The Italian Way to the Information Society Trieste – ICTP February. 28, 2001; Aldo Mariconda – IT Consultant ICT: just a technicality or also for policy makers? E-Government Re-inventing / Re-engineering ICT and economics Globalisation Italy within the EU framework SWOT considerations

Information Society: Does it affect politics ? Globalisation: Markets Competition Economy: Development Mix

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 Source: ASSINFORM / NetConsulting %

The Italian ICT Market % +14.6% % Source: ASSINFORM / NetConsulting

Internet Users in main developed Countries Source: ASSINFORM / NetConsulting su Computer Industry Almanac Japan US Spain Italy France Germany UK (in % on Total population)

Macro-economics Indicators related to ICT expenditures Source: ASSINFORM / NetConsulting Expenses per Employee - US $ Spain Italy France Germany UK Japan US Spain Italy France German y UK Japan US % ICT expenditures on GNP Spain Italy France Germany UK Japan US Per-capita expenditures US $

PC installed – Millions PC per 100 Inhabitants Fonte: Assinform / NetConsulting US Japan Germany UK France Italy Spain 125 PC installed

ICT Market in main EU Countries: size and growth Source: Assinform / NetConsulting Milions $  % Values in Billions $ - % Variations IT TLC Italy United Kingdom France Germany Spain

Internet Users in Italy ( ) Source: Assinform NetConsulting su Computer Industry Almanac 198% 88% 125.5% Millions of Users – Diff. %

The market: Software and IDP Services Fonte: Assinform / NetConsulting 8.2% 10.9% 10.6% 13.7% 12.9% % Values in Billions - % Variations

The Market: TLCs ( ) Source: Assinform / NetConsulting Values in Billions - % Variations % % 13% Infrastructures Terminal Systems Fixed tel. Mobile telephony Data transmission VAS

Mobile telephony in Italy Source: Assinform / NetConsulting % Mobile TLC on Total TLCs Market % % Active Users (000) % 1999

Digital TV 1999 – Source: Intermedia Consulting

Skilled Labour Shortage – Source: IDC

Italy: Deregulation Jan 1 st 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 politicians Low 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: : Stockholm creates an alternative network – STOKAB AB : 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 TLCs Source: 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 Mob. Phones x 1,000 inhabitants Internet users x 1,000,000 inhabitants 6,