ELECTRONIC RUSSIA
Business Development Mission
Moscow, Russia
October 22-25, 2002
Mission Statement
I. Description of the Mission
The U.S. Commercial Service will host a trade mission of Information and Communications Technology firms to Russia on October 22-25, 2002. The mission is aimed at U.S. companies interested in exploring the opportunities in Russia’s rapidly growing ICT market and will coincide with Infocom 2002, a leading ICT trade show and conference. A particular focus of the mission will be the export and partnership opportunities deriving from two recently launched major programs of the Russian Federal Government, "Electronic Russia" and the "Unified IT Environment for Education." All trade mission participants will have an opportunity to network and establish contacts with key government officials responsible for the design and implementation of the programs, meet leading ICT companies active in E-Government, E-Commerce and on-line learning initiatives, and hold one-on-one business meetings with potential buyers and partners. The Commercial Service in Kiev will lead a delegation of Ukrainian ICT companies to Moscow to brief the mission members on opportunities in that country, and match-make with the American participants.
II. Commercial Setting for the Mission
One of the consequences of the chaos that followed the collapse of the Soviet Union has been that much of the information technology revolution of the last decade passed Russia by. This was particularly true in the public sector. The Russian government is seeking to catch up, and has developed a strategy to encourage this.
The $2.5 billion, 8-year program "Electronic Russia," is designed to implement a wide range of E-Government applications, using the public sector as a catalyst to spearhead development of e-commerce and the Internet in the wider economy. It aims to make wide use of information technologies in government departments, and transfer much of the state’s work online. It also aims to improve the quality of higher education in IT, develop new independent media on the basis of Internet resources, and explore the potential of E-medicine applications. During 2002, an interagency taskforce has been defining E-Government pilot projects and studies that will be conducted between 2003-4 at the federal and regional level. Full implementation is expected to begin in 2005, when the bulk of the funds will be expended. There is currently a window of opportunity for U.S. ICT companies to engage with the developers of the program at the pilot project phase, and position themselves to participate in bidding for subsequent, larger tenders.
The $2 billion, 5-year program "Unified IT Environment for Education," has the goal of bringing Internet access to Russia’s classrooms, developing a comprehensive syllabus of online-learning packages and building platforms for their delivery. Russia’s vast geographic area and an education system in financial difficulty have encouraged Russian planners to seek creative solutions to the provision of education throughout the country.
In the commercial market, Internet access revenue exceeded $228 million in 2000 and is estimated at $250 million in 2001. Internet penetration in January 2002 was estimated at just 4.3% of the population, double the level of the previous year. However, this is a fraction of the potential of this market of 145 million well-educated consumers.
The rapid growth of the Russian telecommunications market is driven by Russia’s continuing strong economic performance, and the pressing need to upgrade the generally inadequate telecommunications infrastructure throughout the country. It is one of the fastest growing markets in the world, and has not perceptibly been impacted by the recent economic slowdown and high-tech downturn in the United States and Europe. In 2001, the Russian market for telecommunications services was $6.6 billion, more than 24% growth over 2000, while the number of cellular subscribers doubled. The estimated annual growth for the period 2002-2004 is 15%, which could result in a telecommunications services market of around $10 billion annually by 2005.
Bi-lateral U.S.-Russian cooperation in the ICT sector is a priority for the Russian government. In May 2002 immediately preceding the summit of President Bush and President Putin, U.S. Secretary of Commerce Donald Evans and Russian Minister of Communications Leonid Reiman opened the first ICT Roundtable, which focused on investment and U.S - Russian cooperation in the sector. The second ICT Roundtable is scheduled for November in San Jose.
III. Mission Goals
The primary objective of the mission is to gain first hand information on the Russian ICT market, and provide participants the opportunity to establish contacts with key officials and decision makers involved in implementing the Russian government’s IT programs. The mission members will participate in meetings with potential buyers and partners and attend Infocom 2002, the major IT industry conference and trade show. They will be able to network with the Russian IT community and explore sales opportunities and possible cooperative ventures.
IV. Mission Scenario
The Mission will be held in Moscow over three days. It will include roundtable discussions with key government officials and industry representatives, one day of one-on-one business meetings with potential buyers and partners and participation in the Infocom 2002 conference and trade show. The precise schedule will depend on the availability of local government and business officials and the specific goals of the mission participants.
V. Mission Timetable
The Mission itinerary will be as follows:
October 22 - Arrive Moscow
Mission Team Briefing
October 23 - Roundtable discussions and meetings with key government officials, Reception
October 24 - One on One Meetings, Infocom Trade Show visit.
October 25 - Infocom Conference and Reception
October 26 - Return to U.S.
Applications should be submitted by September 23, 2002 in order to ensure sufficient time to obtain in-country appointments for applicants selected to participate in the mission. Applications received after that date will be considered only if space and scheduling constraints permit.
VI. Criteria for Participation and Selection
Participation of at least 5-7 companies will be required to go ahead with the mission.
A maximum of 15 companies, involved in information and communications technology will be selected.
The criteria for participation are as follows:
Participating companies’ products and/or services must be manufactured or produced in the United States or if manufactured/produced outside of the United States, the product/service must be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.
Any partisan political activities of an applicant, including political contributions, will be entirely irrelevant to the selection process.
Interested companies must submit a completed application, participation fee, a signed participation agreement and certifications. Applications for the trade mission to Moscow will be made available beginning on August 21. The estimated fee to participate in the mission will be $2,500 and will not cover travel or lodging expenses.
Recruitment of mission members will be conducted in an open and public manner utilizing Commercial Service Export Assistance Centers, Office of Information Technology and industry teams. Promotion will include publication of the event in the Federal Register, direct mailing, e-mailing, broadcast fax, press releases to appropriate media, posting on the Internet, promotion at domestic exhibitions and conferences and publicized announcements through a network of ICT associations.
VII. Contact Information
For additional information on the trade mission or to obtain an application the companies should be referred to Geoffrey Cleasby or Irina Lakaeva, CS Commercial Service Russia at 7-095-737-5013 or to the website.
U.S. Commercial Service - Embassy Moscow
Tel. 7-095-737-5030, Fax: 7-095-737-5033
E-mail: Geoffrey.Cleasby@mail.doc.gov
Irina.Lakaeva@mail.doc.gov
http://www.buyusa.gov/russia/en/
U.S. Contact:
Jon Boyens
Department of Commerce
14th & Constitution Ave. NW
Washington, DC 20230
Tel: (202) 482-0573
EMail: Jon_Boyens@ita.doc.gov
U.S. Contact:
Phyllis Bradley
Department of Commerce
14th & Constitution Ave. NW, RM 1235
Washington, DC 20230
Tel: (202) 482-2085
Fax: (202) 482-2456
Email: Phyllis.Bradley@mail.doc.gov