1. Measuring ICT in Europe – EITOs experience Axel Pols German Association for IT, telecom and new media (BITKOM) European Information Technology Observatory (EITO) Geneva, 2 June 2006 Digital Transformations in the Information Society meeting

2. European Information Technology Observatory - members and sponsors SponsorsFounding members

3. EITO – general information Broad and unique European initiative, founded in the early nineties Publishes the established yearbook for the ICT and CE industry in Europe Contains detailed data and information both by country and by market segment Presents special studies on topics of particular interest Produced by the EITO Task Force experts in co- operation with leading market research institutes

4. EITO 2006 - contents The evolution of the European E-economy The ICT market in Europe The digital broadband value-added services industry and markets in Europe: P2P networks and markets The CE market in Western Europe Statistical outlook

5. EITO Statistics in terms of OECD framework READINESS ICT investment, ICT spending, ICT occupations, telecommunication access paths, broadband penetration rates, Internet hosts, number of Websites, Internet access prices USE Internet subscribers, PC per population, Internet use by households and individuals, Internet use by enterprise size and industry, Internet transactions IMPACTS Value added, employment, R&D and patents in ICT industries, trade in ICT goods, cross-border mergers, acquisitions, alliances Source: OECD in red: covered by EITO

6. Analysis of ICT spending: some challenges Evaluation of data quality: variety of sources, concepts, definitions Market segmentation: distinguish temporary from permanent developments The concept of end-user spending: what is the price of a cellular phone? Exchange rate issues Nominal versus real changes

7. Benchmarking ICT spending (1) ICT expenditure as % of GDP: the higher the better? Source: EITO 2006 in co-operation with IDC

8. Benchmarking ICT spending (1) ICT expenditure as % of GDP: the higher the better? Level of ICT infrastructure: need to catch up? Different price levels Efficiency of expenditure Economic structure Consumer versus business spending

9. Benchmarking ICT spending (2) ICT expenditure per capita: what the figures (dont) tell Source: EITO 2006 in co-operation with IDC

10. Benchmarking ICT spending (2) ICT per capita: what the figures (dont) tell Comparative price levels? Consumer versus business spending Concentration of expenditure (age, income, region)

11. Conclusion: indicators need to be interpreted carefully Combine supply-side and demand-side analysis Try to distinguish between ICT spending of consumers, business, and public sector Look at comparative HW, SW, Services shares in total ICT Look at share of consumer budget spent on ICT Consider growth dynamics

12. More information and contact German Association for information technology, telecommunications and new media (BITKOM) www.bitkom.org European Information Technology Observatory www.eito.com Axel Pols - a.pols@bitkom.org