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. Eastern Europe, which has no shortage of tech- savvy and highly qualified workers, is in good shape in this department. Companies looking to invest in e-business in the region should keep in mind that while there are opportunities, they run the risk of finding their efforts thwarted by structural problems. Lobbying for infrastructure spending to promote Internet use is key.