1. Seminario y Rondade Negocios Tecnologa dela Informacin Corea - Argentina Dr. Alejandro Prince Prince & Cooke Buenos Aires28 septiembre 2009

2. Agenda

ICTmarket & industry

ICT human capital

ICT trends & opportunities

3. ICT adoption in Argentina

Market is strong & resilient

Imitation factor

Macroeconomics strongly affects the curves

Some policies has positive impact on adoption:

Liberalization of Communications

Promotion of consumption

Facts that has strong negative impact on adoption:

Devaluations

Consumers & business expectatives (clima)

4. ICT Adoption USA vs.Argentina - Theoretical Time Penetration % 5. PCs adoption USA vs.Argentina - % householdsUSA Argentina 6. Rogers statusInternet users Mobile PCs Laggards Late majority Early majority Innovators & early ad . 7. Frank Bass:innovation vs. imitation argentine shape imitation Industrialized shape innovation Cumulatedsales Time period 8. Bass quotients Argentina PC, Mobile, Internet users & BB 0,690 0,400 0,700 0,245 q 0,004 0,007 0,001 0,005 P Broad Band Internet users Mobile PCs Quot. 9. Strong & Resilient trends PC sales - thousands units 10. ICT market Argentina

2008 market size: 46.100 millions of $

Growth 08 vs. 07: 23,4%

ICT HumanCapital + 330.000 employees: 1.9% PEA (economically active population)

11. ICT + Cc Sector CompaniesHalf of these HC works in the offer side, another half in large, medium private & public users. Double expected before 2015. 55 % & 99 % respectively is a Critical HR Almost 8.000 companies in ICT total industry + two thirds of employees with universitary or tertiary degrees+ one third, english fluent Annual demand: 15-25.000 employees 12. ICT + Cc Market evolution 13. ICT + Cc market vs. GDP 375.909 447.643 835.000 531.939 312.580 654.439 780.396 14.119 24.390 46.100 19.757 11.923 29.810 37.355 0 100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000 2002 2003 2004 2005 2006 2007 2008 PBI 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000 Mercado TICC 14. IT market split 15. Telecommmarket split 16. Main ICT indicators in millions TV sets + 200 % households TV cable + 60% households Ciber/hot-spots +35.000 points 17. B2C e-commerce 18. Digitaldecade 4,1 5,7 7,6 10 13 16 20 2,6 3,4 4 4,4 5,2 6 7 8,2 4,1 6,6 7,2 6,7 7,8 13,1 18,3 24,1 27,5 33,5 1,43 1,6 2,05 2,3 2,8 3,1 3,7 3,7 3,9 3,8 0 5 10 15 20 25 30 35 40 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Usuarios de Internet (en millones de personas) PC's (en millones de unidades) Telefona mvil (en millones de lneas en servicio) Clientes de Internet (en millones de conexiones 19. * 2FIDE(ajustado por inflacin) Fuente: CCR en base a EPH INDEC / AAM /FIDE $2.200 * 2 Social structure Argentina 2007 Average monthly income per household 15 30 Indigents High class 25 25 Medium high Typical medium class Medium low Low class $9.500 $ 4.000 Poverty line Medium class basket 5 $ 2.200 $1.000 $500 20. PCs vs. portables 21. Fixed vs. mobile linesthousands - lines in service mobile fixed 22. Trends by sector

E-gov - National Digital Agenda

Digital Provinces: San Luis and others on the way

Digital Cities CABA, Junn, Rafaela, Rosario, etc.

Banking & retail: Reluctant.

Agriculture, building? Non critical

Energy, mining, cooperatives, tourism, SMEs

23. Trendsby technology

Biometrics, ICT & public security

Wi Fi/ WiMAX

Trazability (agriculture)

Contents, postproduction, FX, games, etc.

Convergence, triple - cuadruple play?

IP telephony

24. International opportunities

Software & IT Services, from offshoringoutsourcing by price, to value: solutions, contents, creativity

IT clusters, poles & industrial parks

Software promotion law National (Cordoba Province)

Internal market is relatively small, but opportunity to share is not (not only produce or support, but research & development)

25. Market needs

Telecom regulatory frame need clear rules (convergence, satelite, radio law, IP, new taxes on ICT goods)

Universal service must be redefined

New ETAPS (government procurement rules)

Telephony tariffs increase

Improve consumer & business confidence, expectations or clima

26. 2009 ICT Market Scenario Medium to high probability Inflation around 20 % or less GDP growth, negative, around -2,0 % Dollar december: 4 argentine pesos ICT market growth: 9 - 11 %Sustained mainly by : BB, mobile, IT S & Services 27.

Alejandro Prince [email_address]

President of Prince & Cooke www.princecooke.com

Vicepresident Fundacin Gestin y Desarrollo www.fgd.org.ar

Professor at UBA, UTN, UDESA, FASTA, Fundacin Libertad, UP, y otras Universidades.

International lecturer, Author of several papers and books on Information Society & Economy

Licencee on Marketing, Ph.D on Political Science and Ph.DCandidate on Economics.

www.linkedin.com/in/alxprince

www.facebook.com/alejandro.prince