Accelerating Broadband and ICT Adoption
John DaviesVice President, Intel CorporationMay 2014
Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
2
Intel’s Vision
• “This decade we will create and extend computing technology to connect and enrich the lives of every person on earth this decade”.
Mr. J. Davies launching Reaching the Third Billion program at ITU TW’11 opening
ceremony
“Create and extend computing technology to enrich the lives of every student on earth this decade”
Intel’s Education Mission
3
Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
4
Broadband Impact• IDB: 10% BB growth in LAR GDP + 3.2% ,
Productivity + 2.6%
• World Bank: 10% BB growth in Low/Med incomes GDP +1.38%
• ITU: +11% Panama growth 2005-2011 due to broad band growth
Economic Growth
• Katz: Dominican Republic-1% in BB growth= + 0.29% employment
• Turkey: BB could create 180,000-380,000 new jobs per year
• Connected Nation: Kentucky employment +63,000 in 2 years
Employment Growth
• USA 2009: 8 million people study on-line, 24% Growth per year
• USA- 85% of new employment needs intensive computing use
• OECD: broad band at home improves learning at school
Education Quality
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
732M
860M
533M
1145M
BRICTIM Population that can af-ford BB
BB
as
a %
of
In-
com
e Need low cost Prepaid BB
Need Government Support
80% can’t afford Broadband at 3% income threshold,
(*) Source: ITU report 2010. Measurement of the ICT development
Can afford ~ $20/month
IndiaChallenges:• Availability• Affordability• Skills + Awareness
Solutions:• National Broadband Plans with
goals • Policies for competition +
spectrum
• Utilize Universal Service Funds
• Digital Literacy and Demand Creation
IndonesiaChallenges• Broadband 2/3 of the overall cost • Less than 10% could afford BB
cost • Reduce BB cost to reach more
people
Solutions• May 2013 launched with Telkom
Free 120 hours + 240 hours with $0.50
• Top-up for 6-mo • Demand Creation Awareness
Telekom: ~1M new subscriptions in first 3 months due to Intel program
Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
9
10
Intel Education
Our vision Advance excellence in education worldwide
Our mission Create and extend computing technology to enrich the lives of every student on earth this decade
Intel Investment in Education
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Transforming education in 100 countries
Professional development for 12M teachers
7M students annually in Intel STEM Fairs
Tools for Digital literacy + jobs creation skills
$1B invested in the last decade
Objectives 2008 2010
Teachers ICT Certification
8% 90%
Students per PC
9:1 2:1
Household PC Penetration
43% 70%
Portugal – Education Transformation
Start - 40% Funds from 450M Eu 3G Spectrum fee Today – 100% have PC , local
industry + Content
Concept Before After
Laptop (prior to duties) 3 options.. ~$400 ~$270
Import duties on Notebook (30% went down to zero) ~$120 $0
Interest rate (1 year loan, 14% went down to 5%) ~$80 ~$13
Internet cost (Pre-paid package special for students instead of post-paid) ~$640 ~$46
Subtotal~$1,240 ~$430
Government subsidy (50% of overall cost) ~$215
Cash~$1,240 ~$215
Monthly payment fee for students (all students qualifies) ~$100 ~$16
Senegal - College PC Program
Demand aggregation : Laptops
Import duties from 30% to zero
Interest rate from 14% to 5% (and available for every college student)
Internet package, from post-paid to pre-paid, special for college students
Government subsidy, from none to 50% of overall cost.
2,000 Students 20,000 in 2013 with program
StudentsPRC, India
CMCC, CTC, CUC, Reliance… Parents for their kids’ EducationIndo, Thai, VietnamTelkom, DOT, VNPT…
Teachers for improving their capabilities/IT
skillsNigeria
Airtel, Etisalat, MTN
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Prepaid Broadband and Education
Students Central America
Claro
Leadership Education Programs in LAR
Colombia VenezuelaPanama Argentina
Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
16
Public and Private Partnership
Broadband Best Practices : BB commission
Affordability: Loans, Taxes
House-hold Broadband penetration: Licensee fees, USF
• Education: BB Nat’l plans and USF
Brasil Senegal
Colombia
South Africa
Malaysia
Turkey
BB commission meeting in Mexico
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USF/BB Conferences
• 3 Major conferences in 2013• Intel event with Gov. and ITU
collaboration• 50+ countries, 200+ officials, $40B
USF
•Upcoming Events:• June 24-27- Cape Town, South Africa• September 23-26 in Guadalajara
Mr. John Davies @ WW USF conference in Istanbul
Dr. H. Toure, SG ITU @ WW USF conference in Istanbul
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Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
19
• Start with Long Term Plan to benefit Citizens, SMB , Students
• Includes…
How to - Public and Private Partnership (Gov + Telco + Industry)
Reach - Universal Service Funds to boost Broadband Access
Afford - Prepaid Broadband + Low cost device + Content
Add Value – maximize local jobs + productivity
Must do - Education transformation for employment skills
Summary
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Thank you!
Sri Lanka: Pre-paid catalyzes Broadband
growth• Government pushed digital agenda reducing devices’ taxes and enabling online
services
• Telcos launched pre-paid broadband packages in Q1’10.
• People that could afford Broadband cost at 3% threshold went from ~15% to ~70%.
Source: Billboard in centric Colombo street
Sources: Euro monitor, CIA Fact book, ITU, Intel
Prepaid model applied to Broadband drives incremental
subscribers for Telcos
Program recognized @ WW level
Pre-paid Broadband is viral in Emerging Markets
Live in 59 countries ~20+ million bundles sold
~40% TCO reduction
~1.2B additional people can now afford (3x+)
2012 BB Commission report
2012 World Economic Forum
report
2013 UNESCO Education report
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Benefit of Connectedness
Staying connected to your friends,
family and to what’s going on in the
world
Benefit of Personal/ Family Advancement
Furthering your education, your career and providing benefits for the whole family
Benefit of Freedom
Having the ability to access a PC anywhere,
anytime for convenience and to keep your data safe
Source: Intel Research. Q4’13
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Education is #1 family motivation for technology adoption