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The Information Society in Spain Updated March 12 th 2009

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The Information Society in Spain: a March 2009 report form Plano Avanza 2.0

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Page 1: The Information Society in Spain

The Information Societyin Spain

Updated March 12th 2009

Page 2: The Information Society in Spain

The Information Society

is already a realityis already a reality

in Spain

Page 3: The Information Society in Spain

Overview

• Information Society Indicators

BroadbandPC, Internet and mobile penetration Internet security and trustProtection user rightsElectronic IDICT innovation and revenueNetworked education, healthcare and inclusionPolicy developmentsE-commerce and E-business

• Plan Avanza Developments

Results Regulatory frameworkSummary

Page 4: The Information Society in Spain

Information Society Indicators

Page 5: The Information Society in Spain

Features of IS indicators used in this presentation

• Quantitative nature:Indicators are quantified using well-known statistical sources.

• Official character and robust methodology:This allows for coherent international comparisons.

• Up-to date figures:Figures are the most recent available (2008 in most cases).

• Avanza Plan budgetary effort (over € 6.5 billion in 2005-2009) is reflected

in the figures shown.

• Interannual comparison is possible, as methodology has remained

unchanged for almost all indicators over the years.

Source:

Page 6: The Information Society in Spain

The Avanza plan is a historic landmark in

the development of the Information Society

More households equipped and citizens using ICT as part of everyday life.Social inclusion and Bridging the digital divide.

Digital Citizenship

Loans to families, young people and studentsTelecentresEncouraging women to use the InternetDigital alphabetization campaignsE-Inclusion of elderly and people with disabilities

Extending Broadband and mobility coverages.Increasing confidence in the security of ICT. Promoting digital identity.Development of digital content.

Digital Context

Broadband and mobile telephony Extension PlansNational plan for Transition to DTTSecurity (INTECO)Plan to promote digital contentOpen source software (CENATIC)

Greater adoption of ICT among SMEs and businesses in general (e-commerce, electronic billing).

Digital Economy

Transition from a traditional education to education for the digital age, with IT equipment and connection to the Net

Guaranteeing the right of citizens and companies to conduct business electronically with Government bodies (eGovernment).

Education and Public Digital Services

Networked EducationPublic Health System on-lineNetworked administration. Networked Civil RegistersPlan to promote e-GovernmentElectronic ID card

Competitiveness

Social welfare

Quality of life

Productivity

Avanza SME, Online industrial parksTraining in ICT and webpage adoption programTechnology loansProfit R&D&i and driver projectsDominios.es

Five-year plan 2006 – 2010, extended to 2012

Page 7: The Information Society in Spain

1.794.043

1.539.3991.197.733

535.756 542.914

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

2004 2005 2006 2007 2008

2004 2005 2006 2007 2008

FUNDS 2005-2008Avanza‘s budget 2005–2008 surpasses 5.1 billion €.

‘Shared effort’ policy: agreements and co-financing with all agents, public & private.

Additional funds mobilized exceed 4 billion €.

Annual budget

x 3

Page 8: The Information Society in Spain

• High rural population percentage (>23%):

• One of the most mountainous countries in Europe:– The average altitude is 660 meters.

The cost of deploying telecommunications infrastructures to cover the majority of the population is one of the highest of Europe ⇒ Avanza support plans.

Almost 50% of the territory is mountainous Rural municipalities in Spain

Development of Information Society in Spain:Connectivity and technology infrastructure. Difficulties

• 84% of municipalities have < 5,000 inhabitants.

Source: United Nations 2005

Source: INE 2007

8640048320245

% Rural PopulationSpain 23,3%Netherlands 19,8%Republic of Korea 19,2%Sweden 15,7%United Kingdom 10,3%

Population Density

Num. of municipalities %/ totalRural municipalities <101 inhabitants 996 12%Rural municipalities (< 2,000) 5.820 72%Intermediate (2,000 to 10,000) 1.570 19%Urban 8 (> 10,000) 721 9%Total 8.111 100%

Number of municiplities by inhabitants

Page 9: The Information Society in Spain

December 2007: Broadband coverage of the population in Spain ⇒ 96%

– 6,457,060 citizens benefited.– in 3,769 municipalities.– 49,107 population centres.

2004: Broadband coverage of the population in Spain ⇒ 80%

December 2008 Broadband coverage of the population in Spain 99% (100% of residents in population centres)‘Rural Broadband’ became ‘commercial Broadband’

• In Spain: 8,110 municipalities: 5,820 < 2,000 inhab.; 996 < 100 inhab.; also, difficult orography.

• PEBA: Broadband to 100% population centres (>5 houses) without coverage, or insufficient coverage.

• Target ⇒ Population: 8,356,552 people ⇒ 5,706 municipalities ⇒ 58,444 population centres.

2005: BB Programme

begins

December 2008: BB Phase II ends

Development of Information Society in Spain:Broadband Extension Plan (PEBA)

September 2008: BB Phase III begins

Fiber Optics to the Town

Page 10: The Information Society in Spain

Development of Information Society in Spain:Mobile Telephony Extension Plan (E-GSM)

Spectrum granted (10 MHz) to operators in exchange for coverage improvements.

Private investment committed: € 833.8 MM.

Duration: November 2005 – December 2008.

Present coverage: 99% population – one of largest in Europe.

Areas of implementation:

Population Centres

Citizens covered

5,335

+1,500,000

Rural areas:

Strategic areas(nuclear plants, petrochemical plants)

Main communications highways

> 50 inhabitants

Page 11: The Information Society in Spain

Development of Information Society in Spain:Coverage of 3G UMTS networks in Spain

Less than three years after its implementation, coverage of UMTS 3rd generation mobile phone progresses in a satisfactory way

When defining a coverage 3G indicator there is an important margin of discretionality when it comes to:

• The definition of coverage from a technical point of view.

• The consideration of areas not covered by operators.

As a consequence, in a recent report by CMT, UMTS coverage percentage is slightly lower (68.4%*, in contrast to 73% reported by one operator)

Mobile operators keep increasing the number of mobile stations in order to improve coverage.

Population coverage of 3 main UMTS operators (Dec. 2007)

* Only speeds ≥ 300 Kbps are considered

Operator Coverage

Telefónica 63%

Vodafone 73%

Orange 68%

Page 12: The Information Society in Spain

Development of Information Society in Spain:Plan to accelerate DTT adoption and Switch-over

% population coverage of national channels: (Abertis Telecom, December 2008) 92.5%

Buildings of 3 households or more with DTT-ready aerials: (Fenitel, October 2008)

(these households are generally considered to be the ones that need adaptation)65,6%

DTT-ready buildings of all types:(including buildings with 2 households or fewer, which do not need adaptation):

91%

Households connected to DTT: (Sofres, February 2009) 48.5%

Screen share for DTT: (SETSI, March 2009) 26,2%

Households connected to DTT( with cable, satellite, ADSL): (SETSI, March 2009) 72,6%

Source: (INE) Instituto Nacional de Estadística(*) Sofres , February2009

Households with Digital Terrestrial TV (DTT)

• More than 30 free channels in all 3 ranges: state, regional and local.

• Digital switchover brought forward two years, to April 2010.

• Regulation to adapt buildings to DTT.

• More than 90% of TV sets sold are DTT-ready.

DTT coverage (2008)

Source: Impulsa TDT

1: Germany Nov. 2008 - source: T-System, 2: Spain: Dic. 08 - source : Abertis Telecom, 3: France: Jan 2009 - source : TNT Groupement.

1 2 3

90.0%

92.4%

89.0%

Germany Spain France

2.5% 2.0% 3.3%

19.4%22.8%

37.3%

48.5%

2003 2004 2005 2006 2007 2008 2009*

Page 13: The Information Society in Spain

A conventional indicator…PC penetration - households

x 1.35

I QUAT 2004

III QUAT 2004

I QUAT 2005

III QUAT 2005

I QUAT 2006

III QUAT 2006

I QUAT 2007

III QUAT 2007

2008(INE)

63.6%

57.8%

48.5% 47.1%

50.1% 51.5%

54.1%

57.8%

47.8%

59.1%

QUAT I 2008

63.6% of households are equipped with computers (desktops, laptops or

both), with an interannual growth amounting to 3.2 pp. (2007-2008).

Source: ONTSI

Page 14: The Information Society in Spain

Development of Information Society in Spain:Broadband take-up

Number of lines by speed type

• Narrowband has practically disappeared from network connections in Spain.

In 2003 half the Internet connections were narrowband.At present, 96% of Internet access is already by Broadband.95% is 1 Mbps or higher.

• From 2004 to 2007, Broadband increased its average speed from 256 Kbps to 3 Mbps.

• 50-100 Mbps offers commercially available

Sep2008

2003Source: CMT

Narrowband 4%

424 M

1,698 M

85 M

8,689 M

370M

2,559 M

Narrowband(switch access)

<1Mbps

≥ 1Mbps

1999

3,041 M

68 M3,109 M

4,681 M

9,144 M

∆ 50%

∆ 95.3%

(95 % ≥ 1 Mbps )

Broadband 96%

Page 15: The Information Society in Spain

Development of Information Society in Spain:Broadband take-up

• Broadband lines have gone from 2.1 million in 2003 to 9.1 million in December 2008 (4.3 times higher).

• Broadband penetration (lines/100 inhab.) was 20% in December 2008. It has increasedfourfold (from 5% to 20%).

Note: Since 2002 the population of Spain has increased by 4 million inhabitants, with average annual growth of 2%. Spain is the country which grew most in relative terms of all the EU-27 (Spain: 1.64% vs. EU-27: 0.40%).Under the assumption that the population of Spain had grown at the same rate as the EU-27 average (CAGR 2002-2007=0.55) the penetration of Broadband at the end of December 2007 would be 19.3%

Source: Own elaboration based on INE and Eurostat data

According to a new OECD report (oct. 2007), Spain ranks 9th amongst the OECD countries in Broadband subscribers.

2.1 M

0.07 M

1999 2003

x 4.3

8.03 M

2007

9.1 M

Dec2008

1999 2003 2007

5.0 %

0.17 %

18 %

x 4

Dec2008

20%

Page 16: The Information Society in Spain

Development of Information Society in Spain:Broadband in households

51% of households connected to the Internet. + 1,1 Million added in the last 12 months.

Broadband connections are 45%, near the EU average (49% EU-27), 3 times the 2003 figures.

% households with Internet access and broadband

% of households with Internet access

% of households with broadband connexion

60

1999 e 2004

40

EU 27

34

15

49

45

14

EU 27Spain

Spain

19.5

X 3

2008

51

Households with Internet access Spain

Households with Internet access EU -25

Households with Broadband Spain

Households with Broadband EU-25

Source: Eurostat, e:estimated

Page 17: The Information Society in Spain

Development of Information Society in Spain:Broadband in enterprises

% of enterprises with Internet access

% of enterprises with Broadband connection

% of enterprises

with BB access

Internet access UE-25

Broadband UE-25-27

Internet Access Spain

Broadband Spain

Connected enterprises with Broadband grew from 72% in 2003 to 92% in 2007 ( x 1.3), well over the EU figure (81%)

E- business: The percentage of companies making purchases via the Internet has gone from 3% in 2004 to 16% in 2007. The gap with the EU-25 has fallen by 10 percentage points.

Enterprises with Internet connection

92%

94%

98%99% 99%

100%

10 to 49 emps 50 to 249 emps 250 + emps

EUSpain

Source: Eurostat 2007.

* Source: ICT in the Spanish Enterprise. Everis.

More than two thirds of Spanish SMEs (69.8%)* consider ICT investment clearly profitable.

Smallest companies (≤ 2 employees) experience most substantial increase 2006-2007:

Interconnected computers have risen 10.2 pp over the last year (from 57.5% to 67.7%).

Companies with Internet access have increased 9.1 pp (from to 76.6% to 85.7%).

Spain ranks 8th amongst the countries with the highest number of ICT jobs created by foreign investment in 2008. In 2007, it was placed the 22th.

Source: IS report in Spain 2001, Telefónica and Eurostat

9593

1999 2004

81

46

72

92

50

87

88

Spain

Spain

EU 27

2008

14.5 (e)

EU 27

x 1.3

Page 18: The Information Society in Spain

Development of Information Society in Spain:Mobile broadband

Mobile Internet traffic

Source: CMT

x 3.1

Traffic on the GSM/GPRS network(Mbytes, quarterly total)

Mobile broadband traffic ( UMTS network)

(Mbytes, quarterly total)

1,697,521

1,057,059

794,217

546,752 218,503138,431

61,38873,030

1,916,024

1,195,490

855,605

619,782

Q1 07 Q2 07 Q3 07 Q4 07

Data traffic through the Mobile Broadband UMTS network and the GSM/GPRS

network grew by 209% during 2007

Total mobile data traffic (Mbytes, quarterly total)

Page 19: The Information Society in Spain

Development of Information Society in Spain:Mobile phone penetration

Mobile phone lines have gone from 37.2 million in 2003 to 52.4 million lines in December 2008, increasing penetration 29 pp (from 87.1% to 115.9%), above the penetration rates of the EU-25.

3 years ago UMTS became commercially available. There are already nearly 10 million users. A fourth operator was launched.

Internet use via mobile increased threefold in 2007.

Mobile Broadband now has 1.1 million intensive users in Spain

Number of mobile subscribers and penetration rate

Source: Own elaboration based on CMT and Eurostat e: estimate. Telemetry and/or telecontrol (2M2) services lines are included in order to make results comparable with EU figures.

1999 2003 2007

15 M

37.2 M

50.2 M

35%

87.1%

112.2 %

9.6 M e

1.9 MM

2006

Mobile telephony penetration Spain

Mobile telephony lines Spain

UMTS terminals (Broadband for mobiles) Spain

Mobile telephony penetration EU 25

35%81 %

111.8%

52.4 M

115.9%

Dec2008 e

Page 20: The Information Society in Spain

Development of Information Society in Spain:Internet penetration

In 2008, 57% of Spaniards are Internet users.Since 2003 the number of Internet users has doubled, with 11.9 million new users joining to bring the figure to over 23.6 million today (*).

56.7%

34.2%

10.5%

1999 2003 Diciembre (E)

3.1 MM

11,7 MM

23.6 MM

2008 e20031999

x 1.7 [ x 2 ]

Source: INE, CMT and Red.es e: estimate

(*) Including young people under 15, who are not always considered in statistics.

(**) ONTSI estimation from INE data as !st semester 2008

12 MM (**)

Internet users on-line buyers e-ID cards holders

8MM

0 MM1.6 MM

Page 21: The Information Society in Spain

Evolution of the number of .es domains

The million mark has been passed for ‘.es’ domain names.

The Government plan “Dominios.es” has meant growth of over 1,044,000 domain names, 1,468 percentage points more than the previous period (1999 - 2003).

Development of Information Society in Spain:’.es’ Internet Domains

Source: Red.es

x 15.7

18,859

805,327

71,158

1999 2003 2007

1,083,010

2008

1,115,777

Jan2009

Galicia

Asturias

Navarra

Aragón

Islas Baleares

C. Valenciana

Murcia

Andalucía

Castilla- La Mancha

Castilla y León

Extremadura

Canarias

Cantabria

La RiojaCataluña

Madrid

Ceuta

País Vasco

Data as Dec-08 Data as Jan.-09

Thousand of .es domainsMelilla xx,xxx,x

Other locations

USA

Germany

Turkey

United Kingdom

Others

125,1124,7

117,7118,2

25,024,9

22,722,1

10,510,4

36,436,8

223,5222,5

6,66,5

9,08,9

27,627,1

155,6150,4

17,517,3

32,733,4

0,50,5 0,5

0,5

41,841,3

17,216,7

11,310,8

45,240,7

32,732,9

23,523,9

11,511,5

11,911,7

86,187,9

165,7167,9

Map of .es domains registration origin. December 2008

Page 22: The Information Society in Spain

Development of Information Society in Spain:Electronic ID Cards

Over 9 million Spaniards already hold their e-ID Card (around 20% of the population). Pilot project started in March 2006 – fully launched in June’07

100% of provinces and police stations are now equipped and trained to issue e-ID cards.

+1.000 public services (national, regional, local) available:

Tax declaration and payment, civil registration, work history…

Some highlights from 2007:

+4.2 million citizens used a digital certificate to interact with Public Authorities (excluding tax payment)

5.7 million citizens performed their tax declaration on-line (+27%)

92% of enterprises using Digital Signature

People with e-ID Cards

Source: Red.es

0.2 M

1.4 M

9,0 M

Dec 2006 Sep 2007 Feb. 2009

Page 23: The Information Society in Spain

Development of Information Society in Spain:The ICT sector: Growth and Innovation

Source: AETIC

x 1.7

* Innovation investment includes: internal R&D, external R&D, design, machinery and equipment acquisition, training and commercialization (according to INE definition).

Innovation investment (R&D+i)* in the ICT sector has almost doubled (x 1.7) over the period 2003-2007.

Increase in 2004-2007 has surged to 61%, in contrast to the 4.5% increase in the period 2002-2004.

Revenue for the ICT sector in Spain has increased over the last 4 years by 42.4% to 101,353 million.

5,022 5,1255,249

5,931

7,117

8,469

2002 2003 2004 2005 2006 2007

ICT Innovation Investment (€ million)ICT Sector Revenue (€ million)

71,153

75,818

82,535

87,857

95,930

101,353

2002 2003 2004 2005 2006 2007

Page 24: The Information Society in Spain

Development of Information Society in Spain:Population and age

The dynamic of population growth differs from other European countries:

The population in Spain grew in 2007 by 1.64%, four times the EU-27 average (0.4%).

The number of households in Spain grew in the period 2002-2006 by an average 3% a year, trebling the EU average (0.95%).

Internet use in Spain is higher than in the EU 25 for 16–34 year-old, and it is lower above the 55 age range.

Internet use in Spain and the EU-25 by age range

Source: Eurostat and INE. 2007Spain

91

.6

80

.2

63

.4

50

.9

24

.4

7.9

80

69

60

51

35

14

16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 7410 to 15

82

.4

80

69

60

51

35

14

UE 25

Page 25: The Information Society in Spain

Development of Information Society in Spain:Networked education

‘Campus online’:

100% of State universities (50) have free WIFI access, thanks to Campus Online program (6 universities have their own similar program).

‘Internet in the Classroom’ project:

In 2007, 99.3 % of schools have been IT-equipped and connected to the Internet. 95% of these are already Broadband connected. In 2006, 92% of Spanish schools had BB compared to 67% in the EU.

‘Internet in the classroom’ program implemented in more than 20,000 schools, through digital infrastructures and content.

6 million pupils and 500,000 teachers benefitted

‘Agrega’ platform:

A communication platform for teachers, students and families

90% of teachers have been IT-trained.

60% of teachers prepare study subjects and materials on-line

Source: MEC and the European Commission

% of Broadband connected schools

Budget Executed: €114.5 M (65% of the total)

Galicia

AsturiasNavarre

Aragonn

Balearic Islands

Valencia AutonomousRegion

MurciaAndalusia

Castile - La Mancha

Castile-Leon

Extremadura

Canary Islands

Cantabria

La Rioja

Catalonia

Madrid

CeutaMelilla

Basque Country

76%76%76%77%

79%79%79%79% 67%

68%68%68%

72%77%77%77%

52%55%55%57%

75%76%76%76%

58%60%60%60%

34%35%35%38%

54%54%54%54%

78%78%78%78%

74%75%75%76%

86%86%86%86%

54%54%54%55%

60%64%64%66%

76%76%76%76%

79%79%79%79%

81%81%81%82%

92%92%92%92%

63%

73%

87%92%

95%98%

67%

2003 2004 2005 2006 2007 2008e

Spain EU 25

Page 26: The Information Society in Spain

• Spain takes the lead in Europe in eHealth services development

• All citizens are part of the national Health System and have their e-Health Card

• The plan to interconnect the regional health systems has already installed 60,000 PCs in more than 6,200 health centers, benefiting 33.5 million people and 252,941 medical staff.

• By the end of 2008, the health cards of all Spanish regions will be fully interoperable.

• Services: on-line medical appointments, compatibility and mobility of clinic history, e-prescription…

Development of Information Society in Spain:Networked healthcare

Number of health centres benefited

Source: Red.es

381

6.239

2006 Dec. 2008

103,0 91 %99,0 88

Budget executedprevious month:

Galicia

Asturias

Navarra

Aragón

Islas Baleares

C. Valenciana

Murcia

Andalucía

Castilla- La Mancha

Castilla y León

Extremadura

Canarias

Cantabria

La Rioja

Cataluña

Madrid

Ceuta y Melilla

País Vasco

100 %

100 %

81,0 %

81,0 %

100 %

100 %

99,6 %

97,8 %

85,1 %

85,1 %

100 %100 %

91,0 %

80,2 %

66,6 %

66,6 %

61,7 %48,9 % 95,4 %

95,4 %100 %

100 %

83,5 %79,4 %

100 %99 %

75,2 %

71,9 %

92,5 %86,2 %

96,2 %

91,2 %

78,6 %

74,9 %

95,8 %95,8 %

Participants

Not participating

Finished

Pending agreement

• Data Jan-09 executed• Data Dec-08 executed

% Presupuesto Facturado

M€M€ %

%

Page 27: The Information Society in Spain

Development of Information Society in Spain:Networked Administration

• At the end of 2008, 1,895 computers had been installed in Magistrates´ Courts. The number of computerized Magistrates´Courts amounted to 1,331.

• More than 51,000 Registrar Books have been digitalized until the end of 2008 and over 34,2 million pages. Around 180.000 pages are digitalized every day.

• 130 prisons are equipped with computer rooms and 6.632 PCs for training inmates and staff in ICT, and have improved communication with the exterior by installing videoconference rooms.

Source: Red.es

1,447

1,895

dec   .07 dec.08

Pcs  installed

1,312

50,890

dec 07 dec 08

Registrar Books digitalized 

Page 28: The Information Society in Spain

Development of Information Society in Spain:e-Inclusion

More than 3 million women and 1 million children aged from 10 to 15 have become Internet users thanks to Avanza initiatives.

Thanks to these initiatives, over 200,000 elderly people have also become Internet users.

More than 187,000 families benefited from 0% ICT loans.

Over 11 million people in rural communities have access to Internet and training thanks to almost 3,000 telecentres and 2,500 connected libraries.

2008

% Women using the Internet

2003

52.8%

30.7%

82.2%

50.49%

% Children (aged 10 to 14) using the Internet

Source: ONTSI and INE

% elderly using the Internet

16.3%

8.6%

Telecentres program: deploymentTelecentres program: deployment

Page 29: The Information Society in Spain

Development of Information Society in Spain:On-Line Public services

Public services available online have increased from 50 to 70%, well above the EU figure (62%). More than 600 Government agency services and 400 regional government services are available online and ready to be used with the electronic ID card.

The degree of sophistication of online public services in Spain has reached 84%, 6 percentage points higher than the EU average.

Source: Prepared internally based on data from the European Commission (Report: e-Government benchmark survey 2007)

* Data for 2007 are not comparable to the previous series due to changes in methodology

Degree of sophistication of the 20 basic public services online

84% *

50%

64%68%

73%79%

78%*76%

66%

2001 2002 2003 2004 2006 Apr 2007*

Spain EU 25

** Data for the EU 25 for 2003 are not available

Degree of availability of the 20 basic public services online

50%

70%

62%

2003 Apr 2007

Spain EU 25

Page 30: The Information Society in Spain

Development of Information Society in Spain:e-Commerce (B2C)

Electronic Commerce volume (B2C)

Sharp rise in e-Commerce adoption: from €1.5 billion in 2003 to € 4.8 billion at the end of 2007.

Growth over the last year has amounted to 71.4%.

Despite this substantial increase, Spanish figures are still distant from the European average.

2,778MM €

4,761MM €

2006 2007

+71.4%

Source: ONTSI

This spectacular growth is explained by a substantial increase of 3 million on-line buyers, reaching 8 million people in 2007.

Source: ONTSI

Almost 40% of Internet users made on-line purchases in 2007, in contrast to 27.3% in 2006.

5.1 MM

8.0 MM

2006 2007

On-line buyers (B2C)

Page 31: The Information Society in Spain

Development of Information Society in Spain:Promoting Digital Content Industry

High priority since 2007 to develop the Digital Content sector for its huge potential (450 MM Spanish Speaking people), one of the fastest growing in the Spanish economy.

In-depth analysis of the sector in its various areas of activity:

1. Videogames 2. Music and Radio 3. Cinema and Video

4. Audiovisuals 5. Publications 6. Advertising

7. Networked Society

Meetings with the leading agents in each of these areas and the establishment of communications channels for defining priorities.

Plan to promote Digital Content: €850 million in 2008-2009 and agreement with ICEX.

FICOD: 2nd International Forum for Digital Content (Madrid, 25-27 Nov. 08):

• + 9.000 international attendants.

• + 400 international experts.

• 2nd International Conference on Intellectual Property.

• Widely welcomed by the Industry as an initiative for action and promotion.

Page 32: The Information Society in Spain

Development of Information Society in Spain:Protection of user rights

Telecommunications User Care Office (www.usuariosteleco.es):Provides information to users on their rights and resolves claims.Publishes every six months comparative tables on service quality and prices.

+366.000 consultations and requests attended.

New Regulatory Framework for the protection of users' rights

Exhaustively establishes the minimum contract content:Characteristics of the service offered with description of features.Prices, economic conditions and cancellation conditions.

Quality commitment and compensation for failure to comply (obligatory for service interruptions)Right to cancel on 15 days' notice.

Obligation to communicate with users by telephone or e-mail. Assignment of a reference number to each claim.

Regulation of services with additional charges (incl. 905 numbers and Premium SMS).

Regulation of users' registrations and cancellations without their consent (Slamming).

Service Quality Obligations:

Pioneering framework within EU, setting service quality obligations for fixed and mobile telephony, Internet access and information services operators

Obligation to measure and publish information –quarterly updated- on pre-established parameters recommended by EU

Page 33: The Information Society in Spain

National Institute for Communications Technologies (INTECO, founded Nov’05):

Centre for Response to IT Incidents for SMEs and the Public.

INTECO-CERT:

– The centre currently has 190 sensors and carries out

daily analyses looking for malware.

– IPs scanned: 8 million.

– Subscribers to security reports: 215,000

– Malware threats catalogued and reported: 8,100

– Vulnerabilities documented and reported: >34,000

Demonstration Centre for Security Technologies for SMEs.

In 2 years the percentage of businesses seeing lack of security as a reason for not making more use of ICT has fallen by nearly 20 percentage points.

Companies perceiving lack of security as areason for not using ICT more

Source: Telefónica Foundation (report on the Information Society in Spain 2006) from DMR/AETIC data

26%

7%

2004 2006

Development of Information Society in Spain:Internet security and trust

Number of e-mails scanned daily by INTECO

135 million

55 M

8 M

JAN-2007 SEP-07 DEC-08

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• It will reinforce Internet-security culture among citizens and enterprises, with dedicated resources and channels for assistance

Internet user’s Security Office

• A comprehensive catalogue or users’ rights, including optimized procedures to ensure their protection from the Users Care Office

Telecom Users’ Bill of Rights

• It will measure current technical parameters as well as new parameters about users’ perceptions and service experience

Service Quality Observatory

Protection of Users’ rights:Next steps

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Development of Information Society in Spain:Legal framework

Advanced Regulatory framework for IS development, withTwo main policy laws implemented:

Law on Information Society development measures (Dec’07).

Law on Electronic Access of Citizens to Public Services (June’07):

Some key issues:

• Compulsory on-line access to specific services (e.g. public utilities).

• Progressive obligation for electronic invoicing.

• Internet for all: mandatory accessibility for handicapped and older people.

• Obligation of available information in the ICT Spanish sector.

• Faster, IT-enabled constitution of SMEs.

• Public Administration on-line access and contents at public disposal (2009).• Laws fully discussed with the diverse Public Authorities, political parties,

private sector and citizens’ associations

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Moving forward to Develop theInformation Society in Spain:

Main Highlights & Results

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• Plan Avanza has been designed to place Spain on a top position within the Information and Knowledge Society, to improve its economic productivity and the general welfare of all Spanish citizens.

• The budget for the Plan in the period 2005 – 2009 surpasses 6.5 billion €, five times as much as the amount devoted to information Society initiatives in the previous four years.

• Results so far show that measures put in place since late 2005 are -indeed- the best way to go.

• All areas in Avanza will be reinforced since 2009, for the Plan AvanzaDos to surpass its global goals in 2012 – and beyond.

Page 38: The Information Society in Spain

RESULTS (I)

Back in 2003 Today…

12 millionInternet users

24 million Internet users. Spain is the 4th largest Internet

community in Europe

Back in 2003 Today…

Broadband coverage: 80%

of thepopulation

99% of the population is able to

connect to BB Internet

Back in 2003 Today…

Only 2% ofhomes had aBroadband connection

More than 7 million homes are BB-

connected, 45% of total in Spain

Back in 2003 Today…

Speed for Internet

connections around 256

Kbps

Common speed is 3 Mbps, and pricesare 25% lower

Page 39: The Information Society in Spain

RESULTS (II)

Back in 2003 Today…

No DTT available

DTT covers 92.5%of population, highest in EU.

16,3 MM receivers sold

Back in 2003 Today…

No rural Broadband

extension plan

8.3 MM people inrural areas have

new and improved access to

Broadband

Back in 2003 Today…

No Mobile comms.

Extension plan

1.1 MM people inrural areas have

new and improved Mobile coverage

Page 40: The Information Society in Spain

RESULTS (III)

Back in 2003 Today…

ICT innovation investment

annual growth: 5%

ICT Innovation investment annual

growth: 20%

Back in 2003 Today…

No ICT home-equipment increase plan

Over 187,650 families have a BB-connected computer thanks to 0% loans,

no guarantee, no commission

Back in 2003 Today…

No ICT SME-equipment increase plan

Over 104,180 SMEs have new ICT

equipment thanks to0% loans, no guarantee, no commission

Page 41: The Information Society in Spain

Back in 2003 Today…

ICT customer rights: Obsolete, multiple channels

Regulatory Framework,

Telecom Users Office

Back in 2003 Today…

ICT Quality-of-Service

needed to be specifically addressed

QoS reports Broadband Price

lists

Back in 2003 Today…

No clear Legal framework for

new ICT services

Law for the Impulse of the Information

Society: e-Billing, e-Customer service,

information to users…

REGULATORY FRAMEWORK

Page 42: The Information Society in Spain

Moving forward to Develop theInformation Society in Spain:

Main analysis and global Information Society development measures at international level

Page 43: The Information Society in Spain

Recent opinions from the analysts… (I)

• Within EU’s Big Five, Spain will be the fastest growing ICT market in 2007 - 2009.• Even in the current scenario of international economic downturn, the Spanish IT sector will grow by

4.9% over 2008, and 2% in 2009.• Telecoms market expected to grow a combined 0.9% in 2008 - 2009. Limited impact of the economic

crisis Vs. high deflation rate in the sector (-3.5% in 2007, more than 7 pp difference with GPI).

EITO – ICT forecasts for 2009, November 2008

Yankee Group – ‘Anywhere’ Index, November 2008

• According to the international "Anywhere" index (measuring, among others, the actual capacity of a country to offer ubiquitous broadband connectivity and users’ adaptation to digital technologies),“Spain is poised in an advantageous situation, thus being one of the countries which will lead the change in the future’.

• Spain ranks 14th in the world in terms of fixed and mobile broadband availability and is situated within the group of “leading countries in this transformation process towards ubiquitous societies”.

• In 2012, Yankee Group forecasts that Spain will have surpassed countries such as France, Belgium or Canada. These will keep in the group of “countries under transformation”, while Spain will be part, together with others like the United States, United Kingdom or Japan, of the group of “fully ubiquitous countries”.

Page 44: The Information Society in Spain

Recent opinions from the analysts… (II)

• ‘The Spanish IT services market will continue to be the fastest growing market across Western Europe up to 2012. Spain will grow at a 3.6% CAGR in 2009 to reach $15 billion’.

• ‘IDC foresees that, by 2012, Spain will be the fourth largest IT services spender in EU after the U.K., Germany and France’ [surpassing Italy].

• ‘IDC has recently produced Spanish 2008 figures. IT market rate of growth has amounted to 5.7%, whereas ICT market has climbed to 3.2%.

• ‘2009 prospects point out to a flattening of the ICT sector, but 2010 will bear witness to a growth over 2%

• ‘What is Spain's magic ingredient for continuous high growth? The IT sophistication of some industries combined with the public sector modernization effort has helped to spur growth in IT services. For the past few years, central and local governments have been modernizing their IT applications and infrastructures and will continue to do so to catch up with the rest of Europe. Moreover, the Spanish government invests large amounts in technological education initiatives for both citizens and enterprises, leading to strong growth in the IT education services market’.

• ‘In the business sector, the financial services and energy and utilities industries are leading growth in IT services investments, and will continue to dedicate a substantial part of their IT budgets to innovation projects. Moreover, outsourcing has good acceptance in the Spanish commercial sector and will grow at 9.3% CAGR over the next five years’.

IDC – Press release 22-11-2008 (Update TOP 10 Predictions (26-01-2009)

Page 45: The Information Society in Spain

• Higher sophistication in the use of ICT by SMEs:Almost 80% of Spanish SMEs have contracted fixed voice, mobile and broadband services, up 13% from 2007.

Everis – The market for telecommunications in the Spanish SMEs, November 2008

Recent opinions from the analysts… (III)

• In 2007, Spain ranked 8th worldwide in terms of total employment created by Foreign Direct Investment (FDI) in the ICT sector.

• Spain climbs 14 positions in this ranking, up from 22th in 2006.• FDI in the ICT sector created 24,000 jobs in Spain in 2007, of which 3,600 jobs were created directly

in the ICT sector and the rest in subsidiary industries and sectors.

IBM – Report on ICT Direct Foreign Investment 2007, October 2008

• PwC forecasts point out that Spain will be one of the world’s on-line advertising markets to show a higher growth in 2008 - 2012.

• CAGR for the Spanish on-line advertising will reach 37.2%, compared to the average 22.1% for EMEA.• The Spanish digital content market represents 2.2% of the world’s global market. This percentage will

increase up to a 2.4% in 2012*.

PriceWaterHouseCoopers - Global Entertainment and Media Outlook 2008 - 2012

(*)ONTSI estimation based on PwC report

Page 46: The Information Society in Spain

Spanish National Statistics Institute (INE), Update on Service Sector Activity Indicators, September 2008

• IT services keep the pace in Spain with a total annual sales increase of 8.7% up to September 2008.• IT services employment rate has also increased by +4.2% in the year up to September 2008.• Prices for telecom services have fallen by -3.5% in the year up to March 2008. Relevant role in the

Spanish economy’s inflationary restraint.

Recent opinions from the analysts… (IV)

• Spain is the leader of the EU in terms of high speed Internet mobile penetration, way ahead of countries like Italy or Germany.

• 19.5% of the Spanish population are mobile broadband users, in contrast to 6.9% EU average*

European Commission - Broadband access in the EU, November 2008

(*) Spanish CMT uses a more rigid methodology for measuring this parameter than the one used by EC for all EU countries. Nonetheless, EC data offer a homogeneous comparison for all EU countries.

• Spain is the leader across Europe in fixed broadband speed: 83% of total Broadband lines have a speed higher than 2 Mbps. The second country is The Netherlands, with a 63% (20 points below Spain).

IDATE – Broadband in Europe report, December 2008

Page 47: The Information Society in Spain

• “[back in 2004] talking about today's 8 million broadband connections was unthinkable”

• “Current efforts on the infrastructure development are really appreciated. High speed NGN are a challenge that, provided a sound management, will take our country at the forefront of the European Union.”

• “The sector potential enables to fully contribute to a shift of productive model aiming at economic growth recovery. We should make the most of this opportunity. A dynamic environment open to investment and innovation is needed.”

Público journal, Interview with Telefonica´s CEO, 8-12-2008

Recent opinions from the analysts… (V)

Expansión journal – Press release 9-01-2009

• An international telecom services operating in Spain will shortly launch its low-cost mobile services in France. The price charged per minute in France will be substantially higher than the one in Spain. According to the company, this is a result of both higher prices for these kind of services in France and the need to be more commercially aggressive in Spain, where the competence is fairly more developed.

• Out of the 100 projects bound to change the Spanish Society in the next few years, 11 are carried out or directly supported by MITYC (SETSI) in the framework of Plan Avanza.

‘Capital’ Magazine – A Spanish Corporate Atlas, November 2008

Page 48: The Information Society in Spain

• Spain is the country reporting the eighth highest index increase between 2002 and 2007 (jumping from 4.1 in 2002 to 5.9 in 2007).

• The improvement is mainly due to the performance of the “ICT usage” sub index (i.e., rises from 0.83 in 2002, to 3.5 five years later).

• Along with other 32 countries, Spain belongs to the “very high development potential index” group (out of 154 countries analysed).

• Spain is the 34th country (out of 150), with the cheapest telecommunication prices, as witnessed by a compounded fixed, mobile and a broadband service basket. Furthermore, Spain is placed amongst the 26 countries reporting the cheapest broadband services ahead of Germany, France, Korea or Iceland,

ICT Development Index 2009 (IDI), International Telecommunications Index. 02-03-2009

Recent opinions from the analysts… (VI)

Expansion Journal - Vodafone and Microsoft have become allies to compete with Google and Telefónica. Diario Expansión- 12-03-2009

• Vodafone and Microsoft have become allies to provide communication services to SMEs based on the cloud computing concept. In doing so, Vodafone gets a new array of combined services so as to ble able to compete with the main Vodafone´s competitor, Telefonica.

• The alliance will be set up in Spain as a pioneering country, by virtue of the good reputation reached by Vodafone´s Spanish foreign affiliate in the business communication sector.

Page 49: The Information Society in Spain

In a scenario of global economic downturn, international community bets on Information Society (I)

Creativity and Innovation European Year 2009 (EU, 07/01/2009)

• Creativity and innovation are fundamental competences for personal, social and economic development and for an efficient implementation of Information Society in Europe.

• ICT make up a privileged instrument to materialize and make ideas operational, many of them at a limited or even negligible cost.

USA: anti-crisis measures of the new Obama Administration (6/12/2008) (15/01/2009)• The support to physical and technological infrastructures will be a key priority of the new Obama

Administration to face the current scenario of global economic downturn.

• Within technological infrastructures, broadband promotion will be one of the pillars to circumvent the current downturn and improve US competitiveness standards. $ 6 Billion will be spent to expand broadband access in rural and other underserved areas.

• Digital TV: Provision of $ 650 million to fund a federal coupon program subsidizing the purchase of digital converter boxes .

• E-health: Provision of $20 billion to aid the use of electronic medical records.

European Economic Recovery Plan (EU, 26/11/2008)

• ICT infrastructures are one of key pillars: More than €1 Billion will be mobilized between 2009 and 2010 to develop Broadband projects.

• Broadband for all. Broadband internet connections enable faster technological adoption. Goal: To achieve 100% broadband internet coverage in 2010.

Page 50: The Information Society in Spain

In a scenario of global economic downturn, international community bets on Information Society (II)

Portugal: Investment Plan in New Generation Networks (8/1/2009)

• The Portuguese Government has announced a credit line to operators for a total 800 million euros aimed at the development of New Generation Networks, emphasizing the fact that this is the first initiative of its global stimulus plan to combat the economic crisis.

• In this context, operators have announced a global investment in these new networks for 1 billion euros up to 2010.

Economic effects of the ICT anti-crisis measures in the US (The Economist, 31/1/2009)

• According to US analysts (The Information Technology and Innovation Foundation), $ 10 billion (around € 7,500 million) invested in IS development would create around 200,000 -240,000 new jobs in the States.

• These figures are absolutely in line with Plan Avanza2 estimations between 2009 and 2012.

US: Obama will reproduce the Spanish model of primary care attention centres and the digitalisation of clinical records (Cadena Ser, 9/2/2009) (Cinco Días, 12/02/2009)

• The new Obama Administration aims at implementing the Spanish primary care model and the digitalisation of medical records in the US.

• US health specialits are greatly impressed by the good performance of the Spanish Health Centres.

Page 51: The Information Society in Spain

In a scenario of global economic downturn, international community bets on Information Society (III)

The role of ICT in anti- crisis measures in France (12/01/2009)

• “France numérique 2012” Plan to guarantee the universal Broadband Internet access at the highest cost of 35€ per month, including devices, before 2010 January 1st.

• Massive fiber deployment in France before summer 2009.

• In order to develop the infrastructures required and to commercialize the services of the mobile TV, the French government will define an appropriate economic model and all the links with the involved agents.

• In order to ensure the transition to digital TV before 30 November 2011, French Government will launch a new project to provide 277 million euro aimed at elder, disabled and other people at risk of exclusion. The conditions will be defined before the May 31, 2009.

• The overall strategy for allocating frequencies to 4G mobile services will be debated by the Parliament in February. The objective is to initiate the procedure before the end of 2009. 4G mobile services licenses allocation will be launched in 2012.

Netherlands. The ICT Agenda 2008-2011. Ministry of Economic Affairs (Dec. 2008)

• The ICT Agenda 2008-2011 is about the government’s plans for ICT to ensure that the Netherlands is still one of the leading countries in ICT in 2015.

• The priority subjects are: eSkills; the provision of electronic services by the government;interoperability and standards; ICT and social sectors; service innovation and ICT.

• The government is setting aside € 20 million every year for projects that contribute to the implementation of the ICT Agenda. A further € 54 million euros of new funding has also been made available for innovation in social sectors.

Page 52: The Information Society in Spain

Government outlines plans for UK’s digital transition (29/01/2009)

• Plan to secure Britain’s place at the forefront of the global digital economy on:

• Next generation networks, universal access to broadband, the creation of a second public service provider of scale, the modernization of wireless radio spectrum holdings, a digital future for radio, a new deal for digital content rights, enhancing the digital delivery of public services.

• The Digital Britain Report underlines the importance of the communications sector, its crucial contribution to the economy and its role in building Britain’s industrial future.

• The action plan outlines a program of work with commitments to:

• Upgrade and modernize wired, wireless and broadcast infrastructure;

• Secure a dynamic investment climate for UK digital content and services;

• Provide a range of high quality UK made public service content;

• Ensure fairness and access, with universal availability and promotion of skills and media literacy;

• And develop the infrastructure, skills and take-up to enable widespread online delivery of public services.

In a scenario of global economic downturn, international community bets on Information Society (IV)

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Thank you very much.Thank you very much.