eGovernment and mGovernment Integration:

Role in Public Administration Reform

Merima AVDAGIĆ, M.Sc.

The eGovernment Project Manager, UNDP BiH
Marsala Tita 48, Sarajevo 71000, Bosnia and Herzegovina
mavdagic@undp.ba; www.undp.ba

Nera NAZEČIĆ, M.A. Candidate

Programme Manager of the eLeadership Programme for the Western Balkans/
Head of Regional Stability Pact eSEE Initiative Secretariat, UNDP BiH
Marsala Tita 48, Sarajevo 71000, Bosnia and Herzegovina
nnazecic@undp.ba; www.eseeinitiative.org

Zlatan ŠABIĆ, M.Sc., Ph.D. Candidate

University of Sarajevo, Faculty of Electrical Engineering, and
eGovernment Specialist, UNDP BiH
Marsala Tita 48, Sarajevo 71000, Bosnia and Herzegovina
zlatan.sabic@etf.unsa.ba; www.undp.ba

Tarik ZAIMOVIĆ, M.A.

University of Sarajevo, Faculty of Economics, and
ICT Portfolio Manager, UNDP BiH
Marsala Tita 48, Sarajevo 71000, Bosnia and Herzegovina
tarik.zaimovic@efsa.unsa.ba; www.undp.ba

Abstract
Strapped between 20th century that’s marked with permanently engraved suffering, and globally oriented 21st
century, BiH continues to evolve. Throughout its recent history, Bosnia went through one-party, unitary system
as part of the Socialist Federal Republic of Yugoslavia (SFRY), trubulent war, post Dayton state of
independency, up to its current status of economic, political and ideological transition – resulting in a situation
where efficient and effective public administration is essential, and in BiH, the public administration requires a
serious reform. Under constant pressure to streamline its public administration reform (PAR) processes,
information and communication technologies (ICT) are key element of government activities. Specifically,
eGovernence, and mGovernence as a subsector, has immediate impact on the overall re-engineering of PAR, as
well as its support toward a more efficient and effective administration. This paper establishes the link and
effect of eGovernment and mGovernment on PAR, as well as analyses realistically the situation within BiH for
exploiting the eGovernment and mGovernment to it full potential.

Nevertheless, eGovernence and mGovernenece, as well as overall ICT usage is not panacea, and it is clear that
it has to have a clear approach, strategy as well as action plan in order to have an positive impact. One way to
do this is through regional frameworks, such as Electronic South Eastern Europe Initiative, an
intergovernmental platform of the countries of the Western Balkans who jointly employed ICT as a strategic tool
for economic growth, employment rise, EU integration and long-term stability of the region. The strategic efforts
of these regional frameworks are focused on Information Society development, encapsulated in Electronic South
Eastern Europe (eSEE) Agenda (2002/2007) and eSEE Agenda Plus (2007/2012), and both of these strategic
documents are supplemented by Taskforce for Broadband Action Plan (bSEE) position on eGovernment, as well
as mGovernment – as central development point within agenda in the upcoming period.
1. Short History and Current State of Bosnia and Herzegovina

Bosnia and Herzegovina (BiH) is a country with a very complex and turbulent past that continues to
evolve. Throughout its recent history, Bosnia went through unitary system as part of the SFRY, four
years of devestating war, post Dayton state of independency proposing quite dysfunctional system of
municipalities, cantons, two entities, one district and a distant central government, up to its current
status – which can perhaps best be described as transitional, with constant atempts to regenerate its
inert economy and move toward the European integration. With these events, public administration is
in a critical shape, and in need of serious re-vamping, where ICT can play a substantive role.

1.2 Current State of Bosnia and Herzegovina

As the result of war and due to non-satisfactory reconstruction and development after the war, BiH is a
disintegrated community, and this is evident in demographic, administrative and economic structures
of the country. Reforms resulting from Dayton Peace Agreement placed Bosnia in a state of
ineffective and complicated four-level Federation.

This complex structure also hinders work of public administration, which in turn hinders business
growth and development. “The current lack of legal and administrative support for business growth
and presents a serious obstacle for re-integration objectives and economic prosperity”1. The burden of
‘red tape’ and inefficient administration seriously reflects on development – and therefore, the single
information space. By recently adopting the eSEE Agenda Plus, which is closely aligned with the
i2010, a European Information Society for Growth and Employment Action Plan and other globally
recognized approaches, BiH Government expressed their determination to introduce compatible,
innovative and interoperable technologies and systems and integrated and interconnected networks,
with the ultimate aim of transforming the country into economically prosperous, modern and stable
place that can compete more effectively in the global market economy. Moreover, prompt
implementation of this regional framework will greatly aid in avoiding the adoption of ad hoc
solutions and technologies that lead to inconsistent development, incompatibility between national and
local systems, and thus delay progress and implementation.

1
Shilling, S., (2003)

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2. The Role of ICT, eGovernment and mGovernment in PAR

2.1 Background

There is quite a consensus when it comes to admitting the importance that efficient and effective
public administration and Government working processes have in any country, especially in a post war
economy reconstruction – which is the case in BiH. It plays a crucial part in assisting growth which in
turn contributes to capital generation and poverty alleviation. One way to improve and encourage
public administration reform is through introduction of eGovernment and mGovernment.
“mGovernment is a subset of e-government”. eGovernment is the use of ICT to improve the activities
of public sector organizations, including public administration reform. In the case of mGovernment,
those ICTs are limited to mobile and/or wireless technologies like cellular/mobile phones, and laptops
and PDAs (personal digital assistants) connected to wireless local area networks (LANs)”.
eGovernment, and mGovernment as part of it, can help make public information and government
services available ‘anytime, anywhere’ to officials and citizens (through Government to Government
(G2G), Government to Business (G2B), and Government to Citizens (G2C) services).

2.2 Effects of ICT, eGovernment and mGovernment in PAR and BiH in general

Although the European Union and many other countries have long promoted the importance of
eGovernanace and use of ICT as one of the country priorities, in Bosnia and Herzegovina the use of
ICT by the government sector has only recently begun to receive the systematic attention required to
turn it into a critical component of the long-term development. The adoption of sound ICT practices
positively impacts governance and social services while streamlining the structural adjustment of
BiH's national economy and increasing transparency. ICT is therefore a key element of enabling
efficient government activities, and the BiH Poverty Reduction Strategy Paper (PRSP) identifies it as a
priority for good democratic governance. Also, National plan for approximation of acquis (NPAA),
plan for implementation of the obligations from the Stabilisation and Association Agreement (SAA),
prepared by the Directorate for European Integration (DEI), and adopted by the Council of Ministers
of Bosnia and Herzegovina (CoM) under the name "Program of realisation of priorities" based on
European partnership is the best tool when it comes to planning and programming assistance for the
Bosnia and Herzegovina in the next few years clearly identifies e-Government as one of the priorities
in public administration reform in BIH. Finally, along with the other members of the Stability Pact for
South-Eastern Europe2, Bosnia and Herzegovina signed on to the “e-SEE Agenda” in October 2002,
followed by the recent signing of “eSEE Agenda Plus” thus charging the country officials with the
task to develop eGovernment systems and ICT-based services. As a complementary process, BiH
Government3 is a member of eSEE Initiative corresponding arm: Taskforce for Broadband, thus taking
part in implementation of bSEE Action Plan4, whose main aim is the promotion of coordinated

2
Recently transformed into regionally owned Regional Cooperation Council with the seat in Sarajevo
3
eSEE Initiative members are: Albania, Bosnia and Herzegovina, Croatia, Macedonia, Moldova,
Montenegro, Serbia and UNMIK/Kosovo. Romania and Greece are participants in the bSEE
Taskforce, while Romania has recently joined the eSEE Initiative formally by signing the eSEE Agenda
Plus.
4
The ultimate goal of bSEE Taskforce is to foster the development of a unified market of broadband
networks fully interconnected to the European and global networks. This goal is foreseen to be
accomplished through the coordinated actions of the bSEE Taskforce with the scope of co-operation
including the following areas:
a) Regulatory harmonisation encouragement;
b) Human resource development, i.e. human capital;
c) Modern electronic communication technologies implementation;
d) Development and monitoring of the electronic communication market;
e) Excellence in research.

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broadband development, including the creation of domestic Broadband Strategies, aggregating
demand and local content, highlighting the importance of broadband development, raising funds for
broadband activities and ultimately lowering the cost of broadband services in the South East Europe
(SEE) region.

Therefore, the introduction of eGovernment as a way of reforming public administration significantly

improves its internal work processes, enables public access to information and increases the
accountability of policy makers. Furthermore, it improves the service and communication channel
toward the citizens. Currently in Bosnia, the use of ICT by the public sector has been recognized as a
critical component of the long-term development of BiH, serving as one of the priorities within the
overall PAR strategy. Building on the joint preparation of the National Strategy for Information
Society development by the BiH Council of Ministers and United Nations Development Programme
(UNDP), the planned eGovernment Reform Project at the CoM BiH will, by introducing eGovernment
and mGovernment components enhance the administration level within the Council of Ministers and
will serve as a pilot case study for development of an overall e-Government Project at all
administrative levels in BiH.

Within BiH, in the short to the medium term, mobile phones will remain the primary mode of
telecommunications for many citizens. Furthermore, as these phones become more powerful in nature,
they would also become important source of information and an alternative channel for the delivery of
electronic services and reaching out to the citizens. This opens up a whole spectrum of additional
activities, such as forums, voting, requests normally communicated at municipal level, feedback to
government leaders etc. As a result, and with an overall introduction and enhancement of
eGovernment services, public service may be significantly improved through mobile technologies, as
well as adoption of additional ICT tools aimed toward enhancement of communication channels and
Internet policies – and this is what, among other ICT initiatives, Government policies should focus on.

2.3 Potential Advantages and Drawbacks

The advantages of eGovernement and mGovernment as a subset are evident: simplified process, more
efficient and effective working protocols, increased accountability and transparency, as well as better
service toward businesses and citizens. It is important to note that mGovernment is particularly suited
for developing countries such as Bosnia and Herzegovina, where Internet access rates are still
somewhat low but mobile phone penetration continues to grow rapidly. Globally, the number of
mobile phones has surpassed the number of fixed/wired phones. This is also the case in many
individual nations, including “49 middle-income and 36 low-income countries. Among these countries
are Burkina Faso, Chad, Honduras, Indonesia, Jordan, Mexico, Mongolia, Nigeria, Philippines, Saudi
Arabia, and South Africa”.
Nevertheless, the mGovernment is not a replacement for eGovernment, but rather a complementing
component. While mobile devices are excellent access point devices with truly ‘anytime/anyplace’
accessibility, most of them, particularly mobile phones, are still not suitable for the transmission of
complex and voluminous information, and they continue to have limited features and services if
compared PCs and other forms of working stations. Therefore, PCs are still preferred means of
providing eGovernment services. Furthermore, both eGovernment and mGovernment services and
applications heavily rely on back-end support in terms of good ICT infrastructure. Even more so,
good eGovernment and mGovernment services rely on clean and efficient working procedures,
effective data quality checks, simple, transparent and accurate transaction processing etc.
Raising awareness around the importance of eGovernment and mGovernment can be critical to the
further development of the ICT sector, since uncertainty of demand affects expected returns on
investment and inhibits commercial investment.

4
3. The Overview of Communication Infrastructure and Basic Regulations in BiH

It is clear that the development of mGovernment to its full potential is directly linked to the
infrastructure within the country, as well as support of the basic legal framework. The potential
benefits of mGovernment are certainly visible, but the question that remained throughout this paper is
how realistic is the full exploitation of mGovernment in BiH. Although visible progress has been
achieved in Bosnia and Herzegovina in 2007, with 100% increase of broadband Internet users in less
than a year, it is clear that the situation calls for an increased work on ensuring the creation of enabling
environment, in order to capitalize on this progress and to extend it even further in years to come. SEE
region at large and Bosnia and Herzegovina in particular can learn by analyzing the good practices in
neighboring countries, such as Croatia, whose Government in 2006 adopted the Broadband Strategy
and the related Action Plan, as stipulated by EU framework. As demonstrated by the Croatian
example, tremendous increase of both users, as well as quality of services can be once clear strategic
objectives in the area of development of broadband internet access as the basic infrastructure of the
information society are established. An important element of such strategic framework can be deciding
on the criteria and measures for assignment of stimulating founds for broadband infrastructure
development in the remote and rural regions of Bosnia and Herzegovina in which there is an
insufficient commercial interest for development and investments in broadband access infrastructure.
This is an example of importance of strategic framework, and a point in case of type of intervention
that can be implemented at the initiative and support of the Government.

However, it is of the utmost importance that the objectives stipulated by any strategy, including the
strategy broadband as huge potential enabler of mGovernment, are defined on the basis of the present
situation and realistic economic potentials of Bosnia and Herzegovina.

Below is an overview that provides relevant information on infrastructure and overall framework of
the realistic situation within BiH. Without a doubt, we can see that a number of initiatives are being
initiated; nevertheless, heavy investments and penetration are still pending.

3.1 Infrastructure

UMTS license issuance:

The development of the broadband communications market in Bosnia and Herzegovina showed
significant results in 2007. The UMTS licenses for three existing GSM operators have finally been
granted. Moreover, the Policy of Telecommunication Sector for the period 2008-2012 has been
prepared and submitted to the BiH Council of Ministers for further procedure and adoption.

With regards to license-free bands designed for BWA, BiH Regulatory Agency for Communications
(RAK) has defined free band, which are not subject to licensing, in 2400-2483.5 MHz. There is only a
requirement to register base stations. These bands are designed for operation of low-cost BWA
networks and are expected to be used mainly by small Internet service providers. This band is
regulated by Rec.7003.

Bands 3.4-3.6 which are subject to licensing: As for the BWA band which are subject to licensing,
the relative regulations and allotment plan are underway. The tender procedure, leading to the license
issuance for these bands is prolonged again to the end of 2008. Allotment is planned to be based on
the regional coverage. The operators may have regional or national coverage. These bands, which are
subject to licensing, will be mostly used for WiMAX technology. This type of communication is
considered to be the fastest alternative to fixed telecommunications, directly introducing competition
in the fixed services market.
ADSL market : According to recent estimates, currently there are around 45. 000 ADSL
connections in the BiH market (June 2008). This implies that thw market had an increase of almost

5
100% comparing to the previous year. It is expected that the number of ADSL connections will
reach 60.000 in 2008.
Principles for usage of free capacities and rights of way: This document will define the cases when
an operator is required to lease the free capacities, regarding both cable ducts and optical fibres, and
the cases where there is no such requirement. It is expected that in this way the economic usage of the
free capacities will be enhanced.

IP telephony: RAK is working on the document which will be regulating IP telephony within
Internet networks.

1. Policy and Regulation

Policy / Regulation Status

Telecommunications Sector Policy for the period 2008-2012 will be
adopted within next few months (focus on LLU, USO, UMTS and W
and F Broadband communications)
Regulation for non-licensed bands 2.4 According to Rec. 7003
Regulation for licensed bands 3.5 and 3.7 GHz In preparation
Regulation for network licensing In 2002
Regulation for common use a telecommunication infrastructure In preparation
Regulation on Interconnection of communications networks Adopted in November 3, 2002
UMTS licences (3 licenses for existing GSM operators) 29.05.2008 for yr 2008
Tender procedure for licensing mobile and fixed WiMAX operators In preparation for yr 2008

2. Content and Services

eBanking is implemented in several Banks for distant payment for business and householders.

eEducation – eScience
- Distant learning is implemented in few faculties
- Normal communications over website for students in purpose of learning in all Faculties at state Universities
and some secondary schools in BiH

3. Nuber of licenced operators

Description Characteristic
Number of ISP 57
Number of ISP with BWA >5 in 2.5 GHz band

Number of ISP with XDSL 3

Total Number of Networks operators 75
Network operators on the State level 12
Network operators on the regional level 8
Network operators on the local level 55
Number of GSM operators 3
Number of UMTS operators 0
Number of fixed operators 3
Licenced providers of fixed public telephone services 11

Indicator Definition Value

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Mobile cellular Refers to users of portable telephones > 2.7 Million users
telephone subscribing to an automatic public mobile
subscribers telephone service that provides access to the
(post-paid + Public Switched Telephone Network (PSTN)
prepaid) using cellular technology. This can include
analogue and digital cellular systems but
should not include non-cellular systems. This
should also include subscribers to IMT-2000
(3G) high-speed mobile networks (i271G).
Subscribers to
public mobile data services or radio paging
services should not be included. If this service
has a name, please indicate in a note as well as
the year the service commenced operation.
Number of Number of subscribers to IMT-2000 (3G)
subscribers to high-speed mobile networks (e.g., CDMA2000
IMT- 1X, WCDMA, CDMA2000 1xEV-DO, etc.)
2000 (3G) high- regardless of whether they are using
speed multimedia services, though with capacity for
mobile networks data communications, via Internet. In this
context, "high-speed mobile" implies a speed
that is equal to, or
greater than, 144 kbit/s in at least one
direction. -Code Division Multiple Access
(CDMA) 2000 1x is an IMT-2000 3G mobile
network technology, based on CDMA, that
delivers packet switched data transmission
speeds of up to 144 kbps. -Wideband CDMA
(W-CDMA) is an IMT-2000 3G mobile
network technology, based on CDMA, that
presently delivers packet switched data
transmission speeds up to 384 kbps and up to 2
Mbps when fully implemented. Known as
Universal Mobile Telecommunications System
(UMTS) in Europe.
-CDMA2000 1xEV-DO is an IMT-2000 3G
mobile network technology, based on CDMA,
that delivers packet switched data transmission
speeds of up to 2.4 Mbps. -Enhanced Data
rates for GSM Evolution (EDGE) is an
intermediate technology that brings second-
generation GSM closer to third-generation
capacity for handling data speeds up to 384
kbits/s.
Total Internet 4213 = 4213tb + 4213d +4213l ~ 280.000 (2007)
subscribers The number of total Internet subscribers
includes dial-up, public leased lines and
broadband subscribers. Only active subscribers
should be included.
Dial-up Internet Number of Dial-up Internet subscribers. Dial- ~190.000
subscribers up is a connection to the Internet via a modem
and telephone line, which requires that the
modem dial a phone number when Internet
access is needed. Dial-up modem speeds are
generally limited to speeds of 28 kbit/s to 56
kbit/s.
Total broadband 4213tb = 4213cab+4213dsl+4213ob ~85.300 (2007)
Internet subscribers Total broadband Internet subscribers refers to a
subscriber who pays for high-speed access to
the public Internet (a TCP/IP connection).

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 High-speed access is defined as being equal to,
or greater than 256 kbit/s, as the sum of the
capacity in both directions. If countries use a
different definition of broadband, this should
be indicated in a note.The statistic is measured
irrespective of the type of access, or the type of
device used to access the Internet, or the
method of payment.
Cable modem Internet subscribers using modems attached to ~29. 000
Internet cable television networks. Speed should be
subscribers equal to, or greater than 256 kbits, as the sum
of the capacity in both directions.
DSL Internet Internet subscribers using Digital Subscriber ~38.000
subscribers Line (DSL) technology. DSL is a technology
for bringing high-bandwidth information to
homes and small businesses over ordinary
copper telephone lines. Speed should be equal
to, or greater than 256 kbits, as the sum of the
capacity in both directions.
Other broadband Internet subscribers using other than DSL and WLA (2.4GHz) ~ 17.000
Internet cable modem. This includes technologies such
subscribers as mobile cellular technologies, Satellite
broadband Internet, Fibre-to-the-home Internet
access, Ethernet LANs etc
Leased line Number of leased line Internet subscribers. ~1300
Internet
subscribers
Broadband Internet The initial, one-time charge for a new 15 -25 EURO
connection charge broadband internet connection. Refundable
deposits should not be counted. A note should
indicate whether taxes are included (preferred)
or not.
Broadband Internet The monthly subscription charge for 15 EURO, 256 Kb/s
monthly broadband internet service. A note should 25 EURO, 512 Kb/s
subscription indicate whether taxes are included (preferred) 35 EURO, 768 Kb/s
or not. Pricing ranging from 12.5- 200 Euro
depending on the package offered and
operators

5. Conclusion

Perhaps the best way to summarize the idea of effective and efficient public administration is by
quoting Bernard Shaw “wise man adjusts to the world, unwise tries to change the world according to
his ideas”5. Therefore, the question is not weather public administration and governance should adjust
to the needs of the country and its citizen or not, but “how to adjust”6?! “Design a strategy and unlock
internal resources in order to enhance and keep competitiveness.”7 One of the necessary strategies is
through use of ICT and establishment of eGovernence and mGovernence.

For BiH, the inevitable strategic, political, economic, administrative and legal change are an
anticipated reality – though it can not be forced. It is now at a turning point of its existence. Political

5 Shaw, B. (1999)
6 Svetlicic, M., (2006)
7 Svetlicic, M., (2006)

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and administrative reforms are indeed necessary for country’s prosperity and inclusion to EU; however
these same reforms require political negotiations that often seem as an endless, vicious circle where
the average citizen does not feel the benefits. That is why it is necessary to introduce ICT,
eGovernence and mGovernence in these streams in order to speed up the process PAR through use of
ICT can serve as a catalyzer for administrative and legal resolution, pushing the country toward a
solidified political and economic environment.

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