1. Accelerating Broadband
and ICT Adoption
John Davies
Vice President, Intel Corporation
May 2014

2. Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
2

3. 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

4. Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
4

5. 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

6. 732M
860M
533M
1145M
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
BRICTIM Population that can afford BB
BBasa%of
Income
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

7. India
Challenges:
• Availability
• Affordability
• Skills + Awareness
Solutions:
• National Broadband Plans with goals
• Policies for competition + spectrum
• Utilize Universal Service Funds
• Digital Literacy and Demand Creation

8. Indonesia
Challenges
• 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

9. Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
9

10. Intel Education
1
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

11. Intel Investment in Education
1
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

12. 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

13. 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

14. Students
PRC, India
CMCC, CTC, CUC, Reliance…
Parents for their
kids’ Education
Indo, Thai, Vietnam
Telkom, DOT, VNPT…
Teachers for
improving their
capabilities/IT skills
Nigeria
Airtel, Etisalat, MTN
14
Prepaid Broadband and Education
Students
Central America
Claro

15. Leadership Education Programs in LAR
Colombia VenezuelaPanama Argentina

16. Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
16

17. 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

18. 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

19. Intel’s vision
Connecting Next Billion people
Education
Collaborating with Governments
Summary
Agenda
19

20. • 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

21. Thank you!

22. 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

23. 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

24. 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