1. Re-inventing Internet Usage Souheil MARINE Business Development Manager, MAI ITU Symposium: African ICT Roadmap To achieve NEPAD Objectives Arusha, April 1st 2003 ITU Symposium: African ICT Roadmap To achieve NEPAD Objectives Arusha, April 1st 2003

2. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 2 All rights reserved © 2003, Alcatel Source: ITU Developing Country Challenge: Access to Information > How Teledensity and economic growth are linked together? A key issue for economic and social development? … to be urgently addressed, especially in rural (isolated) areas? > What kind of services? Telephone, Internet, … Individual or community access Prerequisites Tunisia

3. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 3 All rights reserved © 2003, Alcatel A real need From End-user to Network Infrastructure More Bandwidth Multiservice Network Multiservice Network Communication POTS, E.Mail, Chat Local Information HealthCare, Food Administrative Education Basic ICTs e.Commerce Neighborhood International Better Quality of Service Cybercenters Operators Administrations Entreprises TV Videoconference

4. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 4 All rights reserved © 2003, Alcatel How to take up the challenge? “Dream solution” for Rural Telephony dedicated subsidies obligation of services (incumbent operator) Universal Access: Affordability & Accessibility Line Cost ARPU Low High Urban Rural The famous dilemma!

5. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 5 All rights reserved © 2003, Alcatel User Demand is much higher than Offer Funding is the cornerstone ! Profitability and Sustainability can be proven Demand Solvency Added Revenues from Internet services Universal Obligation Funds Bridging Digital Divide initiatives Universal Access Funding

6. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 6 All rights reserved © 2003, Alcatel Rural Telecom is not as unprofitable as … it is said ! > Incoming call revenues are not taking into consideration in the business model > Profitability issue must be reconsidered, taking advantage of potential service Internet revenues > Population solvency is much better than foreseen Community Access, Prepaid will improve population solvency Real population income is much higher than GDP (--> PPP) Still network development approaches are …. too much individual access oriented forgetting Internet opportunities

7. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 7 All rights reserved © 2003, Alcatel Internet will remain irrelevant, if …....merely duplicating industrialized world usage & applications Internet Penetration 3 %…? Scenario 1 : “Niche Market” Content relevancy...? Bandwidth requirement…? Investment capability…? Market size…? Worldwide Browsing Tele-medicine & education Global e-Commerce, ….

8. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 8 All rights reserved © 2003, Alcatel Funding is the cornerstone! CAPEX OPEX INFRASTRUCTURESINFRASTRUCTURESINFRASTRUCTURESINFRASTRUCTURES FUNDINCGFUNDINCGFUNDINCGFUNDINCG ?? Demand solvency ? Investment Capability?

9. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 9 All rights reserved © 2003, Alcatel ICT Diffusion Critical Success Factors Affordability & Accessibility Initiatives & Policy Adequacy & Relevancy Awareness & Expertise Services Cost Governments Populations

10. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 10 All rights reserved © 2003, Alcatel Usage is the Key enabler A Business oriented approach Usage Traffic Revenue Investment Capability Network Capacity … neither Technology driven … nor Philanthropic

11. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 11 All rights reserved © 2003, Alcatel INTERNET, as Public Utility INTERNET, as Public Utility Internet can leapfrog development, if... Internet is seen as a prime Communication Tool offering useful end-user services based on local content via Community Access 3 %...? 30 %..? Internet Penetration Scenario 2 : “Mass Market” … to Reinvent Internet Usage ! … to Reinvent Internet Usage !

12. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 12 All rights reserved © 2003, Alcatel A “virtual” market place Professional Tool to manage Food price on real time The cost of the service is quickly paid back by the increase of producers’ margins Price consultation by small producers Internet WAP platform Price Web Site Price collection on town’s markets Price consultation by traders

13. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 13 All rights reserved © 2003, Alcatel Leveraging Pediatrician Services Sick children for Medical Visit (100 per month) Alerts Weight Data 1500 «subscribed» Children Internet Weight Collection & Alerts

14. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 14 All rights reserved © 2003, Alcatel ICT-based Development Model New virtuous circles Trans parent Market Place Time & Expense saving Job creation Private Funding Economic Development Public Funding Governance Education Healthcare Rural stability Social and political Development Local Development Distance, Illiteracy,... Needs for Information @ as most affordable communication infrastructure Demand for Telecom Services

15. ITU Symposium: African ICT Roadmap to Achieve NEPAD Objectives, April 2003 - 15 All rights reserved © 2003, Alcatel From usage to Infrastructure…. Traffic Revenues Network capability Investment potential USAGE INFRASTRUCTUREINFRASTRUCTUREINFRASTRUCTUREINFRASTRUCTURE … to demonstrate investment pertinence ServicesFinancing

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