Number of ITC companies set for sharp decline after 2007

Europe is lagging far behind the United States in terms of ITC investments, as well as in terms of the number of jobs in the sector. At the same time, out of the over 6,000 Romanian companies in this industry, only 1,500 will be left after the accession to the European Union.

These were but two of the main conclusions drawn by the guests of the a??Romanian ITC market before the EU shocka?? seminar, organised by Ziarul Financiar and Omnilogic company in Bucharest yesterday.

a??The European ITC research and development investments are five times lower than in the United States,a?? said Communications Minister Zsolt Nagy, quoting figures recently published by the European authorities.

Gabriel Marin, Omnilogica??s chief executive in his turn said it would be hard for Romanian companies to withstand competition if they do not make 2-300 million dollars in turnover a year. a??Some sources say there are 6-7,000 ITC companies operational in Romania. Thata??s too many of them. Only 1,500 will be left after accession, of which only 4 or 5 will make it on the regional market.a??

The weak points of the local market included the IT management skill shortage and the small budgets, Dinu Malacopol, Internet and Data manager of Astral Telecom said. Another element that makes the ITC sector lag behind is the very small expenses earmarked for equipment and services in household budgets. Annual IT spending per person therefore stands at 35 euros in Romania, whilst the European average is of 732 euros, according to Valentin Negoita, the chairman of the APDETIC IT association.

As recommended by the EU, Romania will need to develop its broadband services, with authorities announcing they were in the process of devising a national strategy in this regard. For instance, the General Communications and Information Technology Inspectorate (IGCTI) is now working on a plan to shift from analogue terrestrial broadcasts to digital broadcasts in the long run, as specified by Catalin Marinescu, IGCTI chairman. mihai.musatoiu@zf.ro