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