w w w . i d a t e . o r g

Atlas of the Digital World

10th edition

June 2010

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IDATE’s mission

An Observatory of the Digital Worldmarket analysis, corporate strategies, trends & forecasting…

A team of Consultants specialising in the telecommunications, Internet andmedia industries

A European Forum for discussions between company heads, public

policy-makers & academics

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DigiWorld ® Yearbook - a singular initiative

� The primary objective of 2010 DigiWorld Yearbook is to provide a single-volume publication, gathering key indicators for th e telecom, internet and media industries, along with a chronicle of the tre nds and events of the past 12 months.

� The DigiWorld Yearbook aims to be provider readers with a distillation of the outstanding research, study and forecasting work performed by I DATE during the year.

� The DigiWorld Yearbook is part of a broader initiative: the DigiWorld Programme, which combines a think tank, IDATE Clubs, publicati ons and conferences supported by more than 30 of the ICT in dustry’s most prominent companies.

� The 2010 report is available in English and French with launch ceremonies schedule for Paris, London, Brussels and Madrid.

� New this year:- a dedicated website: www.digiword.org- and eBook, iPhone and iPad compatible versions

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A dedicated Website & New electronic issues

� www.digiworld.org � iPhone

� iPad

� eBook

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DigiWorld ® Yearbook - a singular initiative

Published with the support of DigiWorld Programme m embers:

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DigiWorld trends, by region

A market of €2,629 billion in 2009, down 1.5% compare d to 2008…

� -3.3% for Europe

� -3.7% for North America

� +1.1% for Asia-Pacific

� +3.8% for Latin America, Africa and the Middle East,taken as a whole

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DigiWorld Market in Europe

Large telecom markets, resist better

� Telecom: -1.6%- Mobile data make up

for loss in voice- Fixed data : +€ 3.1b- Fixed voice: -€ 6.2b

� IT: -4.7%- SW: -2.6%- HW: -9.3%

� Media: -4.7%

� Total EU DGW

-3.3 %

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The DigiWorld, ten years on (1)

In 1999…

… and in 2009

477 million mobile

customers

4.5 billion 480 million

~ 0 broadband subscribers

< 5% of TV households are digital

44%

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The DigiWorld, ten years on (2)

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DigiWorld Yearbook 2010

From the headlines in 2009…Main events� The downturn and its varied effects on digital industries

� Nortel sold off piecemeal

� Spin-off of Time Warner Cable and AOL

� Comcast takes over NBC

� Merger of Orange UK and T-Mobile UK

� Europe adopts the new Telecom Package

� Governments’ national broadband plans…

… to outstanding issues for 20104 trends� Internet connected devices� Steady rise in Internet traffic� Top content aggregators become key players of the network� Social networking …the new HTML?

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1. Internet connected devices

Growing competition in connected devices; new outlets for onlinecontent

� Can Android be a serious rival for the iPhone? � What of the iPad and new business models that are disruptive for print media,

publishing, gaming?� What is the right model for connected TVs? � Any sustainable model for over-the-top video ?

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50

100

150

200

250

300

350

2008 2020

catch-up TV fixed live TV channels - fixed networks

live TV channels - nomad & mobile on-demand video - fixed networks

on-demand video - nomad & mobile

Time spent watching video in France 2008-2020 (mn/day)

99% 99% 98%

2%1%1%

Europe France USA

Traditional Open Web-based

Breakdown of the TV & video market, 2009

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2. Steady rise in Internet traffic, spurred largely by video…

40%-60% increase in online traffic…

� How to handle the surge in traffic?� Who will finance the Internet of the future (cloud infrastructure and the pipes)?� Business models for FTTx and LTE ?

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3.Top content aggregators become key players of the network

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Source Atlas

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4. Social networking…the new HTML ?

Social networking sites’ growing influence over the time spent online, communication habits, competition between platforms…400 million new Facebook users: a network effect that will be hard to duplicate…

Can Facebook become a serious rival for Google?

� Monetizing user qualification…without raising concerns

� Strengthening the platform strategy � Achieving systematic presence on other

sites and platforms thanks to a digital identity and profile for Open Graph.

Source:Atlas

Who is financing the Internet of the future?Now that the Web is having to contend with more and more video streams, the growing popularity of social networking sites, and prospects associated with the Internet of things… a great many questions are being asked about the Web’s economics.

This year’s IDATE Summit will provide an opportunit y to examine the following :� What new communication practices are taking hold in the different enclaves on the

Net? How well are they in sync with the strategies of the new market leaders? What shifts in value are we seeing in the main sectors that are directly in involved (telecoms, TV, software, print media, publishing, gaming...)?

� Is the Internet threatened by the upsurge in traffi c? What impact are users’ new behaviour patterns and the major content aggregators’ practices having? Who is investing in what?Which players are best prepared for the cloud computing era?

� What role does the Web play in public policies (regulation, security, financing access infrastructure, spectrum, R&D, major applications projects, etc.)?

After having honoured Japan, South Korea, India, China and the United States, IDATE’s Summit will focus this yearn on the Internet’s role in Europe’s strategy for emergi ng from the recession.

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Thank you !

IDATE Headquarter, Montpellier, France