Encuentro en México 2010 - Dmitri Ypsilanti

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ENCUENTRO en Mexico 2010
Reflection Panel:TOOLS, TECHNOLOGIES AND SOCIAL GAPS

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Encuentro en México 2010 - Dmitri Ypsilanti

  1. 1. ENCUENTRO en Mexico 2010 Reflection Panel: TOOLS, TECHNOLOGIES AND SOCIAL GAPS SOCIAL GAPS AND LAGGING BROADBAND ACCESS Dimitri Ypsilanti OECD dimitri.ypsilanti [@] oecd.org The views expressed are those of the author and do not necessarily reflect those of the OECD or its member countries.
  2. 2. What we know about broadband? Business Social <ul><li>Anecdotal evidence </li></ul><ul><ul><ul><li>positive effects of broadband </li></ul></ul></ul><ul><li>Micro-level firm studies; access to broadband: </li></ul><ul><ul><li>improves productivity </li></ul></ul><ul><ul><li>generates higher turnover </li></ul></ul><ul><ul><li>raises profits </li></ul></ul><ul><li>Improves access to information </li></ul><ul><li>Strengthens social links </li></ul><ul><li>Lowers transaction costs </li></ul><ul><li>Can enhance local content and culture </li></ul><ul><li>Education, health and other social services </li></ul>
  3. 3. Existing Evidence <ul><li>Some existing evidence at the macro level : </li></ul><ul><ul><li>Qiang et. al (2009) : Broadband contributes to economic growth </li></ul></ul><ul><ul><li>Czernich et. al (2010) : No linear relationship between broadband and growth; A 10% increase in broadband penetration rate raises growth rate by 0.9 – 1.5 percentage points </li></ul></ul><ul><ul><li>Koutroumpis (2009) : Critical mass at 30% broadband penetration rate; Impact of broadband on GDP growth stronger for countries above that threshold </li></ul></ul>
  4. 4. The digital economy: ICTs and their role Economic development Social well being Information and communication technologies (ICTs)
  5. 5. H1N1Pandemic: Schools closed <ul><li>French Response </li></ul><ul><li>620 hours recorded courses using non-interactive TV channels </li></ul><ul><ul><li>90 days material </li></ul></ul><ul><li>Not available on web because of a lack of universal broadband </li></ul><ul><li>BUT with BB: Class subjects distributed via peer-to-peer by local teachers & interactive </li></ul>
  6. 6. What if everyone had broadband? <ul><li>Mexico: 33% of adults (25-64) have upper secondary or higher educational rates -compared to 70% OECD average </li></ul><ul><li>Broadband can have significant positive impacts on education (adult learning, in remote areas, vocational education and interactive material for students, etc.) </li></ul>
  7. 7. Broadband and Health <ul><li>Mexico: Infant mortality: 15.7per 1 000 live births - 4.9 OECD average. </li></ul><ul><li>Better diagnosis and treatment for 23% of Mexicans who are long distances from skilled specialists & needed for diagnosis & treatment of less common ailments . </li></ul>
  8. 8. Broadband: the new electricity? Average US Residential Electricity Consumption by Category, kWh/customer
  9. 9. Planet of the Apps & Social Networks <ul><li>Total Active Apps -iphone (currently available for download): 276,904 </li></ul><ul><li>Number of Active Publishers in the US App Store: 56,542 </li></ul><ul><li>FACEBOOK (2004) 500,000,000 </li></ul><ul><li>QZONE (2010) 200,000,000 </li></ul><ul><li>HABBO (2010) 162,000,000 </li></ul><ul><li>LIVE SPACES (2010) 120,000,000 </li></ul><ul><li>ORKUT (2004) 100,000,000 </li></ul><ul><li>VKONTAKTE (2006) 81,500,000 </li></ul><ul><li>Hi5 ( 2003) 80,000,000 </li></ul><ul><li>WEEWORLD (2010) 30,000,000 </li></ul><ul><li>VIADEO (2010) 30,000,000 </li></ul>Source: Wikipedia
  10. 10. Electricity Transportation Education Health For OECD an average cost savings between 0.5% and 1.5% for the 4 sectors over10 years resulting directly from a new broadband network platform could justify cost of building a national point-to-point, fibre-to-the-home network. 0.5% – 1.5%
  11. 11. The main barrier to increasing the adoption of broadband Internet …is cost, not the availability of access ( US GAO)
  12. 12. Price influences <ul><li>Lack of effective market competition (which is likely to reflect insufficient regulatory oversight); </li></ul><ul><li>Mexico only OECD country without a national Internet interexchange point (which increases cost for ISPs and therefore users) </li></ul><ul><li>Insufficient competition negatively impacts on build-out of network depriving high cost areas of broadband </li></ul><ul><li>Overall, high prices low rollout imposes cost on economy and society and reduces the propensity for innovative offers. </li></ul>

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