This document discusses how next generation broadband can enable businesses to transform by allowing more remote work opportunities. This would significantly reduce commuting and the associated carbon emissions, while improving worker satisfaction. However, there are hurdles to widespread adoption like business structures not being optimized for remote work, challenges replicating in-person collaboration remotely, and the need for ubiquitous high-speed broadband access. Overcoming these hurdles could have economic and environmental benefits for businesses, workers, and nations.

1. Next Generation Broadband
Enables Vital Business
Transformation
Benoît Felten
Senior Analyst
bfelten@yankeegroup.com
© Copyright 2007. Yankee Group Research, Inc. All rights reserved.

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3. Preliminary comments
• This is a vision,
not the results
of a study
• The figures
quoted lack
consistency
and are
presented to
support a
reasoning.
• Anyone willing
to finance a more
in-depth study to
support this vision
with hard facts is
welcome to contact
me!
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 3

4. Reducing light-vehicle carbon emissions
• « Transport is the second-largest source of carbon dioxide (CO2) emissions
and household vehicle use alone accounts for roughly 16 percent of total
U.S. emissions. These emissions have been growing roughly 1.5 percent per
year. » (source: www.rff.org)
• In the European Union, light vehicle carbon emissions account for 12% of
the total EU carbon emissions (source: EU)
• Three factors account for light-vehicle Carbon Emissions:
• Vehicle use
• Fuel economy
• Carbon emissions from production and consumption
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 4

5. Analysing some of the planned or implemented measures
Bonus/Malus Ecologique Stopping idle car engines
• Micro-measures
won’t cut it.
• Advances in
engine technology
will help with fuel
economy and
carbon emissions.
• Impact on: • Impact on:
•
•
vehicle use: none
fuel economy: none
•
•
vehicle use: none
fuel economy: none
• Vehicle use is the
• Carbon emissions: very
limited
• Carbon emissions: none highest impacting
• Adverse effects:
factor. Who will
• Adverse effects:
• More cars on the roads?
• Angry motorists tackle that?
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 5

6. Facts about commuting (UK)
• 25 million workers out of 29
in the UK commute daily. 18m. daily car commutes
• 71% of workers commute by car, 40bn km driven
est. 54% of cars commute any
given day. in commutes each year
• Average UK commuter 4 bn hours spent
makes 160 trips p.a. and commuting by car each year
travels 1391 miles (2240 km)
in a year.
5.7bn hours spent
• Average time of a commuting altogether each year
commuting trip (one way) by car
is just under 30mn.
This is only for the UK!
Source: RAC Foundation - The UK Commute:
Healthy or hazardous? (2007)
http://www.racfoundation.org/files/theukcommute.pdf
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 6

7. A necessary business transformation
• The intense commuting required of workers is a result of an
industrial age conception of work organisation.
• In this conception, « work » is a place more than an activity.
Therefore, workers must come to work.
• The prevalence of service jobs allows us to imagine a different
conception of work organisation:
• Service jobs are more likely to be able to be performed remotely: 69% of
OECD employment is in Services (Source: OECD, 2004)
• 83% broadband coverage on average in OECD countries (Source: OECD,
2005) allows for widescale remote work (in theory)
• The opportunity is there to reverse the industrial age paradigm and
have work come to workers.
• This is the most actionable short to mid-term way of reducing
commuting and it has wide-ranging benefits beyond that.
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 7

8. Key benefits to all interested parties
BUSINESSES WORKERS NATIONS
• Save money on • Save time and • Significantly
real estate, money not having reduce carbon
company cars and to use cars to get emissions
mileage expenses to work as often
• Gain productivity • Drive business
and efficiency • Preserve more efficiency and
harmonious living associated macro-
• Gain loyalty from conditions (family economic benefits
happier employees life, etc.)
• Retain jobs that
• Tap into qualified • Lower stress levels tend to be
workforce not by working in outsourced in-
available outside of quieter and more country through
home personal work « homesourcing »
• Can boast their environments
green-ness
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 8

9. Fact or fantasy ?
« Is this the real life, is this just fantasy? »
20th Century Philosopher
• The impetus has to come from businesses
themselves. If businesses are not willing to play, it won’t happen.
• The key driver for businesses is monetary. Test cases are emerging
that demonstrate significant savings for organisations that have
gone down that path:
• BT (own footprint) has implemented widespread flexible and remote working
conditions and said it saved ~8500 EUR per employee per year.
• IBM has implemented homeworking for 30% of employees and say it
generates savings of $100 million p.a.
• Other benefits (BT figures):
• 80% homeworker satisfaction
• Productivity improvement 20%
• Absenteeism 3.1% vs. 8.5% national average Source: BT
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 9

10. Hurdles
• Business transformation on such scale does not occur overnight. There are
important hurdles, essentially of three natures:
Business Work
Technology
Structures Environment
• Work organisation has • How do you emulate all • Today’s technologies
high inertia the rest: could allow to emulate
• social interaction, some of that, but
• Financial gains are the • visual contact, solutions need to be
key driver for • anecdotal circulation of adopted by businesses
businesses but benefits information, and workers.
are not well-known • company culture,
• document sharing, • IT Resources need to
• Employer to employee move to the cloud.
relationship is not as • water cooler
discussions, etc.
« trusting » as • The current generation
businesses like to say of networks is a strong
limitation :
• A boss often thinks his • Bandwidth
job is to supervise • Latency
• Reliability and stability
Redefining the Driving adoption of Accelerating deployment of
« social contract » work environment 2.0 next generation broadband
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 10

11. Redefining the social contract
« manage • verb
1 be in charge of; run.
2 supervise (staff).
3 administer and regulate (resources). »
• The weight of the management relationship is on the
shoulder of the business
• But just because an employee is not a manager does not
mean he’s trustworthy…
• The main hurdle facing remote work is the absence of a
relation of trust between employer and employee
• A redefinition of the work social contract is needed for
that relationship to be established.
• This requires clearer objectives for employees and
managers, and a shift of the manager’s role from
superviser to coordinator.
• It also requires a contract whereby employees win from
success and lose from failure
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 11

12. Driving adoption of work environment 2.0
• Adoption of next-gen work tools is
slow and often against IT’s will.
• HD two-way video is a key enabler
of more « trustworthy » commu-
nication and collaboration but is
• non-existent in the home
• too pricey
• not interoperable enough
• A true « anywhere » work
experience requires employees to
access real-time collaborative
software resources which implies
a healthy dose of applications in
the cloud.
• These are both supply and
demand issues
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 12

13. Accelerating deployment of next generation broadband
• Only FTTH can provide the stability, QoS,
bandwidth and low latency in the home
required for systematic business use.
• The deployment of next generation
broadband in the employment region
around businesses is a crucial component
of this business transformation.
• Accelerating this deployment of NGANs
requires:
• A proper legislative context for deployment
• A proper legislative context for local government
involvement
• A proper documentation of available duct and
pole infrastructure
• Raising citizen awareness
• Getting players who are to benefit from
infrastructure around the table
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14. Winners and losers
Potential winners Potential loosers
• Building companies • Oil companies
• Telcos • Car industry
• System Integrators • Business real estate
companies
• Business organisation
consultancies
• Equipment vendors
YOUR CITIZENS
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 14

15. Thank you for your interest!
Benoît FELTEN
bfelten@yankeegroup.com
M: +3 618 243 189
Please visit our
website:
www.yankeegroup.com
© Copyright 2007. Yankee Group Research, Inc. All rights reserved. Connected Urban Development Sept. 24th, 2008 Page 15