Overview A
number of initiatives have been introduced in the ICT sector after a new government
took office in November 2002. The new government has continued to give the sector
high priority for development. It has been supporting ICT development via a two-pronged
strategy. The first part of the strategy aims at generating work for the local
ICT industry, which is still reeling from the 2001 - 2002 economic downturn. The
second part sets out to help small and medium enterprises embrace ICT to enhance
their performance and competitiveness. At the same time, these enterprises, as
well as public sector organisations, have come to appreciate that ICT can enhance
productivity. Some of these companies have set up office LANs and websites and
adopted ICT applications. The
Internet has become an essential tool for business communication. The use of broadband
services has started to grow in homes and offices located in major cities. This
trend is expected to accelerate. Efforts to network the country continue, and
so far over 1,800 towns and cities have been plugged into the Internet backbone. The
telecommunications sector remained the focus of attention during much of 2004.
The growth of cellular networks accelerated during the year resulting in a doubling
of subscribers. Cellular phone subscribers are expected to surpass fixed-line
phone users before the end of 2004. The year has been rightly regarded as the
"telecommunications policy year" as it saw key policy changes taking
effect. The fixed-line telecommunications deregulation policy was announced, formally
bringing to an end the incumbent operator’s monopoly and setting the stage for
the opening up of the sector to major investors. Two new cellular licences were
awarded in April 2004. The
initiatives to develop local online content and promote the use of local languages
online also gained momentum. Local-language newspapers continue to lead in developing
local-language online content as well as introducing innovative services such
as online news delivery via cellular phones. The
year also saw some revival of the ICT industry, specially the outsourcing segment.
The companies that survived the downturn have emerged more focused, having learnt
from their past experiences. New firms have also sprouted to capitalise on the
new opportunities in outsourcing. A number of them set up call-centre operations
to provide back-office services to foreign-based companies. This segment of the
ICT services market is expected to grow in the years ahead because of favourable
fundamentals. Looking
back at the early efforts to promote the ICT sector, it is found that they have
not been able to achieve their objectives. In fact, the sector appeared to have
shrunk during the first half of 2004 when a number of ICT companies folded. This
was due primarily to the latent effects of the global dotcom crash and to geopolitical
insecurity. The e-commerce and e-government initiatives, which represented the
core of the ICT industry development strategy in 2000 - 2001, were not able to
achieve any visible success either, owing to the inertia in revamping official
processes and systems. Nonetheless, the pilot programmes started in these critical
areas are likely to act as agents of change for the future. Meanwhile,
the Human Resource Development Initiative has achieved mixed results. Universities
and other educational institutions have been upgraded, and a critical mass of
students has been trained in various facets of ICT. However, the downturn, coupled
with the delay in providing assistance to the industry is creating a growing mass
of unemployed ICT workers. Online
services Although
the government continues to be the leading enabler of online services, the private
sector has also begun to provide services online. These services include online
banking and stock trading, which have emerged as successful examples of e-commerce..
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