“Considering Albania’s rigorous efforts towards enhancing its digital infrastructure and services, there is substantial potential for growth in the ICT sector”
FIAA: George, you have lived in Albania for many years and run one of the model companies in the ICT sector. What is your experience with this sector and what are the major developments over the past ten years?
Mr. Blekas: The ICT market in Albania has transformed remarkably since I began my tenure here in 2008. Initially, the landscape was marked by rudimentary connectivity, primarily fixed and mobile 2G networks, while digital services were scarcely understood and utilized. Noteworthy is the significant leap during the COVID-19 pandemic, which catalysed a heightened demand for digital services. This shift accelerated Albania’s progression towards robust digital infrastructure including the introduction of Gigabit fibre in homes and 5G mobile networks. This has been complemented by affordable pricing structures, making these advanced technologies accessible to a much wider audience. The country’s strategic emphasis on enhancing broadband infrastructure, as a pivotal element of its digital strategy, has created a fertile ground for innovation ecosystems. These ecosystems are essential in driving productivity, fostering economic growth, and creating job opportunities. Albania’s focused efforts in this domain aim to propagate the macroeconomic benefits derived from digital advancements across all sectors of the economy.
In addition to Greek market, Intracom Telecom is present also in many other countries. How important is the Albanian market for Intracom Telecom Albania S.A, foreseeing the latest digital development and the new technologies in the country?
Intracom Telecom group steams back in the distant 1977 and is currently approaching half a century of experience, having local presence in over 20 countries, exporting to over 70 countries, running 3 R&D centres, and making 70% of our business in international activities. Our journey in Albania started in 1998, initially providing our payphones all over the country, which have proven to be the connection of Albanians to the world for many years. A few years later, in 2001, this evolved into establishing a fully staffed local office, operating continuously and successfully since then. Over the years, we have spearheaded numerous IT and infrastructure projects across various sectors, both for the private sector (fixed and mobile telco operators, banks, etc) as well as for the public sector. Considering Albania’s rigorous efforts towards enhancing its digital infrastructure and services, there is substantial potential for growth in the ICT sector. This environment could provide significant expansion opportunities for our operations, contributing to Albania’s expanding digital footprint and aligning with our global expansion objectives.
What are the main challenges that you face in terms of investments, human resources, quality of services, and market?
A predominant challenge in the Albanian market is the phenomenon known as “brain-drain”. Despite a steady improvement in the quality and relevance of educational outcomes in ICT and related fields, many skilled professionals opt to pursue careers abroad, creating a deficiency in local expertise. This scarcity compounds the challenges related to project implementation, driving up costs and exerting pressure on operational efficiency. The local business community, including FIAA and other associations, frequently highlights this issue as a critical barrier to sustainable development within the ICT sector. Addressing this challenge is imperative to ensure the availability of skilled human resources that can match the growth trajectory of the ICT infrastructure and service demands in Albania.
Another area that improvement can be achieved for the overall Telco market investments, is the legislation about the Construction and Infrastructure Permits. The Albanian legislation treats Construction Permits (e.g. for mobile telephony antennas) and Infrastructure Permits (e.g. for fixed network optic fibre), the same as any other construction permit, both in procedures, deadlines and in the required documentation. From other countries’ experience, these are considered public services and should not be treated as ordinary private constructions, since their implementation improves not only revenues for the companies that offer these services and the state that accumulates more taxes from the investments, but mainly brings benefits for the general public in providing more and higher quality services. In other words, improving the Albanian digital infrastructure (higher broadband penetration and speeds, in line with EU directives), making Albania even more attractive for investors. The delays in obtaining these permits because of the long procedures, plethora of documents required and delays experienced, have led to a slowdown of the Telco investments and consequently to the lack of quality mobile and fixed networks services in some areas of the Albanian territory, as well as missing revenues for the companies themselves and consequently state taxes.
As a good connoisseur of Albania and Albanian people, if you could change something in the way the ICT sector and business in general functions in Albania, what would it be?
To enhance transparency and accountability within the ICT sector, I would advocate for the establishment of an institution akin to the USA’s Accountability Office. This body would be tasked with auditing governmental and business projects, benchmarking performances, and ensuring compliance with set standards.
In the realm of ICT, the challenges of project delays and failures are not mere setbacks; they are significant impediments to the stride of a country’s developmental march. These stumbles can be attributed to a range of factors, from inadequacies in planning and execution to a lack of expertise and technological know-how. Project delays and failures can have far-reaching consequences. When ICT projects stumble, it’s not just an isolated impact on a single service or application; there’s a ripple effect that can hamper everything from e-governance and infrastructure to education and emergency services. In an increasingly digital world, these delays can significantly restrain a country’s capacity to compete on a global stage, thwarting efforts to attract investment, improve public services, and foster economic growth. To sidestep these pitfalls and accelerate progress, there’s merit in considering a diversified portfolio of project contributors, notably those with a proven international track record.
You are a long-standing FIAA member for nearly two decades. What has been your experience with the association so far and how would you like it to develop in the next few years?
To start with a statement, it has been both an honour and a privilege to be such a long-standing member, where my association with FIAA has been rewarding and enlightening. As a crucial platform for consolidating the interests and voices of businesses, FIAA plays a pivotal role in shaping market dynamics. My vision for FIAA in the upcoming years is to see it evolve into an even more dynamic, participatory organization where members are not merely passive subscribers but active contributors. By engaging more comprehensively in committees and initiatives, businesses can collaboratively work towards expanding the market – benefitting not just individual entities but enhancing the overall economic landscape. This collective effort is essential in fostering an environment conducive to sustainable growth and shared prosperity.
Closing, I would encourage all businesses to join such collective efforts, to join FIAA and get active, participate some of the many business-sector committees and work with FIAA to mature the market and enlarge the pie for us all, the State, the Businesses, and the People.
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