eEuropeor

The Uptake of Information TechnologyIstanbul, 9 November 2000

Horst Forster

European Commission

The New Economy and the Knowledge Society

New technologies are driving the economy

• all sectors, all business• increase productivity• create new business• open new markets

=> A networked economy is the key factor => A networked economy is the key factor for growth, competitiveness and employmentfor growth, competitiveness and employment

New Economy and Productivity Gains

• Increasing role of ICT

• Rapid-pace innovation

• Restructuring of

enterprises and markets

• Strong non-inflationary growth /

Low unemployment

Source: The Economist, Sept. 2000

Technology improvements + Technology improvements + New ways of working =New ways of working =Increase of productivityIncrease of productivity

US non-farm productivity grew by an annual average of 3.5%

Output per hour

Onward and upward American productivity:

1972 74 76 78 80 82 84 86 88 90 92 94 96 98 99

70

80

90

100

1101992=100

Trend

Actual

1%

2.2%

3.5%

Mobile PenetrationMobile Penetrationper 100 inh. End 1999per 100 inh. End 1999

Source: ESIS

0 20 40 60 80

Turkey

Germany

Belgium

France

Greece

United Kingdom

Portugal

Italy

Denmark

Finland 66

53

52

47

36

35

31

28

9

40

EU average: 44

Internet PenetrationInternet Penetrationper 100 inh. End 1999per 100 inh. End 1999

0 10 20 30 40 50 60 70

Turkey

Greece

Italy

Portugal

France

Germany

Belgium

Finland

United Kingdom

Denmark 61

49

40

39

36

31

22

20

11

2,5EU average: 34

The Technological Drivers

Technological Challenges

More handsets connected to the Internet than PCs by end of 2004 More handsets connected to the Internet than PCs by end of 2004

1,400

1,200

1,000

800

600

400

200 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

IPHandsets

Projected CellularSubscribers

Projected PCs Connected tothe Internet

Million Mobile meets InternetMobile meets Internet

Societal Challenges The “Digital Divide”

Within RegionsWithin Regions

0

10

20

30

40

Education Income

20+ 16-19 Up to 15 ++ + - --

% Online EU-15

Regional DivideRegional Divide

23,5%

16,7%

0,4%

55,9%

2,6%0,9%

Middle East

CanadaandUnitedStates

Latin AmericaAfrica

Asia-Pacific

Europe

Internet Penetration

Other Societal Challenges

• Skills shortage of qualified employees for ICT industry– demand of IT and eBusiness skills will grow in Europe

from 14.4 million in 2000 to 22 million in 2003– skills shortage growing from 1.9 to 2.8 million equivalent

jobs

• Improving network security and combating cybercrime– ‘trust in the information society’

• Bring every citizen, school, business and administration online

• create a digitally literate and entrepreneurial Europe

• ensure an inclusive information society

ObjectivesObjectives

• Cheaper, faster, secure Internet– Cheaper and faster Internet access– Faster Internet for researchers and students– Secure networks and smart cards

• Investing in people and skills– European youth into the digital age– Working in the knowledge-based economy– Participation for all in the knowledge-based economy

• Stimulating the use of the Internet– Accelerating e-commerce– Government online: electronic access to public services– Health online– European digital content for global networks– Intelligent transport systems

€160 bn

€191 bn

1999 2000

Telecoms servicesmarket

218

557

1998 1999

Network operators

Fast-growing market

More choice Some prices down

Incumbentsstill dominate

96%

Incumbents’market share

1997 / 1999

91%Prices

1997 / 1999

- 40%

international

local

+ 7%

Telecom liberalisation of 1 Jan 1998: Work in progress

The Telecom Package

Spectrum

Decision

(Art. 95)

Liberalisation

Directive

(Art. 86) Framework

Directive

(Art. 95)

Authorisation Directive

Access & Interconnection Directive

Users’ Rights Directive

Data Protection Directive

Unbundled local loop Regulation

IST Programme 3.6 B€1998 - 2002

Research networkingResearch networking

Future & emerging technologies

Systems & services for the citizen

Essential technologies& infrastructure

319 M€

646 M€ 547 M€564 M€

1363 M€

161 M€

Multimediacontent & tools

New methods of working & electronic commerce

Some ideas (1)

=> Improve access to Internet=> Improve access to Internet• techno-economic studies of best options

• join GEANT

• high speed access for universities

Some ideas (2)

=> Investing in people and skills=> Investing in people and skills• provide school access in Internet

• promote eLearning

• training and retraining

Some ideas (3)

=> Stimulate eCommerce=> Stimulate eCommerce

Funding opportunities

IST ProgrammeIST Programme (1998-2002, 3.6 B€)

EU Pre-accession FundsEU Pre-accession Funds EU Delegation in Turkey (2001, 150 M€ for 2001)Participation in 5th FP (60 M€ for 2001)

The EUMEDIS InitiativeThe EUMEDIS Initiative (56 M€ for 2001)Funding of regional Pilot Information Society projects

Turkish Participation in the IST Programme

• IST-TÜBITAK arrangement• http://www.tideb.tubitak.gov.tr/e-ist.html

EC Programmes Industry

Dedicated National

Funds