia is not the issue of the day. Still, Belarus possesses well-established higher educational institutions and old traditions, which is sufficient to train qualified programmers. In the Soviet times Minsk was the center of developments in the field of microelectronics. According to Mr. Igor Agamirzyan, manager of the East-European department for relations with the research and development organizations “Microsoft Research”, « historically USSR main IT centers were Moscow, Leningrad, Kiev, Novosibirsk and Tallinn, i.e. the cities with theoretical schools and traditions in mathematics. Kazan and Minsk come next; due to the PC production facilities and the appropriate design institutes that were concentrated there. Off-shore software. Many experts have left the country, of course. Despite this, or may be due to this, off-shore programming develops extensively in the republic. Mr. Anatomy Gaverdovsky, the vice- president of Vested Development company, considers Minsk to be the largest center of the off-shore programming in the former USSR: «There are very serious companies in Minsk. Minsk is comparable with Moscow in respect of offshore programming. These companies work to a large extent for Europe». Mr. Dmitry Loshchinin too has highly evaluated the Belarusian firms involved in off-shore, «There are two major off-shore software companies in Belarus, IPAm and IBA. They have professional staff of programmers and managers. IPAm has an office in Princeton. IBA was created on the basis of the R & D Institute for computer development under the IBM support, and mainly fulfills the orders of the latter. In general, the system of education in Belarus is on the proper level, and the above-stated companies work very professionally, so that Luxoft considers possibilities of cooperating with them. Besides, the staff of each of these companies is up to a thousand employees, they are almost the only employers with decent employment terms for programmers in the republic» [10]. On the whole, there is quite a diverse perception about off-shore software markets of Ukraine and Belarus in Russia. Probably, it is because the leading off-shore software companies of both republics aim only at Western orders and do not contact the Russian software developers. The Russian integrators are not yet impelled to explore this market. According to Dmitry Loshchinin, it can be explained by the lack of funds in the markets of the republics, though the situation is gradually changing for the better in Ukraine. But this is an exception rather than a rule. Most of all the Russians trade ready-compiled
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solutions through the dealers. Mr. Alexander Yegorov, the general director of Reksoft company, defined his attitude toward a «fraternal» off-shore business rather roughly: «The «brothers» have a couple of big decent companies like IPAm and IBA, which have regular distribution channels abroad, and there are lots of petty firms, like Miratech, which we collide with at European, first of all at the German market, and which are desperately dumping , messing up and empoisoning our life. No other information is available to us» [10]. But it has become impossible already to disregard the potential of the Ukrainian and Belarusian programmers. Thus, the main problems in Belarusian labor market and in the ICT sector are interconnected: 1) Low level of salaries in all branches of the country’s economy (the average salary in 2002 equaled to 100 US dollars per month, and this was actually considered to be a huge achievement), which is determined by the general economic situation in the republic; 2) Stably high (as compared to the rest of the world) training level of the specialists in the IT field at universities; 3) Drastic growth of the information and telecommunication products world market. The domestic and foreign experts unanimously consider the software products market to be the most dynamical sector of Belarusian economy, as it almost achieved the world level. Programming branch of the Belarusian economy, which attracts international attention to our IT industry. The republic is of interest for the foreign corporations - computer and software producers, first of all, segment of a commodity market of the products, and for this reason the world community doesn’t mind cooperating with Belarus. On international arena the Belarusian IT market is known as a market, possessing a cheap skilled workforce in the field of programming. In reward to the achievement of a required skill level, the leading corporations in IT area (for example, Philips, Netherlands) establish direct contacts with Belarusian universities. They render some help to educational institutions and select dozens best senior students, who are then employed by the European companies and supported in the further MS degree studies. Thus, as it is a common practice in North-American National Hockey League (NHL). According to mass media, the number of programmers vacancies in the USA reaches 800 thousand, beside that, European countries (Germany, Great Britain and others) have proclaimed certain programs, aimed at recruitment of some dozens thousand programmers from CIS countries per year, starting 2000 As a result of economic crisis in the country, an average salary of skilled Belarusian programmers is trifling as compared to an average world one, which has resulted in their obvious reorientation on the foreign markets. Skilled Belarusian programmers are destined to replenish human capital of foreign corporations. It is usually implemented through the wage jobs in western centers, or through separate contracts for certain tasks. As a rule, these activities are executed outside state systems of the registration, employment and taxation, therefore such phenomenon was titled “off-shore programming”. The growth rates for off-shore programming are difficult to calculate, however according to my personal estimations, in Belarus the volume of such programming increases not less than by 50 % annually. There are some basic ways of migration of the Belarusian programmers in IT-companies of Western-European countries, Israel, Australia, USA and Canada and huge set of various practical implementations. We shall describe some of them, resting upon our substantial experience in scientific and pedagogic activities (since 1980), and fates of colleagues from the National Academy of Sciences of Belarus. 1. University - post graduate education at university (academic institution) - scientific degree (PhD) in the field of computer sciences - scientific activity (training) in a western science center (IT company) – immigration, having a reliable place for living and working – guided by the preceding
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Belarusian colleagues, employed in this center (company). 2. Activity in a Belarusian software company (university, academic or sectoral institute) - an official contract from a foreign company for design of a software product (fulfillment of the joint international scientific project) - tracking of the designed software product overseas (submission of joint research report abroad) – subsequently, a permanent job in this company (university). 3. Post graduate education during 1-3 years with more detailed training in foreign languages, obtaining an experience in designing particular IT products and advanced programming methods. In most cases post graduate training gets interrupted without reservation of a scientific degree and participation in educational process of a university. The specialist passes to a job either in a Belarusian company on mining of IT products, or in an information department of joint venture on the territory of Belarus. In 1-2 years the invitation for job in other country is originated either by a specialist, or by western company - founder of joint venture. 4. From middle 90 years, in connection with broad internet access in Belarus, the most popular among the programmers way became independent search for vacancies abroad and passing of remote testing of experience, using Internet-technologies, with the subsequent departure abroad through intermediate firms or directly through the companies - IT producers, possibly with preliminary fulfillment assignments in Belarus (off-shore programming). The described above basic schemes usually attract young people in the age of 22 - 35, which results in an aging of computer staff in Belarusian firms and institutions, in educational sector, and in IT products design. It has a negative effect both on reproduction of the IT specialists, and on the level of Belarusian firms working with localization of IT systems for the Republic of Belarus. National IT branch suffered considerable loss, resulting from mass emigration of the Jewish population in Israel and USA at the end of ‘80s and ‘90s of past century. Realizing the danger of a situation, when considerable portion of scanty resources is allocated to training of the IT specialists, who tend to emigrate abroad, an attempt was made to officially support domestic producers of information technologies and software in Belarus. The President of the Republic of Belarus Decree of State Support of Development and Export of Information Technologies (dated May 4 2001, No 234) was adopted in 2001; it served as a basis to set up the Scientific and Technological Association “National InfoPark” (IT Incubator) in December 2001. The members of “National InfoPark”, who are ICT and software product developers, are exempt of taxation, collections and other payments (except for 5% profit tax and compulsory allocations to social insurance funds). This initiative presumes tax exemptions and other financial privileges for a number of state and commercial organizations, which have considerable experience and work in a certain direction - software products design. It is supposed to boost the domestic producers of information technologies and software products with the western corporations’ orders, which will allow not only to execute the control over transfer of know-hows abroad in the most reasonable way, including the control over financial flows, but will also enable, using proper combination of foreign and domestic orders (government contractual work), not only to support programmers with high salaries, through fulfillment of expedient "the currency-bringing orders", but also to execute state orders – from the Government or domestic organizations, for example, from the social sectors (Ministry of Public Health and Education). The indicated approach on the one hand will allow to lower outflow abroad of highly qualified IT specialists from Belarusian state and commercial firms essentially, and on the other hand - will introduce the country on the IT world market to firms having long-term experience and tradition, fill them up with young talented programmers, who could support their high level training at universities through this. Nowadays, the local IT-market as ready to solve any problem of local manufacturers, associated with information flows management. And even on the level of international standards, taking sectoral specificities into account.
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The main problem, which a manufacturing enterprise – consumer of IT solutions - can face, lies not in the absence of a decent supplier. The problem is the underdevelopment of Belarusian IT- market – it’s missing some key items, essential for the elaboration of optimal IT – strategies. Just as it is impossible to consider stock market to be fully developed in the absence of depositary or banking system – in the absence of independent audit. First of all, the structure of the majority of big domestic enterprises, unfortunately, lacks a figure of IT – manager, which is extremely widespread in foreign business (with the exception of Belarusian companies, operating in ICT market – CEO or one of his/her deputies stand for IT – manager there). IT – manager’s role is to become in a way a filter between CEO and technical services. He/she is never occupied with current business (maintenance or preventive measures etc), but solves principal problems. His/her task is to make the enterprise’s information system work most efficiently producing minimum costs. The real IT – manager is not very interested in technical issues. He/she is responsible for the efficiency of the enterprise’s information system, expressed in business terms: increase in labour productivity, reduction of costs, recoupment of investments, realization of certain advantages and so on. In order to fulfil this task, IT – manager should possess a power, equivalent to the power of CFO in the corresponding field of influence. It is quite possible, IT – sphere of a particular enterprise is not so developed yet in order to employ a separate full – time “manager for informatization purposes”. It is equally possible that a qualified candidate can rarely be found. The collaboration scheme of “enterprise – IT-consultant” was elaborated specifically for such cases in the West.
ICT Employment Opportunities
Few, if any, local businesses hire workers on the basis of their technical background.
Although there are some employment 13% 8% opportunities that call for technical skills, most 5% 20% workers with ICT experience either must leave the community to find employment or are unable to find work in their field.
8 Technical skills in the community are becoming a source of competitive advantage and are beginning to attract investment and employment 54% opportunities by companies from outside the community.
A significant number of employees in the community require technical skills to perform their jobs. A sizeable portion of the community's economy is based on the management of and trade in information, employing a large number of “knowledge workers”. Found it difficult
Fig. 4.1 It is noteworthy that a couple of big computer companies act as some sort of “informal” consultants for large Belarusian enterprises. They start a valuable information system from the very beginning there and then deal with its maintenance and modernization. This is quite an efficient scheme.
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But the problem is that only one out of two conventional IT – consulting schemes can be practically implemented in Belarus, viz IT – consulting of the first type (the “informal” one), when the consulting company not merely gives advises concerning ITs, but also offers some equipment in order to solve specific problems (such companies are typically called system integrators in Russia and Belarus. As a rule, they stake on definite equipment producers). Fig. 4.1 shows the assessment results of the ‘ICT Employment Opportunities’ Index, one of eighteen indices, set in poll at tut.by site according to [1]. Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the ICT Employment Opportunities index are shown below in Table 4.1. Table 4.1 Average Estimation of the ICT Employment Opportunities Index Stage No Belarus, % Minsk, % Regions, % 1 0 0 0 2 89 22 89 3 0 56 0 4 11 22 11 Index Average Estimation 2.22 3.0 2.22
The total estimation breakdown (given as percentage based on collected data) covering the whole republic, the city of Minsk and administrative regions and assessed by four micro-indices are further shown in Table 4.2. Table 4.2 4.1.1. ICT Employment Opportunities No Variable (1 determined from 4 for each region) Belarus, Minsk, Regions, % % % 1 Few, if any, local businesses hire workers on the basis of their 0 0 0 technical background 2 Although there are some employment opportunities that call for 89 22 89 technical skills, most workers with ICT experience either must leave the community to find employment or are unable to find work in their field 3 Technical skills in the community are becoming a source of 0 56 0 competitive advantage and are beginning to attract investment and employment opportunities by companies from outside the community 4 A significant number of employees in the community require 11 22 11 technical skills to perform their jobs. A sizeable portion of the community's economy is based on the management of and trade in information, employing a large number of "knowledge workers." Information and communication technologies are considered central to the strategies of many organizations
4.2. B2C Electronic Commerce
One of the main indices of the net economy is the use of web sites by enterprises for advertisement purposes. According to the poll carried out by the Institute for Privatization and Management (Minsk) within the project "The Promotion of Private Enterprises in Belarus” at the end of 2002 (www.ipm.by), 88% of CEOs of private enterprises use computer in their daily activities. About 30% of private and 10% of state enterprises have a web page. All in all there are over 2000 web sites (pages) in Belarus (Fig. 4.2).
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Quantity of the Belarusian Internet sites on branches in 2001, 2002
Engineering industry and metal-working 66 48
9 Ferrous metallurgy 3
Electrical products, electronic and optical devices and 99 equipment industry 118
C hemical and petrochemical industry 99 25
Building materials industry and building 115 26
Wood industry, forestry, pulp and paper industry 52 42
Light industry 61 34
13 A griculture, hunting, fishery and fish-breeding 7
29 Transport 12
26 Telecommunications 13
19 Fuel and energetics 19
Banks, insurance and commercial credit companies 53 17
Polygraphy 52 24
Web-design 128 48
Medicine 52 14
118 Science 34
59 C onsulting and IT companies 22
Internet shops 158 85
Foodstuff 61 39
Internet service providers 45 70
Others 43 21
0 20 40 60 80 100 120 140 160 180
2001 2002 Fig. 4.2
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Over 1200 of them inform about goods and services. There is a constant and steady increase in the quantity of the companies’ web sites. Only during the period 2001 - 2002 the quantity of site owners among the enterprises more than doubled. Those enterprises, earlier represented in the Internet by one or two static pages, now have informative and well-designed sites aimed at satisfying the users’ information needs. Nevertheless the majority of business sites are only under construction. Moreover, the scale of Internet use differs significantly among enterprises. The greatest success has been achieved by those, whose management o recognizes information as a valuable public resource along with material assets and as a basis for knowledge-oriented economy. In spite of the general positive dynamics of the IT-market, several enterprises specializing in the information support of the small and middle business discontinued their activity in 2002 and are in the process of liquidation. Internet – shops. Despite the fact that the legal and methodological bases of the Internet-shopring activity are not completely determined yet, trend of their development is outlined by Internet-stores, such as Minsk.shop.by and Real.shop.by, who are some sort of leaders of Internet trade in Belarus. The total quantity of registered electronic-shops in search systems is more than 200 (the research was made within this project): Minsk region (Minsk) 200; Vitebsk region (Vitebsk) 5; Brest region (Brest) 5; Gomel region (Gomel) 1; Grodnensk region (Grodno) 4; Mogilev region (Mogilev) 4. Belarusian e-shops mainly sell household equipment, computers and their spare-parts, CDS, video- or audio- tapes (Fig. 4.3). Unfortunately, it is impossible to use credit or debit cards for payments and some non-electronic pattern such as pay-sheets and receipts have to be involved. Besides the specialized electronic shops, trade houses are open; they offer a wide range of goods - CD- ROMS, video cassette, computers and spare-parts, Internet- map, telephones, food products, perfumery [universum.shop.by], automobiles, tire, audio -, video -, domestic electronics, plates dishes, lamps, office equipment, children's goods, office supplies, furniture, personal hygiene, cosmetic, sport goods, flowers, plants, photography supplies, telephones, communication devises, audio and video devises, household equipment, food products, tobacco, telephones, sport goods, trade areas based on the server of the same company, and the logotypes of other electronic shops. Internet helps obtain different services: medical, the information placing, flower design service, planting of greenery, the connection to Velcom network, the prolongation of pager service, sale and rent of real estate, etc. Card payments. Plastic bank cards were first introduced in Belarus in 1993. There are two types of bank cards currently in use in the country: the cards issued by the national payment system “BelCard” and those issued by international banking associations VISA and MasterCard/Europay. In addition, banks issue their own cards and acquire private bankcards issued by non-resident banks. Bankcards in circulation are debit cards with or without an account overdraft option. Use of credit cards is very limited. 12 out of 29 banks, registered in Belarus, issue bankcards. BelCard, the national payment system for bankcards, was founded in March 1994 on the basis of smartcard (chip card) technology. Its first cards were issued to customers in September 1995. Presently, the use of these cards doesn’t go beyond Belarus. 11 banks including the central bank issue BelCard cards in the national currency. As of the end of 2002, there were about 80,000 offline cards in circulation. More than 400 sales outlets (including service facilities) equipped with POS terminals accept the cards. Cash can be withdrawn with BelCard cards in 79 automated teller machines (ATMs) and in more than 260 cash
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issuing offices. The total volume of BelCard card transactions during the first six months of 2002 was equivalent to around USD 30 million. In Belarus, VISA and MasterCard/Europay cards have been in use since 1993. Seven Belarusian banks are members of these international banking associations. Transactions using VISA and MasterCard/Europay cards can be executed both in Belarus and abroad, while transactions using Cirrus/Maestro cards are possible in Belarus only. VISA and MasterCard/Europay cards are accepted as payment media by 800 sales outlets (including service facilities). Cash withdrawals using VISA and MasterCard/Europay cards can be made in 35 ATMs and in more than 440 cash issuing offices.
Internet Shops Structure
Conditioning and ventilation systems 0,3
Radio apparatus 0,3
Guard systems 0,3
Optics 0,3
Medicine 1
Realty 1,3
Clothes 1,6
Sport, tourism 1,6
Foodstuff 2
Building materials and instruments 2
Programming, advertising; other services 2,3
Furniture, accessory for the interior 2,9 Fields
Stationary 3,3
Cars, spares, car make-up 4,2
Perfumes and make-up 4,2
Books, magazines, newspapers 4,6
Internet cards and linking services 4,9
Toys, souvenirs, post cards, gifts, flowers, etc. 5,5
Video-, audio-, photo electronics, discs, cassettes 13
Office and household equipment 13,7
Telephones, communication facilities, accessory 14
Computers and component parts, 16,6
024681012141618 %%
Fig. 4.3
In addition, there is a developing market for payment cards with a number of different applications. State-owned enterprise “Beltelecom” issues some three million disposable and reloadable phone cards a year (with a total equivalent value of about USD 3 million). The Minsk metro authorities
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issue some one million travel cards annually (with a total equivalent value of about USD 1.3 million). About 250,000 cards are used for obtaining fuel and related goods at filling stations (with annual turnover of about USD 5.0 million). Fig. 4.4 shows the assessment results of the ‘On-line business operation’ Index, one of eighteen indices, set in poll at tut.by site according to [1].
On-line business operation
There is little aw areness of online business, and all dealings betw een businesses and consumers consist of oral and/or paper-based transactions.
12% 13% Some businesses accept orders placed by telephone or fax. 9% 16%
Some businesses distribute hard-copy catalogs for remote brow sing of goods and services.
50% Web-sites provide information on goods and services for sale. Purchases take place primarily in person, by fax or by telephone, though electronic mail may expedite the process. Some businesses may have introduced online ordering. Found it difficult
Fig. 4.4
Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the B2C Electronic Commerce index are shown below in Table 4.3. Table 4.3 Average Estimation of the B2C Electronic Commerce Index
Stage No Belarus, % Minsk, % Regions, % 1 16.5 0 22 2 72.5 22 72.5 3 11 67 5.5 4 0 11 0 Index Average Estimation 1.95 2.89 1.84
The total estimation breakdown (given as percentage based on collected data) covering the whole republic, the city of Minsk and administrative regions and assessed by four micro-indices are further shown in Tables 4.4, 4.5.
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Table 4.4 4.2.1. Business operation by using web-sites
No Variable (1 determined from 4 for each region) Belarus, Minsk, Regions, % % % 1 No businesses in the community operate web-sites 11 0 11 2 Some local businesses operate web-sites. The basic information 78 11 89 they provide is static and infrequently updated 3 Many businesses post key information on web-sites. 11 67 0 Information is often not kept current and relevant 4 Many businesses in the community have incorporated the 0 22 0 World Wide Web into their sales, marketing, and customer service systems
Table 4.5 4.2.2. On-line Business Operation No Variable (1 determined from 4 for each region) Belarus, Minsk, Regions, % % % 1 There is little awareness of online business, and all dealings 22 0 33 between businesses and consumers consist of oral and/or paper- based transactions 2 Some businesses accept orders placed by telephone or fax. 67 33 56 Some businesses distribute hard-copy catalogues for remote browsing of goods and services 3 Websites provide information on goods and services for sale. 11 67 11 Purchases take place primarily in person, by fax or by telephone, though electronic mail may expedite the process. Some businesses may have introduced online ordering 4 The total volume of online retail is a noticeable component of 0 0 0 the community's commercial activity, as may be evidenced by advertisements for commercial websites in traditional media and other indicators
4.3. B2B Electronic commerce
Automated System of Interbank Settlements. A major constituent part of the Belarusian payment system infrastructure is an Automated System of Interbank Settlements (ASIS), providing for fiscal liability fund transfers of the parties. ASIS, operating nowadays, is meeting requirements of banks and legal entities, on the whole, in effecting payments duly and qualitatively. At present time about 120 thousand interbank transfers of funds totalling the amount of about 378 billion BYR roubles are daily passed via this system. A reliable and stable operation of ASIS in many respects ensures functioning of the economical system of the Republic of Belarus as a whole. Failure to effect payments in the due time and suspense of the fund remittance system for liabilities of both clients and the National bank of the Republic of Belarus would result in huge financial and economical losses. By virtue of the above stated, a great emphasis is put on efforts to ensure that interbank transfer operations are reliably and securely effected within the national payment system.
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The participants of the Automated System of Interbank Settlements are the National Bank of the Republic of Belarus (NBRB), other banks and non-bank financial intermediaries. The main functional components of the Automated System of Interbank Settlements comprise the system of transfers of gross and due amounts in on-line [real-time] mode (BISS system) and clearing payment system effecting petty cash and not urgent remittances. BISS system enables to render interbank gross remittance services, as well as effect due remittances irrespective of their amount related both to own bank payments or the ones of any non-bank financial intermediary (hereafter referred to as «bank») or at the request of a client, serviced by a respective bank. The said remittances are made on the basis of the electronic payables containing required data, including text, references of the primary payables, and those, which are not followed by exchange of hard-copy payables. The electronic payables, from the moment being accepted by the BISS system, are considered irrevocable and are handled, depending on their receipt, on the «First came - first served» basis. Banks and their clients may use funds, received at their accounts, as soon as they are available. The BISS system permits also to make interbank payments resulting from other cash clearing remittances conducted within a day on a net basis in the clearing system, from security purchase-sale transactions and from other operations when bank plastic cards are used. To effect interbank payments of both large (due) remittances and cash ones, the banks of the republic favour the services of a single computing center, namely Belarusian Interbank Settlements Center (BISC), a republican unitary enterprise, which is a BISS and clearing system operator. The operations on various bank correspondent accounts opened with NBRB are made provided so that the funds are available on the respective corresponding accounts without overdraft being allocated by the National Bank. The banks are obliged to provide for resources/funds being available on the correspondent accounts within operational day in the amounts required to effect payments. If needed, the banks may earmark resources/funds on correspondent accounts to make payments on the clearing basis. If sufficient amount is not available on a correspondent account of the remitter's bank at the moment when the electronic payable is received by BISS system, the said electronic payable is put on a waiting line for funds. As soon as funds become available on the given correspondent account, the electronic payables are automatically executed by BISS system. The National Bank gives due notice to modernising and upgrading software and hardware to effect clearing settlements permitting to keep in line with the advanced networked technologies in this field. Software and hardware infrastructure is being developed stage by stage according to the schedule worked out and approved by the Board of Directors of the National Bank. An upgraded ASIS should provide for a high level of operational reliability permitting to complete the final payments for a respective day, ensuring traffic processing even in such critical and emergency situations as contingencies, so-called technogenic emergencies and terrorist’ acts, power supply shutdowns, communications breakage. This requirement has led to the creation of a computing stand-by center of the National Bank, which is to be constructed in the territory of the republic. Such necessity stems from the fact that all functionally essential computing and technical hardware means of ASIS are located in one building and occupy the floor space of the main computing center. In case of any huge failure or natural disaster in the area where the computing center in question is situated the interbank payment operations may be abruptly ceased for sufficiently a long spell of time, which might be fraught with destabilising consequences affecting the economy of the republic. The construction of the computing stand-by center would allow to restore the interbank payments in case of threats of any kind within 4 hours, with 1 hour only being prescribed to tackle the technical matters concerned with measures to switch over to stand-by systems. The stand-by center project provides for the mostly advanced technologies in the field of optical telecommunications, data storage, transfer/transmission and huge information processing capacities to be
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applied. The concept envisages construction of a remotely located backup-data base facility duplicating in full scope the main center for security purposes – in case if one of them gets out of order. The range between main and stand-by centres is supposed to be about 15 km, for it is enough for saving service capability of one of them in case of technogenic emergencies or huge accidents in that very area where another centre is deployed. The centers are linked with fiber optic lines using modern technologies of data compression by means of multiplexing. The stand-by center is to be put into industrial operation in late 2003. Next stage of establishing a highly reliable and secure payment system involves the reconstruction of the main computing center in order to increase its operational efficiency and facility safety. The Central archive of electronic documents, first in the republic, was set up in 2000in order to render safety, registration and proficient handling of electronic documents in the National Bank. The Central electronic document archive (CEDA) is to receive for keeping in safety the electronic documents and information on interbank payments, the electronic documents of structural divisions of the central frame of the National Bank, which have installed the automated systems for processing and filing documents in electronic format. As for today the interbank payment files which have been processed since 1998 till current day, the electronic documents of the Central Depository of the National Bank of the Republic of Belarus (NBRB) on government/public securities and credit instruments of the NBRB covering the years of 2000 to 2002, electronic documents on primary allocation of the government/public securities and credit instruments of the NBRB for 2001 to 2002 are stored in the Central archive of electronic documents. The total amount of electronic documents and interbank-payment-related information, daily received for keeping in CEDA database, makes up 14 to 17 MB or 130 to 160 thousand documents. Late in 2002 an automated subsystem for repository documentary synchronization was set up; it is now successfully operating with repositories of the interbank payment participants, providing for interaction between CEDA and bank repositories, the ones which are participants of the interbank payment system, and allowing the daily verification of electronic payment documents to be stored. Apart from insured guarantee of integrity and completeness of electronic document fund kept there, the system makes it possible to keep backed-up information saved for any event of loss or audit of bank repository database files by the National Bank. CEDA cooperates closely with the state control bodies of the republic. It forwards the information on all interbank payment operations effected during an operational day to competent statutory frames of the State Control Committee in electronic format on certain days set by order and regulations. The legal framework of electronic document application, the main requirements set for them, as well as rights, duties and responsibilities of the participants of legal relations arising in electronic document circulation and management are enacted by the Law of the Republic of Belarus (An Electronic Document Law). The said Law defines that software and hardware means applied for production, formatting, processing, transmitting and keeping electronic documents are subject to certification by a certification body under NBRB. A certification body dealing with software and hardware means in bank services and technologies was established and two test laboratories were accredited for independent and competent certification to act within the framework of the National certification system under the National Bank using facilities of BISC unitary enterprise, and the unitary enterprise Center of Banking Technologies as measures to avail of the provisions of the Law. Taking into account the level of responsibility arising from electronic document application in the payment system, a priority in introducing obligatory certification by the National Bank was given to software products used to produce and process electronic documents at ASIS.
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The software products related to the above-mentioned subclass were enrolled in the list of commodities subject to obligatory certification on territory of the Republic of Belarus by the resolution of the State Standard Committee. The same resolution set also the date for obligatory certification to be introduced, i.e. 30.12.2003. Software used for production and processing electronic documents in Client-Bank class systems was defined as the next line of products for obligatory certification to be introduced. According to data collected from recent studies, there are 12 types of Client-Bank class systems that are currently exploited in Belarusian banking sector. The developers of Client-Bank class systems are the banks and organisations of various forms of ownership. The systems are installed in more than 500 banking institutions and they service more than 6000 clients. It is advised to introduce obligatory certification in the said sector in two stages in order to insure the guaranteed level of safety and operational reliability of software for production, processing and outward presentation of the payment orders as electronic documents integrated into Client-Bank class systems. At the first stage, the body responsible for certification of products in conformity with the information security requirements (the State Center of Information Security) carries out certification of software to be used for production of an electronic digital signature applied by a bank to verify integrity and authenticity of the payment orders, produced by the client in electronic document format. The software used for production, processing and outward presentation of the payment orders as electronic documents are subject to certification at the second stage. It is advised to introduce obligatory application of license software used for production, processing and outward presentation of the payment orders as electronic documents which are integrated into Client- Bank automated banking systems beginning from 01.04.2005. A full implementation of Programs aimed at obligatory certification of software products compiled to produce and process electronic documents in banking sector will allow to essentially advance safety of clearing settlement operations in the payment system of the Republic of Belarus. At present Belarusian banks develop such financial services, which enable a client to handle his/her bank account remotely. The major banks implement in their practice the advantages of the remote banking system while servicing the clients – legal entities (Client - Bank systems). The banks are found to be at the stage of the informational (presentational) Internet - banking, i.e. they install an elementary information retrieval system servicing clients, which is maintained on their own web-servers. The clients- legal entities may gain access to Internet - banking system through the sites administered by the banks. Banks has not yet granted the services of remote access to bank accounts to private (individual) clients - natural persons. Internet-banking. At present time there are 30 operating banks in the Republic of Belarus, 14 banks out of that number have already arranged their own web-sites in the Internet network. Table 4.6 shows the stage of bank development concerning integration of the Internet - banking technology. There were a few valiant but plucked attempts made by a number of enthusiasts from the Brest branch of Belagroprombank (http://members.bresttelecom.by / ~ agro), Vitebsk regional division of Belvnesheconombank (www.bveb.vitebsk.by) and Belgasprombank branch No 1 (www.bgpb1.bizland.com and www.bgpb1.i8.com) who independently tried to design and implement Internet web-pages containing the information related to the above-mentioned financial institutions. Similar experiments may be considered, in all cases, to be a failure: the listed sites, due to a low level of their software and design development, occurring misprints, charge-free servers, where the web-sites were put and maintained and missing not-registered own domain names, would it be, at least, second or third level, discounted the image of banks and which are fraught with both institutions as well as the Belarusian financial system as whole running the risk of losing reputation at all.
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Table 4.6 Internet - Banking Service Development in the Republic of Belarus No Bank Name Internet Technology Application 1 2 3 1 National Bank of the Internet – banking development stage: informational. Republic of Belarus There is a representation web-site with a proper information about the bank and Belarusian banking system. High technical/ software and design level, a domain name is a competent preference – www.nbrb.by. the selected name is short, it corresponds to well-known abbreviation used everywhere, its BY first level domain reflects the relationship of the bank with the Republic of Belarus and its all-national scope of operation. 2 Priorbank open joint Internet – banking development stage: informational, occupying leading positions among stock company the Belarusian commercial banks. (OJSC) A remote client system (similar to a widely distributed Client – bank system) is operational not only through telephone lines, but via TCP/IP protocol as well. Priorbank has a corporate site, its address: www.priorbank.by. It is important to note that a former domain name (www.prior.minsk.by) has been changed for www.priorbank.by. Firstly, it is easier to remember it and, secondly, it puts an emphasis on status of the organization as a bank, not just an ordinary company located in Minsk. Distinctive software and design level of site development, high speed of operation should be noted. Priorbank site has all grounds to be considered a specially recommendatory example of posting information about a Belarusian operational enterprise in Internet website and may be advised as one of the model sites for other banks to be followed. 3 Technobank OJSC Internet – banking development stage: communication Internet – banking, occupying leading positions among Belarusian commercial banks; access to Internet – bank system is available through its site: http://www.tb.by/. The system provides access to information about a client’s account current state only in on-line mode. Technobank has registered one more domain name during this year: http://www.tb.by/; http://www.technobank.com.by/ – a former address has a forwarding link to the latter one. 4 Golden Thaler Bank Internet – banking development stage: informational Internet – banking. OJSC It is one of the most perspective banks in this sector though, by virtue of some features. In particular, there is an affiliated firm providing Internet access services, namely Golden Thaler Provider Ltd. It proves that there are experts at service of the bank managers who are qualified enough in the Internets – technologies and are able to provide further integration and application of appropriate software and hardware. There is a web-site of the bank, its address: http://www.gtbank.gtp.by/. The site is implemented at a high professional level, it contains the information about the bank, the services which it renders, its clients, etc. The bank’s domain name is a little bit unusual and it is also too long. 5 Belarusbank OJSC Internet – banking development stage: informational Internet – banking. There is a web-site, its address: http://www.belarusbank.minsk.by/. The site is implemented at a high professional level, it contains the information about the bank, services it renders, clients and other useful data. 6 Belpromstroybank Internet – banking development stage: informational Internet – banking. OJSC There is a web-site, its address: http://www.belpsb.minsk.by/. The site is implemented at a high professional level, it contains the information about the bank, services which it renders, clients and other useful data. 7 Belarusian Bank of Internet – banking development stage: informational Internet – banking. Development and There is a web-site, its address: http://www.belinvestbank.by/ and http://www.blbb.by/. The Reconstruction site is implemented at a high professional level, it contains information about the bank, “Belinvesrbank” JSC services it renders, clients and other useful data. 8 Djem-bank OJSC Internet - banking development stage: transaction Internet - banking. There is a web-site, its address: http://www.djem.com/. The site was qualitatively modified and there was a number of key changes in its maintenance and operation within the last year: a domain name was changed from www.djem.com.by to www.djem.com, which tells that the bank is international market-oriented to a greater extent; the bank went from an informational level of Internet - banking up to а transaction one, which proves the bank has serious intentions to introduce technological innovations in its activity. 9 Minsk Complexbank, Internet - banking development stage: informational Internet - banking. a Joint Stock There is a web-site, its address: www.minskcomplexbank.com. It was finally modified and Commercial Bank is put in the Web 2 years ago. The selected domain name as registered distinguishes ranking of the bank as a financial intermediary operating within the framework of the whole world market (a BY national identifier is missing).
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Table 4.6 (cont.) 1 2 3 10 BELAGROPROM- Internet - banking development stage: informational Internet - banking. BANK OJSC There is a web-site, its address: www.belapb.com. It was finally modified and put in the Web in the last year. the selected domain name as registered distinguishes ranking of the bank as a financial intermediary operating within the framework of the whole world market (a BY national identifier is missing). 11 BELORUSSKIY Internet - banking development stage: informational Internet - banking. NARODNY BANK There is a web-site, its address: www.bnb.by. OJSC 12 BELORUSSKIY Internet - banking development stage: informational Internet - banking. INDUSTRIALNY There is a web-site, its address: www.bib.by. BANK OJSC 13 BELGAZPROM- Internet - banking development stage: informational Internet - banking. BANK OJSC There is a web-site, its address: www.belgazprombank.by. 14 SLAVNEFTEBANK Internet - banking development stage: informational Internet - banking. OJSC There is a web-site, its address: www.snbank.by 15 ATOM-BANK Internet - banking development stage: informational Internet - banking. Closed JSC There is a web-site, its address: www.atombank.by.
The remaining Belarusian banks did not have their own corporate sites at the time when the poll (December 2002) was conducted and the information was collected via Internet. A great majority of the Belarusian banks employ e-mail in their daily operation. Some of them even have registered domain names for this purpose, in particular Absolutbank Closed JSC (absolutbank.by), Moscow - Minsk Foreign bank, a unitary enterprise (mmbank.minsk.by), Minsk Transit Bank JSCB (mtb.minsk.by). At the same time, many banks have not yet registered their own domains and prefer to use IP addresses granted by Internet providers maintaining their access to Internet, for example, Commercial and Industrial Bank Closed JSC. The first group of banks has essential advantages for integration into the Internet - banking systems in-house. Their own domain names registered at the second-third levels are the major factor of maintaining a positive image of a bank in cyberspace and attracting on-line clients (the shorter and plainer is an Internet - address, the easier it is to remember, the lower is probability to put a mistake when typing it in a browser line). It is important to apply copyright registration to the domain name, which should be appropriate to the bank name, as far as there is a probability for a domain name to be intercepted by the unauthorized outsiders. A considerable number of such cases took place worldwide, in particular, recently Rosbank, a Russian bank was forced to pay to the racketeers-perpetrators who had registered rosbank.ru name a few tens thousand of dollars for the name to be returned to the Russian bank. To avoid similar precedents in our country in the future it would be expedient to prohibit registration of domain names containing such a group of letters as «bank» by a special law, if there are no corresponding letters in the official name of a legal entity. Thus, it may be stated, that the main problems of Internet - based operations for the majority of banks are design, production and implementation of their own sites in the Internet, setting of the information about bank’s activity, and finally a proper domain name. The process may take several years, and only then the banks will seriously consider these issues, when they are able to implement the Internet - banking service projects. The structure of the bank involvement in the Internet - banking service as for 2002 is shown in Fig. 4.5. At present time there is a single bank in the country that is at the Internet - banking transactional level, viz Djem-bank. A great scope of works was made in the bank within the passed year: from initial stage of designing a web-site up to the development of Internet Client - bank system, which is operational
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only with the foreign currency, for the time being. In a month time it is scheduled to actuate the services for BYR-based operations. As for foreign currency operations via the Internet network, at first stage the clients will have to bring the terms of transaction to the bank, which will check them up and then reply concerning feasibility of effecting similar operations with a particular client in the future. Thus, the companies will have to visit the bank at first and bring the information about a new business partner of the company prior to commencing operations with each new business partner. The safety of the Internet Client - bank system is obtained by combination of unique solutions and modern technologies. The protection of traffic is built up on SSL technologies. The authorities of users are divided by using non-adjacent access modes. To be registered in the Internet Client - bank system it is required: • to make acquainted with agreement on using the Internet Client - bank system; • to fill in an application form and return it to the bank; • to sign an agreement and get passwords to access the system. The Internet Client - bank system, which was implemented in the Djem-bank, permits to: • access bank information 24 hours a day, 7 days a week; • gain information about account status in on-line [real-time] mode; • create and forward payment orders to bank at any convenient time; • receive confirmations of payment in graphic presentation; • work under conditions of low-speed data lines. . The breakdown of Belarusian banks as they render Internet Banking services
No website 55% Website under development 4%
Informational Transactional level level Communication 4% 33% level 4%
Fig. 4.5
Technobank is at an Internet - banking communication level. Its Internet - bank system permits: • To form the abstracts of any accounts for optional period of time; • To form applications for buying (sale) of currency during the tenders at Belarusian Currency Fund Exchange (BCFE); • To form currency remittances.
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Technobank works at the Internet - banking communication level, using the Internet - Bank system. The said system applies the following concepts: Profile - client, who has accounts (one or several) in Technobank OJSC and who has signed an agreement on using the Internet - bank system; Profile Administrator- a representative of the client of Technobank OJSC, who has concluded an agreement on using the Internet - bank system and granted login and password to enter the system (logon). Originally he/she enjoys all access rights to accounts; Profile user - is created by the Administrator of the said profile and enjoys the rights, the Administrator of the profile granted to him/her. For the sake of security the system will offer to enter the password anew after 60 minutes have expired from the moment of logon or after 20 minutes of idling. Besides the system stores total number of logins, date of the last login, IP-address of the last login for each user. There is a guest profile function in the «Internet - bank» system permitting to acquaint with its operation. To operate as the guest profile it is required to use 'admin' login (administrator of the profile) or 'mainbuh', 'buh', 'econom', 'engine' logins (profile users). The password for all logins mentioned above is '1'. At present the Internet - banking services in the Republic of Belarus will be in demand as major corporate clients are interested in improving an internal pattern of business through orientation on Internet - technologies. Minsk Complexbank, a Joint Stock commercial bank is going to offer its clients the communication Internet - banking services in the near future. Most of the remaining banks render the services of remote banking etc., which are the varieties of electronic banking and are not related to a shared Internet network. There is just a single bank to render transaction Internet - banking service to clients in the territory of the Republic of Belarus for the time being. What are the reasons that determine it? Conventionally, a series of actions in a transacting procedure may be divided into two stages: 1. Proper (direct) execution of a transaction (conclusion of an agreement) 2. Fulfilment of obligations, which arise from the deal (i.e. issue of payment orders to bank, making clearing settlements, delivery of the goods). If to consider the same stages with reference to the Internet - banking service, it brings about the following. The clients are guided by the Civil Code of the Republic of Belarus and by other statutory acts and legal instruments adopted in Belarus, which prescribe what kind of relations should exist between the legal entities and liabilities arising from reached agreements while effecting a transaction. However, when obligations, proceeding from the transaction made using Internet, are to be fulfilled, a confirmation problem arises, if the bargain accomplished between clients is legitimate (as the agreement is made in electronic format). As for today the Law of the Republic of Belarus (An Electronic Document Law) is enforced not to the full extent, in respect to certification of software used for electronic digital signature, in particular. As a result, the advantage of Internet - banking and the Internet network itself, as a fast and cheap tool and environment for data transfer, comes to naught. The solution of the problem is beyond the competence of the National Bank, and the problem should be solved and implemented at a top state level, for example by adopting an appropriate law. As for the second stage of transaction procedure, namely issue of the payment orders to bank and, subsequently, execution of clearing settlements, a normative statutory act regulating a clearing settlement procedure was issued by the National Bank, i.e. the Regulation on bank remittance procedure (Regulation No 66 dated March 29, 2001), which reads that clients are granted an opportunity to transmit their
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payment orders to bank by using teletransmitting [telecommunication] devices. Thus, there is a legal ground for direct financial settlements between clients today by using the Internet network. It is essential to focus attention on the following. One of the relevant problems is ensuring protection of the customers of bank services and products while introduction and employment of Internet - banking. The operation in the Internet network makes it easy to access various products and tools related to any banking, investment, insurance and financial services, to publish or post persuasive, yet sometimes incorrect, advertisements informing about financial services or about protection of assets and funds on the accounts that extends possibilities for fraud. Therefore, it is of primary importance for the state to formulate policy guidelines, which would provide for protection of customers when using Internet - banking products and services, that most of all applies to bank account holders and to users of special financial services in the Internet. Besides, the virtue of the relations in the course of Internet - banking services, while they are rendered and employed, makes some criminal acts more probable to be committed, for example, anonymous (unauthorised) remittance of huge amounts of money for any deceiving or prohibited purposes, etc. Therefore, undiverted attention should be put on such issues as prevention of money laundering and restrains for other illegal activities by using Internet - banking. The National Bank of the Republic of Belarus gives steadfast notice to the matters of rendering bank-to-client services, pertaining especially to payment settlement and other banking operations by applying telecommunication networks. In addition, it is worth noting, that there is an executive legislation in force, as minimum as required, in the Republic of Belarus permitting the banks to render services at the transactional Internet - banking level by using telecommunications networks. Information System for Tenders and Competitive Bidding. Electronic commerce in Belarus grows along with the use of international experience in the sphere of trade procedure simplification. It is a component part of the preparation process for Belarus to join WTO. Most significant projects in e - commerce sphere are represented by the Intergovernmental Center of Electronic Trade (ICET, the pilot site www.etp2000.com) in Minsk, by information - marketing centers of CIS countries, by Belarusian - Russian information – marketing network centers and electronic trade centers. Among these important role is given to introduction into the practical operation of information system about conducting of tenders (IS "Tenders", www.icetrade.by), developed by the National Center of Marketing and Price Study as the component part of the ICET project. It is possible to say that IS "Tenders" and ICET projects are the symbols of the state participation in the development of information - communication technology sector. It is the system of electronic procurement that develops valuable presence of central and regional institutions in the network. Government becomes one of the chief players on the IT market. Simultaneously with the information about the tenders, "IS - Tenders" resources (www.icetrade.by) are used to present information on enterprises, their production and services. “IS- Tenders” is also used for electronic on-line trade area development, which allows to substantially (in 10 - 20 times) cut down information expenses in terms of enterprise business, goods and services advertisement, and to accomplish effective marketing and price forming policy using the information given by the National Center of Marketing and Price Study. At present more than 150 enterprises-exporters constantly use Information System "Tenders" (Fig. 4.6). 2 - 3 enterprises are registered every day as the users of the system. 60% of “IS-Tenders” users are private enterprises. Most of registered enterprises (55%) are located in Minsk and Minsk region (Fig. 4.7). The sectoral breakdown of tenders that passed through the system "IS - Tenders" is presented in Fig. 4.8.
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Information System "Tenders" registered users
77
80 57
60
40
20
0
Minsk and Minsk region Other regions of RB
Fig. 4.6
Information System "Tenders" registered users in the context of regional centres
7 10 10 16 14 77
0 1020304050607080
Minsk Brest Vitebsk Gomel Grodno Mogilev
Fig. 4.7
In the current conditions the role and value of foreign-economic activity is growing greatly both for the economy of the country and separate enterprises. The share of exports in GDP is very significant and in some countries goes up to 30% and more and continues to grow steadily. In Belarus, which is considered to be an open economy, this figure goes up to 50%. Therefore the Republic of Belarus is interested in the integral system of information - support for foreign-economic activity and trade. Our competitors in Europe and America invest in the development of exports up to 10% of the total annual volume of export. For this purpose, the National Center of Marketing and Price Study, together with other companies, starts an experiment of formation and placement of the national-level information resources on the central portal in order to conduct tenders for public procurement. National organization of bar coding. In 1998 Belarus joined the EAN International - the European
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Article Numbering Association, which promotes development and use of standards of the EAN.UCC system. For the implementation of the decision of the Council of Ministers of April 25, 1998, № 660 "On the organization of works in the field of trade item numbering", the National Association for Article Numbering EAN Belarus was created. In accordance with the regulations of the EAN International, it distributes unique identification numbers of EAN.UCC with the prefix 481 in Belarus. However, there are no sufficient conditions for introduction of bar-coding in logistics and trade inside the republic – there is no equipment to apply and read bar codes. Since trade companies did not have sufficient resources there were no conditions for the creation and steady use of highly automated systems that would enable them to work on the basis of the international commodity identification systems. Meanwhile the absence of the bar codes on the production of Belarusian manufacturers restrains their penetration to the foreign markets. The decision of the Council of Ministers of May 24, 2000, № 748 " Some measures on improvement of organization and further development of works in the sphere of trade item numbering and bar-coding in the Republic of Belarus'" applied to export production and contributed to a sharp increase in the sales of Belarusian production, marked by bar codes. In accordance with this Decision of 01.10.2000 , all legal entities and individual entrepreneurs, manufacturing goods in the republic and exporting them, are required to mark these goods with bar codes.
Tenders (in the context of branches) that passed through the system (7030 tenders)
Energetics Electrotechnics 2% Engineering industry 9% 17% Electronics / consumer electronics 2% Medicine 0% Chemistry 4%
Finances 0% Medical equipment 7% Pharmacology 1% Metalware 4% Metals 0% Science 0% Transport 18% Realty 2% Petrochemical industry 0% Education 0% Recreation 0% Trading 1% Office 2% Shipping 0% Fuel 4% Food industry 1% Package 0% Polygraphy 0% Consumer's co- Primary product, Building and Sport 1% operation 0% semi-product 2% architecture 15% Supply 0% Agriculture 2% Designing 1% Advertising 0% Telecommunications 2%
Fig. 4.8.
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It is possible to state that fulfillment of the Decision contributed to the expansion of a number of our goods, which finally managed to enter civilized and highly automated market of West Europe, Asia, America. Indeed, the absence of bar codes on them forces consumers (salesmen, suppliers, carriers) to mark the goods with their own identifiers in order to ensure the automated entry and processing of information. As a rule, this implies use of manual labor, that is, waste of time and money. This in practice leads to reduction in the purchasing price of goods, and, therefore, to the loss of producers’ prestige. At present the users of the EAN.UCC system in Belarus are manufacturers, trade companies, packers, distributors, publishing firms, individual entrepreneurs and other enterprises. Over 1000 Belarusian enterprises have been attributed company numbers with prefix 481 since the establishment of EAN Belarus and although for the various reasons about 300 of them have lost the right to use their number and corresponding trade item numbers, as of 01.012003 the right to mark their goods with trade item numbers of EAN.UCC have more than 750 enterprises. There are over 120 thousand trade item numbers registered in the database of the Bar Code Depositor of EAN Belarus. This is mainly export production. The prospects, associated with the creation of the hypermarket chain in the republic, give confidence in the fact that Belarusian goods, which are currently sold only at the domestic market, will soon be marked by the bar-codes of EAN.UCC as well. This will raise the standards of customer service in the Republic, create conditions for automated trade management and bring many other advantages, which the system of simple and reliable identification offers. Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the B2B Electronic Commerce index are shown below in Table 4.7.
Table 4.7 Average Estimation by B2B Electronic Commerce Index Stage No Belarus, % Minsk, % Regions, % 1 22 11 27.5 2 72.5 50.25 67 3 5.5 38.75 5.5 4 0 0 0 Index Average Estimation 1.835 2.28 1.78
The total estimation breakdown (given as percentage based on collected data) covering the whole republic, the city of Minsk and administrative regions and assessed by four micro-indices are further shown in Tables 4.8, 4.9.
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Table 4.8 4.3.1. Electronic System Influence on B2B transaction efficiency No Variable (1 determined from 4 for each region) Belarus, Minsk, Regions, % % % 1 Businesses have few sources of market information. The 22 11 22 efficiency of most B2B interactions is hampered by this lack of transparency, as are prospects for new business opportunities 2 B2B interactions remain inefficient with little transparency 78 44.5 78 3 The deployment of electronic systems has increased efficiency 0 44.5 0 and transparency and lowered transaction costs in B2B interactions. Some B2B transactions are supported by electronic systems (e.g. proprietary systems and databases), but some paper-based transaction (e.g. signature) is usually required at some point 4 Many efficiencies in B2B transactions are apparent as a result 0 0 0 of the deployment of electronic systems. These efficiencies have changed market structures and redefined industry practices
Table 4.9 4.3.2. Overall Level of B2B Transactions No Variable (1 determined from 4 for each region) Belarus, Minsk, Regions, % % % 1 B2B transactions are carried out in person or remotely through 22 11 33 paper-based transactions 2 Faxes and telephones are commonly used to facilitate orders or 67 56 56 for remote client support, although some paper-based transaction (e.g. signature) is required 3 Electronic B2B transactions are a small percentage of overall 11 33 11 B2B commerce 4 Many businesses have incorporated the Web into sales, 0 0 0 procurement and inventory management. Some transactions occur online over automated, fully-integrated systems. Order processing and delivery may be executed electronically and monitored through online tracking systems. Overall levels of electronic B2B transactions are a noticeable and growing percentage of total B2B transactions within the community
4.4. E-Government
Strategic goal of development for economically advanced countries is the transition from industrial to information society i.e. to the society, information, innovation and knowledge play a decisive role in all scopes of human activity. It is now universally recognized that competitiveness on global markets, employment level, living standards and possibility for sustainable development, which doesn’t harm succeeding generations, depend on the rate of a country’s progress towards information society. National programs (concepts) of transition to information society, based on the widest possible application of
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information resources and information and telecommunication technologies, were adopted in all developed countries, regardless of their size and role on the global political and economic arena. In the end of 2002 the Government of the Republic of Belarus approved a similar program for our country, meaning the Program “Electronic Belarus”. Information infrastructure and information technologies provide for qualitative changes in the functioning of Belarusian state authorities of all levels of power by Increasing the quality of administrative decisions through provision with all the information required Increasing the efficacy of state machinery (automation of document circulation, introduction of telematic services – electronic mail, facsimile telegraph, video conferences etc) Provision of on-line connection between administrative structures and community (on the one hand, state authorities’ activities become more transparent to the community, and on the other, an opportunity for on-line registration of public opinion arises, which would also allow to influence it immediately, targeting definite groups and strata of the population) Increasing the efficacy of serviced, which state authorities render to citizens and legal entities. As of the end of 2002, information systems were missing only in 7 out of 46 ministries, committees and association, subordinate to the government of the Republic of Belarus. Distributive systems, with structures similar to the administrative and territorial division of the Republic, i.e. area – region – Minsk, were created in many branches. State information resources are currently formed in the framework of sectoral information systems; the former are used for the national and sectoral management. A part of these resources is attributed to the population and private business. State information recourses can be subdivided into the following components: Resources, referring to population, land and natural resources, immovable property (production and residential constructions, all types of transport communications, motor and railroads, trunk and underground pipelines and power lines), intellectual and technological resources (intellectual and industrial property, patents, inventions, radio-frequency resource); Economic sphere, which includes description of economic agents (businesses, financial establishments, NGOs, households); Bodies of state power and administration, bodies of local administration, including local sectoral ministries and state committees, National Bank, Ministries of Justice, Finance, Statistics and Analysis, Defense, Economics, Internal Affairs, State concerns, regional, municipal and local executive committees; Social and political sphere, including Parliament and subordinate selected bodies, political parties, public and trade-union organizations and associations, mass communication media. State information recourses form a basis for the interconnect information space of the Republic of Belarus. 1. Land and natural resources. Immovable property. These resources are based on different types of digital maps, which may contain different intensional levels (layers), e.g. natural resources, transport communications, condition of soil, atmospheric air, buildings and constructions etc. Condition of resources is described using different types of cadastres: land, town-planning, municipal, ecological etc. Creation of cadastres is an affair of bodies of republican administration – Committee for Natural Resources (land cadastre), Ministry of Architecture and Construction (territorial cadastre), Ministry of Natural Resources and Environment Protection (system of environment monitoring), Ministry of Housing And Communal Services (real estate cadastre), as well as of regional and municipal execunive committees. 2. Population. At present, the information regarding private persons and population as a whole is
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collected and accumulated in a number of departmental information systems: Ministry of Internal Affairs, Ministry of Taxes and Duties, Ministry Of Labor, Ministry of Health Protection, Ministry of Statistics and Analysis, Ministry of Housing And Communal Services and executive committees, which accumulate distinguished patterns for the united population cadastre. There is an urgent necessity in the determination of the complete set of pattern, required to fulfill the above-mentioned tasks, and also in the creation of an appropriate system for the collection, storage and usage of information, while maintaining protection for private life and personal data. The “Electronic Belarus” Program presumes the creation of the state population register. 3. Intellectual resources. Sufficiently high level of scientific and technological potential, education and science in the Republic of Belarus turn intellectual resources to be of the primary national importance. Intellectual resources include patents for inventions, useful models, production pieces, results of research and development engineering, technologies, pre-production and production models. Basic suppliers of intellectual resources are research, planning & design and educational institutions, private persons. Basic holders of intellectual resources are Science and Information Computer Network NIKS of the Republic of Belarus, information network of the Ministry of Education, information resources of the Committee for Science and Technologies. 4. Economic sphere. Sectoral ministries as well as the Ministry of Statistics and Analysis are the main sources and holders for the information on the production activity of state enterprises. Information on the activities of commercial banks and other financial establishments is forthcoming to the National Bank. Local authorities possess information on the registration of enterprises of all forms of ownership. Ministry of Taxes and Duties receives full information regarding financial results of economic activities: total turnover, profit, fixed assets etc. The State Custom Committee records information on export – import operations and on the cross – border flows of goods. Integrated information on households’ revenues and expenditures, price levels and consumption is accumulated in the Ministry of Statistics and Analysis. Besides, the above ministry possesses macroeconomic information, which is reflected in the national economic accounting of Belarus and serves as a basis macroeconomic analysis and economic development forecasting. The current system of statistic figures complies with international standards and contains about 500 basic figures, describing economic and social situation in Belarus. The said basic figures include primary information, characterizing activities of economic agents, as well as aggregate macroeconomic variables. The Ministry of Statistics and Analysis receives aggregate data for a number of statistical indicators from corresponding ministries and departments: from the National Bank, the Ministry of Finance and the Savings Bank – data for monetary system and budget formation and implementation, from the Ministry of Foreign Affairs and Custom Committee – for foreign-economic activity, from Ministry Of Natural Resources and executive committees – for the condition of natural resources, from the Ministries of Labor and Social Security, civilian registry offices and visas and registrations departments – for the condition of human resources and population. 5. Information resources and library network and museums catalogues. Basic sectoral information resources are: Library stocks, Museum stocks, Information stocks on traditional Belarusian culture, Cine- and video production stocks, Reflection and description of historical, architectural and cultural values, Information on well-knows Belarusians etc.
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The Informatization Program for The Brunch of Culture, which was elaborated and approved by the Ministry of Culture in 1998, determines creation of information resources in this field. The program presumes: Elaboration and introduction of computer-aided systems at culture enterprises and establishments, Creation of integrated databases of different levels, Introduction of national databases in the Internet. Nevertheless, the program doesn’t receive central financing and several projects are implemented at the expense of internal funds of culture organizations. The joint library stock makes up 248 million copies. The National Library (NL) started the process of culture libraries automation in 1990. At present, the National Library, 6 regional libraries and more the 60 are automated. The National Library has achieved the highest level of automation (more than 90% of its functions), its local network includes 5 servers and more than 130 computer-aided workplaces. In 1993, the library set up electronic catalogue (EC) and analytic databases. At present, the volume of own information resources of the National Library equals to more than 700 000 copies, including: 300 000 items of all types of document, obtained since 1993 in EC. There is an equivalent CD, 200 000 items in bibliographic databases “Chernobyl”, “History and related sciences”, “Culture and art”, More than 200 000 items in linguistic databases. Since 1996 the NL has been replenished with electronic resources, which currently total 1000 copies. The most popular databases are: Bibliographic databases: “Social and humanitarian sciences”, Russian national bibliography, US Congress library, etc.; Full – text databases “Russian Federation Legislation”, “Belarusian Legislation” Supplemental databases “The whole world in palms”, “Manufacturing in Russia and in the nearest foreign countries” etc Information department supplies readers with electronic documents, using 35 - unit CD – ROM tower and networked connection form any operating station, included in the NL local network. Since 1994 – 1995 all regional libraries, Minsk municipal child (MMCL) have been creating electronic catalogues. The NL, Moguilev regional, and MMCL have Internet access. Head libraries of 6 library systems (Republican National Technical Library, Central National Library, Belarusian State University, agricultural library, medical library, president library) post their electronic catalogues in the Internet. A joint electronic catalogue (JEC) in currently being created. Joint catalogue of head libraries is a national-level database. UNIMARC is used as an information model. The NL is responsible for the first stage of formation and maintenance of the joint electronic catalogue. The JEC’s structure presumes the following separate databases: National bibliography, Joint database of the head libraries’ stocks, Foreign literature, Rare and old books and manuscripts (from libraries’ collections, museums, archives, private collections), Standard information (OPMM, PMM, all-Union State Standard etc) (ОРММ, РММ, ГОСТ и др.), Patent information, Thesis abstracts, Electronic resources. The joint stock of museum exhibits makes up 3 million items. The process of museums automation
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was began in 1993. The first stage of museum system automation presumes automation of information, registration and storage functions: Stock registrations Museum exhibits description Formation and maintenance of electronic catalogues Exposition and exhibition activities Exhibition and lecturing activities Editorial and publishing activities The Institute of Culture Problems of the Ministry of Culture currently forms the “Electronic Encyclopedia Of Belarusian Culture ”, which includes CD – ROM based databases of “Belarusian Icons of XV – XIX centuries”, collected from 4 museums (National Arts, Ancient Belarusian Culture of the Academy of Sciences of Belarus, Vetka museum and National Museum of Arts History) and others. The said database contains more than 500 icons. The work on the databases “Belarusian National Costume”, “Nature and Architecture of Belarus”, “Glass. Plastic” and others is currently underway. 6. System of scientific and technical information. The following information centers, which are simultaneously the largest Belarusian information – analytical centers, were formed on the state level: For nonpublic documents – Belarusian Institute of System Analysis (BelISA), For reference information – Belarusian State Institute of Standardization and Certification, (BelSISC), For patent information – the National Center of Intellectual Property, For legal information – the National Center of Legal Information of President Administration, For cartographic information – Land Resources, Geodesy and Cartography Committee (Cartfund). Regional centers of scientific & technical and business information function on the local level. The system of sectoral information is highly developed, mainly thanks to the Belarusian Center of Scientific Medical Information, Belarusian Construction Information Center, Institute of Economics and Agroindustrial Complex Development and others. 7. Standards and other reference information. National fund supports a number of organization department of BelSISC. According to experts’ estimates, national fund of standardization makes up 2 730 000 pages, which equals to 7 gigabyte. The national fund of standards and certificates is another 7 gigabytes. At present, the fund’s library contains 137 000 normative documents, which were forthcoming through official channels. All documents are subject to actualization, i.e. all changes are made immediately. Fund’s stocks are official documents hence they are used for elaboration of national and intergovernmental standards, certification of manufacturing and production, and also they are open to private persons and legal entities of all forms of ownership for development and production of goods and rendering of services. For the matters of convenience, there are regularly updated catalogues and computer – aided bibliographic databases: State standards of the Republic of Belarus, Intergovernmental standards (all-Union State Standard), International standards (ISO/IEC, etc), National standards of European countries (DIN, BS), Technical specifications of the Republic of Belarus. 8. Patents and other industrial information. There are more than 10 000 CD in the disposal of the National Center of Intellectual Property, including complete sets of disks, containing applications from РСТ и ЕПВ, France, Germany, US patents since 1994, incomplete set of Japanese patent documentation, complete set of GLOBALPAT disks. International patent authorities and organizations help form a valuable fund of patent documentation, which might serve as a basis for the fund of state patent
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examination. 9. Archive information resources. The state part of the National archive fund contains documents referring to state organizations, enterprises and establishments of the Republic of Belarus, functioning on the territory of the Republic since 1917; at present or past situated outside the Republic, operated or currently operating on the territory of the Republic or passed into state ownership in compliance with legislature of the Republic of Belarus. The non-state part of the National archive fund contains archive funds and documents in the ownership of: Public organizations, starting with the moment of their registration in accordance with the established legal procedure, Religious organizations, Other non-governmental associations, enterprises, organizations, establishments, Private persons (documents of different origins, family archives, documents collections, etc). State administration of the National archive fund and archives in the Republic of Belarus make the Committee of archives and record keeping of the Republic of Belarus responsible for departments of archives and record keeping of executive committees of regional and Minsk municipal chambers of deputies. State archives, museums and libraries implement permanent storage of the state part of the National archive fund. Archive branch includes around 40 state archive establishments, which are territorially distributed among the Republic. State archives store more than 55 000 stocks, which contain 11 000 000 items. State and executive authorities, enterprises, organizations and private persons use information resources of state archives. 10. Funds and data banks on natural resources, cartographical and geodesic information. A couple of national and state programs were introduced in the Republic, in order to maintain rational usage of natural resources and environment protection, viz “National program of rational usage of natural resources and environment protection”, state scientific – technical program “Nature management and environment protection for 1996 – 2000 and for the future”. For the monitoring purposes, the National program of environment monitoring of the Republic of Belarus is currently being created. At present, the following cadastres are maintained: climate, land, water, forest, earth’s interior, peat funds, atmospheric air, flora & fauna, waist products, at that such cadastres as land, water and forest have been maintained for a long period of time. Regulations on the keeping scheme for the State cadastre of the territories of the Republic of Belarus was approved by the Republic of Belarus Government Regulation of 10 Dec 1996 #790. Systematic work resulted in the following information databases: Boring studies of The Republic of Belarus Boring data was collected, systemized and entered in the database, covering more than 20 000 boreholes, bored on the territory of the Republic by “Belarusian geology” industrial merger, as well as by third-party organizations. The database includes data on the location of boreholes (position data), end use, geological section, implemented development surveys (well-logging records). The information is of doubtless interest for the purposes of water supply, melioration and ecology. Geophysical studies. The database contains information regarding all geophysical researches (magnetic exploration and aeromagnetics, geoelectrical prospecting, exploration seismology, gravimetry, geochemical research), implemented on the territory of the Republic by different organizations starting 1946. Data on the scale of surveying, type of equipment, section or report maps, dates of works and brief summaries significantly lighten information search and extraction.
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Building materials The database contains information on more than 2000 deposits of sand and sandy gravel on the territory of the Republic. The system if information covers more than 200 parameters, including thickness of stripping, mineral wealth thickness, its deposits under several categories, opportunities for extraction etc. Bank of hydrogeological information. Implies estimation of natural resources and exploitation of underground water supply, elaboration of long-term forecasts for the water consumption influence on environment, optimization of water consumption regimes, underground water supply monitoring, creation of regional and local mathematic hydrogeological models. Potential fields. The database includes the results of gravity-magnetic survey, scale 1:50 000 and higher, conducted in the southern Belarus. The data can be used for the creation of gravity and magnetic fields maps, not merely for the territory of the Republic, but for merging areas as well, since cognition of general patterns of geological structures requires different-scale maps of different fields and their transformations on large territories. Geoelectrical and seismological prospecting information archives. For the purposes of the long – run safety, information was transmitted on magneto-optic disks. The volume of information is 40 – 80 gigabyte. Specially developed information system provides for on-line speedy information search, its grading, selection and classification. On the whole, creation of information banks and systems of database management is #1 priority for the geological branch, since mathematical tool, used for interpretation of geological & geophysical materials, is constantly improved, which allows to re-interpret previously obtained data on a new higher level without implementing expensive field works. The issue of the day is creation of local networks in subordinated organizations, with the further integration of the said networks into a joint regional one, creation of a joint bank of geological & geophysical information on the basis of a powerful server and organization of easy access to the bank for all potential users, which would allow to increase significantly the efficacy of exploration works. 11. State information system of social security of the Republic of Belarus. Includes two main sub- systems: Collection and registration of all insurance payments from both employers and employees, including computer – aided personified records management system, developed by the Fund of population social security System of settings and payments of pensions and benefits, developed by the Ministry of Social Security of the Republic of Belarus. Mass communication media. Modern information and communication technologies exert an ever- increasing influence on mass media, at that not merely on the electronic ones, but on printed ones also. One of the determinative trends in the development of information sphere is a convergence of previously independent branches, such as telecommunications, production of audio – visual goods and electronic mass – media. Such convergence is based on the uniform digital submission of different types of information – texts, graphics, audio and video, and also on the use of common standards and protocols for its distribution through different physical channels – on – air, satellite and cable radio and TV broadcasting, data transmission nets and Internet. As a result, internet turns to be the most important mass media, on the one hand, providing for an extra channel for information distribution and on the other hand – receipt of miscellaneous information for other mass media. Basic global trends concerning use of ICTs for mass media can be observed in Belarus as well: the majority of printed mass media is equipped with editorial – publishing complexes, a part of them has
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internet access and own web – pages for electronic newspaper versions. But too little attention is paid to the appropriate representation of state authorities and executives in the internet, there are too little national news, which could serve as a useful information well for mass media. Similarly, Belarusian sector of the Internet lacks national cultural and entertainment information in proper volumes. Production of national content is the main problem for electronic mass media. The e-government’s main purpose is making interaction more efficient, achieving transformation of the very essence of the social system management. There are the following preconditions for the establishment of e-government: economical (reducing of expenditures on public service), technical (essential nascent technologies), social (high standards of social and technical literacy among population and high level of responsibility of the million of the population). More over, the e-government implements new principles of relations, i.e. transparency of state tenders, wide public involvement in legislation, easy access to information for the citizens. This concept has been developing for quite a time world-wide. This concept is being realised in the development of the nation-wide system to provide access and distribution of the legal information and is carried out by the National Legal Information Centre and a number of other organisations in Belarus. It is highly perspective to develop the system which is to provide information on tender bidding and exert all the efforts required to establish the state system of purchases on the grounds of Belresources concern, with the said system being financed from the republican and regional budgets in accordance with the Decree of the President of the Republic of Belarus (Decree No 455 dated August 15, 2002 headed About Revision of the Decree of the President of the Republic of Belarus No 401, dated October 7, 1996). (National Register of the Legal Acts of the Republic of Belarus, 2002, No 94, 1/3973). Readiness (or advancement) estimation breakdown (in percentage) and average estimation by E- Government index are shown below in Table 4.10. Table 4.10 Average Estimation by E-Government Index Stage No Belarus, % Minsk, % Regions, % 1 50 22 50 2 39 44.5 39 3 11 33.5 11 4 0 0 0 Index Average Estimation 1.61 2.115 1.61
The total estimation breakdown (given as percentage based on collected data) covering the whole republic, the city of Minsk and administrative regions and assessed by four micro-indices are further shown in Tables 4.11, 4.12.
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Table 4.11 4.4.1.Government On-line Resources No Variable (1 determined from 4 for each region) Belarus, Minsk, Regions, % % % 1 No government resources are online 11 11 22 2 A few governmental web-sites exist, providing basic information, 67 22 56 often directed at parties outside of the community. This information is static and infrequently updated 3 Some governmental agencies post key information on web-sites, 22 67 22 including directories of services, hours of operation, and downloadable forms. Information is often not kept current and relevant. Transactions take place primarily in person, by fax or by telephone, though electronic mail may expedite the process 4 All governmental agencies post key information on web-sites and 0 0 0 some have incorporated the Web into their strategy for interaction with the public
Table 4.12 4.4.2. Level of On-line Relationship with the Government No Variable (1 determined from 4 for each region) Belarus, Minsk, Regions, % % % 1 There is no awareness of online government, and all dealings 89 33 78 between government and citizens or businesses are in person or paper-based. There is limited information available by phone 2 Some limited interaction with the government is possible by 11 67 22 telephone or fax. The government distributes some information about services, procedures, rights and responsibilities in hard copy 3 The government manages relationships with some contractors and 0 0 0 suppliers online or with other electronic mediation 4 Interactive government websites allow the public to conduct 0 0 0 transactions (e.g. apply for permits, pay taxes) online. Much government procurement and many interactions with suppliers take place online or with other electronic mediation
Summary. The estimated average of the Networked Economy Component Index is 1.97 (tab. 4.13). It means actually that the country has not achieved 2nd level of development according to ICT e- readiness indices. The given estimation is low even for Minsk - 2.57, not to mention the regions - 1.86.
Table 4.13 Total Estimation by Networked Economy Component Index No Index Belarus Minsk Regions 4.1 ICT Employment Opportunities 2.22 3.0 2.22 4.2 B2C Electronic Commerce 1.95 2.89 1.84 4.3 B2B Electronic commerce 1.835 2.28 1.78 4.4 E-Government 1.61 2.115 1.61 Total Estimation by Component Index 1.9 2.57 1.86
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5. Network Policy
The Belarusian ICT legislation, its development and perfection, with the international experience taken into account, allows to suggest that there are a favorable legal status for electronic trade transactions and a serious legal foundation available, which might serve as a basis for civilized relations between operating legal entities, both Belarusian, and foreign. A special importance is attached to the Belarusian Law of Electronic Document (2000), Order of the President of the Republic of Belarus About Setting up an Intergovernmental Electronic Trade Center in Minsk (Order No 09/124 - 18 P 94 of 15.01.1999) and appropriate orders of the Council of Ministers of the Republic of Belarus (dated 20.08.1999 No 35/102-583, dated 25.09.1999 No 35/310-280, dated 29.10.1999 No 35/224-1575). A Resolution of the Council of Ministers of the Republic of Belarus of the Approval of Measures for Export Development Promotion of the Republic of Belarus for 2002 (Resolution No 1819 of 17.12.2001) contains more than 10 key points for efficient usage of networked technologies in foreign economic activities and trade. A Resolution of the Council of Ministers about setting up information resources on the basis of TeleInternet system and using these resources for electronic trade development should also be referred to this list. Hence a key feature of the new stage of ICTs application in the national economy is the organization of interaction between different networked systems on the basis of common legal basis and government regulations in order to use the republican export potential to the maximum. The legal basis for electronic business is currently being developed. The Law of electronic documents and digital signatures was adopted in January 2000, which established grounds for using a digital signature and effecting electronic payments (though the circulation of electronic documents is still limited). The Belarusian government encourages realization of the Internet potential and exerts efforts to support ICTs. The Decree of the President of the Republic of Belarus of State Support for Development And Export Of Information Technologies (dated May 4 2001, No 234) was adopted in 2001; it served as the basis for the establishment of National Infopark, a scientific and technological association, in December 2001. The members of Infopark, who are ICT and the software product developers, are exempt from taxes, collections and other payments (except for 5% profit tax and compulsory allocations to social insurance funds). The state system of day-to-day dissemination of the legal information maintained by the National Legal Information Center and the governmental legal information Internet portal, created in compliance with the President of Belarus Decree, are of primary importance. In order to protect the information and to secure trade in the Internet network, appropriate standards are being actively elaborated. There are working models of protected electronic signatures at the State center for the information security under the President of the Republic of Belarus. 8 major Internet Providers (IPs) have filled in the questionnaires, developed according to the approved methodology [1], in order to gain information, related to Network Policy component index variables (sub-indexes). The aforesaid IPs - IP TelCom (www.iptel.by), Atlant Telecom (telecom.by), Basnet (inform.bas-net.by), Global-OneBel (www.global-one.by), BusinessNet (www.bn.by), Forenet (forenet.by), Unibel (www.unibel.by), BSUnet (www.cit.bsu.by) - represent different niches of the Internet Provision market in the Republic of Belarus. The questionnaire analysis resulted in 6 micro-indices, which were combined into 2 indices of the Network Policy Component Index and presented below. The experts assessed the level of E-Readiness (or
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advancement) of the country, which can range from the 1st (least-advanced) to the 4th (most-advanced) stage, for each micro-index independently, and average data assessment for each index and generalized data assessment for each component index were evaluated on their basis.
5.1. Telecommunications Regulation Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the Telecommunications Regulation index are shown below in Table 5.1. Table 5.1 Average Estimation by Telecommunications Regulation Index Stage No Belarus, % 1 33.33 2 40.67 3 26 4 0 Average Index Estimation 1.93 The following Tables 5.2. through 5.4. present the total estimation breakdown (given as share of the total amount of the answers received), assessing three micro-indices of the concerned sub-index. 5.1.1. Liberalization in the telecommunications sector* The liberalization in the telecommunications market is one of main Belarus for joining to the WTO. The President and the Government of the Republic of Belarus approve and maintain various programs and concepts of informatization, which the liberalization of the telecommunications market to be the key factor of development of the country’s ICT infrastructure. As early as 1999 Mr. Vladimir Goncharenko, the Minister of Communications of the Republic of Belarus has declared publicly that by the 1st of July 1999 his ministry should have submit to Government’s approval a program of incorporation and partial privatization of Beltelecom RSA. According to the minister, the government was ready to offer for sale at least 25 % of Beltelecom stock. Thus, everything looks just fine: the government declares its principle intention to implement the policy aimed at liberalization of telecommunications sector without fail. It turns out, however, to be a pretentious statement since no practical steps were made and the situation did not advance any further. It’s been already almost Four years after the Minister of Communications’ declaration of 1999 but the procedure of Beltelecom incorporation and privatization has not started yet. Now the representatives of Ministry of Communications set a new date of 2007 for a stage-by-stage privatization to begin. Why does it take so long? Why does the government, recognizing the necessity of liberalization in the telecommunications sector, constantly postpone this process? The answer is obvious enough: the Ministry of Communications is interested in restraining competitiveness and preserving Beltelecom monopoly. The anxiety of Ministry of Communications stems from the fact that Beltelecom, which is actually a republican state association, organizationally belongs to the structure of the said Ministry and directly subordinate to it. Actually, it is true to say that Beltelecom RSA is an enterprise of the Ministry of Communications and the main source of its incomes. Table 5.2 5.1.1. Liberalization of the community's telecommunications sector No Variable (only 1 option out of 4 was possible) Belarus, % 1 There are no plans for liberalization of telecommunication sector 56 2 Plans on liberalization of telecommunication services are in place or are being formulated 44 3 Plans on liberalization of telecommunication services are in place or are being implemented 0 4 The telecommunication sector has been liberalized, with a regulatory regime in place to promote open competition 0
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5.1.2. Regulatory provisions for the promotion of universal access to telecommunications services** The telecommunications sector is an important area of the public relations, where various interests of Belarusian suppliers and consumers of the ever-increasing quantity of products and services meet. This explains also the importance of legal regulation of the telecommunications employment conditions by the government. In a legislation process and law enforcement practice, the following essential aspects were detected in Belarus: 1. Legislative instruments and laws concerning the branch of telecommunications industry as a whole are developed insufficiently, 2. The legislation, which directly regulates certain technical aspects of telecommunications sector activity and determines a common background for operation of the telecommunications market as a constituent part of the general economical system, is based on the main principles of law. 3. A proper reflection of technical features (uncertainty in defining status of the Internet as a special object of legal regulation) presents some difficulties. What concerns updated laws and statutory orders, the situation looks as follows. A Law of Communications (1994), which is currently in force, is a frame legal instrument that encumbers direct application of its statutory clauses. It is very important to note, that this legislative act has for the first time, at least conceptually, established an opportunity for enterprises of all the forms of ownership to render communication services, which practically means the elimination of state monopoly. It was an indispensable condition for a progressive development of the telecommunications market to begin. Right at the very beginning of the process, the “natural monopoly” notion was legally extrapolated on an extensive list of objects in the field of telecommunications. But in the last year, after the Natural Monopolies Law (2002) was adopted the said list was substantially condensed. The law is quite comprehensive, in general, and the main object of regulation is said to be business in post services and publicly shared telecommunication sector. The situation with natural monopoly in the field of the telecommunications system has been developing steadily enough. A further demonopolization of this branch of industry may be forecasted, future measures should include elimination of exclusive state regulation and creation of the competitive environment in all the sectors of the telecommunications market. The problem of demonopolization of the industrial branch at home market should be solved through a step-by-step privatization, including incorporation of Beltelecom RSA. It is useful to note business peculiarity of the said association and the importance of its activity for the state. It should be clearly understood, that we may not talk about complete waiver of the state control over publicly shared telecommunications equipment at current stage, and the general system of state communications, on the contrary, ought to be the sphere of the state interests exclusively. We can’t but admit the legislation is not being developed and improved, hence no separate laws are elaborated and adopted in a regular legislative process. On the contrary, an increased number of subordinate legal acts and bylaws is issued, mostly at branch industry ministry levels, as well as at local region / area levels. Such state of affairs is practically dangerous. For example, according to the resolution adopted by Minsk Regional Council of Deputies (resolution No 273 dated 27.12.2002) the charges for cellular wireless and radio-paging services on the territory of Minsk were re-imposed again, starting January 1, 2003. The core of the conflict of law is that the same charges were already imposed in 2000. At that time, it contradicted Article 79 of Investment Code only. This article guaranteeing certain taxation privileges for the foreign investors within five years from the date of establishment of a business organization with foreign investments. At present, the imposed charges directly contradict not merely the Investment Code, but also
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Article 10 of the Law of Budget for 2003, which defines a closed list of the local taxes and levies. This situation may cause the initiation of proceedings in the Constitutional court. To stress the significance of attraction of investments for the national economy, especially for telecommunication system development, it is noteworthy, that success in this process depends in many respects on the readiness of Belarus to join WTO. The spade-work includes a package of measures concerning harmonization of national legislation in compliance with internationally approved instruments. The representatives of the Belarusian executive and legislative branches of power are fully aware of the importance and essentiality of further improvements of legal regulation in the telecommunications market following the guideline indicated. It may be evident from joint efforts exerted by the experts in the Parliament and Government before the beginning of spring 2003 session. The Council of Ministers of the Republic of Belarus brought a Postal Service Draft Law for approval. A Draft Law of Telecommunications, which contains such relevant points as equal rights for legal entities, operating in the field of telecommunications and unified telecommunications specifications and standards for the whole territory of the Republic of Belarus, is under elaboration. In addition, the draft law is supposed to reflect and determine the essence of the state regulation in the field of telecommunications, it should also include elaboration and adoption of related legal acts and laws concerning international cooperation; licensing, standardization and certification. Table 5.3 5.1.2. Regulatory provisions to promote universal access to telecommunications services No Variable (only 1 option out of 4 was possible) Belarus, % 1 There are no regulatory provisions, which promote universal access to 11 telecommunications services 2 Provisions for universal access to services have been established, though the latter are 78 ineffective 3 A significant progress is made in achieving universal access, but there are many hardships 11 for implementation 4 Regulation is effective in promoting universal access. 0 An independent regulatory body sets and enforces telecommunications regulations 5.1.3. Competition at the telecommunication services market* The monopoly of Beltelecom RSA spreads, first of all, over the external communication lines. There are no alternative operators providing communication services in the republic, which would have own external circuits. Even such major wireless service teleoperators as Velcom, МТS, and BelCel are obliged to use Beltelecom hardware facilities to provide for the international telephone calls. This requirement has been set by the licenses issued to telecom operators by the Ministry of Communications. The Ministry of Communications keeps vigilant watch over the operators so that an idea to take advantage of some other alternative external link, avoiding Beltelecom RSA, could never struck their minds. One of the main conditions of business activity of telecom operators envisaged by their licenses, issued by the Ministry of Communications, is that only Beltelecom hardware facilities have to be employed for international traffic transfer. This requirement concerns any operators, including Internet access providers. What concerns Internet providers, the Ministry of Communications has imposed a tacit ban on installation of transceiver satellite antennas. This technology permits to set up a quite fast-speed and cheap external link via a satellite. The prohibition resulted, first of all, in impossibility to get permission to use a frequency for a transceiving antenna. (a unique exception was made for the BASNET. The IP BASNET possesses the license for an independent satellite gateway to Internet for various R&D organizations and scientific institutions. The BASNET satellite communication ground station with the asymmetric traffic to Internet access with its total throughput capacity up to 8 Mbit/sec was commissioned in 2001. Notes by U.Anishchanka).
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In their attempt to reduce costs, other Belarusian Internet providers (IPs), have begun to apply a combined system of traffic exchange. They employed Beltelecom hardware for outgoing traffic and installed satellite antennas in receive-only mode for incoming traffic. Such antennas do not generate emissions, and therefore their installation does not require any permission. The peculiar feature of Internet traffic offered by the providers is that a great part of it falls on incoming traffic. When the IPs began to employ receiving satellite antennas, Beltelecom realized that it lost a significant portion of its incoming traffic, which it would earlier sell to commercial providers. A response from the Ministry of Communications has followed immediately: the IPs were prohibited, under various reasons, to employ receiving antennas, and it has been already recommended in the renewed licenses to route both outgoing and incoming traffic only through Beltelecom facilities. The situation became ever more aggravated for the reason that the providers have to lease external lines from Beltelecom RSA at extremely high rates. Hence they are found to be in a certain disadvantage as compared to the Beltelecom RSA, which renders services of switched access on its own, using BelPak, its structural division. According to experts' opinion, BelPak is the major Internet provider, which shares more than 50 % of the market. BelPak maintains very high rates for Internet services but it also offers some reduced rates for Internet connection during the night hours and weekends. Thus, the high rates for Beltelecom leased lines do not allow the commercial providers to reduce their cost for the Internet services and, consequently, to be in keen competition with BelPak. Quite frequently, The Ministry of Communications points out the fact, that practically all commercial providers operate in Minsk. There are just a few regionally operating IPs only. At the same time, about 98% of subscribers can get linked to the Internet through dial-up access service rendered by Beltelecom RSA using their telephones. So, it is officially stated that Internet has become accessible practically from all the regions of the country. This is a great achievement concerning the availability of Internet connection. However, it is rarely mentioned, that the Internet access rates are so high in remote areas that it is much cheaper to call Minsk and to get connected to the Internet via Minsk-stationed providers. The representatives of the Ministry of Communications repeatedly acknowledge that monopoly exist only in relation to external communication lines. As for the local telephone calls, there are said to be no limitations at all, and any operator may freely render local telecom services. In fact, Beltelecom monopoly expands to local circuits also as it is impossible to compete with Beltelecom in the local telecom market. The gist is that Beltelecom has put into practice a cross subsidizing system, as it can afford subsidizing local line facilities on the account of very high charges for international communication and Internet services. Beltelecom RSA thereby can put rates on local telephone calls that low, so that no commercial operator will be able to compete with it. Another issue, which requires our special consideration, is the Ministry of Communications’ attitude towards new telecommunication technologies. The problem is that in every possible way the ministry prevents any new technology from being introduced, as it might negatively affect Beltelecom monopoly privilege. The ban on transceiver satellite antennas by the commercial providers might be a good example of such policy. A similar situation arose in the IP-telephony technology field, as this technology threatens Beltelecom RSA’s holy cow – meaning international telephone communication. The Communications Ministry immediately forbad the providers to render IP-telephony services by making appropriate notes in the license. The IP-telephony allows making international telephone calls bypassing the international lines maintained by Beltelecom RSA. It works in the following way: the IP-telephony operator receives a call from a local user, splits telephone traffic into packages in a special method and, consequently, transfers it through the Internet to other IP-telephony operator. The latter makes a reverse operation and ensures delivery of restored telephone traffic to a counter-user in the country of destination. IP-telephony
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technology permits to reduce costs for the international telephone calls in several times, which is not serving the interests of Beltelecom RSA at all. To say the truth, the Beltelecom RSA has recently begun to render IP-telephony services on its own. For example, Beltelecom RSA already provides IP-telephony services on the routs to Moscow and St.-Petersburg, the schedules have been put forward on rendering similar services while making long- distance calls to foreign countries. However, the problem is that the rate for IP-telephony charged by Beltelecom RSA is only 30% less than a regular telephony cost, whereas it could be possible to reduce it substantially. So, Beltelecom RSA attempts to employ a new technology for obtaining excess profits, while restraining any competitiveness with its own traditional telephony. This situation has logically resulted in the appearance of clandestine IP-telephony operators. One of such operators managed to exchange telecom traffic amounting to about 200,000 USD via its own node within a year of its operation. The organizers of this clandestine exchange node have been suited recently; they were sentenced to punitive fines for illegal business activity. This case had a great public resonance, as the prevailing in Belarus situation with IP-telephony and the manner in which the Ministry of Communications and Beltelecom RSA handle it, stimulate a great temptation for arranging similar clandestine exchange nodes and rendering IP-telephony service to a businesses, which produces consequent losses for the budget. The situation with IP-telephony has revealed obdurate structures of the Ministry of Communications and Beltelecom RSA, which work in an old-style manner and refuse to accept new realities of life. The new technologies promptly supersede traditional communications methods, which are unable to compete with the new ones for a number of objective reasons. There are multiple examples for that. It means bankruptcy for the large-scale world of state telecom corporations and great losses for the national telecom companies, which failed to get fitted for the new requirements of life. Table 5.4 5.1.3. Competition at telecommunications services market No Variable (only 1 option out of 4 was possible) Belarus, % 1 All services are provided by a single operator, either private or state-owned. 33 Voice and data services are limited 2 De jure telecommunication services may be provided by different market participants, but 67 de facto a monopoly of a single operator still exists. 3 Services such as data, paging and mobile telephony are available from competing private providers. Alternative carriers compete for private network services, leased lines and other 0 telecommunications services for businesses. Incumbent provider networks are being opened to competition through interconnection and/or unbundling obligations 4 Citizens and businesses have a number of options for their telecommunications and data services. Incumbent networks have been opened to competitors, and new competing carriers are taking advantage of these arrangements to offer services. There is vibrant competition 0 among mobile wireless providers. Spectrum has been allocated consistently with international standards, and licensing arrangements encourage new market entrants. The provision of value-added services such as broadband Internet is recognized as a source of competitive advantage
5.2. ICT trade policy
Readiness (or advancement) estimation breakdown (in percentage) and average estimation of the ICT Trade Policy Index are shown below in 5.5. The following Tables 5.6, 5.7, 5.9 present the total estimation breakdown (given as share of the total amount of the answers received), assessing three micro-indices of the concerned sub-index.
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Table 5.5 Average Estimation by ICT trade policy Index Stage No Belarus, % 1 33.17 2 48.5 3 14.67 4 3.67 Average Index Estimation 1.89
5.2.1. Tariffs and Other Barriers in ICT-related Equipment Trade Usual tariffs and without any specified restrictions or exemptions are imposed on equipment for information and communication technologies. There are not cumbersome technical standards or licensing requirements. There are no de facto trade barriers for ICT use in domestic regulations. Domestic regulations are not created de facto trade barriers for ICT use. Belarusian communication, software and hardware market develops dynamically, offering a broad range of goods and services at affordable rates. A great amount of hardware and software is imported; part of them is adapted to local needs. There are above 500 private enterprises operating in these markets. About 10 large system integrators operate nowadays in Belarus; they offer license software complete with equipment and services. Here it is necessary to note how many firms sell separate programs (at least approximately). According to the representatives of the SoftLine company (Russia) in Minsk (www.softline.by), the whole Belarusian market of the license software makes up about 2-3 million USD per one year. For comparison in Russia in 2001 the turnover of SoftLine Moscow head office was approximately 5 million USD. There is a potential for growth in Belarus and it is big enough. After a range of international tenders and contests, the telecommunication technologies and systems, which are preferable for introduction in Belarus, were determined. The basic suppliers of the telecommunication equipment are Alkatel, Siemens, and Ericsson. The domestic state enterprises (Minsk Production Association of Computer Facilities and Factory "Promsviaz") produce lower level systems for local telephone networks. A number of organizations were created on the basis of the Design Scientific & Research Republican Unitary Enterprise "GIPROSVIAZ": 1) Body for Certification of Communication Equipment, which is to test the communication equipment included in the production list of equipment subject to obligatory certification. A general purpose communication equipment, a radio-electronic communication equipment for individual use with a radio emission, except for the radio-amateur equipment working in allowed ranges, are subject to certification, according to article 6 of the Law of the Republic of Belarus About Communication; 2) Body for Certification of Communication Services, which is to implement voluntary certification of communication services. One should carefully consider such relevant peculiarities of legal regulation in telecommunications sector as certification and standardization. We have already testified, that the governmental administration bodies endeavored to protect domestic commodity manufacturer and supplier by means of certification. It has not at all increased the competitiveness of domestic products and has not prevented penetration of imported commodity to internal market. Due to this policy, the state has not merely deprived itself of certification payments and customs duties, but has also lost long-term perspectives of technological and economical development in telecommunications sector. One can assume that the government would attempt to take into account all the drawbacks and fix the situation by elaborating a Draft Law of Availability and Standard Conformance.
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In 2001 at the National Centre for Marketing and Price Studies The Secretariat of Belarusian national organ for trade facilitation BelPRO was created in order to facilitate foreign trade. Starting February 2002 the following information on trade facilitation is available on the web site www.icetrade.by in the category “BelPRO”: - The recommendations of the United Nations Center for Trade Facilitation and Electronic Business (CEFACT, Geneva), part of which is translated into Russian, and also extensive reference material, in particular, links to Internet-resources of national and international trade facilitation organizations. In the separate subcategory are published daily CEFACT news, announcements of materials, CEFACT agenda, and also information on the changes in Belarusian legislation regarding trade facilitation. BelPRO has done the following in the last 6 operating months: - informed about the beginning of the Open Development Process of UN/CEFACT Technical Specifications, initiated by the CEFACT Steering Group (CSG) ; - presented Internet-based program solution, developed BY SITPRO (Great Britain), which enables traders to create, print and transfer commercial documents via e-mail (WebElecTra); - presented the updated (fourth) version of the CEFACT recommendation №21 "Codes for types of packages"; - informed about the availability in the Internet of country and currency code list in XML format (ISO 3166 two digit country codes and ISO 4217 three digit codes for currencies, UN CEFACT Recommendation №3 and №9); - informed about availability in the Internet "ebXML Business Process Specification Schema" technical specification by the department on electronic business of CEFACT UNO for public review; - informed about the changes in UN/LOCODE 2002.2 code list and in the directory UN/EDIFACT D02.A, and also about the possibility to download UN/EDIFACT D02.A directory in format XML (references to the appropriate sites are given). At present the "Uniform Transport Document" on the basis of the "Sample Form", given in the recommendation №1 of CEFACT, is in the process of preparation. The document is now discussed in the relevant Belarusian organizations (Ministries, State Customs Committee, etc.), it is coupled with the request to introduce proposals regarding the current situation in Belarus. The secretariat of BelPRO analyzed world experience in trade procedures simplification on the basis of information, posted in the Internet by international and national organizations occupied with this issue. Table 5.6 5.2.1. Tariffs and Barriers in ICT-related Equipment Trade No Variable (only 1 option out of 4 was possible) Belarus, % 1 Trade in equipment for information and communication technologies is impeded by high tariffs and other restrictions, including cumbersome technical standards or licensing 22 requirements. Domestic regulations may create de facto trade barriers for ICT use 2 Trade barriers for ICT equipment have been reduced, but are still relatively high 56 3 Trade in ICT equipment is not restricted through unnecessary standards or licensing requirements, and tariffs are low and uniform. The community has at least temporarily 11 agreed not to apply disproportionate tariffs on electronically delivered products 4 If tariffs exist on ICT goods, they are low and uniform. The community has explicitly 11 affirmed that it will not apply disproportionate tariffs on electronically delivered products
In order to enhance research and development and innovation activities, it is necessary to attract foreign investments, to carry out step-by-step liberalization of telecommunication market. This will allow to reduce tariffs and expand the use of ICTs and Internet in science, education, manufacturing,
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governmental bodies, to develop communication infrastructure and introduce new method of work with information resources, to organize e-commerce, etc. 5.2.2. Trade Openness of Service Sectors The sphere of e-commerce and its regulation. Like in a number of other countries with transitional economy, in the Republic of Belarus providers of computer equipment, software support, technologies and online business services play a small role in development of electronic commerce. Today the most disturbing issues of e-commerce regulation are responsibility of information providers, protection of intellectual property, and legal regulation of Internet. Another important sphere of regulation is taxation. Rules of taxation of electronic bargains and business accounting associated with them must be formulated. The experience of formation and practical application of legislation in the field of e-commerce in the Republic of Belarus is typical for the majority of countries in transition. As distinct from considerable gap in development of Belarusian Internet, in the last year our legislation greatly moved forward and took the lead over major developed countries. It’s possible to observe approximately the same situation in a number of other countries of Eastern Europe. Influence of legislation on development of e-commerce. In Belarus the greatest influence on e- commerce development is made by the following factors: unsolved problems of complexity of legal protection on disputes connected using Network Internet; imperfection of technical organization of Network Internet; inadequacy of social- psychological perception of Network Internet by its users. It can entail a disorganization of relations in the field of e-commerce and lead to mass disturbance of rights and freedoms, state legislation, interests of organization engaged in e-commerce, mass communication media representatives / SME and simply harm Network users. Demands for e-commerce. Those, who communicate, conclude bargains or conduct clearing and make payments in electronic form must have opportunity: - to identify each other, - to be sure of integrity of transmitted information, - to be sure of confidentiality of communication session. Development of certification’s infrastructure of public key of signature is also of decisive importance for successful development of electronic trade. In Belarus the problem of functioning of the Open Keys Certification Centers also remains unsolved, since the order and conditions of certification have not been determined yet. The use of electronic digital signature, the order of electronic transactions conclusion and the responsibility of participants of the electronic document turnover haven’t been properly settled either. Stage of legislation formation. When forming legislation for the quick-changing sphere of e- commerce it’s essential “to hurry leisurely” in order then not to slip into a vicious circle of endless changes and supplements. It is possible to distinguish two important steps in formation of e-commerce legislation of in Belarus, which should be made next: • Phase 1 (the middle of ‘90 – and till 2000): adoption of the Law of Informatization which consolidated property rights on information for state and private establishments. It also touched upon legal relations in the field of creation of information technologies, systems and Networks; • Phase 2 (2000-2001): adoption of the Digital Document Law, which set the order of means’ use of electronic digital signature for certification of information and notarisation and integrity of document. Order of use of electronic documents in banking was set by various Resolutions of National Bank and also the Bank Code, where written and electronic forms of payment directions are equalised. The President of the Republic of Belarus Decree # 234 of May 4, 2001 of Development and Export of
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Information Technologies, marked preferences in this sphere was passed; • Phase 3 (current stage): development of a number of laws for regulation of electronic financial services rendering, order of electronic bargaining, applications of standards and rules associated with preparation for entrance into WTO (Law "of Electronic Financial Services", Law "of Electronic Bargains", Law "of State Policy of the Republic of Belarus on Development and Use of Network Internet") is realized. The Ministry of Trade prepares legislative proposals on the use of information technologies when implementing tenders and public purchases. Table 5.7 5.2.2. Openness of Service Sectors to Trade No Variable (only 1 option out of 4 was possible) Belarus, % 1 Service sectors are not open to trade, creating a barrier for electronic commerce and the 44.5 creation and operation of ICT networks 2 Some disclosure of service sectors referring electronic commerce and networks ICT was 44.5 realized 3 There has been significant liberalization in services that facilitate electronic commerce and creation and operations of ICT networks, but some restrictions remain 11 4 Trade in services is fully liberalized, including services delivered electronically 0
5.2.3. Foreign direct investment to ICT sector The Republic of Belarus has signed 5 basic intergovernmental documents regarding investments, including: • Convention on The Settlement of Investment Disputes between States and citizens of another countries from March,18, 1965 – signed in 1992; • Convention on The Establishment of a Multilateral Investment Guarantee Agency from October,11, 1985 - in 1992; • Agreement on Investment Activity Cooperation (SIC) – in 1993; • European Power Charter from December, 17, 1994 – in 1994; • Convention on Protection of Investors (SIC) – in 1997, and also: • 44 international agreements on assistance in Investment realization and protection; • 30 international agreements on double taxation avoidance. Total foreign investments in the Republic of Belarus equal to 3675 million USD, including : - credits under the state guarantee – 2250 million USD; - transfers into authorized funds of joint ventures and foreign organizations – 435 million USD; - investments into Yamal – Europe gas-main – 990 million USD. Special legal acts regulate investment sphere in Belarus: – “Investment Code" (October 1998); – Law ”On Free Economic Zones” (December 1998); – the Council of Ministers Decree “On confirmation of Regulation about the Order an Agreement of Investment projects with Belarus are considered by Government of the Republic of Belarus” (April 2002); – the Council of Ministers and the National Bank Decree “On confirmation of Regulation for the Order of attraction, use and payment of state foreign loans” (June 1999). The ICT related investment projects are basically carried out at the enterprises of communication branch. Only the incomes, obtained at the telecommunication enterprises, are considered to be investments in the sphere of fixed telecommunications. Belonging to the state, such enterprises allocate 19% of the amount of their monthly capital stock depreciation to the Centralized Innovation Fund per month. This
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fund is used for further financing of the majority of yearly projects in the field of telecommunications, including construction and re-equipment of automatic exchanges, modernization of telecommunication primary networks, data transfer etc. The second source of investments is enterprises’ disposable internal funds. This source of financing is much more moderate, as compared to the first one, and it is mainly spent on current problems, associated with technical maintenance of networks and means of telecommunication. The third source is foreign investments in the field of telecommunications. They are mostly devoted to the development of mobile communication networks. All three mobile communication operators, presented in Belarus, are joint stock companies, which significantly rest upon foreign investments. The achievements of other sectors of telecommunication industry are modest. Except for “Business Network” joint venture and joint undertaking together with Alkatel (for the creation of large automatic exchange), there are practically no other foreign direct investments. Nowadays the next projects are in the process of implementation (Table 5.8): Table 5.8 Volumes of № Project name, financing sources Years investments (thousand USD) Total Year 2003 1 Creation of a cellular GSM radio telephone communication 2002- 215000 30000 network (the second operator – MTS JSLC) 2012 2 Creation of a cellular GSM radio telephone communication 1999- network (the first operator - Mobile Digital 150000 20000 2008 Communication JVC) 3 Construction of TV networks, granting radio and TV 1996- services (credits, foreign investor funding, direct 4800 800 2004 investments)
Foreign investments into ICTs are very limited due to high economic risks, weak financial activity, and high interest rates. Table 5.9 5.2.3. Foreign direct investment to ICT sector No Variable (only 1 option out of 4 was possible) Belarus, % 1 There is little or no foreign direct investment 33 2 Foreign direct investment is allowed in network sectors under certain conditions 45 3 Foreign direct investment in the ICT sector is encouraged with some restrictions remaining 22 4 Foreign investment in the ICT sector is encouraged and subject to few or no restrictions 0
Conclusion *. Thus, it may be stated, that we observe the following situation in the field of telecommunications: a complete monopoly of Beltelecom RSA in the international and local telephone call market, with the said company possessing also a major share of the Internet access at local market. It is noteworthy, that although Beltelecom RSA does not provide mobile wireless services, it is actually a joint owner of all Belarusian cellular operators, viz МТS (51 %), Velcom (31 %), and BelCell (earlier 50 %, now about 33 %) by means of its enterprises and facilities. All this allows to conclude a complete monopolization in the Belarusian telecommunications sector, with no competitiveness involved and the Ministry of Communications reluctant to carry out a policy of market liberalization. The current situation may be cured only through persistent market liberalization, which should be
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implemented stage-by-stages. Re-structuring and reorganization of Ministry of Communications should be carried out, first of all, in order to create a truly independent governmental regulatory body, as it has been made in other developed countries, including Russian Federation. By independence in this case is understood a complete independence of a governmental regulatory body from the entities, which it supervising, so that the said body would have no motives to perform exclusively in the interests of separate entities. A governmental regulatory body should implement a policy, intended to serve for the interests of the country’s citizens and all members of the telecommunications market, maintain its demonopolization and competitiveness development. In order to ensure independence of a governmental regulatory body it is firstly required to work out the procedure for putting Beltelecom RSA out of the structure of Ministry of Communications. The relations between Beltelecom and the ministry should be reduced only to pure managerial functions in the industry performed by the latter. On its part, the Ministry should take concrete steps towards market liberalization. It should include measures for the reduction of license pressure, elimination of unjustifiable prohibitions on construction of alternate external communication lines, use of new technologies, etc. It is essential to privatize Beltelecom RSA at the second stage. The highest authorities has to interfere in this process, because if this problem is to be decided as it was before, i.e. by the Ministry of Communications alone, the privatization of Beltelecom RSA will not be commenced even by 2007, the events of 1999 may serve as an example. Summary. The estimated average Network Policy Index is 1.91 (Tab. 5.10). It means actually that the country has not achieved the 2nd level of development according to ICT indices. Table 5.10 Total Estimation by Network Policy Component Index No Index Belarus 5.1 Liberalization of the telecommunications sector 1.93 5.2 ICT trade policy 1.89 Total Estimation by Component Index 1.91
______* based on the report “The telecommunication market of Belarus: the state and prospects of liberalization” presented by Vladimir Novosyad, Deputy of the House of Representatives of the National Assembly of the Republic of Belarus at the 5th Belarusian Internet Forum by`2003, 21-22 March 2003, Minsk [18]; ** based on the report “The analysis of the legislation of the Republic of Belarus in the field of telecommunications” presented by Andrey Nareiko, Deputy of the House of Representatives of the National Assembly of the Republic of Belarus at the 10th International Congress on Telecommunications, Information and Banking Technologies TIBO’2003, 01-04 April, Minsk [19].
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6. Belarus Networked Readiness Index Using Guide [1] as the instrument it was organized systematically the assessment of numerous factors that determine the Networked Readiness of the Republic of Belarus. It has ranked each category from 19 different categories of indicators by levels of advancement in Stages One through Four. But it wasn’t provided an overall score the Networked Readiness of the Republic of Belarus. The researchers of the Center for International Development (CID) at Harvard University have expanded the definition Networked Readiness - “the degree to which a community is prepared to participate in the Networked World” from the Guide in the GITR including into it a community’s potential to participate in the Networked World in the future. With this in mind, the Networked Readiness Index (NRI) transforms the complex dynamics of Networked Readiness into more easily understood shorthand [2], not unlike the Human Development Index, published annually by our colleagues at the United Nations Development Programme (UNDP), or the Growth Competitiveness Index, published annually by CID in collaboration with the World Economic Forum. According to opinion of the CID specialists while any attempt to narrow Networked Readiness down to a single measure is admittedly artificial, the research performed in the creation of the NRI has significantly improved the understanding of how different national environments affect the adoption and use of ICTs. Most well-known indexes, analytical assessments, or national rankings relevant to Networked Readiness paid insufficient attention to how ICT indicator variables relate to one another. The Networked Readiness Index distinguishes factors that determine the usability of the Network (the Enabling Factors) and variables that reflect the extent of Network Use. To capture the relationship between highly developed ICT networks and the greatest potential to exploit those networks’ capacity, it have constructed a Network Use component index that measures the extent of current network connectivity, and an Enabling Factors component index that measures a country’s capacity to exploit existing networks and create new ones. Overall Belarus Networked Readiness Index is presented in Table 6.1, where one sees that the Enabling Factors Index is more than the Network Use Index and it signals a country’s ability to draw upon existing ICT networks. The Network Use component index is defined as a straightforward measure of the extent of ICT proliferation in the Belarus. It consists of five variables: - Internet users per hundred inhabitants, - cellular subscribers per hundred inhabitants, - Internet users per host, - percentage of computers connected to the Internet, and - availability of public access to the Internet. The Enabling Factors component index is constructed to reflect the preconditions for high quality Network Use as well as the potential for future Network proliferation and use in the Belarus. The four subindexes that make up Enabling Factors are (with constituent micro-indexes in parentheses): • Network Access (Information Infrastructure and Hardware, Software, and Support), • Network Policy (ICT Policy, Business and Economic Environment), • Networked Society (Networked Learning, ICT Opportunities, Social Capital), • Networked Economy (e-Commerce, e-Government, General Infrastructure). Network Access considers the extent and quality of the network infrastructure and the existence of the equipment, programs, and support services that allow ICTs to be used. Network Policy relates to the information and communications policy environment as well as the business and economic climate. Networked Society assesses quality of learning using information and communication technologies, the extent of their use in the learning process, the extent of opportunities in the ICT industry, and societal and demographic factors.
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Table 6.1 Overall Networked Readiness Index for Belarus Belarus Score or values of hard and soft data Micro-index Score in Hard Min Max Sub- index Index Rank 1-to-7 data (the last (the first scale value country) country) 1 2 3 4 5 6 7 8 Networked Readiness Index (1/2 A + 1/2 B) 61 3,19 - 2,10 6,05 A. The Network Use Index 51 2,97 - 1,24 6,35 (4/5 Hard Data + 1/5 Survey Data) 1.1 Percentage of computers with Internet connection 32 1,89 7,39 0,01 50,04 1.2 Internet Users per host 45 6,94 15,8 1299 2,04 1.3 Estimated Internet users per 100 inhabitants 35 1,91 9,07 0,04 59,79 1.4 Cellular subscribers per 100 inhabitants 63 1,34 4,54 0,02 80,30 1.5 Availability of public Internet access 62 2,8 - 1,8 6,4 B. The Enabling Factors Index 65 3,40 - 2,65 6,11 1. Network Access subindex 67 3,71 - 2,88 6,61 Information Infrastructure micro-index (5/9 Hard Data + 4/9 Survey Data) 67 4,03 - 2,96 6,65 2.1 Teledensity 36 3,42 30,50 0,34 75,25 2.2 Years to first adopt cellular telephony 64 2,13 13 16,00 0 2.3 Waiting list for telephone lines 72 4,19 4,03 8,61 0 2.4 Telecommunication staff per 1,000 mainlines 57 6,29 9,19 59,72 2,43 2.5 Telephone faults per 100 mainlines 44 6,36 35,21 327,0 0,5 2.6 Availability of telephone lines for businesses 66 4,0 - 1,6 7,0 2.7 Perceptions of broadband Internet access 68 2,8 - 2,2 6,4 2.8 Price and quality of Internet connection 66 3,1 - 2,4 6,9 2.9 Availability and cost of mobile telephony 74 4,0 - 2,9 7,0 Hardware, Software and Support micro-index (2/5 Hard Data + 3/5 Survey Data) 63 3,38 - 2,52 6,76 3.1 PCs per 100 Inhabitants 38 1,79 7,77 0,09 58,52 3.2 Software piracy 63 1,82 87 97 24
1/2 Information1/2 Infrastructure+ 3.3 Availability of specialized IT services 55 4,2 - 2,8 6,6
1/2 Hardware, Software and Support and Support Software Hardware, 1/2 3.4 Software products fitting local needs 56 4,6 - 3,1 6,5 3.5 Competition in the domestic software market 53 4,5 - 3,4 6,7 2. The Network Policy subindex 73 3,04 - 2,74 6,40 ICT Policy micro-index (1/5 Hard Data + 4/5 Survey Data) 66 3,84 - 2,98 6,64 4.1 Internet access cost 65 5,31 22,95 81,07 0,12 4.2 Perceived effect of telecommunications competition on quality and price 53 3,6 - 1,9 6,8 4.3 Perceived effect of ISP competition on quality and price 56 4,1 - 1,7 6,9 4.4 Legal framework supporting IT businesses 76 3,0 - 3,1 6,2 4.5 ICTs as overall priority for the Government 72 3,2 - 2,1 6,4 Business and Economic Environment micro-index (1/10 Hard Data + 9/10 Survey Data) 76 2,24 - 2,24 6,22 5.1 Income per capita (PPP) 75 1,05 1120 871 33886 1/4 Network Access + 1/4 Network Policy+ 5.2 Rule of Law 71 1,567 -0,813 -1,106 1,996 5.3 Government Effectiveness 73 1,584 -0,990 -1,321 2,082
1/2 ICT Policy + Policy ICT 1/2 5.4 Regulatory Burden 76 -3,755 -2,279 -0,721 1,245 5.5 Number of days to start a new firm 54 3,76 59 105 5 5.6 Women’s participation in the economy 49 4,2 - 2,6 6,3 5.7 Minority groups’ participation in the economy 29 4,7 - 2,7 6,0 5.8 Country’s relative position in technology 49 3,4 - 1,8 6,8 5.9 New government’s respect for previous government’s commitments 74 2,6 - 2,2 6,7 1/2 Business and Economic Environment Environment Economic Business and 1/2 5.10 Trust in public postal system 55 3,3 - 1,7 6,9
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Table 6.1 (cont.)
1 2 3 4 5 6 7 8 3. The Networked Society subindex 51 3,96 - 2,26 6,42 Networked Learning micro-index
66 3,03 - 2,23 6,23 (average of Survey Data) 6.1 Investment in employees’ development of IT skills 71 3,2 - 2,9 6,0 6.2 Quality of IT training and educational programs 64 3,3 - 2,0 6,3 6.3 Internet access in schools 57 2,6 - 1,5 6,6 ICT Opportunity micro-index 66 3,05 - 2,35 6,65 (average of Survey Data) 7.1 Brain drain of IT-skilled workforce 72 3,0 - 2,2 6,7 7.2 Brain drain of scientists and engineers 58 3,1 - 2,1 6,6 Social Capital micro-index 26 5,81 - 1,88 6,66 (3/6 Hard Data + 3/6 Survey Data) 8.1 No schooling in the total population 9 6,9 1,2 50,1 0 8.2 Average years of schooling in the total population 9 5,8 10,3 2,4 12,2 1/3 Networked1/3 Learning + 8.3 Illiteracy 5 6,97 0,50 59,20 0,20 8.4 Political Rights 72 6,0 6,0 7,0 1,0
1/3 ICT Opportunity + 1/3 Social Capital Opportunity 1/3 ICT + 1/3 8.5 Quality of public schools 34 4,4 - 1,7 6,7 8.6 Difference in quality of schooling for rich and poor children 20 4,8 - 1,5 6,8 4. The Networked Economy subindex 65 2,88 - 2,35 5,29 e-Commerce micro-index 64 2,68 - 2,06 4,91 (average of Survey Data) 9.1 Business to consumer e-commerce transactions 28 2,5 - 1,5 3,7 9.2 Business to business e-commerce transactions 32 2,4 - 1,5 3,5 9.3 Business Intranet sophistication 47 2,6 - 1,5 4,0 9.4 Commercial websites 62 3,6 - 2,4 6,9 9.5 Domestic venture capital investment in e-commerce 73 2,6 - 1,8 5,9 9.6 Competition in dot-com market 71 2,5 - 2,1 6,7 9.7 Prevalence of Internet start-ups 70 2,9 - 2,1 6,3 9.8 Use of Internet-based payment systems 67 2,5 - 1,2 6,2 9.9 Sophistication of online marketing 25 2,5 - 1,6 3,6 e-Government micro-index 72 2,23 - 1,35 5,43 (average of Survey Data) 10.1 Government effectiveness in promoting the use of ICTs 72 2,6 - 1,7 6,0 10.2 Availability of online government services 68 2,0 - 1,2 6,4 + 1/4 Networked Society + 1/4 Networked Economy Networked Society + 1/4 + 1/4 10.3 Extent of Government websites 66 2,9 - 1,4 6,9 10.4 Business Internet-based interactions with government 75 1,4 - 1,1 3,0
1/3 General Infrastructure General Infrastructure micro-index 47 3,75 - 2,20 5,76 (4/7 Hard Data + 3/7 Survey Data)
1/3 e-Commerce + 1/3 e-Government 1/3 e-Commerce1/3 + + 11.1 Electricity consumption 38 1,64 2704 81 24607 11.2 Electric power transmission and distribution losses 40 5,24 11,28 31,81 2,73 11.3 Percentage of paved roads 27 6,30 89 5,5 100 11.4 Television penetration 28 4,03 430 7 844 11.5 Typical driving speed between cities 47 4,4 - 3,4 6,1 11.6 Quality of ports’ facilities and waterways 74 2,25 - 1,8 6,9 11.7 Quality of air transport 75 2,4 - 1,6 7,0
Finally, Networked Economy considers the extent to which the public and private sectors are participating in the Networked World and the quality and availability of complementary infrastructure. The Belarus NRI data sources fall under three general categories (see table 6.2). First, we collected a variety of measures—mainly “hard” variables but also some “soft” ones—from sources such as the
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World Bank, the International Telecommunications Union, Freedom House, and the Business Software Alliance. Second, we drew heavily on questionnaire responses from about 50 participants of Fourth Belarusian Internet Forum (November, 29-30 2002) and Belarusian experts of the grant # ICT 015. Third, in the course of research being carried out currently within the framework of infoDev grant 11 “hard” variables were received as a result of special research and analysis of data that is absent in statistical reports of either the Belarusian governmental bodies, or the international organizations. Some of such parameters are very important and include the following: Percentage of computers with Internet connection, Internet Users per host, Estimated Internet users per 100 inhabitants, Cellular subscribers per 100 inhabitants, PCs per 100 Inhabitants, Internet access cost and etc. This unique data source provides a rich array of insights on a range of Belarus ICT issues and, crucially, provides information on aspects of ICT networks for which there are no “hard” data, such as the quality of local Internet Service Provider, market competition, or the efficacy of government ICT policy.
Table 6.2 The Belarus NRI data variables sources Name and Score in 1-to-7 scale Variables of micro- or hard data value of micro- References indexes for some indexes for Belarus, 2002 countries (GITR, 2001) [2] 1 2 3 1. The Network Use 1.1 Percentage of computers with 2002, infoDev Grant # ICT 015 Max: USA – 50,4 Internet connection Min: Nigeria – 0,01 USA – 50,4 Russia – 5,18 Lithuania – 6,45 7,39 % Ukraine – 3,62 Poland – 12,73 1.2 Internet Users per host 2002, infoDev Grant # ICT 015 Max: USA - 2,04 Min: Nigeria – 1298 USA – 2,04 Russia – 9,49 15,81 Lithuania – 7,26 Ukraine – 6,90 Poland – 8,24 1.2 Estimated Internet users per 2002, infoDev Grant # ICT 015 Max: Iceland – 59,8 100 inhabitants Min: Bangladesh – 0,04 USA – 59,75 Russia – 2,11 Lithuania – 2,78 9,07 Ukraine – 0,39 Poland – 17,40 1.3 Cellular subscribers per 100 2002, infoDev Grant # ICT 015 Max: Taiwan – 80,30 inhabitants Min: Nigeria – 0,02 USA – 39,79 Russia – 2,22 Lithuania – 14,16 4,54 Ukraine – 1,62 Poland – 17,40
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Table 6.2 (cont.) 1 2 3 1.5 Availability of public Internet 2002, indoDev Grant # ICT 015*: Max: Iceland – 6,4 access Min: Bangladesh – 1,8 Public access to the Internet (through USA – 5,4 Russia – 2,6 telecenters, libraries, post offices, etc.) is Lithuania – 3,3 2,8 (1=very limited, 7=pervasive – most Ukraine – 2,6 people have frequent Internet access) Poland – 3,1 2. Network Access 2.1 Teledensity 2002, infoDev Grant # ICT 015 Max: Denmark – 75,25 Min: Bangladesh – 0,34 USA – 69,97 Russia – 21,82 30,50 Lithuania – 32,11 Ukraine – 19,88 Poland – 28,23 2.2 Years to first adopt cellular 2002, infoDev Grant # ICT 015 Max: Finland – 0 telephony Min: Zimbabwe – 16 USA – 4 Russia – 11 Lithuania – 12 13 (1993) Ukraine – 13 Poland – 12 2.3 Waiting list for telephone lines 2002, infoDev Grant # ICT 015 Max: Australia – 0 Min: Jamaica – 8,61 USA – 0 Russia – 4,45 4,03 Lithuania – 2,03 Ukraine – 5,26 Poland – 4,65 2.4 Telecommunication staff per 2002, infoDev Grant # ICT 015 Max: Japan – 2.43 1,000 mainlines Min: Vietnam – 59,72 USA – 5,81 Russia – 13,34 Lithuania – 5,09 9,19 Ukraine – 12,54 Poland – 6,96 2.5 Telephone faults per 100 International Telecommunications Union Max: Netherlands – 0,5 mainlines (ITU) Database, August 2001. Min: Nigeria – 327,0 World Telecommunications Indicators, USA – 13,40 Russia – 35,21 2001. Lithuania – 18,95 35,21 (http://www.itu.int/ITU-D/ict/ Ukraine – 34,47 statistics/at_glance/Internet01.pdf) Poland – 26,00 2.6 Availability of telephone lines 2002, indoDev Grant # ICT 015*: Max: Finland - 7,0 for businesses Min: Honduras - 1,6 New telephone lines for your business USA - 6,6 Russia - 4,1 (1=scarce and difficult to obtain, 7=widely Lithuania - 5,5 4,0 available and highly reliable) Ukraine - 4,0 Poland - 5,1
2.7 Perceptions of broadband 2002, indoDev Grant # ICT 015*: Max: Finland - 6,4 Internet access Min: Mauritius - 2,2 Broadband Internet in your country (e.g. USA - 5,7 Russia - 2,7 through DSL or cable modem) is (1=not Lithuania - 3,2 2,8 available, 7=widely used) Ukraine - 3,6 Poland - 4,0
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Table 6.2 (cont.) 1 2 3 2.8 Price and quality of Internet 2002, indoDev Grant # ICT 015*: Max: Finland - 6,9 connection Min: Vietnam - 2,4 Leased line or dial-up in your country is USA - 6,6 Russia - 3,2 (1=slow and expensive, 7=as fast and Lithuania - 3,3 3,1 cheap as anywhere in the world) Ukraine - 3,2 Poland - 2,9 2.9 Availability and cost of mobile 2002, indoDev Grant # ICT 015*: Max: Finland - 7,0 telephony Min: Nigeria - 2,9 Mobile or cellular telephones for you USA - 6,7 Russia - 4,6 business are (1=not available, 7=as Lithuania - 6,4 4,0 accessible and affordable as in the world's Ukraine - 4,9 most technologically advanced countries) Poland - 6,5
3. Hardware, Software and Support 3.1 PCs per 100 Inhabitants 2002, infoDev Grant # ICT 015 Max: USA – 58,52 Min: Bangladesh – 0,09 USA – 58,52 Russia – 4,29 7,77 Lithuania – 5,95 Ukraine – 1,59 Poland – 6,89 3.2 Software piracy, 2001 Business Software Alliance, Annual BSA Max: USA – 24 Global Software Piracy Study, 2002. Min: Vietnam – 97 http://www.bsa.org/ USA – 24 Russia – 88 87% Lithuania – н/о Ukraine – 89 Poland – 54 3.3 Availability of specialized IT 2002, indoDev Grant # ICT 015*: Max: USA - 6,6 services Min: Bangladesh - 2,8 Specialized information technologies are USA - 6,6 Russia - 4,4 (1=not available in the country, Lithuania - 4,6 4,2 7=available from world-class local Ukraine - 4,2 institutions) Poland - 5,0 3.4 Software products fitting local 2002, indoDev Grant # ICT 015*: Max: USA - 6,5 needs Min: Vietnam - 3,1 Software products sold in your country Russia - 4,9 Lithuania - 4,9 (1=need to be highly modified to fit local Ukraine - 4,7 4,6 needs, 7=fit local needs) Poland - 4,9
3.5 Competition in the domestic 2002, indoDev Grant # ICT 015*: Max: USA - 6,7 software market Min: Romania - 3,4 How many local software and software USA - 6,7 Russia - 4,7 services companies are competing in Lithuania - 4,8 4,5 domestic markets? (1=none, 7=a large Ukraine - 4,6 number, the domestic market is Poland - 4,9 competitive) 4. ICT Policy 4.1 Internet access cost 2002, infoDev Grant # ICT 015 Max: Sweden – 0,12 Min: Bangladesh – 81,07 (Average annual ISP cost for 20 hours of USA – 0,65 Russia – 10,64 22,95 % monthly Internet Access as percentage of Lithuania – n/a GDP per capita (PPP), 2001) Ukraine – 32,74 Poland – 7,65
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Table 6.2 (cont.) 1 2 3 4.2 Perceived effect of 2002, indoDev Grant # ICT 015*: Max: Finland - 6,8 telecommunications competition Min: Mauritius - 1,9 on quality and price Is there sufficient competition in the USA - 6,4 telecommunications sector in your country Russia - 3,6 to ensure high quality, infrequent Lithuania - 2,9 interruptions, and low prices? (1=no, Ukraine - 3,1 3,6 7=yes, equal to the best in the world) Poland - 3,4
4.3 Perceived effect of ISP 2002, indoDev Grant # ICT 015*: Max: Finland - 6,9 competition on quality and price Min: Mauritius - 1,7 Is there sufficient competition in the ISP USA - 6,7 sector in your country to ensure high Russia - 3,7 quality, infrequent interruptions, and low Lithuania - 4,1 4,1 prices? (1=no, 7=yes, equal to the best in Ukraine - 4,3 the world) Poland - 4,7 4.4 Legal framework supporting 2002, indoDev Grant # ICT 015*: Max: Finland - 6,2 IT businesses Min: Romania - 3,1 The legal framework in your country USA - 6,2 supports the development of online and IT Russia - 3,3 businesses (including ISPs) (1=no, Lithuania - 3,8 3,0 strongly impedes, 7=yes, significantly Ukraine - 3,9 promotes) Poland - 3,7 4.5 ICTs as overall priority 2002, indoDev Grant # ICT 015*: Max: Singapore - 6,4 Min: Romania - 2,1 for the Government Information and communication USA - 5,2 technologies (ICTs) are an overall priority Russia - 4,3 for the government (1=strongly disagree, Lithuania - 3,9 3,2 7=highly successful) Ukraine - 3,4 Poland - 3,4
5. Business and Economic Environment 5.1 Income per capita (PPP) World Bank, World Development Max: USA – 33,886 Indicators 2001 and IMF World Economic Min: Nigeria – 871 Outlook, May 2001. USA – 33.886 http://www.worldbank.org/data/wdi/index.h Russia – 8,213 1,120.- (2001) tm Lithuania – 6,999 Ukraine – 3,693 Poland – 8,971 5.2 Rule of Law, 2000-01 Kaufmann, Kraay and Zoido - Lobaton Max: Switzerland – 1.996 2000-01. “Aggregating Governance Min: Guatemala - -1,106 Indicators.” USA – 1,254 http://www.worldbank.org/wbi/governance Russia – -0,722 -0,813 /pubs/aggindicators.htm Lithuania – 0,180 Ukraine – -0,707 Poland – 0,538 5.3 Government Effectiveness, Kaufmann, Kraay and Zoido - Lobaton Max: Singapore – 2,082 2000-01 2000-01. “Aggregating Governance Min: Nigeria - -1,321 Indicators.” USA – 1,366 http://www.worldbank.org/wbi/governance Russia – -0,595 /pubs/aggindicators.htm Lithuania – 0,127 -0,990 Ukraine – -0,893 Poland – 0,674 5.4 Regulatory Burden, 2000-01 Kaufmann, Kraay and Zoido - Lobaton, Max: Singapore – 1,245 May 2001. “Aggregating Governance Min: Ukraine - -0,721 Indicators.” USA – 1,135 http://www.worldbank.org/wbi/governance Russia – -0,303 -2,279 /pubs/aggindicators.htm Lithuania – 0,089 Ukraine – -0,721 Poland – 0,565
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Table 6.2 (cont.) 1 2 3 5.5 Number of days to start a new 2002, infoDev Grant # ICT 015 Max: Iceland – 5 firm Min: Italy – 105 USA – 30 Russia – 26 59 Lithuania – 30 Ukraine – 20 Poland – 30 5.6 Women’s participation in the 2002, indoDev Grant # ICT 015*: Max: Hong Kong SAR - 6,3 economy Min: Bangladesh - 2,6 Women's participation in the economy is USA - 5,4 (1=limited and usually takes place in less Russia - 4,0 4,2 important jobs, 7=equal to that of men) Lithuania - 4,6 Ukraine - 4,4 Poland - 4,6 5.7 Minority groups’ participation 2002, indoDev Grant # ICT 015*: Max: Ukraine - 6,0 in the economy Min: Ecuador - 2,7 Minority groups' participation on the USA - 4,8 economy is (1=limited and usually takes Russia - 4,5 place in less important jobs, 7=equal to Lithuania - 4,9 4,7 that of other groups) Poland - 5,7 5.8 Country’s relative position in 2002, indoDev Grant # ICT 015*: Max: USA - 6,8 technology Min: Honduras - 1,8 Your country's position in technology USA - 6,8 (1=generally lags behind most other Russia - 3,2 countries, 7=is among the world leaders) Lithuania - 3,4 3,4 Ukraine - 3,0 Poland - 3,9 5.9 New government’s respect for 2002, indoDev Grant # ICT 015*: Max: Switzerland - 6,7 previous government’s Min: Guatemala - 2,2 commitments New governments (1=do not honor the USA - 6,2 contractual commitments and obligations Russia - 4,0 of previous regimes, 7=honor the Lithuania - 3,5 contractual commitments and obligations Ukraine - 2,5 2,6 of previous regimes) Poland - 5,2 5.10 Trust in public postal system 2002, indoDev Grant # ICT 015*: Max: Finland - 6,9 Min: Nigeria - 1,7 Do you trust your country's postal system USA - 6,4 3,3 sufficiently to have a friend mail a small Russia - 3,4 package worth US$100 to you? (1=not at Lithuania - 3,8 all, 7=yes, trust the system entirely) Ukraine - 2,5 Poland - 4,6 6. Networked Learning 6.1 Investment in employees’ 2002, indoDev Grant # ICT 015*: Max: USA - 6,0 development of IT skills Min: Bulgaria - 2,9 Your company's investment in employees' Russia - 3,0 development of IT skills is (1=minimal, Lithuania - 3,4 close to nothing, 7=a top priority) Ukraine - 3,2 3,2 Poland - 4,5 6.2 Quality of IT training 2002, indoDev Grant # ICT 015*: Max: Finland - 6,3 Min: Romania - 2,0 and educational programs Your company's training and educational USA - 6,2 programs for IT (1=lag far behind most Russia - 3,1 other countries, 7=are among the best in Lithuania - 3,5 3,3 the world) Ukraine - 3,6 Poland - 3,9
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Table 6.2 (cont.) 1 2 3 6.3 Internet access in schools 2002, indoDev Grant # ICT 015*: Max: Finland - 6,6 Min: Bangladesh - 1,5 Internet access in schools is (1=very USA - 5,7 2,6 limited, 7=pervasive - most children have Russia - 2,1 frequent access/widely used) Lithuania - 2,9 Ukraine - 2,1 Poland - 3,6 7. ICT Opportunity 7.1 Brain drain of IT-skilled 2002, indoDev Grant # ICT 015*: Max: Netherlands - 6,7 workforce Min: Romania - 2,2 Highly skilled IT workers in your industry USA - 6,7 (1=have to leave the country to find good Russia - 3,7 jobs, 7=have their pick of highly desirable, Lithuania - 3,6 3,0 paid jobs within the country) Ukraine - 2,7 Poland - 5,3 7.2 Brain drain of scientists and 2002, indoDev Grant # ICT 015*: Max: USA - 6,6 engineers Min: Zimbabwe - 2,1 Scientists and engineers in your country Russia - 3,9 (1=normally leave to pursue opportunities Lithuania - 3,3 in other countries, 7=almost always Ukraine - 3,1 3,1 remain in the country) Poland - 3,9
8. Social Capital 8.1 No schooling in the total Barro, Robert and Jong-Hwa Lee. Max: Denmark – 0 population “Human Capital Updated Files.” Min: Bangladesh – 50,1 http://www.cid.harvard.edu/ciddata/ciddat USA – 0.8 a.html Russia – 1,2 Lithuania – 7,4 1,2 Ukraine – н/о Poland – 1,9 8.2 Average years of schooling in Barro, Robert and Jong-Hwa Lee. Max: USA – 12,2 the total population “Human Capital Updated Files.” Min: Bangladesh – 2,4 http://www.cid.harvard.edu/ciddata/ciddat USA – 12,2 a.html Russia – 10,0 Lithuania – 9,4 10,3 Ukraine – н/о Poland – 9,9 8.3 Illiteracy rate, adult total World Bank, World Development Max: Latvia – 0,20 (percentage of 15 and above) Indicators, 2001 Min: Bangladesh – 59,20 http://www.worldbank.org/data/wdi/index.h USA – 1,0 tm Russia – 0,50 Lithuania – 0,50 0,50 Ukraine – 0,41 Poland – 0,30 8.4 Political Rights Index of Political Rights 2001 Max: Argentina – 1,0 (Scale from 1=free to 7=not free) Min: Vietnam – 7,0 USA – 1,0 Freedom House. Freedom in the World Russia – 5,0 6,0 2000–2001. 2001. Lithuania – 1,0 http://216.119.117.183/research/index.ht Ukraine – 4,0 m Poland – 1,0
8.5 Quality of public schools 2002, indoDev Grant # ICT 015*: Max: Switzerland - 6,7 Min: Nicaragua - 1,7 The public (free) schools in your country USA - 5,2 4,4 are (1=of poor quality, 7=equal to the best Russia - 4,4 in the world) Lithuania - 4,3 Ukraine - 3,7 Poland - 4,7
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Table 6.2 (cont.) 1 2 3 8.6 Difference in quality of 2002, indoDev Grant # ICT 015*: Max: Finland - 6,8 schooling for rich and poor Min: Bangladesh - 1,5 children The difference in the quality of the schools USA - 3,2 Russia - 3,5 available to rich and poor children in your Lithuania - 4,7 country is (1=large, 7=small) Ukraine - 2,6 4,8 Poland - 4,5 9. e-Commerce 9.1 Business to consumer e- 2002, indoDev Grant # ICT 015*: Max: Germany - 3,7 commerce transactions Min: Slovakia - 1,5 In your company, Internet-based USA - 3,5 Russia - 2,1 transactions with consumers are Lithuania - 1,8 2,5 (1=behind other local companies, 5=equal Ukraine - 2,0 to the best in the world) Poland - 2,8 9.2 Business to business e- 2002, indoDev Grant # ICT 015*: Max: Finland - 3,5 commerce transactions Min: Romania - 1,5 In your company, Internet-based USA - 3,2 Russia - 1,8 interactions with suppliers are (1=behind Lithuania - 1,9 2,4 other companies, 5=equal to the best in Ukraine - 1,9 the world) Poland - 2,7 9.3 Business Intranet 2002, indoDev Grant # ICT 015*: Max: Germany - 4,0 sophistication Min: Romania - 1,5 In your company, Intranet sophistication is USA - 3,8 Russia - 2,1 (1=behind other local companies, 7=equal Lithuania - 2,2 2,6 to the best in the World) Ukraine - 2,0 Poland - 3,1 9.4 Commercial websites 2002, indoDev Grant # ICT 015*: Max: Finland - 6,9 Min: Romania - 2,4 In your country, how common are web USA - 6,8 Russia - 3,9 3,6 pages by companies?(1=rare, 7=as Lithuania - 4,1 common as in the world's leading Ukraine - 4,1 countries) Poland - 5,3 9.5 Domestic venture capital 2002, indoDev Grant # ICT 015*: Max: USA - 5,9 investment in e-commerce Min: Romania - 1,8 Domestic venture capital and private USA - 5,9 Russia - 2,8 equity markets in your country are Lithuania - 3,1 2,6 (1=unvilling to invest in local e-commerce Ukraine - 3,3 ventures, 7=willing to invest in local e- Poland - 4,8 commerce ventures) 9.6 Competition in dot-com 2002, indoDev Grant # ICT 015*: Max: USA - 6,7 market Min: Mauritius - 2,1 Competition in your country's dot-com Russia - 3,7 Lithuania - 3,3 marketplace is (1=non-existent, 7=equal Ukraine - 3,7 2,5 to the most vibrant in the world) Poland - 4,7 9.7 Prevalence of Internet start- 2002, indoDev Grant # ICT 015*: Max: Israel - 6,3 ups Min: Mauritius - 2,1 Internet business start-ups in your country USA - 6,2 Russia - 4,5 are currently (1=not found, 7=happening Lithuania - 4,2 2,9 everywhere) Ukraine - 4,4 Poland - 4,6
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Table 6.2 (cont.) 1 2 3 9.8 Use of Internet-based 2002, indoDev Grant # ICT 015*: Max: Finland - 6,2 payment systems Min: Romania - 1,2 Online Internet payment systems your USA - 4,9 Russia - 2,6 country are (1=not available, 7=used by Lithuania - 3,1 2,5 most people) Ukraine - 3,0 Poland - 3,3 9.9 Sophistication of online 2002, indoDev Grant # ICT 015*: Max: Germany - 3,6 marketing Min: Jamaica - 1,6 In your company, online marketing is USA - 3,2 Russia - 2,1 (1=behind other local companies, 5=equal Lithuania - 1,8 2,5 to the best in the world) Ukraine - 1,9 Poland - 3,0 10. e-Government 10.1 Government 2002, indoDev Grant # ICT 015*: Max: Singapore - 6,0 effectiveness in promoting Min: Romania - 1,7 Government programs promoting the use USA - 4,5 the use of ICTs of ICT are (1=not very successful, 7= Russia - 3,1 highly successful) Lithuania - 3,3 2,6 Ukraine - 3,1 Poland - 3,3
10.2 Availability of online 2002, indoDev Grant # ICT 015*: Max: Singapore - 6,4 government services Min: Zimbabwe - 1,2 Are government services (downloadable USA - 5,4 permit applications, tax payments, Russia - 2,6 2,0 government tenders, etc.) available on the Lithuania - 4,5 Internet in your country? (1=not available, Ukraine - 3,5 7=commonly available) Poland - 4,1 10.3 Extent of Government 2002, indoDev Grant # ICT 015*: Max: Finland - 6,9 websites Min: Romania - 1,4 In your country, how common are Web USA - 6,7 pages by government offices/public Russia - 3,6 2,9 agencies?(1=rare, 7=as common as in the Lithuania - 4,9 world's leading countries) Ukraine - 3,4 Poland - 5,3 10.4 Business Internet-based 2002, indoDev Grant # ICT 015*: Max: Finland - 3,0 Min: Romania - 1,1 interactions with government In your company, Internet-based USA – 2,9 transactions with government are Russia - 1,8 (1=behind other local companies, 5=equal Lithuania - 1,9 1,4 to the best in the world) Ukraine - 1,7 Poland - 2,3
11. General Infrastructure 11.1 Electricity consumption World Bank, World Development Max: Norway – 24,607 Indicators, 2001 Min: Bangladesh – 81 http://www.worldbank.org/data/wdi/index.htm USA – 11.832 2,704 (1999) Russia – 3,937 Lithuania – 1,909 Ukraine – 2,350 Poland – 2,458
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Table 6.2 (cont.) 1 2 3 11.2 Electric power transmission World Bank, World Development Max: Paraguay – 2.73 and distribution losses Indicators, 2001 Min: Nigeria – 31,81 http://www.worldbank.org/data/wdi/index.htm USA – 6,75 Russia – 11,28 11,28 Lithuania – 9,06 Ukraine – 17,37 Poland – 10,89 11.3 Percentage of paved roads World Bank, World Development Max: Austria – 100 Indicators, 2001 Min: Bolivia – 5,5 http://www.worldbank.org/data/wdi/index.htm USA – 58,8 89 % Russia – 35,4 Lithuania – 91,0 Ukraine – 96,5 Poland – 65,6 11.4 Television penetration Television sets per 1000 inhabitants. Max: USA – 844 Min: Bangladesh – 7 International Telecommunications Union USA – 844 429,99 Database, August 2001. http://www.itu.int/ Russia – 421 Lithuania – 420 Ukraine – 413 Poland – 387 11.5 Typical driving speed 2002, indoDev Grant # ICT 015*: Max: Germany - 6,1 between cities Min: Romania - 3,4 Taking into account the average quality of USA - 5,5 roads outside the major cities, what is Russia - 4,6 4,4 your typical driving speed on a journey Lithuania - 4,9 between cities? (1=10 km/hr, 7=150 Ukraine - 4,6 km/hr) Poland - 4,5 11.6 Quality of ports’ facilities and 2002, indoDev Grant # ICT 015*: Max: Singapore - 6,9 waterways Min: Bolivia - 1,8 Port facilities and waterways in your USA - 6,1 country are (1=underdeveloped, 7=as Russia - 4,0 2,25 developed as the world's best) Lithuania - 4,2 Ukraine - 4,3 Poland - 3,6 11.7 Quality of air transport 2002, indoDev Grant # ICT 015*: Max: Singapore - 7,0 Min: Slovakia - 1,6 Air transport in your country is (1= USA - 6,7 2,4 infrequent and inefficient, 7=as extensive Russia - 3,6 and efficient as the world's best) Lithuania - 4,2 Ukraine - 4,4 Poland - 4,5
* Average score according to the questionnaire responses from about 50 participants of Fourth Belarusian Internet Forum (November, 29-30 2002) and Belarusian experts of the infoDev grant # ICT 015.
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Conclusion
The main priority both national, and international programs of transition to the networked society is to set up a high-speed broadband telecommunication infrastructure and provide an opportunity for access thereto for maximum broad strata of the population. A backbone fiber optical trunk line was built up in the Republic of Belarus connecting Minsk and regional centers. However, the problem of the end users connection has not been solved yet in many regions of the republic. A main reason hampering ICT application on an extensive scale are the high rates for connection to computer networks (including the Internet network). The citizens of low-level incomes cannot afford to employ open networked systems due to high rates, which also limit significantly an opportunity to use them by educational and scientific institutions, public health care services and culture establishments, budgetary organizations, state and local administration bodies. The natural resources restrained countries with a high technological potential, which Belarus also belongs to, should be export-oriented to modern-technology, including ICTs, which creates the essential prerequisites for its accelerated development. The conditions for development and growth of information sector of the national economy require the state to support innovation projects, perspective domestic research work and ICT developments. The efforts to set up the export-oriented ICT industry in the republic should include mechanisms to be developed for creating conditions to promote domestic high tech sector of the economy entering the world markets; scientific and engineering ICT-related staff, available in the republic, to be involved in solving internal tasks, and the foreign investments to be attracted to produce ICTs for export. In addition to stated above, inadequate ICT development is aggravated by a number of the negative factors, which comprise the following: imperfection of informatization-related normative and legal documents elaborated disregarding modern ICTs opportunities; deficiency of an integrated networked infrastructure and efficient information support of commodity and service market; inability of a number of governmental bodies to apply ICT-based effective management technologies; a high level of monopolization of communication networks that is raising barriers on the way of their adequate employment and resulting in distortions in tariff policy, inadequate level of the personnel training for ICTs development and application.
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References
1. Readiness for the Networked World. A Guide for Developing Countries (2000, http://www.readinessguide.org/). 2. The Global Information Technology Report 2001-2002: Readiness for the Networked World (2002, http://www.cid.harvard.edu/cr/gitrr_030202.html). 3. List of eEurope Benchmarking indicators. - Bruxelles, le 20 November 2000, http://europa.eu.int/information_society/eeurope/benchmarking/indicator_list.pdf. 4. Krukovsky N.А. Beltelecom RSA: Information infrastructure development in the Republic of Belarus// 4th International conference "Electronic trade in CIS and East European countries: auctions, tenders, logistics, instrument/document cycling, security", 4-6 November 2002, Minsk. - http://www.beltelecom.by/news.phtml?node=242 – in Russian. 5. Seklitsky O.F. Internet network status and its development perspectives in the Republic of Belarus// Internet Forum by`2002, 29-30 November 2002, Minsk. - http://www.beltelecom.by/ news.phtml?node=258 – in Russian. 6. Karpovich V.S. The state policy for Internet network development and regulation// Scientific workshop "Internet development problems in the Republic of Belarus", 07.06.2001 // http://www.beltelecom.by/news.phtml?node=111 – in Russian. 7. Stroukov N.M. Status and development perspectives of Internet access // Seminar: Status and development perspectives of radio broadcasting and electronic media system in the Republic of Belarus". - Minsk, 26 April 2002. - http://www.beltelecom.by/news.phtml?node=187 – in Russian. 8. Kurbatskaya G.V. Internet access services rendered by Beltelecom public shared points // Internet Forum by`2002, 29-30 November 2002, Minsk. - http://www.beltelecom.by/ news.phtml?node=257 – in Russian. 9. Birger P. Three brothers // COMPUTERRA, 2002. - http://www.computerra.ru/ InfoBusiness/ http://www.ibusiness.ru/offline/2001/174/12254/ – in Russian. 10. Chachava A. Soft is not purchased// COMPUTERRA, 2002. - http://www.computerra.ru/ InfoBusiness/ http://www.ibusiness.ru/offline/2001/174/12253/ – in Russian. 11. Barichev S. One is gray, another one is gray // COMPUTERRA, 2002. - http://www.computerra.ru/ InfoBusiness/ http://www.ibusiness.ru/offline/2001/174/12250/ – in Russian. 12. Bursak A. Judging from the West, or What's your size?// COMPUTERRA, 2002. - http://www.computerra.ru/ InfoBusiness/ http://www.ibusiness.ru/offline/2001/174/12251/ – in Russian. 13. Dmitriyev S. National hosting peculiarities. Part 1: General status of Hosting Services in Belarus // Computer News. – 2002, No 41. – www.kv.by/index2002410602.htm.– in Russian. 14. Dmitriyev S. Over a Million of Internet users already in Belarus // Computer News. - No 48, 2001. – www.kv.by/index2001480601.htm - in Russian. 15. Is more dear than advice // National Economic Newspaper №82 (602), 01.11.2002 – in Russian. 16. Dryganov V. Domain legal regulation: International experience and Belarussian realities // Internet Forum by`2002, 29-30 November 2002, Minsk – in Russian. 17. Smirnov Yo. How to place accents // National Economic Newspaper №6 (623), 28.01.2003 – in Russian. 18. Novosyad V. The telecommunication market of Belarus: a state and prospects of liberalization // 5th Belarusian Internet Forum by`2003, 21-22 March 2003, Minsk – in Russian. 19. Nareiko A. The analysis of the legislation of the Republic of Belarus in the field of telecommunications // 10th International Congress on Telecommunications, Information and Banking Technologies TIBO’2003, 01-04 April, Minsk – in Russian.
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Annex 1 Background of participants of the special on-line poll at TUT.BY site The Annex (Fig. A.3 - Fig. A.4) represents a background (domicile, occupation, employment, age) of participants of the special poll at tut.by site based on [1] in November, 2002. 1759 visitors of the site (tut.by) were the respondents, with 492 ICT experts, 104 education and science representatives, 446 students and school children, 277 management officers and 440 people from other fields of activity among them.
Domicile
Capital
3% 3% 6% Minsk region 4% 6% Brest region 5%
Vitebsk region
Gomel region 73% Grodno region
Mogilev region
Fig. A.1
Occupation
Computers
School
25% 27% Student
Manager
0% Education 3% 6% Pensioner 16% 23%
(2 respondents) Other
Fig. A.2
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Place of employment
Public industries
13% 24% Privately owned 18% enterprise
Budget organization
Other 45%
Fig. A.3
Age
(2 respondents) under 16 2% 0% 17-22 9% 2%
30% 23-29 18%
30-39
40-49
50-59
39% 60 and older
Fig. A.4
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