The document summarizes key aspects of Argentina's information and communications technology (ICT) market and industry. It finds that the ICT market in Argentina grew 23.4% in 2008 to $46.1 billion, with over 330,000 people employed in the ICT sector. Adoption of technologies like personal computers, the internet, and mobile phones has followed an "imitation" model compared to more "innovative" patterns seen in industrialized nations. The document also outlines trends in the ICT sector, opportunities for international involvement, and provides a forecast for 2009 anticipating 9-11% growth in the ICT market despite an economic downturn.

1. Seminario y Ronda de Negocios Tecnología de la Información Corea - Argentina Dr. Alejandro Prince Prince & Cooke Buenos Aires 28 septiembre 2009

2. Agenda ICT market & industry ICT human capital ICT trends & opportunities

3. ICT adoption in Argentina Market is strong & resilient Imitation factor Macroeconomics strongly affects the curves Some policies has positive impact on adoption: Liberalization of Communications Promotion of consumption Facts that has strong negative impact on adoption: Devaluations Consumers & business expectatives (clima)

4. ICT Adoption USA vs. Argentina - Theoretical Time Penetration %

5. PC’s adoption USA vs. Argentina - % households USA Argentina

6. “ Rogers” status Internet users Mobile PCs Laggards Late majority Early majority Innovators & early ad .

7. Frank Bass: innovation vs. imitation argentine shape imitation Industrialized shape innovation Cumulated sales Time period

8. Bass quotients Argentina PC, Mobile, Internet users & BB 0,690 0,400 0,700 0,245 q 0,004 0,007 0,001 0,005 P Broad Band Internet users Mobile PC´s Quot.

9. Strong & Resilient trends PC sales - thousands units

10. ICT market Argentina 2008 market size: 46.100 millions of $ Growth 08 vs. 07: 23,4% ICT HumanCapital + 330.000 employees: 1.9% PEA (economically active population)

11. ICT + Cc Sector – Companies Half of these HC works in the offer side, another half in large, medium private & public users. Double expected before 2015. 55 % & 99 % respectively is a Critical HR Almost 8.000 companies in ICT total industry + two thirds of employees with universitary or tertiary degrees + one third, english fluent Annual demand: 15-25.000 employees

12. ICT + Cc Market evolution

13. ICT + Cc market vs. GDP 375.909 447.643 835.000 531.939 312.580 654.439 780.396 14.119 24.390 46.100 19.757 11.923 29.810 37.355 0 100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000 2002 2003 2004 2005 2006 2007 2008 PBI 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000 Mercado TICC

14. IT market split

15. Telecomm market split

16. Main ICT indicators in millions TV sets + 200 % households TV cable + 60 % households Ciber/hot-spots + 35.000 points

17. B2C e-commerce

18. Digital decade 4,1 5,7 7,6 10 13 16 20 2,6 3,4 4 4,4 5,2 6 7 8,2 4,1 6,6 7,2 6,7 7,8 13,1 18,3 24,1 27,5 33,5 1,43 1,6 2,05 2,3 2,8 3,1 3,7 3,7 3,9 3,8 0 5 10 15 20 25 30 35 40 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Usuarios de Internet (en millones de personas) PC's (en millones de unidades) Telefonía móvil (en millones de líneas en servicio) Clientes de Internet (en millones de conexiones

19. * 2 FIDE (ajustado por inflación) Fuente: CCR en base a EPH INDEC / AAM /FIDE $2.200 * 2 Social structure Argentina 2007 Average monthly income per household 15 30 Indigents High class 25 25 Medium high Typical medium class Medium low Low class $9.500 $ 4.000 Poverty line Medium class basket 5 $ 2.200 $1.000 $500

20. PC’s vs. portables

21. Fixed vs. mobile lines thousands - lines in service mobile fixed

22. Trends by sector E-gov - National Digital Agenda Digital Provinces: San Luis… and others on the way Digital Cities CABA, Junín, Rafaela, Rosario, etc. Banking & retail: Reluctant. Agriculture, building? Non critical Energy, mining, cooperatives, tourism, SME’s…

23. Trends by technology Biometrics, ICT & public security Wi Fi/ WiMAX Trazability (agriculture) Contents, postproduction, FX, games, etc. Convergence, triple - cuadruple play? IP telephony

24. International opportunities Software & IT Services, from offshoring outsourcing by “price”, to “value”: solutions, contents, creativity IT clusters, poles & industrial parks “ Software promotion law” National (Cordoba Province) Internal market is relatively small, but opportunity “to share” is not (not only produce or support, but research & development)

25. Market needs Telecom regulatory frame need clear rules (convergence, satelite, “radio” law, IP, new taxes on ICT goods) Universal service must be redefined New “ETAPS” (government procurement rules) Telephony tariffs increase Improve consumer & business confidence, expectations or “clima ”

26. 2009 ICT Market Scenario Medium to high probability Inflation around 20 % or less GDP growth, negative, around -2,0 % Dollar december: 4 argentine pesos ICT market growth: 9 - 11 % Sustained mainly by : BB, mobile, IT S & Services

27. Alejandro Prince [email_address] President of Prince & Cooke www.princecooke.com Vicepresident Fundación Gestión y Desarrollo www.fgd.org.ar Professor at UBA, UTN, UDESA, FASTA, Fundación Libertad, UP, y otras Universidades. International lecturer, Author of several papers and books on Information Society & Economy Licencee on Marketing, Ph.D on Political Science and Ph.D Candidate on Economics. www.linkedin.com/in/alxprince www.facebook.com/alejandro.prince