By Pierre-Alain CADILLON Country Senior Officer UAE, Qatar, Oman and Kuwait.

1. By Pierre-Alain CADILLON Country Senior Officer UAE, Qatar, Oman and Kuwait. Email: Pierre-Alain.Cadillon@alcatel.fr The Impact of Broadband on Economic Development ATIF forum in DOHA May 30th and June 1st, 2004.

2. US EU2 € ‘000 Average Growth in Labour Productivity (GDP per hour worked), %Points, 1995–2000 EU U.S. 0 ICT is essential for productivity growth Labour Productivity Measured as GDP per Employed Worker, 1995-2001 Source: EITO; OECD;Eurostat; DG Economics and Finance, European Commission; Groningen University and The Conference Board; Monitor Analysis

3. We are entering a new wave… Source: Merrill Lynch

4. Broadband Penetration Growth Broadband Penetration as a Percentage of Households, Q2 2002–Q3 2003 80.2% South Korea 20.4% USA 11.3% EU 0.06% India Source:: Barkerville Telecom Markets 3Q-2004 overview

5. Broadband deployment worldwide

6. Content & services will provideadded value growth While today most value still resides in the connectivity layer, in the future it will lie in the service layer… Services Service development creates big opportunities for local enterprises Connectivity • More and more of the content will be local ARPU (€) Services Connectivity Today Future Source: Monitor Analysis

7. Impact on small & medium size enterprises

8. e-Business: improving efficiency • SME’s: • improve links with customers and suppliers • Information driven businesses: banks, travel, …:a business revolution • Teleworking: • greater efficiency, less traffic jams, • greater quality of life

9. Services for the consumer

10. PC Centric TV Centric Virtual models and tours Virtual models and tours Music download Video/audio streaming E-mail, chat, and instant message E-mail, chat, and instant message On-line care On-line gaming On-line gaming Video conferencing Video broadcast/VoD BOTH New broadband services for residential market

11. Impact on productivity of public services

12. Public Services: Improve access & quality • Access to essential health services: • e-Health: the way to better use • scarce competences at distance • Access to education: • e-Learning: a tool to universalize • the access to knowledge • e-Governmentsimplifies • administrative processes

13. e-Health e-Health Clusters Systems for health Professionals Systems for citizens Systems for patients Linking to Care Provider • Intelligent call centers • Innovative access to health related information • Emergency situations solutions • Digital imaging and transfer • Access to patients’ files from anywhere • Collaborative work • Mobility of health professionals • Continuous medical training • Tele-monitoring • Tele-consultation • Patient education • Patient’s comfort within the hospital

14. e-Education

15. Advantages of broadband • Improving greatly the efficiency of traditional economic sectors in a sustainable way • Opening the world market to SMEs • Enabling e-Education and e-Government services and applications adapted to local needs • Key for improving population’s well-being & optimizing scarce resources in the health sector

16. Conclusions from the past years • Regulation needs to be clear and not limitnew services introduction • Broadband penetration is essentialfor services development • Governments should invest in e-Government,e-Health and e-Education

17. Alcatel value proposition in Broadband OurCommitment “Alcatel invests more in Broadband than anyone else” Our Vision Our impact Your Success • Reach and Bandwitdh • Services Resource Broker & subscribers scaling • Profitable applied solutions • Access convergence • A true Broadband partner • Ability to meet operators service requirements • Better proven reliability • Right first time installation Outline

18. www.alcatel.com