The Information Society in Spain - Plan Avanza

The Information Society
in Spain
Updated December 16 th 2009
1

The Information Society
is already a reality
in Spain
2

Overview
• Information Society Indicators
Broadband
PC, Internet and mobile penetration
Internet security and trust
Protection user rights
Electronic ID
ICT innovation and revenue
Networked education, healthcare and inclusion
Policy developments
E-commerce and E-business
• Plan Avanza Developments
Results
Regulatory framework
Summary
3

Information Society Indicators
4

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:
5

The Avanza plan is a historic landmark in
the development of the Information Society
Five-year plan 2006 – 2010, extended to 2012
Digital Citizenship
• More households equipped and citizens using ICT as
part of everyday life.
• Social inclusion and Bridging the digital divide.
Loans to families, young people and students
Telecentres
Encouraging women to use the Internet
Digital alphabetization campaigns
E-Inclusion of elderly and people with disabilities
Quality of life
Digital Economy
• Greater adoption of ICT among SMEs and businesses
in general (e-commerce, electronic billing).
Avanza SME, Online industrial parks
Training in ICT and webpage adoption program
Technology loans
Profit R&D&i and driver projects
Dominios.es
Competitiveness
Digital Context
Productivity
• Extending Broadband and mobility coverages.
• Increasing confidence in the security of ICT.
• Promoting digital identity.
• Development of digital content.
Broadband and mobile telephony Extension Plans
National plan for Transition to DTT
Security (INTECO)
Plan to promote digital content
Open source software (CENATIC)
Social welfare
Education and Public Digital Services
• 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).
Networked Education
Public Health System on-line
Networked administration. Networked Civil Registers
Plan to promote e-Government
Electronic ID card
6

FUNDS 2005-2009
Avanza budget 2005–2009 surpasses 6.5 billion €.
‘Shared effort’ policy: agreements and co-financing with all agents, public & private.
Additional funds mobilized exceed 4 billion €.
Annual average budget (€ thousand)
1,800,000
1,600,000
1,516,400
1,481,200
1,400,000
1,200,000
1,268,522
1,000,000
800,000
600,000
400,000
200,000
447,329
x 3
0
2000 - 2004 2005 - 2008 2009
2010
7

Development of Information Society in Spain:
Connectivity and technology infrastructure.
Difficulties
Almost 50% of the territory is mountainous
Rural municipalities in Spain
• High rural population percentage (>23%):
% Rural Population
Spain 23.3%
Netherlands 19.8%
Republic of Korea 19.2%
Sweden 15.7%
United Kingdom 10.3%
Source: United Nations 2005
Population Density
86
400
483
20
245
• One of the most mountainous countries in Europe:
– The average altitude is 660 meters.
Number of municiplities by inhabitants
Num. of municipalities
%/ total
Rural municipalities 10,000) 721 9%
Total 8,111 100%
Source: INE 2007
municipios rurales: los de menos de 2.000 habitantes (INE)
• 84% of municipalities have < 5,000 inhabitants.
The cost of deploying telecommunications infrastructures to cover the majority of the population
is one of the highest of Europe ⇒ Avanza support plans.
8

Development of Information Society in Spain:
Broadband Extension Plan (PEBA)
• 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.
2004: Broadband coverage of the
population in Spain ⇒ 80%
December 2007: Broadband coverage
of the population in Spain ⇒ 96%
– 6,457,060 citizens benefited.
– in 3,769 municipalities.
– 49,107 population centres.
December 2008 Broadband coverage of the
population in Spain 99%
(100% of residents in population centres)
‘Rural Broadband’ became ‘commercial Broadband’
2005:
BB Programme
begins
September 2008:
BB Phase III begins
Fiber Optics to the Town
December 2008:
BB Phase II ends
9

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:
‣Rural areas:
Citizens covered
+1,500,000
Population Centres
5,335
> 50 inhabitants
‣Main communications highways
‣Strategic areas
(nuclear plants, petrochemical plants)
10

Development of Information Society in Spain:
Coverage of 3G UMTS networks in Spain
Coverage of UMTS 3rd generation mobile phone progresses in a
satisfactory way
In the last few years, mobile operators and MITyC have undertaken a
great investment effort geared at developing 3G technology networks:
• 24,873 active 3G/UMTS base stations in 2008, 32.9% of total
mobile telephony base stations in Spain.
• 3G networks coverage reaches 90.3% of Spanish inhabitants,
according to CMT 2008 figures.
14.8 Terabytes of data traffic in mobile networks in 2008,
215.7% increase from data traffic in 2007, principally due to mobile
Internet.
11

Development of Information Society in Spain:
Plan to accelerate DTT adoption and Switch-over
• 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 96.3% of TV sets sold are DTT-ready.
% population coverage of national channels: (SETSI , November 2009) 98.11%
Buildings with DTT-ready aerials: (SETSI, November 2009) >93%
Households connected to DTT: (SETSI. September 2009) 77.7%
Screen share for DTT: (SETSI, November 2009) 51,3%
Households connected to Digital Television (with cable, satellite, ADSL): (SETSI, Novenber 2009) 85.4%
Households with Digital Terrestrial TV (DTT)
77.7%
DTT coverage (2008)
98.1%
37.3%
90.0%
89.0%
19.4%
22.8%
2.5% 2.0% 3.3%
2003 2004 2005 2006 2007 2008 2009*
Source: (INE) Instituto Nacional de Estadística (*) SETSI, Sept 2009
1 2 3
Germany Spain France
Source: Impulsa TDT
1: Germany Nov. 2008 - source: T-System, 2: Spain: Nov 09 - source:
SETSI Telecom, 3: France: Jan 2009 - source : TNT Groupement.
12

A conventional indicator…
PC penetration - households
66.3% of households are equipped with computers (desktops, laptops or
both), with an interannual average growth amounting to 3.8 pp. (2004-2009).
66.3%
57.8% 57.8% 59.1% 60.4% 63.4%
47.1% 47.8% 48.5% 50.1% 51.5% 54.1%
x 1.4
1 Q
2004
3Q
2004
1Q
2005
3Q
2005
1Q
2006
3Q
2006
1Q
2007
3Q
2007
1Q
2008
3Q
2008
1Q
2009
INE
2009
Source: ONTSI and INE (2009)
13

Development of Information Society in Spain:
Broadband take-up
• Narrowband has practically disappeared from network connections in Spain.
In 2003 half the Internet connections were narrowband.
At present, 97.6% of Internet access are already by Broadband.
99.5% is 1 Mbps or higher.
• In 2008, more than half of broadband lines purchased are 4 Mbps ore more.
• 50-100 Mbps offers commercially available
Number of lines by speed type
(Thousands)
9,477
9,547
> 1Mbps

Development of Information Society in Spain:
Broadband take-up
• Broadband lines have gone from 2.1 million
in 2003 to 9.6 million in October 2009 (4.6
times higher).
8.03 M
9.60 M
• Broadband penetration (lines/100 inhab.) was
20.8% in September 2009. It has increased
over fourfold (from 5.0% to 20.8%).
18 %
20.8%
x 4.6
x 4.2
2.1 M
5.0 %
0.07 M
0.17 %
1999 2003
2007
October
2009
Source: CMT
1999 2003 2007
October
2009
According to a new OECD report (June 2008), Spain ranks 9 th amongst the OECD countries in Broadband subscribers.
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%
15

Development of Information Society in
Spain: Broadband by speeds
• At 1st July 2009, 88% fixed broadband lines in Spain are 2 Mbps or higher, well
above the UE27 average (80%).
• Only 12.2% of fixed broadband lines in Spain are under 2 Mbps, seven points
under the UE27 average (19.1%).
• 13% of total lines in Spain are 10 Mbps or higher, a greater proportion than
those in the 2Mbps or less range, and near doubling UK and Italy figures.
Fixed broadband lines in EU countries by speed range
(as at 1st july 2009)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Alemania Italia Finlandia Reino Unido España Europa
Source: European Commission
144 Kbps ‐ 2 Mbps
2 Mbps o más
16

Development of Information Society in Spain:
Broadband in households
51% of households connected to the Internet. Near 600.000 added in the last 12
months.
Broadband connections are 51.3%, over the EU 2008 average and 3.4 times the
2003 figures.
% households with Internet access and broadband
EU 27
51
60
49
54
51.3
40
46
34
Spain
x 3.4
Households with Internet access EU -25
19.5
Spain
15
EU 27
Households with Internet access Spain
Households with Broadband Spain
14
Households with Broadband EU-25
1999 e 2004
2008
2009*
Source: Eurostat. (*) INE
17

Development of Information Society in Spain:
Broadband in enterprises
Connected enterprises with Broadband grew from 72% in 2003 to 94% in 2008 ( x 1.3),
well over the EU figure (83%)
Enterprises with Internet connection
% of enterprises with Broadband connection
99% 99% 100%
98%
95
93
96
94
94
EU
Spain
92%
94%
50
14.5 (e)
Spain
Spain
88
87
72
46
EU 27
EU 27
92
81
x 1.3
83
Internet access EU-25
Internet Access Spain
10 to 49 emps 50 to 249 emps 250 + emps
Source: Eurostat 2008.
1999 2004
2008
2009*
Broadband Spain
Broadband EU-25-27
Source: IS report in Spain 2001, Telefónica and Eurostat (*) INE
‣ E- business: The percentage of companies making purchases via the Internet has gone from 3%
in 2004 to 20.3% in 2008. The gap with the EU-25 has fallen by 15 percentage points.
‣ 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: ICT in the Spanish Enterprise. Everis.
18

Development of Information Society in Spain:
Mobile broadband
Data traffic through the Mobile Broadband UMTS network and the GSM/GPRS network
in 2008 more than tripled 2007 figures (216%).
Mobile Internet traffic (GPRS + UMTS) (Terabytes)
14,825
x 3.2
4,685
2007 2008
Source: CMT
19

Development of Information Society in Spain:
Mobile phone penetration
Mobile phone lines have gone from 37.2 million in 2003 to 54.2 million lines in September
2009, increasing penetration over 26 pp (from 87.1% to 113.6%), above the penetration rates
of the EU-25.
3 years ago UMTS became commercially available. Today, there are near 17,3 million
mobile broadband lines (source: European Commision). A fourth operator was launched.
Internet use via mobile increased tenfold in three years.
Mobile Broadband has 13 million active users in Spain in July 2009 (Source: EC)
Number of mobile lines and penetration rate
54.2 M
Mobile telephony lines in Spain
50.2 M
113.6% Mobile telephony penetration in Spain
112.2 %
37.2 M
11.7 M
(July.08)
111.8%
13 M
(July.09)
Mobile telephony penetretation in UE 25
3G effective users in Spain
15 M
35 %
35 %
1999
87.1 %
81 %
9.6 M
1.9 M
2003 2006 2007 2008
October
2009
Source: Own elaboration based on CMT , EC and Eurostat
20

Development of Information Society in Spain:
Internet penetration
In 2009, 60.5% of Spaniards are Internet users.
Since 2003 the number of Internet users has doubled, with 12.6 million new
users joining to bring the figure to over 24.3 million today (*).
19.5 M
24.3 M
x 2.1
11.7 M
56.7%
12 M (**)
10 M
60.5%
12 M
34.2%
3.1 M
10.5%
1.6 M
0 M
1999
2003 2003
2008
Internet users on-line buyers e-ID cards holders
2009
Source: INE and Red.es
(*) Including young people under 15, who are not always considered in statistics.
(**) ONTSI estimation from INE data as !st semester 2008
21

Development of Information Society in Spain:
’.es’ Internet Domains
The million mark has clearly been passed for ‘.es’ domain names.
The Government plan “Dominios.es” has meant growth of over 1,092,000 domain names,
1,258 percentage points more than in 2003.
Map of .es domains registration origin. October 2009
Evolution of the number of .es domains
Asturias
Cantabria Basque Country
183.6 136.7
17.8
Galicia
15.4
Navarre
Other Locations
185.2
18.0
11.5
140.5
15.9
10.4 42.2 41.2
11.6
9.6
10.6
8.6
43.5 36.3
42.6 42.1 9.8 8.8
44.1 37.8
La Rioja
Castile-Leon
6.6 6.0
41.7 32.3
7.1 6.2
Catalonia
Aragon
United States
29.9
22.3
29.5
24.5
42.4 33.4
165.4
26.9
140.4
25.4 167.7
27.0
144.9
25.9
Madrid
246.6 199.7
27.4
20.9
250.3 205.5 Valencia Autonomous Balearic Islands Germany
27.7
21.3
Region
19.0 16.0
Extremadura Castile- La Mancha 119.4 107.2
19.3 16.5
23.4
11.1
19.9
120.7 109.8
9.0
23.7
11.3
21.3
17.3
9.4
11.5
United Kingdom
17.5
11.5
Ceuta
0.5 3.8
0.5 3.8
Andalusia
132.6 110.3
134.6 114.1
Melilla
0.6 0.4
0.6 0.4
Murcia
26.6 22.1
26.9 22.7
Canary Islands
34.9 28.4
35.3 29.3
xx.x
xx.x
France
Others
Thousands of
.es domain names
14.6
11.3
14.9
11.8
94.5
70.7
95.5
71.4
18,859
71,158
1,082,757
805,327
1,178,552
1999 2003 2007 2008
x 16.6
October
2009
Data previous month
Data current month
Source: Red.es
22

Development of Information Society in Spain:
Electronic ID Cards
Over 13 million Spaniards already hold their e-ID Card (over 27.5% 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.
Spain has become world’s leader of electronic signature holders (over 15 million).
>2,500 public services (national, regional, local) available:
Tax declaration and payment, civil registration, work history…
6.9 million citizens have performed
their tax-declaration on-line in 2009, a
22.9% higher than 2008, thus
making up 35% of all declarations.
4.2 million citizens used a digital
certificate to interact with Public
Authorities (excluding tax payment)
People with e-ID Cards
13 M
49% of enterprises
Signature
using Digital
0.2 M
1.4 M
Source: Red.es
Dec 2006 Sep 2007 October 2009
23

Development of Information Society in Spain:
The ICT sector: Growth and Innovation
Innovation investment (R&D&i)* in the ICT sector has almost doubled (x 1.7) over
the period 2004-2008.
Increase in 2004-2008 has surged to 73%, in contrast to the 4.5% increase in the
period 2002-2004.
The ICT sector market size in Spain has increased over the last 3 years by 15.6% up
to €114,320 million.
ICT Sector Market size (€ million)
ICT Innovation Investment* (€ million)
9.086
8.469
98,871
104,693
112,650
114,320
5.022 5.125 5.249 5.931
7.117
x 1,7
2005 2006 2007 2008
Source: ONTSI
2002 2003 2004 2005 2006 2007 2008
Source: AETIC
• *Innovation investment includes: internal R&D, external R&D, design, machinery and equipment acquisition, training and commercialization (according to INE definition).
• ** The ICT sector includes the following sectors: telecommunications (industry, operators, telecommunications service providers), information technologies, digital contents, audiovisual
services and other ICT firms.
24

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 1.82%, nearly four times the EU-27
average (0.48%).
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.
Spanish females Internet use is similar than the European average, with a
more intensive use in the youngest range.
Internet use in Spain and the EU-25 by age range
90 92
85
82 83
78 80
71
68
64 64
53 55
51
Internet use by females in Spain and the EU-25 by
age range
88
91
93
68
62
72
59
53
56
38
25
29
17
9
11
28
12
17
10 to 15 16 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 to 74
2008 EU 27 2008 Spain 2009 Spain
Source: Eurostat and INE.
16 to 24 25 to 54 55 to 74 total
UE‐27 2008 Spain 2008 Spain 2009
25

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
% of Broadband connected schools
Source: MEC and the European Commission
Budget Executed: €157.7 M
(89.8% of the total). Data as October 2009
Galicia
99% 76%
96% 76%
63%
Asturias
Cantabria Basque Country
Navarre
98% 79%
98%
82%
79% 67%
79%
100%
68%
81%
98% 81%
La Rioja
Castile-Leon
94% 58%
97% 75%
91% 60% Aragon
76% 89%
82% 72%
Madrid
79% 77%
Extremadura
91% 54%
88% 54%
73%
70% 34%
68% 35%
87%
Castile - La Mancha
99% 78%
97% 78%
92%
67%
Valencia Autonomous
Region
98% 60%
88% 64%
95%
98%
2003 2004 2005 2006 2007 2008e
Spain EU 25
Catalonia
89% 52%
87% 55%
93% 76%
90% 76%
Balearic Islands
90% of teachers have been IT-trained.
60% of teachers prepare study subjects and
materials on-line
Ceuta
Andalusia
98% 79%
97% 79%
Melilla
Murcia
98% 74%
96% 75%
Canary Islands
94% 54%
93% 54%
106%
% budget executed
104%
Executed
• Data as Oct-09
• Data as Sep-09
Source: Red.es
26

Development of Information Society in Spain:
Networked healthcare
• Spain takes the lead in Europe in e-Health 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 60,500 PCs in more than
6,330 health centers, benefiting 33.76 million people and 253,000 medical staff.
• Health cards are already fully interoperable.
• Services: on-line medical appointments, compatibility and mobility of clinic history, e-prescription…
Budget executed €107.2 M (95% of total) Data as October 09
Number of health centres benefited
6.330
Galicia
100% 98%
100% 99%
Asturias
Basque Country
Cantabria
92.4%
96.0%
85.7%
72.0% 49% 96.0%
70.8% 49%
La Rioja
Navarre
100%
Castile-Leon
100%
98.0%
100% 84%
98.0% Aragon
100% 91%
81.2% 66%
Madrid
81.2% 66%
Extremadura
100%
100%
91.1% 78%
90.9% 80%
Castile - La Mancha
100% 99.9%
100% 99.9%
Catalonia
85.3% 70%
85.3% 73%
Valencia
79.1%
Autonomous
79.1%
100% Region
100%
Balearic Islands
13%
25%
• Data Oct. 09
• Data Sep. 09
Budget
Executed
381
2006 Agosto 2009
Andalusia
99.4% 56%
99.2% 63%
100% 75%
100% 75%
Ingesa (Ceuta and Melilla)
Murcia
92.5%
92.5%
Canary Islands
100% 86%
100% 87%
Completed
Participants
Pending
agreement
Not participating
Source: Red.es
27

Development of Information Society in Spain:
Networked Administration
• At the end of September 2009, 2,062 computers had been installed in
Magistrates’ Courts. The number of computerized Magistrates’ Courts
amounted to 1,478.
• Over 80,600 Registrar Books and near 57 million pages have been digitalized
until the end of September 2009. Around 180.000 pages are digitalized every day.
• 130 penitentiaries 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.
Pcs installed
2,062
Registrar Books digitalized
80,651
1,447
1,312
dec .07 Sept. 09
dec 07 Sep 09
Source: Red.es
28

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.
Over 240,000 families benefited from 0% ICT loans.
Over 11 million people, most of them in rural communities, have access to Internet and training
thanks to almost 3,000 telecentres and 2,500 connected libraries.
Telecentres program: deployment
Telecentres program: deployment
82.2%
% Children (aged 10 to 14) using the
Internet
50.49%
30.7%
52.8%
% Women using the Internet
16.3%
8.6%
2003
% elderly using the Internet
2008
Source: ONTSI and INE
Source: ONTSI
29

Development of Information Society in Spain:
On-Line Public services
Public services available online have increased from 50% to 80%, well above
the EU figure (71%). More than 1,300 Government agency services and 1,200
regional government services are available online and ready to be used with the
electronic ID card. Spain is ranked eleventh, together France and Norway, of 31
countries in total.
The degree of sophistication of online public services in Spain has reached 89%,
6 percentage points higher than the EU average (83%). Spain is in 12th position
in UE27.
Spain, with a 78% is over UE27 average (56%) in electronic contracting
availability, being 5th country in the ranking.
Degree of availability of the 20 basic public
services online
50%
80%
71%
2003 2009
Spain EU 27
Degree of sophistication of the 20
basic public services online
50%
64% 68% 73%
66%
79%
76%
89%
83%
2001 2002 2003 2004 2006 2009
Spain
EU
Source: European Commission
** Data for the EU 27 for 2003 are not available
30

Development of Information Society in Spain:
e-Commerce (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.
This spectacular growth is explained
by a substantial increase of 3 million
on-line buyers, reaching 8 million
people in 2007.
Electronic Commerce volume (B2C)
4,761MM €
On-line buyers (B2C)
8.0 MM
+71.4%
2,778MM €
5.1 MM
Almost 40% of Internet
users made on-line
purchases in 2007, in
contrast to 27.3% in
2006.
Source: ONTSI
2006 2007
Source: ONTSI
2006 2007
31

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 the definition of priorities.
Plan to promote Digital Content: €850 million in 2008-2009 and agreement with
ICEX.
FICOD 2009: International Forum for Digital Content (Madrid, 17-19 Nov. 09):
• + 15.000 international attendants.
• + 200 international speakers.
• 3 th International Conference on Intellectual Property.
• Widely considered by the Industry as an initiative for action and promotion.
• More internationalization. EEUU: invited country.
• Greater budget: + 8.1% than 2008 edition.
32

Development of Information Society in Spain:
Protection of user rights (I)
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.
600.000 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 preestablished
parameters recommended by EU
33

Development of Information Society in Spain:
Protection of user rights (II)
On 15 th May, a new Telecom Users’ Bill of Rights has been passed by the Council Of
Ministers. It implies:
• A broadening of contracts contents and a limitation of (contract) modifications.
• A speeding up of users’ deregistration and protection against fraudulent registrations: 15
days’ notice are reduced down until 2 days
• A better protection of users in the use of Telecommunications User Care Office.
• A broadening of warranties in the use of premium rate services.
• An ad hoc regulation of pre-paid users’ rights: subscribers will be covered by the same
rights as contract users.
• A facilitation of conditions to change in the service provider: portability is reduced to one
day.
34

Development of Information Society in Spain:
Internet security and trust
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 166 malware virus sensors
and 4 spam sensors.
– Number of mails analysed daily: 48,9 million.
– Subscribers to security reports: 216,732
– Malware threats catalogued and reported: 8,736
– Vulnerabilities documented and reported: >37,000
Demonstration Centre for Security Technologies for SMEs.
Number of e-mails scanned daily by INTECO
8 M
Companies perceiving lack of security as a
reason for not using ICT more
26%
55 M
135 million
JAN-2007 SEP-07 DEC-08
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.
7%
2004 2006
Source: Telefónica Foundation (report on the Information Society in
Spain 2006) from DMR/AETIC data
35

Protection of Users’ rights:
Next steps
Internet User’s Security Office
• It will reinforce Internet-security culture among citizens and enterprises, with
dedicated resources and channels for assistance
Telecom Users’ Bill of Rights
• A comprehensive catalogue or users’ rights, including optimized procedures to
ensure their protection from the Users Care Office
Service Quality Observatory
• It will measure current technical parameters as well as new parameters about
users’ perceptions and service experience
36

Development of Information Society in Spain:
Legal framework
‣ Advanced Regulatory framework for IS development, with
Two 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
37

Moving forward to Develop the
Information Society in Spain:
Main Highlights & Results
38

• 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.
39

RESULTS (I)
Back in
2003
Today…
Back in
2003
Today…
12 million
Internet
users
24.3 million Internet
users. Spain is the
4th largest Internet
community in Europe
Broadband
coverage: 80%
of the
population
99% of the
population is able to
connect to BB
Internet
Back in
2003
Today…
Back in
2003
Today…
Only 2% of
homes had a
Broadband
connection
More than 7.9
million homes are
BB-connected,
51.3% of total in
Spain
Speed for
Internet
connections
around 256
Kbps
Common speed is 4
Mbps o more, and
prices are 25%
lower
40

RESULTS (II)
Back in
2003
Today…
Back in
2003
Today…
No DTT
available
DTT covers 97.97%
of population,
highest in EU.
Over 23 million
receivers sold
No rural
Broadband
extension plan
8.3 MM people in
rural areas have
new and improved
access to
Broadband
Back in
2003
Today…
No Mobile
comms.
Extension plan
1.1 MM people in
rural areas have
new and improved
Mobile coverage
41

RESULTS (III)
Back in
2003
Today…
Back in
2003
Today…
ICT
innovation
investment
annual
growth: 5%
ICT Innovation
investment annual
growth: 20%
No ICT SMEequipment
increase plan
Over 127,300 SMEs
have new ICT
equipment thanks to
0% loans, no
guarantee, no
commission
Back in
2003
Today…
Around 240,000
No ICT homeequipment
increase plan
families have a BBconnected
computer
thanks to 0% loans,
no guarantee, no
commission
42

REGULATORY FRAMEWORK
Back in
2003
Today…
Back in
2003
Today…
ICT customer
rights: Obsolete,
multiple channels
Regulatory
Framework,
Telecom Users
Office
ICT Qualityof-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…
43

Moving forward to Develop the
Information Society in Spain:
Main analysis and global Information Society
development measures at international level
44

Recent analysts’ opinions … (I)
EITO – ICT forecasts for 2009, November 2008
• 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).
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”.
45

Recent analysts’ opinions … (II)
IDC – Press release 22-11-2008 (Update TOP 10 Predictions (26-01-2009)
• ‘The Spanish IT services market will continue to be the fastest growing market across
Western Europe up to 2012’.
• ‘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’.
46

Recent analysts’ opinions … (III)
IBM – Report on ICT Direct Foreign Investment 2007, October 2008
• 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.
PriceWaterHouseCoopers - Global Entertainment and Media Outlook 2008 - 2012
• 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*.
Everis – The market for telecommunications in the Spanish SMEs, November 2008
• 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.
(*)ONTSI estimation based on PwC report
47

Recent analysts’ opinions … (IV)
IDATE – Broadband in Europe report, December 2008
• 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).
European Commission - Broadband access in the EU, November 2008
• 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*
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.
(*) 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.
48

Recent analysts’ opinions … (V)
‘Capital’ Magazine – A Spanish Corporate Atlas, November 2008
• 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.
Público journal, Interview with Telefonica´s CEO, 8-12-2008
• “[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.”
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.
49

Recent analysts’ opinions … (VI)
ICT Development Index 2009 (IDI), International Telecommunications Index. 02-03-
2009
• 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.
Spain, a country with a well-developed competitive market: ‘Vodafone and Microsoft
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, thanks to the good results reached by
Vodafone´s Spanish branch in the corporate mobile communications sector.
50

Recent analysts’ opinions … (VII)
Spain as an European benchmark in digital education. 10-03-2009
• The British Government will provide €32 million in the development of a repository of
educational contents using AGREGA, a multi-million euro open source educational platform funded
and developed by the Spanish government for a similar project.
• Jim Knight, Minister of State for Schools and Learners said: “A partnership with the Spanish
Telecommunications and Information Society Secretary of State has been signed … to develop
a National Digital Resource Bank (NDRB), to create, search for, and share digital content” in
educational framework using the AGREGA technology.
• The announcement comes after the signing of an agreement on 6th February 2009 in Madrid
between the Spanish government and JANET, the National Education Network, to provide a
repository solution which will deliver the National Digital Resource Bank.
• The Spanish Government will share source code and technical documentation from their multimillion
euro open source development called AGREGA.
• The commercial equivalent is thought to have been cost at around £5 million per annum for
software licences.
51

Recent analysts’ opinions … (VIII)
Diario Expansión and El País. Spain, “honorary member” of the worlds´ greatest
technological event. 07-03-2009
• Spain will chair 2010 CeBIT edition, the world´s greatest technological exhibition.
• Spain has been appointed as the “partner country” in 2010, a sort of exhibition´s honorary presidency.
• According to sectoral sources, decision has been made by virtue of the “outstanding development in the
area of information society that Spain has undergone over the last few years”
Diario Expansión and Gaceta.es . Facebook to open an office in Madrid in less than
one years`time. 22/3-04-2009
• Facebook is ready to open an office in Madrid. Facebook Sales Director in Europe, Blake Chandlee,
has stressed that “we are not very fond of opening offices worldwide, but the Spanish market is very
new and quite interesting for the advertisers”
52

Recent analysts’ opinions … (IX)
European Innovation Scoreboard, 2008. Broadband access by firms help to improve
Spanish SII indicator performance
• According to the European Summary Innovation Index (SII), Spain belongs to the “moderate innovator”
group, even though it ranks below EU average.
• Broadband access by firms is one of the variables helping to improve the Spanish index of innovation.
In fact, it turns out to be the variable experiencing the highest increase since 2003, namely a 15.3%
(EU average amounts to 2.1%).
Mobile operators will drop prices to the limit. Expansion Journal. 30th April 2009
• Spanish mobile communications market is undergoing a profound transformation: leader operators are
shifting the focus from the terminal subsidization to a outstanding decrease in the price per minute,
given the strong price sensitivity of subscribers.
• With the new offers, main operator prices are in line with virtual mobile operators.
53

Recent analysts’ opinions … (X)
DigiPen chooses Bilbao as the venue to locate its European videogames center.
Cinco Días Journal. 01/05/2009
• US videogames multinational DigiPen will set up in 2010 a brand new training centre for videogames
professionals in Bilbao. The project will demand an investment of near 12 € M and around 1,000
pupils and 200 teachers will be involved every year.
First fictional 3D European movie is made in Spain . El País 15/06/2009
• Just for once, the “let them invent” motto must be applied to the rest of Europe and not to Spain. First
3D European movie with real characters is going to be made in Spain. The movie is titled Viaje mágico
a África (Magic journey to Africa)
Spain is catching up EU in information society development. Cinco Días 07/07/2009
• According to the recently released eEspaña Report by Orange Foundation, Spain has reached the EU
standards in terms of Information Society development, and leads areas such as mobile broadband and
social network usage, where only trails the United Kingdom.
54

Recent analysts’ opinions … (XI)
Digitisation of Civil Registries in EU good practices´portal (epractice.eu) 04/08/2009
• The Civil Registry Online program is highlighted as an example of a good practice in epractice.eu, an
EU-based web portal aimed at fostering the participation and diffusion of experiences amongst users in
the field of Electronic Administration. The portal stresses the huge economic resources of the program,
as well as the benefits obtained in terms of simplification, efficiency and higher quality levels of services
provided.
The Spanish alternative to PIXAR (WIRED, UK Edition) 02/11/2009
• Planet 51 is the first animation film from Ilion, an ambitious attempt to take on US animation giants.
Some data bearing witness to such challenge: there are 440 characters in the film, far more than in any
other animated movie; a pioneering facial- animation system (called Mask Creator), has been developed.
It has 300 points of control on the face, allowing for more expressions than other systems.
The elaboration of the film has been supported by a Plan AVANZA subsidy (i.e., a € 2 MM project aimed
to the generation of new 3D animation tools.
55

Recent analysts’ opinions … (XII)
IBM and HP to install new science supercomputers in Spain. Cinco Días 03/11/2009
• HP and IBM have announced, in two days time, two different projects to promote supercomputing in
Spain. IBM is planning to locale a brand-new computer which is 100 times faster than the current “Mare
Nostrum” in Barcelona (Supercomputing National Centre), which means 10 13 flops. On the other hand,
HP has recently launched, along with the Regional Government of Castile Leon, the “Calendula”
supercomputer, which is able to process 35 teraflops.
Spain is the referent in digital education (06/11/2009)
• According to Vicepresident of Toshiba for Southern Europe in declarations to Expansión “Nowadays,
Spain is the European referent as far as schools modernization model is concern.”
• “In Italy, it has began providing the teachers with digital billboards, videoprojectors, and portable
DVD, but it hasn’t already tackled the pupils digital equipment provision, since they are the ones who
pressure teachers to increase their digital skills faster.”
Telefónica strengthenes the staff to lead M2M market (Cinco Días. 16/12/2009)
• Telefónica has set up a specific international unit, called Global M2M, in order to provide this kind of
solutions.
• More than 100 proffesional will be involved all around the countries where the unit will operate. The
development centre has been located in Madrid.
56

In a scenario of global economic downturn,
international community bets on IS (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.
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.
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.
57

In a scenario of global economic downturn,
international community bets on IS (II)
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.
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.
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.
58

In a scenario of global economic downturn,
international community bets on IS (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.
59

In a scenario of global economic downturn,
international community bets on IS (IV)
Government outlines plans for UK’s digital transition (29/01/2009) (16/06/2009)
• 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.
• In order to foster NGN, the Government is planning to collect a €10 annual tax on telephones
lines, raising around € 248 million
• Universal broadband access (≥ 2 mbps) is planned by 2012 and budgeted with € 330 million.
• 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.
60

In a scenario of global economic downturn,
international community bets on IS (V)
Ultrafast broadband investment in Australia (07/04/2009)
• The Government has announced it will establish a new company that will invest up to $43 billion over
eight years to build and operate a National Broadband Network delivering superfast broadband to
Australian homes and workplaces.
The first letter in the “profitability alphabet” is “www”
• Technology funds are, along with gold-based funds, the only equity market fund reporting positive
results in 2009.
• The sector is the top performer on the benchmark S&P 500 index for 2009, while the Nasdaq
Composite Index, which is heavily weighted towards technology, is the only significant US market
measure to be in positive territory for the year
61

Thank you very much.
62