Monday, September 20, 2010

EU Targets to invest in IT

We are witnessing a new trend emerging, with respect to investments made by Governments. Usually, Governments invest on Infrastructure, Production and such tangible commodities. But lately it is investing in IT!!! For example Radio Frequencies to Be Reallocated for Broadband in EU.

We can conclude a lot from this investment plan by EU:

1. They have the maximum Broad Band (BB) penetration currently. But, the internet is accessible to only 25%!!! Also, services which rely on radio spectrum account to around 2-2.5% GDP. So by exploring the option of investing in IT, they will increase the speed and depth of BB penetration. This in turn might result in increase in GDP :-)

2. With many 3 world countries in Asia, having faster and broader BB access, EU have realized that IT is indeed needed to be competitive. Hence, they are taking stringent actions to make their plan work!

3. Apart from having economic development with IT and gaining an edge over other countries, EU might be concentrating on the larger business. By having a faster BB connection, they could attract a lot of local and global companies who would approach them for creating or maintaining IT systems for themselves. They could attract a lot of organization who would invests for Research & Development in IT field.

Hence, it comes as no surprise as more and more public institutions, have started investing on IT.

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