Vive Digital - OECD Keynote

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Vive Digital - OECD Keynote

  1. 1. Our responsibility as an industry is to expand Internet usage in order to reduce poverty Poverty rate (< US 1,25 (PPP), 2005 Relationship between poverty and Internet users 100 90 More 80 Internet 70 60 Less Poverty 50 40 30 20 10 0 20 40 Internet user x 100 inhabitants 2009 SOURCE: UNCTAD, Information Economy Report 2010 60
  2. 2. The technology Development creates Jobs directly and indirectly . Multiplier Effect Filipinas Jobs Multiplier Effect India 3,0 Jobs Multiplier Effect Colombia - Manizales 3,6 Rate Unemployment X3,6 X2 1,0 Technology Jobs 2,0 Economic Jobs 17% 1,0 Technology Jobs Economic Jobs SOURCE: Raul Katz, Universidad de Columbia, 2010, UNCTAD Information Economy Report 2010, NASSCOM 10% 8.500 Employee Payroll 10.000 Jobs directly
  3. 3. And ICT has a great impact on productivity and competitiveness Global Competitiveness Index 2013 - 2014 5.8 5.6 5.4 Germany Japan 5.2 5.0 Malasia 4.8 Vietnam México Perú 4.4 4.2 4.0 Corea Israel Chile Spain Brasil 4.6 Singapore USA “An increase of 10 percentage points in broadband penetration accelerates economic growth by 1,4%”World Bank, 2010 Colombia 3.8 3.6 3.4 3.2 3.0 2.8 2.6 2.4 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 4.2 4.4 4.6 4.8 5.0 Network Readiness Index 2013 SOURCE: World Bank 2010; World Economic Forum, The Global Information Technology Report 2010 5.2 5.4 5.6 5.8
  4. 4. In households the opportunity is concentrated on social strata levels 1, 2, and 3 Internet penetration by strata Income x Household Penetration (%) Household Internet (%) PC (%) Monthly income USD Population Million Stratum (1) 5-6 2 5% >3.300 4 3 7% 1.170 - 3.300 3 10 2 1 22% 56 70 26 660 - 1.170 47 17 39% 330 - 660 8 20 12 27% <330 2 5 50 (1) Based on electrical service coverage SOURCE: SUI, DANE 92 83 50
  5. 5. In social strata levels 1 and 2 the main barriers are the high costs, the lack of a computer and the lack of training Why don't you have Internet at home? % Surveyed 39,9 Do not have money for it 33,8 There is no Computer at home 21,4 Prices are too high Do not need it 8,6 Do not know how to use Internet Internet cafe is less expensive (cheaper) 2,3 Never been offered the product 2,3 Do not want unnecessary debts 2,1 SOURCE: Market research of 2300 people of social stratum levels 1 and 2 in 43 municipalities, 2010 20,2
  6. 6. In businesses, the opportunity is focused in the micro companies Company Type Companies (Number of Employees) (%) Large (+200) Businesses Penetration (%) Internet (%) PC (%) 0,1% 100 100 Medium (51-200) 0,5% 99 100 Small (11-50) 3% Micro (1-10) 96,4% 79 7 50 It is estimated that there are more than 1,600,000 companies in the countrySOURCE: SUI, DANE 96 13 50
  7. 7. In small businesses the main barrier is the lack of perceived need Why don’t you have Internet in your business? % Surveyed 60,6 It is not necessary for the business 17,6 I don’t have a computer Cannot afford the costs Prices are too high Do not know how to use the service 12,9 9,3 6,5 SOURCE: Market Research of 1500 micro and small enterprises in 43 municipalities 2010
  8. 8. To overcome these barriers... We are executing the Vive Digital Plan That seeks to promote the massive use of the Internet to leapfrog PROSPERITY FOR ALL
  9. 9. Vive Digital Plan is governed by 5 basic 1. “The market as far as possible, the State as far as needed”: Promoting public private partnerships to expand infrastructure and services 2. Comprehensively encourage the supply and demand of digital services to reach critical mass 3. Reduce tax and regulatory barriers to facilitate the deployment of infrastructure and the supply of telecommunication services 4. Prioritize Government resources in capital investments 5. The Government will give example (1) The Third Way, 1999, Dr. Juan Manuel Santos
  10. 10. And will have the following specific objectives: Multiply by 4 the number of Broadband Internet connections X4 7,6 8,8 Estrato 3 Estrato 2 Mobile3G/4G Fixed >1MB 2,2 0,8 1,4 2010 1T 2013 2T Meta 2014 Millions of Internet connections FUENTE: MinTIC. Estrato 1 35% 68% 105% Crecimiento por estratos conexiones Banda Ancha Durante este Gobierno
  11. 11. It will have the following specific objectives: 50% of Households and SMEs connected to the Internet X3 40% 50% X7 58% 50% Estimated 34% 17% 2010 2012 4T Households Fuente: IDC International Data Corporation 2014 7% 2010 2012 3T Micro Companies 2014
  12. 12. And will have the following specific objectives: Optical fibre submarine systems Before•Arcos •SAm-1 •Maya-1•Pan American •CFX-1 Municipalities connected by fiber optic cable •PCCS A 2014 •América Móvil 1 •GlobeNet •Level 3 777 1.078 551 200 2010 2012 Jun 2013 2014 Municipalities connected with the Project high- speed connectivity 47
  13. 13. Colombia is strengthening the ICT Ecosystem INFRASTRUCTURE USERS DEMAND DIGITAL ECOSYSTEM APPLICATIONS SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010 SUPPLY SERVICES
  14. 14. INFRASTRUCTURE
  15. 15. Our goal 5.344 Rural Population Centers with more than 100 people conected We are taking at least one internet point to Rural Population Centers with more than 100 people through our Kioskos Vive Digital
  16. 16. From 3 operators in 3G to six operators in 4G companies frequencies Tablets granted 556.374 Municipalities connected with the frequencies Frequency 2.500 MHz 30MHz 309.630 660 Frequency 2.500 MHz 30MHz and 40MHz 30.000 57 Frequency AWS 30.000 57 Frequency AWS 67.426 144 Frequency AWS 119.317 255 No spectrum
  17. 17. Colombia is strengthening the ICT ecosystem INFRASTRUCTURE USERS DEMAND DIGITAL ECOSYSTEM APPLICATIONS SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010 SUPPLY SERVICES
  18. 18. SERVICES
  19. 19. We have the cheapest computers in the continent No taxes, no duties
  20. 20. More connections for social stratum 1 and 2 33% More connections In Social Stratum 1 and 2 1,5 million subsidies of 300,000 pesos, in average.
  21. 21. Computers for schools and its allies We are going forward to the coverage of educational institutions 669.000 1.132.000 Computers granted 2014 Tablets granted by 2014 +20.000    Official educational sites, cultural centers and public libraries, benefited through Computers for schools Our Goal 12 children per computer
  22. 22. Digital Natives, an opportuniy for regional development Computers + Connectivity + Adoption Knowledge = = Opportunities
  23. 23. Colombia is strengthening the ICT ecosystem INFRASTRUCTURE USERS DEMAND DIGITAL ECOSYSTEM APPLICATIONS SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010 SUPPLY SERVICES
  24. 24. APPLICATIONS
  25. 25. IT New Vice Minister Drive the software industry, hardware and services in the country CIO Colombia
  26. 26. We are adjusting the structure of the state to meet the digital challenges Interior Hacienda y Crédito Público Justicia y del Derecho Defensa Nacional Agricultura y Desarrollo Rural Salud y Protección Social Trabajo Minas y Energía Comercio, Industria y Turismo Educación Nacional Ambiente y desarrollo Sostenible Vivienda TIC Transporte Cultura Relaciones Exteriores
  27. 27. Colombia is strengthening the ICT ecosystem INFRASTRUCTURE USERS DEMAND DIGITAL ECOSYSTEM APPLICATIONS SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010 SUPPLY SERVICES
  28. 28. USERS
  29. 29. Behavioral economics and simplification are driving consumer protection regulatios
  30. 30. Empowering consumers with relevant information
  31. 31. We are certifing Digital Citizens +1 million Colombian have been trained in the use of Internet and now they are Ciudadanos Digitales 147.000 of them taking part of vulnerable people. 69.000 Teachers and Officers experts on the industry have been trained on technology, in order to improve their development teaching
  32. 32. We are building confidence in the use of ICT Internet addiction 1. PHISHING 2. Cyber bullying 3. 4. GROOMING Child pornography 5. 6. SEXTING
  33. 33. In the year 2014 the Digital Ecosystem of the country will INFRASTRUCTURE USERS DEMAND ECOSISTEMA DIGITAL APPLICATIONS SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010 SUPPLY SERVICES
  34. 34. We want to grow the Vive Digital plan from the regions
  35. 35. We build Vive Digital Regional together with the regions Universities X Private Sector Governors Mayors
  36. 36. WE ARE REDUCING POVERTY WE ARE CREATING JOBS WE ARE IMPROVING COMPETITIVENESS AND PRODUCTIVITY

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