1. The Italian Way to the Information Society Trieste – ICTP February. 28, 2001; Aldo Mariconda – IT Consultant a.mariconda@serenacom.it ICT: just a technicality or also for policy makers? E-Government Re-inventing / Re-engineering ICT and economics Globalisation Italy within the EU framework SWOT considerations

2. Information Society: Does it affect politics ? Globalisation: Markets Competition Economy: Development Mix

3. The World we are living in Evolution from Capitalism to Turbo-Capitalism And, from Geo – politics to Geo - Economics

4. The World we are living in Unemployment as a structural characteristic of the developed countries. Problem: Employment/unemployment Vs. Welfare Tremendous Evolution of Technology New Emerging Markets

5. Globalisation Global competition Deregulated markets Skilled labour shortage Labour costs Productivity – Quality Reduced cycle time Customer satisfaction

6. Global Issues Re–inventing:Politics,Welfare Re – engineering processes Focusing a growing demand for better and more differentiated services

7. The ICT World Market - 1999 Source: ASSINFORM / NetConsulting 19981999 +11.4% 1.873 1.682

8. The Italian ICT Market +10.6 % +14.6% 84.721 95.898 13.2% Source: ASSINFORM / NetConsulting

9. Internet Users in main developed Countries Source: ASSINFORM / NetConsulting su Computer Industry Almanac Japan US Spain Italy France Germany UK (in % on Total population)

10. Macro-economics Indicators related to ICT expenditures Source: ASSINFORM / NetConsulting Expenses per Employee - US $ Spain Italy France Germany UK Japan US Spain Italy France German y UK Japan US % ICT expenditures on GNP Spain Italy France Germany UK Japan US Per-capita expenditures US $

11. PC installed – Millions PC per 100 Inhabitants 4.7 7.7 13.2 18.2 20.6 31 Fonte: Assinform / NetConsulting 12 13 22 3125 47 US Japan Germany UK France Italy Spain 125 PC installed - 1999

12. ICT Market in main EU Countries: size and growth Source: Assinform / NetConsulting Milions $  % Values in Billions $ - % Variations 1999-1998 IT TLC Italy United Kingdom France Germany Spain

13. Internet Users in Italy (1997-1999) Source: Assinform NetConsulting su Computer Industry Almanac 198% 88% 125.5% Millions of Users – Diff. %

14. The market: Software and IDP Services Fonte: Assinform / NetConsulting 8.2% 10.9% 10.6% 13.7% 12.9% 17.676 16.090 9.9% 19.950 Values in Billions - % Variations 1999-1998

15. The Market: TLCs (1998-1999) Source: Assinform / NetConsulting Values in Billions - % Variations 1999-1998 46.030 15.3% 39.930 86% 13% Infrastructures Terminal Systems Fixed tel. Mobile telephony Data transmission VAS

16. Mobile telephony in Italy Source: Assinform / NetConsulting % Mobile TLC on Total TLCs Market 1998 34.6% 20.499 30.295 47.8% Active Users (000) 1998 39.8% 1999

17. Digital TV 1999 – Source: Intermedia Consulting

18. Skilled Labour Shortage – Source: IDC

19. Italy: Deregulation Jan 1 st 1998 Privatising Telecom Italia No asymmetric conditions for New Entrants Local Loop: Telecom Italia Existing alternative networks: railways, highways, ENEL (electricity), ENI (gas)

20. Strengths State decreases its role into the economy, when selling Telecom Italia > 100 New Entrants Competition: lower telephone bill Emerging New Needs: Internet, e-commerce, etc. > 35 Millions Mobile Phones

21. Weaknesses 1/1/1998: lack of policies to promote alternative networks Cases of Unfair Competition not rapidly solved by appointed Authorities/Courts Lack of a global policy to introduce Information Society Difficult Start-up of DTV - regulation

22. Opportunities Unbundling of the Local Loop: 2001 Blow-up of new initiatives: Cities & Towns promoting alternative networks – Multiutilities (controlled by Municipalities, enter the business of cabling and servicing)

23. Treats Low commitment of politicians Low processes in Re-inventing Public Administration, Welfare, Decision making at Governmental level “Old Economy” still prevailing Low R & D investments: < 1% of GNP (in general, not specifically for ICT) Skilled Labour Shortage

24. Treats Low flexibility in labour regulations Heavy tax burden State re-enters into the TLCs business: ENEL (the State controlled Electricity company) with WIND – fixed and mobile telephony. Acquisition of INFOSTRADA from Vodafone

25. Sweden: a meaningful example Anticipated TLCs deregulation: 1993 1994: Stockholm creates an alternative network – STOKAB AB 1994-95: E-Procurement A general directive to Public Administration, at DPT level: buying from best competitors Training, education, e-commerce, e-learning, e-working, etc.

26. Urban living and TLCs Source: World Bank, World Development Indicators, 2000 Countries High Income 24,430 US $ Medium Income 5,000 US $ Low Income 1,800 US $ Urban Population 1998: % of the Total 77%65%30% Telephone Lines x 1,000 inhabitants 56714535 Mob. Phones x 1,000 inhabitants 265408 Internet users x 1,000,000 inhabitants 6,0701303