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Gerry GreeveVice President,

Intel Corporation. Sales and Marketing GroupDirector, Intel World Ahead ™

¿por qué no ahora?

thoughts on the digital divide

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Are we at an inflection point to bringingthe benefits of Broadband, Internet, and Compute technology to:

• Our Small and Medium Businesses• Our Schools and Universities• Our Health Care Hospitals, Clinics, & Clinicians• Our Export Industries• Our Rural/Agrarian Communities• Our Governments’ Services to Citizens• …. And our FAMILIES ???

¿por qué no ahora?

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“ICT” recognized as key to recovery

Gov’t broadband can counter crisis threat Philippine Daily Inquirer

China approves 3G license - $41B Investment

UN Sec Ban Ki-moon - outlined a vision to drive ICT to help the global economic recovery.“ICT are increasingly critical for global development and human well-being. We must not allow today's economic downturn to slow progress in providing widespread access to these essential tools."

Australian Prime Minister“broadband infrastructure will be the platform upon which the economy operates in the 21st century”

Broadband Expansion Is Popular in Stimulus Plans

South Korea Broadband Stimulus Plan Promises 1 Gb/s By 2012…..Telecom Web

ITIF (Information Technology & Information Foundation studyThe Digital Road to Recovery, Dr. Robert Atkinson, et al

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Medium and Low Economies are falling further behind

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154 countries

6 LATAM

14 LATAM

“…the global digital divide is as prevalent as before”

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Is higher BB costs the reason??Fix BB Internet cost as percentage of GNI per capita

Position in the world

LAR Country % of GNI per capita

23 T&T 1.1%

45 Panama 3.3%

50 CR 3.7%

54 Uruguay 4.6%

60 Venezuela 5.1%

61 Mexico 5.3%

71 Argentina 7.6%

72 Chile 7.6%

76 DR 9.5%

77 Brasil 9.6%

78 Jamaica 9.7%

84 Peru 12.7%

86 Colombia 13.4%

89 Ecuador 15.5%

94 Guatemala 16.7%

101 Paraguay 25.1%

Developing countries:Lower fix phone costEqual cellular costs to MM10x higher fix BB internet costs

Developed countries: cost of Broadband access:Between 0-3% monthly GNIUSA BB cost is 0.4%

LAR, cost of Broadband access:Only one country <3%: T&TTOP 8 Economies: 5% - 15%

COMPARED TO 7 RISING ECONOMIES: Turkey, Russia, Romania,

Poland, Vietnam, Thailand, RSA LATAM 7 ~ 3X cost as a % of GNI

In bold/blue the top LAR countries by GDPIn bold/blue the top LAR countries by GDPSource: Measuring the Information Society, the ICT development Index. ITU 2009Source: Measuring the Information Society, the ICT development Index. ITU 2009

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What’s needed to cross the DD??

• Affordable clients that deliver adequate capability• Training and aids to learn how to use the clients• Applications & Usage models that work• Affordable, reliable, adequate networks • Investment and committment

Are we at an inflection point to bringing the benefits of Broadband, Internet, and Compute technology and “cross the Digital

Divide”??:

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Netbook & ULV Notebook Will Drive BB DemandNetbook & ULV Notebook Will Drive BB Demand

Device for the InternetDevice for the Internet Purpose built for Internet usePurpose built for Internet use Web: Learn, Communicate, Web: Learn, Communicate, ViewView Compact form factor (7- Compact form factor (7-10.2”)10.2”) Internet Companion DeviceInternet Companion Device

Multi-purpose PCs Business, Productivity, Entertain Web 2.0 Regular, Daily, Serious workloads Range of form factors < 2.5cm-1”, <1.4Kg-3lb, >10.2” scrn

Intel Confidential

*Other names and brands may be claimed as the property of othersAffordable clients7Intel Confidential – For Use By Customers Under NDA Only

*Other names and brands may be claimed as the property of others

Netbook Notebook

< $450 >

Vietnam MIC-VTF Hinterland program

Desktops (Atom™ based)$ 220 USD

with 15.6” LCD monitors

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80% of learning is -Doing (40%)

-Friends (40%)

8/08: 100M “friends” – 4/09: 200M “friends” = 100M new users in 8 months

Training and Aids

Computer Knowledge and Use is Viral

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New Usage ModelsIn Developing Economies

Are Succeeding

Allowing Usage Spirals To Develop

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Durable drop-proof construction and rugged outer caseDurable drop-proof construction and rugged outer case

Carrying handle – mobile-friendly designCarrying handle – mobile-friendly design

Water-resistant keyboardWater-resistant keyboard

software stack convertible

• Tablet with a touch screen, makes it easy to use• When open like a traditional laptop, the screen swivels

180 degrees • Advanced palm-recognition tech lets workers use full-hand

support when writing or drawing• Built-in camera rotates 180 degrees• Integrated Accelerometer

Intel-powered convertible classmate PC

• Hardware optimized applicationsChinese handwriting & pen-input Web browser add-on Webcam

• Quick launcher• Image recovery• Easy network manager• Quick controller

• System backup & restore• Provisioning• Patching & upgrade

• eForm (for insurance claims, personal records)• Doctor education and decision aid tools• Drug search database

Basic – for a better user experience

platform management

clinic assistant

•Intel® Atom™ Processor N270 at 1.6GHz

•Intel® 945GSE Chipset •1.5X system performance*•~30% longer battery life*

•Intel® Atom™ Processor N270 at 1.6GHz

•Intel® 945GSE Chipset •1.5X system performance*•~30% longer battery life*

•8.9” LCD•1024 x 600 resolution support

•8.9” LCD•1024 x 600 resolution support

“Rural Clinical Assistant”

PRC: 800K clinics/hospitals; 3.2M doctorstarget – 5 “RCA”pc’s per clinic

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30 countries, 10 languages, 4million+ visitors/yr, WSIS, BETT awards, 250 math & science MM modules, RELPE integrated in LAR

IP FREE OF CHARGE

www.skoool.com

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IndiaCSC’s

• Government Services– Certificates – Application to Government Schemes– Surveys

• Education , Capacity Building– Schooling, Higher Education– Vocational

• Healthcare Services– Telemedicine – Specialist consultancy

• Shared Access around for 16 years.• Many Failures- Some Success• #1 issue is self-sustainability

• Key Learnings• Private ownership & investment critical• Robust BB network and PC’s (virus) • National & State Province leadership

– Organize/drive process – Provide “outsourcing” revenue source (30%)– mobilize remote e-government/utility service

• Clear & Real reduction/stop of funding

• Agriculture– Market linkages & sales:produce,

seeds, fertilizers, pesticides– Agri consultancy

• Financial Services– Loans, Deposits, Insurance

• Commercial Services– Retailing– Payments

REVENUE GENERATION

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• First joint business bundle:• Affordable Intel HP Laptop• Local broadband connectivity• Accounting package• Four training courses

• Scaling strategy• Verify initial success• Scale via other local

commerce organizations• Re-use business training

materials within and beyond Ghana

• Case study

SME – ExportSolutionPackage

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PRC “Thousand Villages”Farmer Information and PC Program

with China TelecomMinistry of Commerce

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3G Growth Ignite new PC/NB users

VietnamVietnam

IndiaIndia

TurkeyTurkey

CHINACHINA

’09 3G Cell Auctions/Awards

anticipated

’09 3G Cell Auctions/Awards

anticipated

300 - 400M New subscribers in next 24 months…150-200M PC cards & dongle per year by 2013

…per GSMA & ABI

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3G Is Not A Complete Solution

3G is not sufficient BB for data •Interim connectivity solution•Individual nomadic usage•Slow, inconsistent & expensive•Reasonable geo coverage

3G is not sufficient BB for data •Interim connectivity solution•Individual nomadic usage•Slow, inconsistent & expensive•Reasonable geo coverage

“The reality of 3G networks being overloaded

With PC & Smartphone data is with us TODAY ! “

•Globally, mobile data traffic will double every year through 2013, increasing 66 times between 2008 and 2013.•In the 7 years from 2005 to 2012, mobile data traffic will have increased a thousand-fold.

CISCO™ Forecast Mobile Data (Jan

29, 2009)

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=

= 30 MB / Mo.

2015 – Average MM Subscriber uses 14GBytes+ per month

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~4G WBB is

Here Today

•40+ countries with significantWiMAX Commercial ServiceIndia 2H09

•USB Dongle Clients ~ $50

•Network infrastructure•< DSL OP/CAPEX•~ = 3G

•Performance today 512kup-6Mbpsdown $40/mo

•1 Billion pops covered by 2011•75M-100M subs by 2014•Data Overlay to Voice model

Country Telco(s) Launched Probable1 Korea KT yes2 Japan UQ yes3 USA Clear yes4 Netherland yes5 Pakistan Wateen yes6 Philippines Smart, Globe yes7 Sri Lanka Dialog yes8 Malaysia Packet-1,YTL yes9 India Tata(VSNL), BSNL yes

10 Australia Unwired yes11 Singapore Qmax yes12 Chinese Taipei VMAX yes13 Thailand tbd14 Cambodia Millicom yes15 Indonesia tbd16 Blangadesh tbd17 Vietnam tbd18 Romania Orange yes19 Bulgaria Max, Nexcom yes20 Hungary MobilHungary yes21 Poland Netia etc. yes22 Slovakia Wimax Telecom yes23 Croatia Wimax Telecom yes24 KSA STC, ITC yes25 Turkey tbd26 Egypt tbd27 Libya LTT yes28 Iraq Iraq Tel yes29 Nigeria Horizon yes30 Kenya KDN yes31 Algeria AlgTel yes32 RSA Vodacom, WBS yes33 Bahrain Zain (MTN) yes34 Jordan Umniah yes35 Morocco Wana yes36 Kazakstan tbd yes37 Ukraine UHT, Astelit yes38 Russia Comstar, Scartel yes39 Colombia Avantel, Une yes40 Chile Telmex, VTR, Entel yes41 Bolivia VIVA/Novatel yes42 Argentina Telmex yes43 Peru eMax, Telmex yes44 Mexico MVSNet yes45 Brazil Embratel(Telmex), TVA(Tef) yes46 Venezuela Movimax yes47 Panama WiPET yes48 Carib DiGiCel yes49 DR WINTEL yes50 Ireland IB, Clear Yes

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• Governments Are “Stepping-up”With Investment and Support

…Telecommunications Industry is too

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Policy Impact on Local Economy

• Subsidies for PC’s and BB– PRC, Spain, Vietnam, Singapore, India

• VAT reductions: numerous examples around the world– PRC, Australia, Colombia, India, Vietnam, Turkey, etc

• Turkey - 3 month 10% reduction• Australia - 50% tax rebate on all PCs purchased for Ed• Colombia - eliminated VAT on PCs• Brazil – BB service VAT reduction in 3 states• Vietnam 15% VAT reduction

• Increased investment in BB infrastructure

Increased PC & BB purchases help local economies grow & compete

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Leading uses of USF for Leading uses of USF for Broadband Broadband

Country

Description

Turkey Subsidizing BB to 18000 rural schools; 4500 Public Internet Centers, 700ku school PC 07/08

Nigeria Accelerate BB in State Capitals, train 3000 educators; 35000 CMPC

Pakistan BB Coverage 2010 goal=from .1 to 1.5M BB subs; 10k rural PC centers

Chile BB connectivity 2010 goal=from 1% to 90% of rural areas

Morocco Subsidize BB connect to schools + Teachers Laptop

Romania

600 Telecenters

Portugal 400M Euro subsidy of NB's + 3G from spectrum auction

Vietnam Internet to Villages 4,400 Connected Communities

India $100M USF Rural PC subsidy $100 + $3/mo BB

Colombia

$300M Broadband (largest use of USF for Broadband) schools, e-gov,

Peru >3,000 rural communities w/ phone and internet access with USF

Argentina

1st program ever approved this April. 1500 rural communities and their schools with phone and internet access.

USF is anUSF is an

Additional sourceAdditional source

of Stimulus fundingof Stimulus funding

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We are at an inflection point which can ALLOW US TO CROSS THE DIGITAL DIVIDE:

• Our Small and Medium Businesses• Our Schools and Universities• Our Health Care Hospitals, Clinics, & Clinicians• Our Export Industries• Our Rural/Agrarian Communities• Our Governments’ Services to Citizens• …. And our FAMILIES

¿por qué no ahora?

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What might be the What might be the Role of Government??Role of Government??

• Enable the ICT industry with national plans, policy, & open competition

• Including financing, subsidies, and low taxation on IT

• Embrace new technologies and role model their uses: WIMAX, 3G, FTTH

• Rapidly provide useable and useful spectrum

• Enable a vibrant LOCAL Digital Economy … particularly Software development

• Invest in Education: focused on 21st Century Skills usage. - Curriculums which are relevant to the challenges of today and tomorrow

• Invest in research and development

• Enable the ICT industry with national plans, policy, & open competition

• Including financing, subsidies, and low taxation on IT

• Embrace new technologies and role model their uses: WIMAX, 3G, FTTH

• Rapidly provide useable and useful spectrum

• Enable a vibrant LOCAL Digital Economy … particularly Software development

• Invest in Education: focused on 21st Century Skills usage. - Curriculums which are relevant to the challenges of today and tomorrow

• Invest in research and development LEAD FROM THE FRONT!

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STATE OUR VISION, OBJECTIVE, AND WILL

… MUST SET PUBLIC & MEASUREABLE GOALS

• K-12 schools - 90% of schools with BB, – teacher pc training,

– widespread pc proliferation (student:PC ratio defined),

– local education ISV growth

• SMB’s in towns >2000 pax w/ affordable, reliable BB– tax relief for BB & ICT

• SHARED BB ACCESS: CSC’s , PC’s within 1 hour walk • HEALTH - 100% of medical clinics with BB & pc’s• UNIVERSITY/COLLEGE - WBB umbrella and NB for all• INFO-SERVICE - Internet based for medicine, agriculture, e-Gov• WBB in deployment (3G and 4G)

– Measurement of access & QOS (uptime, cost, consistent speed)

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LEAD FROM THE FRONT!

Thank You