1. The European way to think the Digital World www.idate.org ICT market dynamics and development models in Asia IDATE Foundation seminar November 19, 2003

2. IDATE © 2003 www.idate.org 2 November 19, 2003 Asian DigiWorld market increasing rapidly  Now more than a quarter of the DigiWorld 1 market... ... But still behind in relative terms (half of the world population is located in Asia) DigiWorld markets by region (2002) 1 ICT + e-contents

3. IDATE © 2003 www.idate.org 3 November 19, 2003 With strong imbalances  Telecommunications account for more than 50% of the regional DigiWorld market (vs. 44% at the world level) and were still growing at an average rate of 10% over the past 2 years (vs. 5% for world annual growth) Growth of the telecom services market in Asia-Pacific (billion US$)  Japan, South Korea and China account for more than two thirds of the regional DW market

4. IDATE © 2003 www.idate.org 4 November 19, 2003 The « i-mode » success in Japan  There are now more than 65 million users subscribing to i-mode or DoCoMo competitor equivalents  ARPU stands at a very high level (70US$ per month) with data accounting for 20 to 33% and a highly innovative non-voice market Growth of the cellular subscriber base in Japan

5. IDATE © 2003 www.idate.org 5 November 19, 2003 Broadband access for all in South Korea  60% of South Korean households have broadband access  2 South Korean operators rank in the top 5 world broadband access suppliers Top world broadband access suppliers (end 2002)  3G is also increasing rapidly on the mobile side OperatorRetail broadband subscribers (millions) 1KT5.4 2Comcast4.4 3Deutsche Telekom3.9 4NTT3.1 5Hanaro Telecom2.9

6. IDATE © 2003 www.idate.org 6 November 19, 2003 China booming  More than 500 million telephone subscribers (50% fixed/50% cellular)  China Mobile and China Telecom ranking 14 th and 15 th among the top world operators in 2002  First massive development of fixed wireless solutions Growth of the telephone subscriber base in China (in millions)

7. IDATE © 2003 www.idate.org 7 November 19, 2003 Telecom equipment markets  Asian manufacturers finally enter the equipment market (mobile handsets in particular)  A spectacular development of South Korean manufacturers (Samsung, LG) + Chinese manufacturers emerging from early delevopments in their domestic market (Huawei, ZTE) Trends in the world telecom equipement market by region (US$, 000s)

8. IDATE © 2003 www.idate.org 8 November 19, 2003 Also major IT issues  For years, PC and other data processing equipment produced locally through licensing agreement  Particular development of IT services and call centers in India  Domestic shipment markets become very significant An exploding Indian IT service industry

9. IDATE © 2003 www.idate.org 9 November 19, 2003 The Media Industry  Still a fragmented market  Cable will be the driving force in Asian pay TV  Some medium sized countries leading the way (more than 1 million satellite TV subscribers in Malaysia)

10. IDATE © 2003 www.idate.org 10 November 19, 2003  A laboratory for innovative products and services  A skilled and cheap workforce  Still room for progress:  China has only a 17% penetration rate in cellular telephony (also in fixed telephony!)  India and Indonesia are 2 very large markets with only little development today  Secondary markets are also developing rapidly (Malaysia, Philippines, Vietnam...) Still an impressive potential