The document discusses key considerations for developing effective ICT policy to support the rise of the networked society. It outlines that ICT policy should aim to maximize long-term economic growth and competitiveness by connecting both supply-side policies like broadband infrastructure rollout and demand-side policies to promote adoption. The document recommends taking a holistic and collaborative approach through a national digital economy plan that establishes objectives, strategies, and implementation processes to reform policies and overcome challenges in a coordinated transformation toward a networked society.

1. ICT POLICY FOR THE
NETWORKED SOCIETY
Formulating and Implementing
National Broadband & Digital
Economy Plans in GCC
RENE SUMMER

2. The Networked society
How are public
governance
objectives linked to
technological
progress and how
can societies benefit
from ICT led
transformations?
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 2

3. Economic impact of
broadband (BB) & ICT
+ 1000 BB USERS > + 80 Jobs
+ 10% POINTS BB PENETRATION
> + 1% POINT GDP
+ 2 x BB SPEED > + 0.3%
increase in GDP
+1% POINT increase in BB
Penetration
> 3,5% INCREASE IN new
business registration
Sources: Chalmers Institute of Technology, Arthur D Little,
Stockholm School of Economics
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 3
ICT TRANSFORMING BASIC
VALUE CREATING
CONDITIONS
› BUILDING KNOWLEDGE
SOCIETY (IMPROVING
QUALITY OF LABOUR)
› NEW JOB CREATION
› WEALTH CREATION
› PRODUCTIVITY
› EFFICIENCY

4. Economic Significance of BB
& IT (ICT)
Changing Economic Thinking > ICT
 Increased global market reach
expanding trade but also
intensified competition,
 General increase in economic
efficiency and labor productivity,
 Increased pace of knowledge
diffusion and increased positive
spill-over effects,
 Revised view of the role of
innovation (innovation-led
growth).
Source: Jati Sengupta, Understanding Economic Growth, Springer 2011
Economic Impact of ICT
DIRECT
INDIRECT INDUCED
Sources: Chalmers Institute of Technology, Arthur D Little,
OECD Broadband and the Economy, Future of Internet 2008
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 4

5. Transformational power
of technology: ICT
Competitiveness of Nations
Characteristics of
a factor-driven
economy
Characteristics of a
efficiency-driven
economy
Impact from ICT
BASIC REQUIREMENTS
• Institutions
• Infrastructure
• Macroeconomic environment
• Health and primary education
DIRECT IMPACT
Availability and quality of ICT Infrastructure
Digital Rreadiness
EFFICIENCY ENHANCERS
• Higher education and training
• Goods market efficiency
• Labor market efficiency
• Financial market development
• Technological readiness
• Market size
INDIRECT IMPACT FROM ICT
Improving development of human capital, eeducation
Increased access to knowledge
Increasinge market efficieny/ reach
Increase efficiency in existing processes/value
chains
INDUCED IMPACT ICT
Decreasing barriers to creating of new
knolwedge (inventions)
Decreasing barriers to innovation in new
products, services, processes, and markets
Characteristics of an INNOVATION & SOPHISTICATION
• Business sophistication
Innovation
-driven
• Innovation
economy
Source: World Economic Forum, Global Competitiveness Report 2010-11
Source: Jati Sengupta, Understanding Economic Growth, Springer 2011, OECD Broadband and the
Economy, Future of Internet 2008; Lipsey, Richard; Kenneth I. Carlaw & Clifford T. Bekhar, Oxford Press
2005; Brynjolfsson, Erik, and Adam Saunders (2010) MIT Press and Ericsson Analysis
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 5

6. TOWARDS THE NETWORKED
SOCIETY
MOBILITY
BROADBAND
CLOUD
DIGITIZATION
FUNDAMENTAL TECHNOLOGY DRIVERS
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 6

7. KEY Networked Society
TRENDS
Global
Markets &
Dematerialization
Competition
Knowledge
Urbanization
Society/Economy
Power
of US
Orchestration
Economy
Digital
Values
Mosaic
Lifestyle
Instant
CULTURE
Everyone
Non-Market
Production
Transactions
Networks & Peer
Demographical
changes
Scarce
resources
Production
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 7
Everything
Everywhere
Connected

8. Networked society
transforming sectors of the economy
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 8

9. Networked society driving
long term growth
reshaping basic VALUE
Creating conditions
EMPOWER
INDIVIDUALS
TRANSFORM
BUSINESS &
PUBLIC SERVICE
+
CHANGE
GOVERNANCE
+
Collective mind shift >
changed end user, business and public
sector behaviors and practices
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 9

10. key components of a
technology-led change
INVENTION
INNOVATION
DIFFUSION &
ADOPTION
Incremental, Radical and Disruptive Innovations
Economic performance
Growth
Change
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 10

11. Key public policy issues
What are the most
important universal
public policy
challenges linked to
the rise of the
Networked Society?
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 11

12. Mastering transformations
a strategic societal capability
CHANGE
UNTAPPED OPPORTUNITIES
TECHNOLOGY
Growth
Opportunities
MARKET
Reform
Opportunities
INSTITUTIONS
(GOVERNANCE)
Source: Manuel Castells, The Rise of the Network Society,
Second Edition, 2010 .
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TIME

13. Every transformation also
comes with governance
challenges
› Not every one or even most
› Benefits from ICT are not
automatic
› Build it they might not come
› Don’t forget demand side
policies
› Private vs. public benefits…
SOURCE: Race Against The Machine, Brynjolfsson and McAfee 2011,
Economic Transformations, GPT and Long Term Economic Growth,
Lipsey,Carlaw & Bekar, Oxford 2005 and Ericsson Analysis.
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 13

14. public policy challenges (I)
Why do we underestimate the power of
technology-led long-term growth?
› Stage of development of
economic theory
› Technology advancement
is taken for granted
› Weakness of growth
› Dilemma of growth
TEMPORAL ASYMMETRY IN COST AND BENEFIT DISTRIBUTION
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 14
SOURCE: Economic Transformations, Lipsey
et al. 2005 and Ericsson Analysis.

15. Key public policy
Challenges (II)
Why do we sacrifice benefits of
technology-led long-term growth?
A self-interested contemporary driven
incumbent interest will be against
transformational changes when private
short term or long term gains are at stake
regardless of the size of the long term
private and/or socio-economic benefit
HOW ABOUT
INSTITUTIONS &
PUBLIC AGENCIES ?
SUNK COSTS, RISK AVERSION OR LACK OF ORGANIZATIONAL INCENTIVES LIMIT THE
INCUMBENT TO APPROPRIATE PRIVATE NET BENEFIT FROM A TRANSFORMATIONAL
CHANGE
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 15

16. Key public policy Challenges (III)
WHAT needs to be fixed to benefit FROM
technology-led long-term growth?
NECESSARY BUT NOT SUFFICIENT PRECONDITIONS
Mastering a structural change in the most advantageous
societal direction includes addressing:
- Market Failures
- Government/Regulatory Failures
- Systemic failures
STRATEGIC GOVERNANCE CAPABILITY:
ADEQUATE AND EFFECTIVE SOLUTIONS TO ADDRESS FAILURES IDENTIFIED ABOVE
SOURCE: Industrial Policy After the Crises (Bianchi & Labory) and Ericsson Analysis.
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 16

17. policy makers’ fundamental
Role in the transformation
of the society
act as socio-economic accelerators
› to enable transformations e.g. new
productive shifts in economies
associated with the rise of the networked
society
› mastering this change in the most
advantageous societal direction should
be at the center stage of a progressive
policy agenda
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 17

18. Key Ict policy issues
What are the most
important ICT
specific public
policies issues
relevant to the rise
of the Networked
Society?
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 18

19. Key ICT policy issues
overview
1. National
Broadband Plans
2. Network Regulation
3. Spectrum
Management
Roll-out of ICT infrastructure
Market Efficiency
Scares resource
management
ICT
supply
side
ICT
demand
side
4. Industrial Internet
/Internet of things
ICT empowerment for increased
innovation and efficiency in
industrial sectors
Horizontal
frameworks
Impacting ICT
D/S
5. Media & Content
Regulation
New consumer expectations,
value-chain shifts and new
business models
6. Data Protection
Privacy Protection
7. Internet
governance
8. Trade Policies
9. IPR
Meta Regulation
Market access, Digital
Services, Cross Border Data
Flows,
Investment Incentives,
Licensing,
Diffusion
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 19

20. Key ICT policy issues
Ericsson’s Key Messages
1. National
Broadband Plans
ICT
demand
side
2. Network Regulation
3. Spectrum
Management
Private and/or Public
Technology Neutral
Supply and Demand
ICT
supply
side
Promote: efficient, innovative
and investment friendly
markets
More harmonized and
licensed spectrum to
efficiently meet data
demand
4. Industrial Internet
/Internet of things
Stimulate digitization of sectors
with increased choice, efficiency
and new value propositions
Horizontal
frameworks
Impacting ICT
D/S
5. Media & Content
Regulation
Stimulate increased
availability of
lawful digital content
6. Data Protection
Accountable companies
with freedom to transfer
data
7. Internet
governance
8. Trade Policies
9. IPR
Multi-stakeholder model
fueling continued
innovation
Promote open and liberal
global markets
SEP licensing and FRAND
Key to global mobile voice and
data success
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 20

21. maximizing impact by
connecting supply and demand
side policies
› Economic impact is realized
with broad adoption
› ..increases and endures
longer with broad diffusion
across many sectors of
economy
› ...is sustained and reinforced
when it leads to changes or
new innovations in process,
product and service
Connecting Supply & demand side policies to increase economic impact
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 21

22. Cohesive reform strategy
FIRM AND DURABLE POLICY COMMITMENT
› ICT Supply side REFORMS
› Spectrum
› Broadband plan
› Network regulation
› ICT Demand Side REFORMS
Digital Readiness/affordability
Media & Content
Digital SERVICES & e-commerce
E-health, -EDUCATION, -Work, energy.
› SMART CITY
› E-GOVERNMENT
›
›
›
›
OBJECTIVES
NATIONAL DIGITAL ECONOMY PLAN
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 22
Source: Copenhagen
Economics, Booz&Co,
Ericsson Analysis

23. How to do it?
How to best
address key ICT
policy issues?
ADVANCING A TRANSFORMATIONAL ICT POLICY FRAMEWORK
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24. policy OBJECTIVES
for an transformational Ict policy
›
›
›
›
›
›
Sustained economic long term growth
Increase competitiveness of nations and industries
Create new jobs/business
Minimize exclusion and poverty, Increase equality
Increase public sector efficiency
Address climate change, environment and ageing
population
› Manage scare resources more efficiently
› Cope with increasing level of urbanization
This is not a destination but a continuous journey
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 24

25. Creating an ICT reform
AGENDA PLAN Illustrative
Telecom
Internet
Broadcast Broadcast
Content
Commerce Advertising Education
Utility &
Energy
Transport
Health
Public
Services
Etc.
Etc.
CONTEXT
Align converging sector specific framework objectives
Align innovation & industry policy objectives
Align objectives in trade policy and competition law
Align government spending & procurement including innovation procurement
POLICY OBJECTIVES & OUTCOMES
IMPLEMENTATION PLAN
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 25
Economic
Maturity
Society &
Culture
Institutional
Capability
ICT
Readiness
Competitivne
ss &
innovation
capilities

26. SWOT: Illustrative
ICT-led TRANSFORMATION
STRENGTHS
High: working ethics, educational
system, entrepreneurship, human
capital, access to capital, high
readiness, agile institutions, support by
the pubic, positive attitudes towards
ICT, effective innovation system.
OPPORTUNITIES
Socio-economic benefits, national
competitiveness, well being, standard
of living long term sustained,
sustainable and re-enforcing growth,
structural reform capability, ability to
create new opportunities as conditions
change & develop.
WEAKNESS
Excessive optimism and/or pessimism,
lack of political will, short term
perspective, window dressing, growing
gap between goals, strategy and
results, institutional resistance,
political/budget cycles, silo thinking .
THREATS
Slow reaction to global/regional
change, inability to reform structures
and operating models,
fragmented/disconnected approach,
reduction in investments, innovations,
entrepreneurship, equality.
Source: Ericsson Analysis inspired by, Transforming Government
and Building the Information Society, Hanna 2010.
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27. Implementation plan
illustrative
COOPERATION
&
INCLUSION
ORGANIZE
PARTNERSHIPS &
ACCOUNTABILITY
COORDINATE
& ALIGN
STAKEHOLDERS
STIMULATE
INNOVATION,
ADOPTION &
TRANSFORMATION
NATIONAL
COMPETITIVENESS
STRATEGY
FORMULATE
OBJECTIVES
& IDENTIFY
STAKEHOLDERS
FORMULATE
STRATEGIES
PRIORITIZE
ACTIONS &
PROJECTS
READINESS
ASSESSMENT
Incl. SWOT
ESTABLISH
GOVERNING
MECHANISMS
FORMULATE
SECTOR
STRATEGIES
REVIEW &
UPDATE POLICY
FRAMEWORKS
MOBILIZE
RESOURCES
MONITORING
IMPLEMENTATION PROCESS
Source: Ericsson Analysis inspired by, Transforming Government
and Building the Information Society, Hanna 2010.
ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-12-06 | Page 27

28. ICT POLICY
FOR THE
NETWORKED
The future of ICT POLICY
SOCIETY