The Impact of Broadband on Economic Development ATIF forum in DOHA May 30th and June 1st, 2004. By Pierre-Alain CADILLON Country Senior Officer UAE, Qatar, Oman and Kuwait. Email: Pierre-Alain.Cadillon@alcatel.fr

ICT is essential for productivity growth Labour Productivity Measured as GDP per Employed Worker, 1995-2001 US € ‘000 EU2 Average Growth in Labour Productivity (GDP per hour worked), %Points, 1995–2000 EU U.S. Source: EITO; OECD;Eurostat; DG Economics and Finance, European Commission; Groningen University and The Conference Board; Monitor Analysis

We are entering a new wave… Source: Merrill Lynch

Broadband Penetration as a Percentage of Households, Q2 2002–Q3 2003 Broadband Penetration Growth Broadband Penetration as a Percentage of Households, Q2 2002–Q3 2003 80.2% South Korea 20.4% USA 11.3% EU India 0.06% Source:: Barkerville Telecom Markets 3Q-2004 overview

Broadband deployment worldwide

Content & services will provide added value growth While today most value still resides in the connectivity layer, in the future it will lie in the service layer… Services Service development creates big opportunities for local enterprises Connectivity More and more of the content will be local ARPU (€) Services Connectivity Today Future Source: Monitor Analysis

Impact on small & medium size enterprises

e-Business: improving efficiency SME’s: improve links with customers and suppliers Information driven businesses: banks, travel, …: a business revolution Teleworking: greater efficiency, less traffic jams, greater quality of life

Services for the consumer

New broadband services for residential market PC Centric TV Centric Video/audio streaming On-line gaming Virtual models and tours E-mail, chat, and instant message On-line care Music download Video conferencing On-line gaming Virtual models and tours E-mail, chat, and instant message Video broadcast/VoD BOTH

Impact on productivity of public services

Public Services: Improve access & quality Access to essential health services: e-Health: the way to better use scarce competences at distance Access to education: e-Learning: a tool to universalize the access to knowledge e-Government simplifies administrative processes

e-Health Clusters e-Health Systems for health Systems for citizens Professionals Systems for citizens Systems for patients Linking to Care Provider Intelligent call centers Innovative access to health related information Emergency situations solutions Digital imaging and transfer Access to patients’ files from anywhere Collaborative work Mobility of health professionals Continuous medical training Tele-monitoring Tele-consultation Patient education Patient’s comfort within the hospital

e-Education

Advantages of broadband Improving greatly the efficiency of traditional economic sectors in a sustainable way Opening the world market to SMEs Enabling e-Education and e-Government services and applications adapted to local needs Key for improving population’s well-being & optimizing scarce resources in the health sector

Conclusions from the past years Regulation needs to be clear and not limit new services introduction Broadband penetration is essential for services development Governments should invest in e-Government, e-Health and e-Education

Alcatel value proposition in Broadband Our Commitment “Alcatel invests more in Broadband than anyone else” Our Vision Your Our impact Success Reach and Bandwitdh Services Resource Broker & subscribers scaling Profitable applied solutions Access convergence A true Broadband partner Ability to meet operators service requirements Better proven reliability Right first time installation Alcatel is in the middle of this new business Alcatel has shipped more than 26 Million DSL lines worldwide Alcatel is key contributor in standardization bodies (DSL Forum, Broadband Content Delivery Forum, IETF,…) Alcatel has created a new business division addressing the market of broadband entertainment and multimedia, offering: End to end solutions for service providers System integration with partners Professional Services including broadband consulting (Fast Forward program) Alcatel launched new broadband access products: 7301 ASAM, 7340 FTTU Alcatel has made acquisitions to enable a full offering: Imagic TV Aravox Timetra Outline

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