April 2000

Update: Lithuania

Memo: up date report Q4. Trends of developments in trade, banking and business sectors. Changes in other sectors.

1. Trade, banking and commerce

The most significant changes during past three months took place in business sector as occurred in the previous quarter Q3. Local press reports that most of software and hardware companies are negotiating with potential internal and external investors. Lithuania neighbours and Estonian companies are taking part in this process too. Microlink (www.microlink.ee) bought two IT companies, Taide and Skaitmenines Komunikacijos, and had plans to invest for the establishment of a powerful Internet gateway, the Lithuanian version of Estonian Delfi (http://www.delfi.lt).

Other Estonia company, Osta announced about investments in e-commerce and the establishment of Lithuania site of www.osta.ee. The entering of Estonian companies in Lithuania market will enhance the competition among the existing service providers and will increase the promotion of new applications.

Most of small local companies use WWW sites for presentation and advertising their products and services. A great number of small companies use virtual sites. All Internet service providers have available this kind of service. The Lithuania International Agriculture Agency starts to promote the Lithuanian products sales through Internet. More than 20 Lithuania farmers have their products on the site www.food.fair.com.

The legal basis (Laws on electronic documents and e-signature) for e-commerce is foreseen in the first half of 2000, however the first moves in this direction have already been taken placed. In the middle of December 1999, Omnitel, the leader in mobile communications and an Internet provider, established an e-commerce site, http://www.muge.lt with on-line payment service based on credit cards. Omnitel is planing mobile connection to Internet and mobile e-commerce during 2000.

Others best practices realisations are:

• http://www.supermarket.lt, "Naujosios komunikacijos" company;
• http://www.books.lt, "5 kontinentai" company;
• http://www.5ci.net/komercija, "5 kontinentai" company.

Some distribution companies, including 5 Kontinentai company are developing a Business Information Centre LBIC http://www.lbic.lt.

The IT leader Alna announced the Alna Internet Centre for electronic shopping and advertisement service. The company 5 Kontinentai also created the specialised WWW site http://www.banner.lt for advertisement.

Lithuanian financial brokers companies are establishing WWW sites for presentation their activities, results and prices of securities. 8 new sites are operating in this area. The most important are:

• http://www.vilfima.com, bank Vilniaus bankas;
• http:// ltb.tdd.lt/brokerage/, Lithuania Saving bank;
• http://www.suprema.lt, company Suprema.

All Lithuania banks are planing to start Internet banking services in middle of 2000. Bank Snoras is promising to realise banking services on Internet in April 2000. The largest bank Vilniaus Bankas is planing to introduce a European model of banking services on Internet in July 2000.

2. Public administration, science and education sectors

The changes in these sectors were minimal. The state financing was limited in 1999 and in the first quarter of 2000. According State investments program for 2000 only those projects, which would be difficult to hold, are being financed, while debts from last year are being paid off by state borrowing on the domestic market. About 398 MLt (100 MEURO) were allocated for projects in the IT sector (co-ordinated by the Ministry of Public Administration Reforms and Local Authorities). The most important IT projects are:

• Lithuania Education Information System (Ministry of Science and Education);
• Development of State Institutions Computer Network VIKT (Ministry of Public Administration Reforms and Local Authorities);
• Development of IS for Administration of Regions (Counties), (Ministry of Public Administration Reforms and Local Authorities);
• Lithuania Libraries Integral Information System (Lithuania National Library).

3. Arts, culture, health care

State support was very limited. OSF (Lithuania Soros Foundation), other funds and companies supported the new sites developments in this sector. OSF financed the developments of 6 WWW portals for tourism, arts and music and culture heritage as well as initiated the development of 6 WWW portals for the health care sector. OSF is supporting new information technologies developments for the public health care sector. OSF received in March 2000, about 30 proposals for supporting projects in this sector.

An interesting IS project, initiated jointly by the National Drama Theatre and the private company

5 Kontinentai, was the Internet Cafe, where users can find on-line information on plays, notices, and reservation of tickets. On-line selling tickets will be available in a near future. Other similar ticket reservation systems exist at the National Opera and Ballet Theatre http://www.opera.lt.

4. WWW sites indicators

* 10 districts, 44 regions and 12 city municipalities have WWW sites under PHARE support. Very few local authorities in rural area are presented on Internet only.
** WWW in hospitals exist in largest cities only.