SOURCE: UNCTAD, Information Economy Report 2010

Our responsibility as an industry is to expand Internet usage in order to reduce poverty

Relationship between poverty and Internet users

0

10

20

20

30

40

40

50

60

60

70

80

90

100

Pove

rty

rate

(< U

S 1,

25 (P

PP),

2005

Internet user x 100 inhabitants 2009

LessPoverty

MoreInternet

Multiplier EffectFilipinasJobs

Multiplier EffectIndiaJobs

SOURCE: Raul Katz, Universidad de Columbia, 2010, UNCTAD Information Economy Report 2010, NASSCOM

Technology Jobs

Economic Jobs

Technology Jobs

Economic Jobs

The technology Development creates Jobs directly and indirectly .

2,01,0X2

3,0

1,0

X3,6

3,6

Multiplier EffectColombia - Manizales

Rate Unemployment

8.500 Employee Payroll

10.000 Jobs directly

10%17%

SOURCE: World Bank 2010; World Economic Forum, The Global Information Technology Report 2010

And ICT has a great impact on productivity and competitivenessG

loba

l Com

petit

iven

ess

Inde

x 20

13 -

2014

3.03.23.43.63.84.04.24.44.64.85.05.25.45.65.8

2.62.8

2.4 2.6 2.8 3.0 3.2 3.4 3.6 3.8 4.0 4.2 4.4 4.6 4.8 5.0 5.2 5.4 5.6 5.8

Network Readiness Index 2013

PerúMéxico

Vietnam

ChileSpain

Malasia Israel

JapanGermanyUSA

Singapore

Brasil

Corea

ColombiaColombia

“An increase of 10 percentage points in broadband penetration accelerates economic growth by 1,4%”World Bank, 2010

Household Penetration (%)Internet (%) PC (%)

PopulationMillion

Income x Household Monthly income USD

2

3

10

17

12

5%

7%

22%

39%

27%

>3.300

1.170 - 3.300

660 - 1.170

330 - 660

<330

83

56

8

2

92

70

47

5

26

5050

Stratum (1)

1

2

3

4

5-6

20

In households the opportunity is concentrated on social strata levels 1, 2, and 3

Internet penetration by strata

(1) Based on electrical service coverageSOURCE: SUI, DANE

Do not have money for it

There is no Computer at home

Prices are too high

Do not need it

Do not know how to use Internet

Internet cafe is less expensive (cheaper)

Never been offered the product

Do not want unnecessary debts

Why don't you have Internet at home?

SOURCE: Market research of 2300 people of social stratum levels 1 and 2 in 43 municipalities, 2010

% Surveyed

In social strata levels 1 and 2 the main barriers are the high costs, the lack of a computer and the lack of training

39,9

33,8

21,4

8,62,32,32,1

20,2

In businesses, the opportunity is focused in the micro companies

It is estimated that there are more than 1,600,000 companies in the countrySOURCE: SUI, DANE

Businesses Penetration (%)Internet (%) PC (%)

50

Company Type(Number of Employees)

Large(+200)

Medium(51-200)

Small(11-50)

Micro(1-10)

Companies(%)

0,1%

0,5%

3%

96,4% 7

100

99

79

13

100

100

96

50

Why don’t you have Internet in your business?

SOURCE: Market Research of 1500 micro and small enterprises in 43 municipalities 2010

It is not necessary for the business

I don’t have a computer

Cannot afford the costs

Prices are too high

Do not know how to use the service

% Surveyed

60,6

17,6

12,9

9,3

6,5

In small businesses the main barrier is the lack of perceived need

That seeks to promote the massive use of the Internet to leapfrog PROSPERITY FOR ALL

To overcome these barriers... We are executing the Vive Digital Plan

(1) The Third Way, 1999, Dr. Juan Manuel Santos

“The market as far as possible, the State as far as needed”: Promoting public private partnerships to expand infrastructure and services

Comprehensively encourage the supply and demand of digital servicesto reach critical mass

Reduce tax and regulatory barriers to facilitate the deployment of infrastructure and the supply of telecommunication services

Prioritize Government resources in capital investments

The Government will give example

1.

2.

3.

4.

5.

Vive Digital Plan is governed by 5 basic

2010 1TMeta 20142013 2T

Millions of Internet connections

FUENTE: MinTIC.

Multiply by 4 the number of Broadband Internet connections

1,40,8

2,2Mobile3G/4GFixed >1MB

And will have the following specific objectives:

7,68,8X4

Crecimiento por estratos conexiones Banda Ancha

Durante este Gobierno

Estrato 3

Estrato 2

Estrato 1 105%

68%

35%

20102014

Households2010

2014

Households2010

2014

Micro Companies2012 3T

Micro Companies

50% of Households and SMEs connected to the Internet

Fuente: IDC International Data Corporation

7%

X 3 50% X 7 50%

It will have the following specific objectives:

17%2012 4T

34%

40%Estimated

58%

And will have the following specific objectives:

2010

200

Municipalities connected by fiber optic cable

Optical fibre submarine systems •PCCS•América Móvil 1•GlobeNet•Level 3

Before•Arcos•Maya-1•CFX-1

A 2014•SAm-1•Pan American

551

1.078

47Municipalities connected with the Project high- speed connectivity

777

2012Jun 2013 2014

Colombia is strengthening the ICT Ecosystem

SUPPLY

DIGITAL ECOSYSTEM

INFRASTRUCTURE

SERVICES

APPLICATIONS

USERS

DEMAND

SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010

INFRASTRUCTURE

Our goal 5.344 Rural Population Centers with more than 100 people conected

We are taking at least one internet point to Rural Population Centers with more than 100 people through our

Kioskos Vive Digital

From 3 operators in 3G to six operators in 4G

companies frequencies Tablets granted 556.374

Municipalities connected with the frequencies

Frequency 2.500 MHz 30MHz 309.630 660

Frequency 2.500 MHz 30MHz and 40MHz 30.000 57

Frequency AWS 30.000 57

Frequency AWS 67.426 144

Frequency AWS 119.317 255

No spectrum

Colombia is strengthening the ICT ecosystem

SUPPLY

DIGITAL ECOSYSTEM

INFRASTRUCTURE

SERVICES

APPLICATIONS

USERS

DEMAND

SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010

SERVICES

We have the cheapest computers in the continent

No taxes, no duties

In Social Stratum 1 and 2Moreconnections33%

1,5 million subsidies of 300,000 pesos, in average.

More connections for social stratum 1 and 2

+20.000    Official educational sites, cultural centers and public libraries, benefited through Computers for schools

Computers for schools and its alliesWe are going forward to the coverage of educational institutions

12 children per computer

O u r G o a l

669.000 Computers granted 2014

1.132.000Tablets granted by 2014

Opportunities

Knowledge

Adoption

Connectivity

Computers

+

==+

Digital Natives, an opportuniy for regional development

Colombia is strengthening the ICT ecosystem

SUPPLY

DIGITAL ECOSYSTEM

INFRASTRUCTURE

SERVICES

APPLICATIONS

USERS

DEMAND

SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010

APPLICATIONS

Colombia

New Vice Minister IT

Drive the software industry, hardware and services in the country CIO

We are adjusting the structure of the state to meet the digital challenges

Hacienda yCrédito Público

Justicia ydel Derecho

Agricultura y Desarrollo Rural

Salud y Protección Social Trabajo Minas y Energía

Comercio, Industria y Turismo

Ambiente y desarrollo Sostenible Vivienda

TIC Transporte Cultura RelacionesExteriores

EducaciónNacional

Interior Defensa Nacional

Colombia is strengthening the ICT ecosystem

SUPPLY

DIGITAL ECOSYSTEM

INFRASTRUCTURE

SERVICES

APPLICATIONS

USERS

DEMAND

SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010

USERS

Behavioral economics and simplification are driving consumer protection regulatios

Empowering consumers with relevant information

We are certifing Digital Citizens

Teachers and Officers experts on the industry have been trained on technology, in order to improve their development teaching

69.000

Colombian have been trained in the use of Internet and now they are Ciudadanos Digitales 147.000 of them taking part of vulnerable people.

+1 million

We are building confidence in the use of ICT

1. Internet addiction

PHISHING2.3. Cyber bullying

4. GROOMING

5. Child pornography

6. SEXTING

In the year 2014 the Digital Ecosystem of the country will

SUPPLY

ECO-SISTEMADIGITAL

INFRASTRUCTURE

SERVICES

APPLICATIONS

USERS

DEMAND

SOURCE: World Bank “Building broadband: Strategies and policies for the developing world”, January 2010

We want to grow the Vive Digital plan from the regions

We build Vive Digital Regional together with the regions

X Governors

Mayors

Universities

Private Sector

WE ARE REDUCING POVERTY

WE ARE IMPROVING COMPETITIVENESS AND PRODUCTIVITY

WE ARE CREATING JOBS