1 © 2005 Nokia EC IL Enabling the Knowledge Society: The Role of Mobile Communications Ilkka Lakaniemi

2 © 2005 Nokia EC IL Outline Global Mobility & Fixed-to-Mobile Substitution Social & Economic Impacts of Mobility The Roles of a Mobile Individual Towards Convergence and a Knowledge-based economy

3 © 2005 Nokia EC IL Subscriptions globally, millions 3 billion by billion by 2010 The Mobile World Source: Nokia at 3GSM Cannes, February e e Current global penetration 29 % Mobile Fixed voice Broadband

4 © 2005 Nokia EC IL % 10% 20% 30% 40% 50% 60% Sources: National Regulators, ITU, Operators 13 Germany Sweden USA Spain France Portugal 55 Mobile voice share of total outgoing traffic minutes Netherlands Switzerland UK Greece Italy China Russia Czech Hungary Austria Finland Norway Mobile Europe: Usage as an Indicator & Driver % World average 2004

5 © 2005 Nokia EC IL Social & Economic Impacts of Mobility Mobility endorses socio-economic development factors (not in order of importance and not exhaustive): 1.community development via network effects 2.efficiency and transparency in governance via improved access and feedback channels 3.social mobility with direct effects on entrepreneurship and gender allocation (focus on developing economies) 4.skills (new competences) and learning improvement via mobility in educational services 5.efficiency in public services via monitoring and faster repair services 6.enhancement of remote working methods via true mobility 7.encouragement in public security perception via remote-monitoring and environmental sensing 8.endorsement of workforce efficiency and productivity via impact on multifactor productivity growth 9.improved public welfare services via efficiency reporting and faster emergency services 10.environmental benefits from improved communication efficiency via reducing transport costs

6 © 2005 Nokia EC IL Inhouse Proximity Society Neighborhood Proximity City Professional Role “Enterprise VPN” Family/social member Role “family VPN” Community/Citizen Role eVoting eGovernment services Consumer Role mShopping mLocationing eLearning Environments mCommerce & Identification Work/Life Balance Well-being & Social Aspects Spatial Solutions & Smart Materials Living Logistics & Maintenance The Roles of a Mobile Individual

7 © 2005 Nokia EC IL Towards Convergence and a Knowledge- based Economy Convergence in technology, user expectations and business models widespread mobile usage among all age and income groups (universal access) competitive advantage via user-centric technologies real-life test beds (Living Labs) Knowledge-based economy changing work patterns and time communication technologies for collaboration and sharing turning aging societies challenge to possibilities – e.g. enhancing public services and productivity