The strength of Icelandic ICT sector lies in entrepreneurial labour, small-scale teams, good education and adaptability reinforced with sophisticated telecommunication systems. Icelandic ICT companies have specialist know-how and long practical experience in creating solutions for food processing and fisheries, bank technology, multimedia, Internet applications, electronic commerce, real-time telecommunications systems for aviation and transport, medical software, and general office and database systems.

ICT Sector in Iceland
International producers, marketing companies or distributors have increasingly been investing in the ICT sector in Iceland. Icelandic high-tech companies and several of Iceland's most progressive ventures have announced plans to list their shares on overseas stock markets. Food processing equipment with high levels of automation and computerization has also been developed for all areas of the fish industry and successfully transferred to food production applications in general. Highly specialized industrial equipment has been designed and manufactured in Iceland to serve worldwide markets, for example robots for aluminium plants, pulp moulding systems and a wide range of monitoring devices.

Iceland has sophisticated telecommunications facilities, through fibre-optic cable connections. That offers reliable direct international links for telephone, fax and data networks. Telecommunications are deregulated and telephone charges in Iceland, both at residential and business rates, are the lowest within the OECD. Extensive cellular mobile phone systems are also operated. International connections are by fibre-optic sea cable and satellite. All urban communities around the country are linked by fibre-optic cable. The policy is to lay fibre-optic cables to all new buildings and older areas are gradually being brought into the network.

ICT Export from Iceland
The value of ICT export from Iceland has grown rapidly over the last decade. Exports amounted to ISK 3,700 million in 2003, accounting for 1.3% of total value of export and services from Iceland. This figure excludes substantial sales by the subsidiaries of Icelandic companies in other countries. The total ICT export in EU was USD 30,600 million in 2002. Iceland contributed to 0,13% of EU total export and 0,09% of OECD countries total export.

95 companies out of 136 listed ICT companies in Iceland exported actively in 2003, of them 12 companies exported for more than ISK 100 million. Those companies accounted for 61% of the total ICT export value. Most companies or a little less then half have export earnings under ISK 20 million. 24 companies represented 85% of total ICT export earnings. In 2003, 84% of total ICT export earnings came from the sales of standardise and custom-made softwares. Consulting and data processingcame with11% and licences were 5%.

The biggest market area for Icelandic software is EU or around 64% of total export, followed by North America with around 25% and others areas with around 6%.

Websites Related toIT andCommunication in Iceland
Invest in Iceland Agency
Invest in Iceland Agency is an independent agency of the Ministry of Industry and Commerce promoting foreign direct investment to Iceland. The Agency's advisors provide free of charge information and expert confidential service on all aspects of investments.
www.invest.is

Brochures Related to IT andCommunication in Iceland
IT & Telecom in Iceland(498 KB)
A brochure about IT & Telecomunication in Iceland published by the Invest in Iceland Agency.
www.invest.is/files/1121285749ITtelecom-14.mai-2004.pdf

Seafood and Food Manufacturing in Iceland | Fish Processing and Fishing Gear in Iceland
Industry in Iceland| Medical, Cosmetic, Health Technology in Iceland
IT and Communication Technology in Iceland | Music, Filming and Design in Iceland
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