The Italian Way to the Information SocietyTrieste – ICTP February. 28, 2001; Aldo Mariconda – IT Consultant

a.mariconda@serenacom.it

ICT: just a technicality or also for policy makers?E-GovernmentRe-inventing / Re-engineering ICT and economicsGlobalisation

Italy within the EU frameworkSWOT considerations

Information Society: Does it affect politics ?

Globalisation: Markets Competition

Economy:DevelopmentMix

The World we are living in

Evolution from Capitalism to Turbo-Capitalism

And, from Geo – politics to Geo - Economics

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

Globalisation

Global competition

Deregulated markets

Skilled labour shortage

Labour costs

Productivity – Quality

Reduced cycle time

Customer satisfaction

Global Issues

Re–inventing:Politics,Welfare

Re – engineering processes

Focusing a growing demand for better and more differentiated services

The ICT World Market - 1999

Source: ASSINFORM / NetConsulting

57,5%

42,5%

19981998

57,8%

42,2%

19991999

+11.4%1.873

1.682

The Italian ICT Market

29.471

55.250

32.608

63.290

1998 1999

IT TLC

+10.6 %+10.6 %

+14.6%+14.6%

84.72184.72195.89895.898

13.2%13.2%

Source: ASSINFORM / NetConsulting

Internet Users in main developed Countries

Source: ASSINFORM / NetConsulting su Computer Industry Almanac

Japan

US

Spain

Italy

France

Germany

UK

41,8%

14,5%

24,9%

15,2%

9,5%

8,2%

7,4%

(in % on Total population)(in % on Total population)

Macro-economics Indicators related to ICT expenditures

2580152015431525

1694953

705

0 1000 2000 3000

1253790

694657636

336228

0 500 1000 1500

Source: ASSINFORM / NetConsulting

Expenses per Employee - Expenses per Employee - US $US $

SpainItaly

FranceGermany

UKJapan

US 4,13,33,3

2,92,9

1,71,4 Spain

ItalyFrance

Germany

UKJapan

US

% ICT expenditures on GNP% ICT expenditures on GNP

SpainItaly

FranceGermany

UKJapan

US

Per-capita expendituresPer-capita expendituresUS $US $

PC installed – Millions PC per 100 Inhabitants

4.7

7.7

13.2

18.2

20.6

31

Fonte: Assinform / NetConsulting

12

13

22

31

25

25

47US

Japan

Germany

UK

France

Italy

Spain

125

PC installed - 1999

ICT Market in main EU Countries: size and growth

Source: Assinform / NetConsultingMilions $

%Values in Billions $ - % Variations 1999-1998

6%

8%

10%

12%

14%

16%

0 10 20 30 40 50 60 70 80 90 100 110

IT

TLC

Italy

United Kingdom

France

Germany

Spain

Internet Users in Italy (1997-1999)

Source: Assinform NetConsulting su Computer Industry Almanac

198%

88%

125.5%

Millions of Users – Diff. %

0,84

2,5

4,8

10,6

1997 1998 1999 2000 (prev.)

The market: Software and IDP Services

Fonte: Assinform / NetConsulting

4.900

11.190

5.300

12.376

5.880

14.070

1997 1998 1999

Software Services

8.2%10.9%

10.6%13.7%

12.9%17.676

16.0909.9%

19.950Values in Billions - % Variations 1999-1998

The Market: TLCs (1998-1999)

Source: Assinform / NetConsulting

Values in Billions - % Variations 1999-1998

38.700

1.23043.740

2.290

1998 1999

Servizi di trasporto Servizi a valore aggiunto

46.030

15.3%

39.93086%

13%

56%

44%

Infrastructures

Terminal Systems

5%

5%

38%

52%Fixed tel.

Mobile telephony Data transmission

VAS

Mobile telephony in Italy

Source: Assinform / NetConsulting

% Mobile TLC on Total TLCs Market

1998

34.6%

7.099

13.400

7.995

22.300

1998 1999

Contratti Carte prepagate

20.499

30.29547.8%

Active Users(000)

1998

39.8%1999

Digital TV1999 – Source: Intermedia Consulting

- 1.000 2.000 3.000 4.000

Europe

Italy

DTV: Market Size - Billions €

Serie1

Skilled Labour Shortage – Source: IDC

-

50.000

100.000

150.000

200.000

250.000

Demand

Offer

Difference

Demand 111.826 127.812 215.656

Offer 37.420 52.960 76.016

Difference 74.406 74.852 139.640

year 2000 year 2001 year 2002

Italy: Deregulation Jan 1st 1998

Privatising Telecom Italia

No asymmetric conditions for New Entrants

Local Loop: Telecom Italia

Existing alternative networks: railways, highways, ENEL (electricity), ENI (gas)

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

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

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)

Treats

Low commitment of politiciansLow 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

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

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.

Urban living and TLCsSource: 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

567 145 35Mob. Phones x 1,000 inhabitants 265 40 8Internet users x 1,000,000 inhabitants

6,070 130 3