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