Eastern Europe straddles the latter two categories, though as always, prospects vary widely from country to country. Russia, despite all its touted potential as an e-business hotspot, is only ranked 44. A critical precursor to the Internet revolution is basic connectivity, regardless of the technology being used. As alternative Internet access devices and new applications are developed, basic connectivity will become even more decisive. However, telecoms deregulation is urgently needed.
Competition is the vehicle.
Experience shows time and again that competition promotes greater investment, lower prices, growth in Internet subscriptions and technological innovation. Eastern Europe is lagging here, though Poland has plans to set up an Internet watchdog soon. Education is the enabler. The Internet has higher social entry barriers, requiring literacy and IT knowledge at a minimum. This means education is all the more important.