The document discusses the importance of implementing a transformational ICT policy approach to enable a networked society. A transformational policy has the goals of sustaining economic growth, increasing competitiveness, growing new businesses and jobs, and addressing societal challenges through more efficient use of resources. It requires a holistic, cross-sector coordination approach to policy implementation using regulatory frameworks, innovation policies, government procurement, and fiscal/monetary tools in an interconnected manner. The risks of maintaining the status quo include market distortions, decreased investments and benefits, and delays in enabling societal transformation.

1. ICT POLICY
FOR THE
NETWORKED
SOCIETY
POLICY INSPIRATION
ICT POLICY FOR THE
NETWORKED SOCIEY
ITU EVENT BAHRAIN “NEW TRENDS FOR BUILDING AND
FINANCING BROADBAND”: POLICIES & ECONOMICS

2. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 2
The Networked society
networked society VISION
 Is about new ways to collaborate, CREATE, share
and get informed.
 Is about innovative ways of doing business and
shaping the future.
 Is a renewed policy approach to challenges such
as innovation, job creation, education,
healthcare, governance, climate change AND etc.
“ When one person connects, their world changes.
When everything is connected, our world changes.”
Collaboration
Innovation
Integrity
Community
Trust
Motivation
Competence
Sustainability
Interaction
Infrastructure
Link to Networked Society

3. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 3
TOWARDS THE NETWORKED
SOCIETY
FUNDAMENTAL TECHNOLOGY DRIVERS
MOBILITY BROADBAND CLOUD DIGITIZATION

4. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 4
Economic impact of
broadband (BB)
+ 1000 BB USERS > + 80
Jobs
+ 10% POINTS BB
PENETRATION
> + 1% POINT GDP
+ 2 x BB SPEED > + 0.3%
increase in GDP
Sources: Chalmers Institute of Technology, Arthur D Little.
TRANSFORMING BASIC
VALUE CREATING
CONDITIONS
› BUILDING KNOWLEDGE
SOCIETY (IMPROVING
QUALITY OF LABOUR)
› NEW JOB CREATION
› WEALTH CREATION
› PRODUCTIVITY
› EFFICIENCY

5. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 5
Sources: Chalmers Institute of Technology, Arthur D Little,
OECD Broadband and the Economy, Future of Internet 2008
Significance of BB & IT (ICT)
 Increased global market reach
expanding trade but also
intensified competition,
 General increase in economic
efficiency and labor productivity,
 Increased pace of knowledge
diffusion and increased positive
spill-over effects,
 Revised view of the role of
innovation (innovation-led
growth).
Economic Impact of ICTChanging Economic Thinking > ICT
Source: Jati Sengupta, Understanding Economic Growth, Springer 2011
DIRECT INDIRECT INDUCED

6. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 6
ICT And Competitiveness
Competitiveness of Nations impact of ICT
Source: World Economic Forum, Global Competitiveness Report 2010-11
INNOVATION & SOPHISTICATION
• Business sophistication
• Innovation
EFFICIENCY ENHANCERS
• Higher education and training
• Goods market efficiency
• Labor market efficiency
• Financial market development
• Technological readiness
• Market size
BASIC REGUIREMENTS
• Institutions
• Infrastructure
• Macroeconomic environment
• Health and primary education
Key for
factor-driven
economies
Key for
efficiency-driven
economies
Key for
Innovation
-driven
economies
Direct BB impact:
Infrastructure deployment
Digital readiness
Indirect impact from BB
(enabler):
E-education/-commerce
Efficiency, Market expansion
Induced impact from BB
(enabler)
Innovation (product, service,
process, market) coupled with
transformation
Source: Ericsson Analysis

7. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 7
Policy makers in control of
conditions unleashing benefits
of ICT-led transformation
Source: Manuel Castells, The Rise of the Network Society, Second Edition, 2001
Technology (or lack of it) embodies the
capacity of societies to transform themselves
The ability or inability of societies to master
technology largely shapes their economic destiny
and social well-being
The state can suffocate or enable an accelerated
process of technological transformation

8. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 8
› to enable transformations e.g. new
productive shifts in economies
associated with the rise of the networked
society
› mastering this change in the most
advantageous societal direction should
be at the center stage of a progressive
policy agenda
policy makers’ fundamental
Role in the transformation
of the society
act as socio-economic accelerators

9. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 9
Policy makers’ tool-kit:
Regulatory Frameworks
WHY
WHAT
HOW Policy/Regulatory
Framework

10. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 10
WHY the ”why” is changing !
HOLICTIC APPROCH
A PRECONDITION
TRANSFORMATION
REQUIRED
INCREMENTALISM
NOT GOOD ENOUGH
Innovation-driven
value creation
LAISSEZ-FAIRE NOT GOOD ENOUGH

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Key COMPONENTS of technology
lead societal transformation
INVENTION INNOVATION DIFFUSION
ECONOMIC
GROWTH CHANGE
TRANSFORMATIONAL APPROCH

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The new “what”>
what New ends in mind?
Public interest
Rights based
Networked governance
Transformational
Consumer
Citizen
Individual
Societal
Transformation
Effectiveness
Market efficiency
APPROACH END-GOALS
Economic Maturity
Institutional Capability
ICT Readiness
Regulatory complexity &
coherence of policies
Globalization /openness
Competitivness &
technologicial changes
CONTEXT

13. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 13
eND GOALS of A
TRANSFORMATIONAL APPROCH
› Sustain economic growth
› Increase competitiveness of nations and
industries
› Grow new businesses
› Create new jobs
› Minimize exclusion and poverty
› Increase public sector efficiency
› Address climate change, environment and ageing
population
› Manage scare resources more efficiently
› Cope with increasing level of urbanization
This is not a destination but a continuous journey

14. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 14
FISCAL,
MONETARY,
AND LABOUR
POLICIES
SECTOR
SPECIFIC
POLICY
FRAMEWORKS
GOVERNMENT
PROCUREMENT
(INNOVATION)
INNOVATION
& INDUSTRIAL
POLICIES
HOW to Implement a
TRANSFORMATIONAL ICT POLICY
1
3 2

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SUMMARY of a
transformational approach
JUSTIFICATION /
DESIRABILITY
LEGITIMACY
END GOALS
HOLISM, SOCIO-ECONOMIC BENEFITS
OF A TRANSOFRMATIONAL CHANGE,
INCREMENTALISM, PATH DEPENDENCE
SOCIETAL COST OF NEGATIVE EXTERNALITIES
DISTRIBUTIONAL JUSTICE
STRCTURAL ADVANCEMENT/SHIFT
IN SOCIETY/ECONOMY, LONG TERM
GROWTH
IMPLEMENTATION
HOLISTIC/CROSS SECTOR COORDINATION
COORDINATION / INTERCONNECTNESS

16. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 16
key ICT policy issues going
forward
Convergence
Spectrum Management
Network Regulation
Media & Content Regulation
Copyright
Information Management – Data Privacy
Information Management - Cyber Security
TO BE CONTIUNUED….

17. ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 17
RISK of status-quo > outdated
regulatory framework
› Increased market distortions;
regulatory flight, race to the
bottom, overlapping remits.
› Decreased investments,
innovation and competitiveness.
› Decreased economic and
societal benefits and increased
inequality.
› Delays in societal transformation,
falling behind.

18. The future of ICT POLICY