Accelerating Broadband and ICT Adoption

John DaviesVice President, Intel CorporationMay 2014

Intel’s vision

Connecting Next Billion people

Education

Collaborating with Governments

Summary

Agenda

2

Intel’s Vision

• “This decade we will create and extend computing technology to connect and enrich the lives of every person on earth this decade”.

Mr. J. Davies launching Reaching the Third Billion program at ITU TW’11 opening

ceremony

“Create and extend computing technology to enrich the lives of every student on earth this decade”

Intel’s Education Mission

3

Intel’s vision

Connecting Next Billion people

Education

Collaborating with Governments

Summary

Agenda

4

Broadband Impact• IDB: 10% BB growth in LAR GDP + 3.2% ,

Productivity + 2.6%

• World Bank: 10% BB growth in Low/Med incomes GDP +1.38%

• ITU: +11% Panama growth 2005-2011 due to broad band growth

Economic Growth

• Katz: Dominican Republic-1% in BB growth= + 0.29% employment

• Turkey: BB could create 180,000-380,000 new jobs per year

• Connected Nation: Kentucky employment +63,000 in 2 years

Employment Growth

• USA 2009: 8 million people study on-line, 24% Growth per year

• USA- 85% of new employment needs intensive computing use

• OECD: broad band at home improves learning at school

Education Quality

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

732M

860M

533M

1145M

BRICTIM Population that can af-ford BB

BB

as

a %

of

In-

com

e Need low cost Prepaid BB

Need Government Support

80% can’t afford Broadband at 3% income threshold,

(*) Source: ITU report 2010. Measurement of the ICT development

Can afford ~ $20/month

IndiaChallenges:• Availability• Affordability• Skills + Awareness

Solutions:• National Broadband Plans with

goals • Policies for competition +

spectrum

• Utilize Universal Service Funds

• Digital Literacy and Demand Creation

IndonesiaChallenges• Broadband 2/3 of the overall cost • Less than 10% could afford BB

cost • Reduce BB cost to reach more

people

Solutions• May 2013 launched with Telkom

Free 120 hours + 240 hours with $0.50

• Top-up for 6-mo • Demand Creation Awareness

Telekom: ~1M new subscriptions in first 3 months due to Intel program

Intel’s vision

Connecting Next Billion people

Education

Collaborating with Governments

Summary

Agenda

9

10

Intel Education

Our vision Advance excellence in education worldwide

Our mission Create and extend computing technology to enrich the lives of every student on earth this decade

Intel Investment in Education

11

Transforming education in 100 countries

Professional development for 12M teachers

7M students annually in Intel STEM Fairs

Tools for Digital literacy + jobs creation skills

$1B invested in the last decade

Objectives 2008 2010

Teachers ICT Certification

8% 90%

Students per PC

9:1 2:1

Household PC Penetration

43% 70%

Portugal – Education Transformation

Start - 40% Funds from 450M Eu 3G Spectrum fee Today – 100% have PC , local

industry + Content

Concept Before After

Laptop (prior to duties) 3 options.. ~$400 ~$270

Import duties on Notebook (30% went down to zero) ~$120 $0

Interest rate (1 year loan, 14% went down to 5%) ~$80 ~$13

Internet cost (Pre-paid package special for students instead of post-paid) ~$640 ~$46

Subtotal~$1,240 ~$430

Government subsidy (50% of overall cost) ~$215

Cash~$1,240 ~$215

Monthly payment fee for students (all students qualifies) ~$100 ~$16

Senegal - College PC Program

Demand aggregation : Laptops

Import duties from 30% to zero

Interest rate from 14% to 5% (and available for every college student)

Internet package, from post-paid to pre-paid, special for college students

Government subsidy, from none to 50% of overall cost.

2,000 Students 20,000 in 2013 with program

StudentsPRC, India

CMCC, CTC, CUC, Reliance… Parents for their kids’ EducationIndo, Thai, VietnamTelkom, DOT, VNPT…

Teachers for improving their capabilities/IT

skillsNigeria

Airtel, Etisalat, MTN

14

Prepaid Broadband and Education

Students Central America

Claro

Leadership Education Programs in LAR

Colombia VenezuelaPanama Argentina

Intel’s vision

Connecting Next Billion people

Education

Collaborating with Governments

Summary

Agenda

16

Public and Private Partnership

Broadband Best Practices : BB commission

Affordability: Loans, Taxes

House-hold Broadband penetration: Licensee fees, USF

• Education: BB Nat’l plans and USF

Brasil Senegal

Colombia

South Africa

Malaysia

Turkey

BB commission meeting in Mexico

17

USF/BB Conferences

• 3 Major conferences in 2013• Intel event with Gov. and ITU

collaboration• 50+ countries, 200+ officials, $40B

USF

•Upcoming Events:• June 24-27- Cape Town, South Africa• September 23-26 in Guadalajara

Mr. John Davies @ WW USF conference in Istanbul

Dr. H. Toure, SG ITU @ WW USF conference in Istanbul

18

Intel’s vision

Connecting Next Billion people

Education

Collaborating with Governments

Summary

Agenda

19

• Start with Long Term Plan to benefit Citizens, SMB , Students

• Includes…

How to - Public and Private Partnership (Gov + Telco + Industry)

Reach - Universal Service Funds to boost Broadband Access

Afford - Prepaid Broadband + Low cost device + Content

Add Value – maximize local jobs + productivity

Must do - Education transformation for employment skills

Summary

20

Thank you!

Sri Lanka: Pre-paid catalyzes Broadband

growth• Government pushed digital agenda reducing devices’ taxes and enabling online

services

• Telcos launched pre-paid broadband packages in Q1’10.

• People that could afford Broadband cost at 3% threshold went from ~15% to ~70%.

Source: Billboard in centric Colombo street

Sources: Euro monitor, CIA Fact book, ITU, Intel

Prepaid model applied to Broadband drives incremental

subscribers for Telcos

Program recognized @ WW level

Pre-paid Broadband is viral in Emerging Markets

Live in 59 countries ~20+ million bundles sold

~40% TCO reduction

~1.2B additional people can now afford (3x+)

2012 BB Commission report

2012 World Economic Forum

report

2013 UNESCO Education report

23

Benefit of Connectedness

Staying connected to your friends,

family and to what’s going on in the

world

Benefit of Personal/ Family Advancement

Furthering your education, your career and providing benefits for the whole family

Benefit of Freedom

Having the ability to access a PC anywhere,

anytime for convenience and to keep your data safe

Source: Intel Research. Q4’13

24

Education is #1 family motivation for technology adoption