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  6. Index
  7.  
  8. Preface ➤ 5
  9. the call of history
  10.  
  11. Maurice Lévy, Chairman and CEO, Publicis Groupe ➤ 8
  12.  
  13. Changing the World
  14.  
  15. Nicolas Sarkozy, President of the French Republic ➤ 13
  16.  
  17. internet matters
  18.  
  19. Presentation by the McKinsey Global Institute ➤ 22
  20.  
  21. Plenaries
  22. Session I
  23. The Internet and Economic Growth ➤ 26
  24. Session II
  25. The Internet and Society ➤ 28
  26. session III
  27. Future Net: What’s Next? ➤ 30
  28. session IV
  29. Intellectual Property in the Digital Age ➤ 32
  30. session V
  31. Fostering Innovation ➤ 34
  32. session VI
  33. Digital Transformation ➤ 36
  34.  
  35. special talks
  36. Digital’s Next Frontier: Education
  37. Rupert Murdoch, Chairman and CEO of News Corporation ➤ 40
  38. Groupon: A Case Study
  39. Andrew Mason, Founder & CEO of Groupon, talks with Gilles Babinet,
  40. Entrepreneur and Chairman of France’s Conseil National du Numérique ➤ 42
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  46. Broadband For All
  47. Neelie Kroes, European Commissioner for the Digital Agenda, talks with
  48. Ben Verwaayen, CEO of Alcatel-Lucent ➤ 44
  49. A Universal Human Need
  50. Mark Zuckerberg, Founder and CEO of Facebook, talks with Maurice Lévy,
  51. Chairman and CEO of Publicis Groupe ➤ 46
  52.  
  53. workshops
  54. I-1
  55. Building Blocks: The art of the start-up ➤ 50
  56. I-2
  57. King Content: Entertainment in the digital age ➤ 52
  58. I-3
  59. Electronic Liberty: New tools for freedom ➤ 54
  60. II-1
  61. Be Here Now: Mobility changes everything ➤ 56
  62. II-2
  63. Disinter-Media: Is Internet killing – or relaunching – the press? ➤ 58
  64. II-3
  65. Open Government/Open data: For the people, by the Internet ➤ 60
  66. III-1
  67. The Disrupters: Extreme innovation ➤ 62
  68. III-2
  69. Sharing Value ➤ 64
  70. III-3
  71. The Data Dilemma ➤ 66
  72.  
  73. Concluding Press Release ➤ 70
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  82.  
  83. e-G8 FORUM May 24-25, 2011
  84.  
  85. Preface
  86.  
  87. Fittingly, this e-book is a virtual incarnation of an event whose physical
  88. existence was fleeting, but whose impact will endure. Opened on May
  89. 24, 2011 in Paris by French President Nicolas Sarkozy, the e-G8 Forum
  90. gathered together the finest minds and most skillful operators of the
  91. Internet for just two days. But the Forum’s effect as a catalyst—on
  92. participants, on the G8 Summit that succeeded it, and on public policy
  93. by governments worldwide—was, and will continue to be, far more
  94. meaningful.
  95. The Forum was an intense and ambitious gathering of 1500 participants
  96. from more than 30 countries. It culminated in a delegation to the G8
  97. Summit of Heads and State and governments, where questions regarding
  98. the Internet were on the agenda for the first time in the history of
  99. international summit meetings. The delegation was led by Maurice Lévy,
  100. Chairman and CEO of Publicis Groupe, and comprised Hiroski Mikitani,
  101. the CEO of Rakuten; Yuri Milner, CEO of Digital Sky Technologies;
  102. Stéphane Richard, CEO of France Telecom-Orange; Eric Schmidt, CEO
  103. of Google; and Mark Zuckerberg, founder and CEO of Facebook. With
  104. them, they took a message.
  105. The Internet is a powerful vector for individual empowerment, free
  106. expression and personal growth. It is an enormously positive force for
  107. change and transformation of civic groups, industries, organizations
  108. and nations. Its impact as a locomotive of job creation and economic
  109. growth is spectacular. As it moves into a new phase that will even more
  110. profoundly modify our environment, governments need to grasp more
  111. fully the need for greater understanding of the phenomenon.
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  119.  
  120. Policy-leaders everywhere need a free Internet. They need to encourage
  121. investment and to guarantee all citizens rapid, broadband access to an
  122. Internet that is secure. As with any breakthrough technology, the digital
  123. revolution may have unintended side-effects that may harm individual
  124. and collective rights. Thus as it progresses, the Internet’s growth will
  125. need to be accompanied by careful and measured government action
  126. to protect consumers and creators alike. This will require a partnership
  127. of intense dialogue with all the stakeholders: civil society, industry and
  128. creators of all kinds.
  129. You’ll find here a succinct narrative of every plenary session, workshop
  130. session, informal talk and keynote conversation that took place during
  131. the e-G8 Forum; photographs and links to video reportages and to the
  132. full-stream video that was broadcast live on the e-G8 Forum website
  133. from all plenary sessions; and the Forum’s final press release. This may
  134. give you a sense of how a gathering of interconnected, sometimes
  135. competing individuals joined into a vast, concentrated mass of
  136. intelligence—not a consensus, but a passionate interplay of debate,
  137. dispute and effervescent, vivid, spontaneous ideas, in the service of the
  138. future of our digital world.
  139. As our societies look forward to the Third Revolution—the digital
  140. revolution—we hope that you will find this little e-book both informative
  141. and thought-provoking.
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  153. e-G8 FORUM May 24-25, 2011
  154.  
  155. The Call of History
  156. Speech by Maurice Lévy,
  157. Chairman and CEO of Publicis Groupe
  158.  
  159. Monsieur le Président de la République; my dear friends;
  160. First, my heartfelt thanks to all of you, for coming here to be part of a
  161. moment that I believe will be historic.
  162. Mr. President, it is a joy and an immense honor for me to welcome you
  163. to this Forum on Internet and the Digital Economy, the first ever to
  164. precede a summit of the G8 nations. This gathering takes place at your
  165. initiative. You asked that the Internet should be placed on the agenda
  166. of the G8 summit in Deauville, which you will preside. It was your wish
  167. that the key players of the Internet and all its stakeholders should be
  168. able to express their insights here in open and unrestricted debate, and
  169. that the conclusions of their discussions should be made known to the
  170. Heads of State and government of the G8.
  171. In other words, you wanted this Forum to take place in the same spirit
  172. in which the Internet functions: open, participative, and free. You can
  173. be sure that this will be the case.
  174. I was particularly moved by the honor that you did in giving me the
  175. responsibility for organizing this eG8 Forum, and it is with great pride
  176. that I observe this assembly. Despite their heavy schedules and our very
  177. short lead-time, all the key players of the Internet, with few exceptions,
  178. are present among us. They have made huge efforts to shift their agendas
  179. in response to your invitation. I think I can say that all of them fully
  180. understand how important this meeting is, and the challenging task
  181. ahead of us. I won’t take the time—or take the risk—of citing every one
  182. of their names: the list is too long; and I might forget one of my friends.
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  190. e-G8 FORUM May 24-25, 2011
  191.  
  192. In our audience are represented all the components of the digital
  193. ecosystem, in all its diversity: infrastructures, manufacturers, software,
  194. telecommunications, search engines, social networks, e-merchants,
  195. content, and the start-ups of today and of tomorrow. All of them are
  196. present—even advertizing is here!—alongside representatives of the
  197. academic world and social communities, in order to debate the future
  198. of the Internet and its impact on our economies and our societies.
  199. There have been a number of conferences about computers and about
  200. the Internet. But none was destined to nourish the debates of Heads of
  201. State. I think, then, that I can say, without a trace of an advertiser’s
  202. habitual exaggeration, that this Forum is truly historic.
  203. It is historic, first, because in two days’ time, a summit will take place
  204. in Deauville in which the Heads of State and government of the eight
  205. major industralized countries will discuss, under your Presidency and
  206. at your initiative, a number of specific issues regarding the Internet
  207. phenomenon as it develops at a speed never before observed in human
  208. history. Historic, too, because this sector is a global phenomenon. Almost
  209. two billion people are connected to the Internet: one person in three.
  210. More than four billion have a cell-phone: two-thirds of the planet.
  211. And as you know well, Mr. President, the digital industry abolishes
  212. frontiers, erases distinctions and creates a new paradigm in every sphere:
  213. knowledge, technology, information, creation, innovation, relationships,
  214. exchanges, commerce, economics, communication—in short, every
  215. aspect of life.
  216. Finally, what makes these two days so special is the very nature of this
  217. Forum. It gives voice to the economic and social actors of this sector—
  218. to content creators: powerful generators of innovation, platforms or
  219. companies; to players, big and small; to inventors, trend-setters, citizenbloggers or entrepreneurs, whether they be freshly minted or simply
  220. vigilant of that common good that is the Internet. These individuals
  221. will debate freely, exchanging points of view, laying down their own
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  231. conclusions and proposing fresh ideas. It is a signal honor, and I am
  232. certain that they will show themselves worthy of it. Thus this is a historic
  233. moment, and a historic responsibility.
  234. Of course it would be easy to use this occasion to express a few platitudes:
  235. opinions that we all share. Every day the Internet does indeed transform
  236. the way in which people live, work, communicate, bond, play, enjoy
  237. themselves, live and love. And indeed, the Internet is a powerful motor
  238. for economic development, a mine of productivity and job-creation.
  239. This exceptional space of technological innovation is indeed also a
  240. source of individual initiatives, pioneers, trend-setters, inventors. And
  241. the Internet does indeed create a wind of openness and democracy
  242. wherever it is accessible. It offers those who use it possibilities for
  243. communication and self-realization unparalleled in our history.
  244. But we know that. We are convinced of those truths. The real questions
  245. that we need to ask—and debate here, in this Forum—are: How will the
  246. Internet contribute to the creation of more wealth, more jobs, more
  247. freedom? How can we go further? How, too, can we be even more
  248. respectful of the rights of others—their intellectual creations and their
  249. private lives? How can we ensure a proper balance in value sharing?
  250. How can we be both free of constraint and responsible?
  251. We have organized round-tables and workshops for debate with the
  252. world’s most pertinent players in the field and all participants, in order
  253. to attempt to discover paths towards more effective thought about the
  254. questions that we all ask ourselves.
  255. How can we improve our products, our services and practices so that
  256. they can be more easily adapted and used? How can we reassure
  257. consumers and clients about the dangers—some of them very real—of
  258. using digital tools? How can we eliminate or restrict some practices that
  259. penalize our digital sector in the eyes of the public, for example in terms
  260. of protection of privacy or the fight against cybercrime? How can we
  261. organize the transition so that actors from the physical, non-digital
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  270.  
  271. world can move, as they need to do, increasingly on-line, to the virtual
  272. world? For that is the real world of tomorrow. How can we convince the
  273. reticent—all those not born in the digital universe—of its interest and
  274. its importance? How can we balance our exchanges? Respect intellectual
  275. and artistic property? How can we finance major infrastructures in this
  276. sector, as it continues its exponential growth? And, let’s dare to use the
  277. word—what regulation can be put in place that would prevent abuses
  278. but would in no way restrict the liberty of the Net, its development or
  279. use, particularly in tomorrow’s mobile world.
  280. If we want this Forum to succeed, we absolutely need to ask ourselves
  281. these questions with sincerity. We need to imagine, in a spirit of
  282. responsibility, possible paths towards solutions capable of bringing to
  283. you, Mr. President, and to the Heads of State of the G8, some elements
  284. of deeper thought and the viewpoint of the key actors in the field.
  285. As you can see, it will take a lot of work to make this e-G8 Forum a
  286. success. Of course we don’t plan to resolve everything in two days; far
  287. from it. But I am convinced that we have here a historic opportunity to
  288. move the Internet forward, and to bring our experiences and insights
  289. to the table of the G8 Heads of State.
  290. Mr. President, my dear friends, I have a particular affection for a quote
  291. from Albert Einstein: “Imagination is more important than knowledge”.
  292. Einstein would definitely have loved the Internet. It is both the fruit of
  293. human imagination and a space for sharing knowledge that makes it
  294. accessible to all humanity. All of us here today have a little knowledge
  295. about the Net. But now it’s time to mobilize our imagination: to create
  296. a collective picture of how Internet will develop in the world of the future.
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  308. e-G8 FORUM May 24-25, 2011
  309.  
  310. Changing the World
  311. Address by the President of the French Republic,
  312. Nicolas Sarkozy, to the e-G8 Forum
  313.  
  314. Ladies and Gentlemen,
  315. History always remembers those places where, at a given point in time,
  316. all creative forces of an era seem to want to converge. And it is in the
  317. hope that Paris would become the capital of the Internet for a few days
  318. that I wanted to bring you here together, just before the G8 Summit.
  319. This is an important moment, because to my knowledge it is the first
  320. time that all those who, with their talent and ingenuity, helped change
  321. the world—or I should say, make us change the world—are meeting in
  322. one and the same place. France and the G8 have indeed the honour to
  323. welcome the men and women whose names are now associated with
  324. the emergence of a new form of civilization. If we are able to listen to
  325. each other, speak to each other and understand each other, I am
  326. convinced that we will be able to give this G8 a historic dimension, so
  327. that our era becomes fully self-aware and moves beyond its tremendous
  328. individual adventures to become a part of collective history.
  329. Our world has already experienced two different globalizations. From
  330. the first one, that of great discoveries, we inherited a complete world, a
  331. world which Magellan could circumnavigate, a world that could be
  332. explored and charted. From the second, that of industrial revolutions,
  333. we inherited a space that was not only complete, but domesticated, and
  334. at times subjugated.With the third globalization, that in which you both
  335. play a role and are promoting, you have changed the way the world sees
  336. itself.
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  346. You have changed the notion of space, because the Internet has not only
  347. eliminated the distance separating people, but has also opened up a
  348. virtual world that is, by definition, limitless. A world in which everyone
  349. can make contact with everyone else. A world in which everyone can
  350. create their own territory, their own community, even their own society.
  351. You have changed the notion of time, getting rid of the very concept of
  352. something happening over a period of time, making everything
  353. immediate, giving everyone the possibility of reaching others and
  354. accessing information instantly, and in short, making anything possible.
  355. You have even changed how we see history because transparency, even
  356. if at times it can be contested, both in its method and its effects, has
  357. imposed itself on countries. You have changed our relationship with
  358. things and objects with the single phenomenon of “dematerialization”.
  359. You have changed the very notion of knowledge and have made it
  360. possible for everyone to access all knowledge and not only access, but
  361. contribute to this knowledge. The dream of a universal library that would
  362. include knowledge from all over the world, this dream that is old as time
  363. itself, has now become a reality for millions of Internet users.
  364. In just a few years, you have rocked the very foundations of the world
  365. economy in which you now play a major role. You have changed the
  366. world. For me, you have changed the world, just as Columbus and Galileo
  367. did; just as Newton and Edison did. You have changed the world with
  368. the imagination of inventors and the boldness of entrepreneurs.
  369. Unique in history, this total revolution has been immediately and irrevocably
  370. global. Unique in history, this revolution does not belong to anybody, it
  371. does not have a flag, it does not have a slogan: this revolution is a common
  372. good. Unique in history, this revolution has occurred without violence.
  373. The discovery of the New World brought about the total destruction of
  374. American Indian civilizations. The global revolution that you incarnate
  375. is a peaceful one. It did not emerge on battlefields but on university
  376. campuses. It arose from the miraculous combination of science and
  377. culture, and the determination to acquire knowledge and the
  378. determination to transmit it.
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  387.  
  388. With regard to the origins of your sector, legend has it that Google was
  389. created in a garage: the thing I remember most is that Google was born
  390. in a university library. The imaginary world of Hollywood wanted
  391. Facebook to be seen as the result of a failed love affair: we’d like to see
  392. many more like that. The thing I remember most is that Facebook was
  393. created at a top ranking university campus.
  394. This revolution that went so far as to change our perception of time and
  395. space has played a decisive role in other revolutions. In Tunisia and Egypt
  396. alike, mere individuals were able overturn a power that was completely
  397. discredited by building virtual barricades and organizing very real rallies.
  398. Peoples in Arab countries thus showed the world that the Internet does
  399. not belong to States. International opinion was able to see that the
  400. Internet had become, for freedom of speech, a medium for expressing
  401. unprecedented power.
  402. Like any revolution, the technological and cultural revolution you began
  403. holds promise. Huge promise. Promise that is commensurate with the
  404. considerable progress you incarnate.
  405. Now that this revolution has reached the first stage in its maturity, it
  406. should not forget the promise of its origins. If you have designed tools
  407. that are now your own, it is because you dreamed of a world that would
  408. be more open. If you have built social networks that currently connect
  409. millions of men and women, it is because you dreamed of a world that
  410. would be more socially minded. If you have given utopia concrete
  411. expression, it is because you have faith in humankind and its future. If
  412. you have achieved worldwide success so swiftly, it is because this promise
  413. reflects universal values.
  414. Your work should thus be considered historic and help drive civilization.
  415. And that is the importance of your responsibility—because you do have
  416. a responsibility. Our responsibility, as Heads of State and Government,
  417. is no less important. We must support a revolution that was born at the
  418. heart of civil society for civil society and that has a direct impact on the
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  428. life of States. Because if technology is neutral and must remain so, we
  429. have clearly seen that the ways the Internet is used are not. Today,
  430. discussing and shaping the Internet is a real historic responsibility and
  431. this responsibility can only be shared, by you and us.
  432. The idea is for the G8 States, which include some of the most powerful
  433. countries in the world, to recognize the role that is now yours in the
  434. course of history. We would like to hear about your expertise, because
  435. we have things to learn. We have things to understand. Just like individuals
  436. and companies, States do not want to miss an opportunity for progress
  437. that you have created and that you incarnate.
  438. How can we use the Internet to bolster democracy, social dialogue and
  439. solidarity? How can we use the Internet to improve the way States
  440. function? How can we inject this spirit of innovation and enterprise
  441. which is characteristic of your sector into States?
  442. Also, the States we represent need to make it known that the world you
  443. represent is not a parallel universe, free of legal and moral rules and
  444. more generally all the basis principles that govern society in democratic
  445. countries. Now that the Internet is an integral part of most people’s lives,
  446. it would be contradictory to exclude governments from this huge forum.
  447. Nobody could nor should forget that these governments are the only
  448. legitimate representatives of the will of the people in our democracies.
  449. To forget this is to run the risk of democratic chaos and hence anarchy.
  450. To forget this would be to confuse populism with democracy of opinion.
  451. Juxtaposed individual wishes have never constituted the will of the
  452. people. And a social contract cannot be drawn up by simply lumping
  453. together individual aspirations.
  454. States and Governments have also learned from history, and I am
  455. speaking to you on behalf of the country that drew up the Declaration
  456. of the Rights of Man and of the Citizen. So, ladies and gentlemen, be
  457. loyal to the promise of the revolution that you began, as France has
  458. sought to be loyal to hers for over two centuries.
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  468. I know that the market has its own regulatory mechanisms but trade is
  469. never truly free if the terms of this trade are unfair. Do not allow new
  470. barriers to be built where you have toppled the longstanding walls of
  471. the old world. Do not allow new monopolies to take root where you have
  472. overturned long-established situations that seemed unshakeable. In
  473. giving all individuals, regardless of where they live or from where they
  474. speak, the possibility to be heard by everyone everywhere, you have
  475. provided all citizens of the world with a freedom of speech that is
  476. unprecedented in history.
  477. This outstanding leap in individual freedoms cannot be taken at the
  478. expense of the rights of others. Do not allow the revolution you began
  479. to violate people’s fundamental right to privacy and to be fully
  480. autonomous. Complete transparency, which never allows a person to
  481. rest, will sooner or later come up against the very principle of individual
  482. freedom. Let us not forget that behind an anonymous Internet user,
  483. there is a real citizen who is evolving in a society, a culture and an
  484. organized nation to which he belongs and with laws he must abide by.
  485. Do not forget that the sincerity of your promise will be assessed in the
  486. commitment of your companies to contribute fairly to national
  487. ecosystems. Do not allow the revolution you began to violate the basic
  488. right of children to lives that are protected from the moral turpitude of
  489. certain adults. Do not allow the revolution you began to be a vehicle for
  490. maliciousness, unobstructed and unrestricted. Do not allow this
  491. revolution become an instrument in the hands of those who wish to
  492. jeopardize our security and in doing so, our freedom and our integrity.
  493. You have allowed everyone, with the mere magic of the Web, to access
  494. all the cultural treasures of the world in a simple click.
  495. It would be something of a paradox if the Web contributed to draining
  496. them over time.
  497. The immense cultural wealth that provides our civilizations with such
  498. beauty is a product of the creative forces of our artists, authors and
  499. thinkers. Basically, it is the product of all those who work on enchanting
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  508.  
  509. the world. Yet these creative forces are fragile because when creative
  510. minds are deprived of the fruit of their talents, they are not just ruined,
  511. what’s worse, they lose their independence, they will be required to
  512. pawn their freedom.
  513. I’m telling you this with a man in mind: a Frenchman who died over two
  514. centuries ago, who with a single play brought down a nearly onethousand-year-old monarchy; a man who also, with Lafayette, was one
  515. of the first defenders of American Independence! This man was like you
  516. because, starting with nothing but his intelligence, he overturned an
  517. order that was believed to be immovable and eternal. This man was
  518. Beaumarchais. This same man invented the principle of copyright. He
  519. went one step further than giving authors ownership rights of their
  520. works, he ensured their independence, he offered them freedom.
  521. I know and I understand that our “French” idea of copyright is not the
  522. same as in the United States and other countries. I simply mean that
  523. our commitment to universal principles, those that both the U.S.
  524. Constitution and the 1789 Declaration of the Rights of Man and of the
  525. Citizen lay down: nobody can have his ideas, work, imagination and
  526. intellectual property expropriated without this being punished.
  527. What I would like to express here is that each of you should be able to
  528. be heard, because before being entrepreneurs you are creators. It is
  529. under this copyright law for creative work that you have been able to
  530. found companies that have become empires. These algorithms that
  531. constitute your power, this continual innovation that constitutes your
  532. strength, this technology that is changing the world, are your property
  533. and nobody can contest that. Each of you, each of us, can therefore
  534. understand that writers, directors, musicians and actors can have the
  535. same rights.
  536. This copyright law for creative work enabling artists to receive fair
  537. payment for their ideas and their talents, is also valid for each of the
  538. States we represent. States invest in training of those who then join your
  539.  
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  544. 03/06/11 15:14
  545.  
  546. e-G8 FORUM May 24-25, 2011
  547.  
  548. companies. States invest in the technical and technological infrastructure
  549. that provides transport for the services and content that are circulated
  550. on the Web. States would like to engage in dialogue with you so that a
  551. balanced way forward can be found one day that is mindful of your
  552. interests, those of Internet users that give you overwhelming support
  553. every day and those lastly of citizens and taxpayers of every nation who
  554. also have rights.
  555. We are emerging from a terrible crisis, resulting from the blindness of
  556. financial powers who have lost sight of what was important to sacrifice
  557. everything for money. These powers that did not want to be accountable
  558. to people and the powers that wanted to avoid dialogue with elected
  559. governments that have the interest of the people in mind.
  560. It is simply a call for collective responsibility that I am issuing here. A
  561. call for responsibility and a call for common sense. We believe in the
  562. same values. I am therefore convinced that a way forward is possible. A
  563. way forward that will enable the world you created and the world we
  564. have inherited to work alongside each other in the interest of a world
  565. that has become global, which is largely thanks to you. So let us begin
  566. together this crucial dialogue. Let us open and build this new forum.
  567. I would like to thank you, because when I had the idea for this forum,
  568. at first everyone told me that it was a bad idea—except Maurice Levy,
  569. when I asked him to be in charge of organizing it. First my fellow Heads
  570. of State and Government, who told me yet again, “you take too many
  571. risks”. I personally think that the worst risk is not taking any; the worst
  572. risk is that of not speaking to each other. And I think that we never take
  573. risks when we call on the intelligence of people, from your world, who
  574. have said to themselves “what can we do with Heads of State and
  575. Government?”
  576. I think that we have a lot to accomplish together and I’ll be very happy,
  577. on Thursday, if a delegation made up of some of the participants here
  578. today could engage in dialogue with my fellow Heads of State and
  579.  
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  584. 03/06/11 15:14
  585.  
  586. e-G8 FORUM May 24-25, 2011
  587.  
  588. Government. We need this dialogue, we need to understand your
  589. expectations, your aspirations, your needs. And you need to hear our
  590. limitations, our red lines, the problems we shoulder in the name of the
  591. general interest of our societies. I am so pleased to welcome you here in
  592. Paris today and would be even more pleased if this forum could be held
  593. every year prior to the G8 Summit so that we have a clear idea of where
  594. you are in your progress and so that you know what we are thinking.
  595. Thank you.
  596.  
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  605. 03/06/11 15:14
  606.  
  607. e-G8 FORUM Tuesday May 24, 2011
  608.  
  609. presentation
  610.  
  611. Internet Matters
  612.  
  613. A groundbreaking report by the McKinsey
  614. Global Institute shows the Internet is one of
  615. the biggest drivers of global economic growth.
  616.  
  617. synopsis Presented at the e-G8 Forum, a recent study by the McKinsey
  618. Global Institute took a detailed and comprehensive look at the Internet’s
  619. impact on growth, jobs, and wealth creation in 13 countries that together
  620. account for more than 70% of global GDP.
  621.  
  622. The study found that the Internet accounts for an average 3.4% of GDP in
  623. Britain, France, Germany, Italy, Russia, Sweden, Brazil, Canada, the US,
  624. China, India, Japan and South Korea. If it were a sector, its weight in GDP
  625. would be bigger than energy, agriculture, or several other critical industries.
  626. There is also a great deal of room for further development. While the Net
  627. accounts for around 6% of GDP in Sweden and Britain, in 9 out of these
  628. 13 countries its contribution is still less than 4%.
  629. It is also a powerful catalyst for job creation. While the Internet has
  630. eliminated 500,000 jobs in France over the past 15 years, it has created
  631. 1.2 million others — 2.4 jobs created for every job destroyed. Moreover
  632. it creates substantial value for users, ranging from €13 ($18) a month
  633. per user in Germany to € 20 ($28) in the United States. Total consumer
  634. surplus generated by the Internet in 2009 ranged from €7 billion (nearly
  635. $10 billion) in France to € 46 billion ($64 billion) in the United States.
  636.  
  637. ➤ 22
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  640.  
  641. 03/06/11 15:14
  642.  
  643. Over the last 15 years the Internet has created an average increase of $500
  644. in real per capita GDP in developed countries. It took the Industrial
  645. Revolution of the 19th century 50 years to achieve the same results. All
  646. industries have benefited. Across sectors, small and medium-sized
  647. companies with strong Web presence grew more than twice as quickly as
  648. those that had minimal presence on the Net. They also reported a share of
  649. total revenues from export that was twice as large, and created more than
  650. twice the number of jobs.
  651. Armed with a better understanding of how—and how much—the Internet
  652. contributes to national economies, policy makers and business executives
  653. can act more effectively. In particular, the report suggests they should
  654. consider the following immediate steps:
  655. ➤ Use public spending to support innovation. Countries with the highest
  656. public investment in the Internet also have the largest non-public
  657. Internet contribution to GDP
  658. .
  659. ➤ All business leaders, not just e-CEOs, should put the Internet at the top
  660. of their strategic agenda, looking to reinvent their business models to
  661. boost growth, performance, and productivity.
  662. ➤ A dialogue between government and business leaders can help the
  663. Internet ecosystem flourish. Standards for digital identities and intellectual
  664. property protection must be addressed; other relevant topics include net
  665. neutrality, the availability of talent, and the overall business environment.
  666.  
  667. Download the full report at www.mckinsey.com/mgi
  668.  
  669. e-G8_cloture_FINAL - 2.indd 23
  670.  
  671. 03/06/11 15:14
  672.  
  673. The Internet spirit of cooperation and consultation: left to right, Ben Verwaayen, CEO of
  674. Alcatel-Lucent, with French Finance Minister
  675. Christine Lagarde; James Manyika, Director
  676. at McKinsey and Co. San Francisco; the audience was lively and knowledgeable; Jimmy
  677. Wales, the founder of Wikipedia; Pascal Nègre,
  678. President and CEO of Universal Music France;
  679. Nigel Shadbolt, Professor of Artificial Intelligence at the University of Southampton; Sheryl
  680. Sandberg, COO of Facebook.
  681.  
  682. e-G8_cloture_FINAL - 2.indd 24
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  684. 03/06/11 15:14
  685.  
  686. e-G8_cloture_FINAL - 2.indd 25
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  688. 03/06/11 15:15
  689.  
  690. e-G8 FORUM Tuesday May 24, 2011
  691. e-G8 FORUM Tuesday May 24, 2011
  692.  
  693. Plenary Session I
  694.  
  695. The Internet
  696. & Economic Growth
  697.  
  698. Information technology and the digital
  699. ecosystem have been powerful accelerators
  700. of economic growth and employment.
  701. How to ensure that this can continue?
  702. Session Panelists
  703. Christine Lagarde, Minister for Economy, Finance and Industry, France
  704. John Donahoe, President and CEO, eBay
  705. Jean-Bernard Lévy, Chief Executive Officer, Vivendi
  706. Hiroshi Mikitani, Chairman & CEO, Rakuten
  707. Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Ltd.
  708. Eric Schmidt, Executive Chairman, Google Inc.
  709. Moderated by
  710. Ben Verwaayen, CEO, Alcatel-Lucent
  711.  
  712. Click
  713.  
  714. for full-stream video
  715. of this session
  716.  
  717. ➤ 26
  718.  
  719. e-G8_cloture_FINAL - 2.indd 26
  720.  
  721. 03/06/11 15:15
  722.  
  723. synopsis The Internet is a critical locomotive for growth, Minister
  724. Christine Lagarde reported: in France, the digital sector currently generates
  725. 3.7% of GDP and this is likely to rise to 5.5% in the short term. By
  726. encouraging entrepreneurship, the Internet creates value, jobs, and
  727. unique opportunities for today’s global citizens to establish new ventures
  728. at minimum cost, regardless of geographic location or other physical
  729. difficulties. Ebay has 17,000 employees globally, but 1.3 million people
  730. make their primary or secondary income from sales via the Ebay platform.
  731.  
  732. Moreover, this increasing growth is also exponentially accelerating in
  733. impact. A small startup company creates the idea for platform which,
  734. if successful, can be almost immediately globalized; as Eric Schmidt
  735. pointed out, this platform (PayPal, Rakuten) then becomes an ecosystem
  736. used as a launch-pad by multiple entrepreneurs, creating great wealth.
  737. Mobile phones in developing nations provide the same platform-like
  738. ability to rapidly accelerate economic growth, noted Sunil Bharti Mittal.
  739. E-health and m-health (via mobile phone) also impact the economy,
  740. because they lower the cost of delivering health services and improve
  741. the health of consumers, thus also boosting productivity and income.
  742. Whether in G8 or developing countries, digital job creation occurs largely
  743. among small businesses and individuals, although of course the Net
  744. does also permit large corporations to improve productivity and create
  745. new positions. Several panelists urged governments to analyze factors
  746. that might curb entrepreneurship and digital businesses in their
  747. countries. Most of the panel agreed that above all, governments should
  748. ensure broadband access to all citizens, with optimal physical
  749. infrastructure for connectivity.
  750. The panel also discussed the need to regulate certain sectors, for example
  751. e-currencies and mobile banking: Hiroshi Mikitani pointed out that by
  752. offering credit, these essentially create money. Government rules would
  753. increase security in this field and thus also consumer confidence.
  754. However, Eric Schmidt argued that before turning to a regulatory
  755. approach to any issue in this brand-new, innovative and resilient field,
  756. leaders should examine possible technological solutions from the private
  757. sector. These may be quicker and better adapted to problems occurring
  758. in the Internet ecosystem today. Examples: NFC chips for secure digital
  759. banking (more secure than credit cards); content-ID programs to sniff
  760. out pirated material; LTE technology, for four-times greater spectral
  761. efficiency in the wireless band.
  762.  
  763. e-G8_cloture_FINAL - 2.indd 27
  764.  
  765. 03/06/11 15:15
  766.  
  767. e-G8 FORUM Tuesday May 24, 2011
  768.  
  769. Plenary Session Ii
  770.  
  771. The Internet & Society
  772. The Internet transforms everything
  773. it touches--how we communicate, market,
  774. work, learn and play. Some of the most
  775. profound changes involve how we organize
  776. into communities, re-envision government
  777. and share information. And that’s only
  778. the beginning.
  779.  
  780. Session Panelists
  781. Tom Glocer, CEO, Thomson Reuters
  782. Andrew Mason, Founder & CEO, Groupon
  783. Stéphane Richard, Chairman & CEO, France Telecom - Orange
  784. Sheryl Sandberg, COO, Facebook
  785. Klaus Schwab, Founder & Executive Chairman, World Economic Forum
  786. Jimmy Wales, Founder, Wikipedia
  787. Moderated by
  788. Maurice Lévy, Chairman and CEO, Publicis Groupe
  789.  
  790. Click
  791.  
  792. for full-stream video
  793. of this session
  794.  
  795. ➤ 28
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  797. e-G8_cloture_FINAL - 2.indd 28
  798.  
  799. 03/06/11 15:15
  800.  
  801. synopsis The Internet’s tools for knowledge open the possibility of lifelong education for millions. They mean that people are now much more
  802. likely to seek out information, Jimmy Wales noted; Wikipedia is available
  803. in more than 200 languages and for some (ex. Swahili) this is their firstever encyclopedia. This already huge impact on the world’s cultures will
  804. exponentially increase as improvements in networks bring billions more
  805. people online in the developing world.
  806.  
  807. But the Internet has moved beyond information retrieval to social
  808. discovery. Social networks such as Facebook aggregate individuals into
  809. self-defined, overlapping communities with collective voices loud
  810. enough to effect change. This ‘outsourcing’ of personality also requires
  811. sophisticated management of personal privacy by every individual. Prof.
  812. Schwab felt that the development of social networks may mean that
  813. young people may vote less in elections, as other forms of expression
  814. become more pertinent. Sheryl Sandberg pointed to the 2008 Obama
  815. social-network campaign that encouraged striking numbers of young
  816. people to vote. All agreed that the rise of social networks will empower
  817. youth in particular, and spur governments to greater dialogue with
  818. citizens. This will be particularly transformative in the developing world,
  819. as Jimmy Wales pointed out.
  820. All successful new technologies reduce costs and friction, improving
  821. quality of life, Tom Glocer said. But any new tool can also be harmful.
  822. Faced with pedophiles or terrorists there is a need for oversight or
  823. governance. This will have to be based on cooperation, because business
  824. alone cannot solve the problems, but neither can civil society or
  825. government.
  826. Stéphane Richard noted that another vital area of cooperation is the
  827. dual question of Net neutrality and Internet access. Everyone, even in
  828. remote areas, should have access to broadband. But this requires costly
  829. investment in physical infrastructure; moreover, the spectrum is limited.
  830. Without careful co-management, the Net’s infrastructure could one day
  831. face congestion or collapse, he warned.
  832. There is still room to expand e-commerce. At present, only 5% of
  833. commerce occurs on-line, while 80% of disposable income is spent
  834. within a 2-mile radius of a consumer’s home. A niche exists in “local
  835. e-commerce”: small businesses using websites like Andrew Mason’s
  836. Groupon for performance-guaranteed, personalized marketing.
  837.  
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  839.  
  840. 03/06/11 15:15
  841.  
  842. e-G8 FORUM Tuesday May 24, 2011
  843. e-G8 FORUM Tuesday May 24, 2011
  844.  
  845. Plenary Session iiI
  846.  
  847. Future Net:
  848. What’s Next?
  849.  
  850. Limitless bandwidth. Massive data.
  851. Total mobility. Technology continues to
  852. accelerate. Will the infrastructure keep pace?
  853. Session Panelists
  854. Peter Chou, CEO, HTC
  855. Michel de Rosen, CEO, Eutelsat
  856. Paul Hermelin, Chairman and CEO, Capgemini
  857. Danny Hillis, Co-Chairman and CTO, Applied Minds
  858. Paul Jacobs, Chair and CEO, Qualcomm
  859. Craig Mundie, Chief Research and Strategy Officer, Microsoft
  860. Moderated by
  861. David Rowan, Editor, Wired UK
  862.  
  863. Click
  864.  
  865. for full-stream video
  866. of this session
  867.  
  868. ➤ 12 30
  869.  
  870. e-G8_cloture_FINAL - 2.indd 30
  871.  
  872. 03/06/11 15:15
  873.  
  874. synopsis Technology in the next 5-10 years will eliminate the need to
  875. master the traditional computer interface. This will change how we relate
  876. to computers and the services we expect from them. Remote wireless
  877. monitoring will transform the health-care industry, increasing productivity
  878. and optimizing outcome, said Paul Jacobs. He detailed a list of futuristic
  879. devices, including implantable fertility monitors and implantable
  880. defibrillators, which tests have shown can reduce mortality by 50%.
  881.  
  882. Machines will increasingly talk directly to other machines. Cars will warn
  883. each other when they are too close, and in gaming, avatars will interact
  884. in human-like ways. A new generation of smartphones will offer consumers
  885. broad choices in mobile TV and video, and travelers may encounter a
  886. world of “curated” chips describing the history of landmarks. There will
  887. also be more 3D TV and connected TV. As this flood of data increases it
  888. will be exploited, in a world of personalized marketing and individual
  889. choice. Students may demand personalized education. Governments
  890. may seek to establish predictive patterns for terrorism or tax fraud.
  891. These opportunities entail serious risks. An infrastructure of talking
  892. machines will increasingly bypass the ability of government to manage
  893. or even understand it, warned Danny Hills. Breakdowns will be much
  894. more likely, and their consequences catastrophic. Reliance on digital
  895. technology will increase the threat of data theft and hacking. New
  896. enhanced services will also outrun current bandwidth capacity. Revenue
  897. may need to be split differently so that the operators who lay down
  898. infrastructure have incentives to keep pace with massive new needs in
  899. the networks.
  900. Other somber messages: battery capacity will strain to keep pace with the
  901. needs of new devices. Michel de Rosen warned that the world could
  902. splinter into digital haves and have-nots. He proposed that the G8 could
  903. declare Internet access to be a universal service obligation; in effect, this
  904. is already the case in Switzerland and Finland, and is an official commitment
  905. by the EU. Craig Mundie also called on governments to improve
  906. technological education.The panel broadly agreed that it is governments’
  907. role to create the conditions in which people can be creative and prosper.
  908. That means they must urgently focus on one area: anticipating and
  909. planning for potentially disastrous breakdown of the infrastructure and
  910. networks that underlie digital services.
  911.  
  912. e-G8_cloture_FINAL - 2.indd 31
  913.  
  914. 03/06/11 15:15
  915.  
  916. e-G8 FORUM Tuesday May 24, 2011
  917.  
  918. Plenary Session Iv
  919.  
  920. Intellectual property
  921. in the digital age
  922.  
  923. What’s at stake for culture and business?
  924. What should be the new rules to encourage
  925. and stimulate content creation on the Internet?
  926. Session Panelists
  927. John Perry Barlow, Vice Chairman, Electronic Frontier Foundation
  928. Antoine Gallimard, President Groupe Gallimard and President,
  929. Syndiact National de l’Edition
  930. Jim Gianopulos, Chairman, Fox Filmed Entertainment
  931. Frédéric Mitterrand, Minister of Culture and Communication, France
  932. Pascal Nègre, Chairman and CEO, Universal Music France
  933. Hartmut Ostrowski, Chairman and CEO, Bertelsmann
  934. Moderated by
  935. Bruno Patino, Digital Head, France Televisions
  936.  
  937. Click
  938.  
  939. for full-stream video
  940. of this session
  941.  
  942. ➤ 32
  943.  
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  945.  
  946. 03/06/11 15:15
  947.  
  948. synopsis The Internet has overwhelming impact on what Pascal Nègre
  949. called the “creatio, industries”: film, books and music. It is a huge
  950. opportunity — one-third of the music industry’s revenue comes from the
  951. digital sector— but also the locus of massive copyright infringement and
  952. piracy. Service providers say 25% of traffic stems from illegal downloading.
  953.  
  954. With one exception, the panelists felt that a healthy and creative digital
  955. economy cannot exist without assertive protection of intellectual property.
  956. If the work of artists is not protected and paid for, creation (and content)
  957. will dry up. Record labels invest $5 billion per year on new talent, Pascal
  958. Nègre said, and get their money back only 1 time out of 7 or 8. It is not only
  959. a question of return on investment but also the ongoing vitality of creativity.
  960. Copyright is a source of freedom, said Minister Frédéric Mitterrand (himself
  961. a movie director and author): the freedom to continue to create.
  962. The panel noted Eric Schmidt’s earlier suggestion that content-ID
  963. programs could trawl the Internet to identify, and remove, illegal content.
  964. Jim Gianopoulos regretted that this technology “just isn’t there yet, not
  965. even close”. He felt the best solutions stem from voluntary agreements
  966. between the tech and creation industries to protect intellectual property,
  967. but where those are not possible, governments should enforce rules. In
  968. this regard most panelists approved the recent French legislation, Hadopi.
  969. In contrast, John Perry Barlow attacked the very notion that expression
  970. can be equated to property. For the first time in history, he said, the
  971. Internet makes it possible to give every human the right to satisfy his/her
  972. curiosity to the fullest and to find an audience. To deny those rights is to
  973. preserve outmoded institutions. Instead of tightening the regulation of
  974. creative content, global leaders should talk about incentivizing creativity.
  975. This view that freedom means that everything should be free of charge
  976. was hotly disputed. Jim Gianopoulos insisted that no new, alternative
  977. business models exist that could generate the kind of cash required to
  978. return investment on a major film. The creation industries generate
  979. cultural diversity, jobs and tax revenue, and they are a major driver of
  980. the demand for high bandwidth. Although opinions may differ as to the
  981. details or complexity of the arrangements required, some mechanism
  982. for remunerating content will probably be necessary.
  983.  
  984. e-G8_cloture_FINAL - 2.indd 33
  985.  
  986. 03/06/11 15:15
  987.  
  988. e-G8 FORUM Tuesday May 24, 2011 2011
  989. e-G8 FORUM Wednesday May 25,
  990.  
  991. Plenary Session v
  992.  
  993. Fostering Innovation –
  994. How to build the future
  995. Session Panelists
  996. Eric Besson, Minister of Industry, Energy and the Digital Economy, France
  997. Lawrence Lessig/Professor, Harvard Law School
  998. Xavier Niel, Founder & Chairman, Iliad
  999. Yuri Milner, CEO & Managing Partner, Digital Sky Technologies
  1000. Sean Parker, Managing Partner, Founders Fund
  1001. Niklas Zennstrom, CEO and Founding Partner, Atomico
  1002. Moderated by
  1003. John Gapper, Chief Business Commentator, Financial Times
  1004.  
  1005. Click
  1006.  
  1007. for full-stream video
  1008. of this session
  1009.  
  1010. ➤ 34
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  1013.  
  1014. 03/06/11 15:15
  1015.  
  1016. synopsis As a business and creative environment, the Internet is
  1017. characterized by a dynamic in which innovative outsiders — kids,
  1018. immigrants, dropouts — challenge incumbents with their new and
  1019. better ideas. Prof. Lawrence Lessig observed that because of powerful
  1020. lobbies government regulations usually protect the interests of
  1021. incumbents, thus ultimately harming consumers. He therefore urged
  1022. governments to stay out of the way, aiming for minimal interference.
  1023.  
  1024. Copyright was a hotly argued subject. Lessig and others agreed that
  1025. creators should be compensated, but that the current architecture of
  1026. regulation no longer makes sense. The recent report published by
  1027. Professor Hargreaves for the UK government characterized the current
  1028. system as obstructive of innovation and economic growth. The French
  1029. Hadopi “three strikes” legislation, which punishes piracy by cutting
  1030. Internet access, was seen as poorly thought-out. A better system is
  1031. urgently required, the panel felt: it should be one that makes sense in a
  1032. digital world where everything can be copied. It should also be less
  1033. fragmented; currently “you almost have to pick which laws you’re going
  1034. to comply with,” said Niklas Zennstrom, because Internet-based (thus
  1035. global) companies cannot comply with all.
  1036. Startups in Europe face obstructions due to the limited size of each
  1037. national market and fragmented legislation on data protection and tax.
  1038. In Europe failure also carries a stigma and there is a cultural reluctance
  1039. to take risk, Niklas Zennstrom said. Yuri Milner pointed out that the two
  1040. largest internet companies in Europe are both Russian (Yandex and
  1041. Mail.ru); he attributed this to Russia’s “very open and lightly regulated
  1042. environment.”
  1043. Minister Eric Besson agreed that governments need to encourage
  1044. spending on research and innovation via tax incentives, as well as
  1045. ensuring good networks (fiber optics or 4G cellphone networks) and
  1046. laying down strong technological education for engineers. Governments
  1047. also need to foster startups through competitive centers.
  1048. Former Napster founder Sean Parker noted that the music industry —
  1049. which has recently shrunk from a global $45 billion industry to $12
  1050. billion — may soon see a rush of revenue. Just as has been happening
  1051. in the book publishing industry, he predicted that record labels’ back
  1052. catalogues will rise massively in value.
  1053.  
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  1055.  
  1056. 03/06/11 15:15
  1057.  
  1058. e-G8 FORUM Wednesday May 25, 2011
  1059.  
  1060. Plenary Session vi
  1061.  
  1062. Digital Transformation:
  1063. How traditional businesses
  1064. are being re-invented
  1065.  
  1066. Session Panelists
  1067. Franco Bernabè, Chairman and CEO, Telecom Italia
  1068. Rosabeth Moss Kanter, Professor, Harvard Business School
  1069. Eric Labaye, Chairman, McKinsey Global Institute
  1070. Stephen A. Schwarzman, Chairman and CEO, The Blackstone Group
  1071. Mark Thompson,Director-General, BBC
  1072. Moderated by
  1073. Jeff Cole, Executive Director, USC Annenberg Center for the Digital Future
  1074.  
  1075. Click
  1076.  
  1077. for full-stream video
  1078. of this session
  1079.  
  1080. ➤ 36
  1081.  
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  1083.  
  1084. 03/06/11 15:15
  1085.  
  1086. synopsis “There’s not a company on earth that hasn’t been affected by
  1087. digital technology,” observed Jeff Cole. “Most have been transformed”.
  1088. This transformation affects what Harvard’s professor Rosabeth Kanter
  1089. called the five Ps of corporate life: products, processes, partners, people
  1090. and purpose. The metamorphosis creates efficiencies and opportunities,
  1091. and is often exhilarating as well as profitable. Remote work may revive
  1092. rural areas, and self-organizing development teams and e-learning
  1093. provide a new modes for workers to continuously upgrade skills,
  1094. changing the way companies operate.70% of employees say Internet
  1095. technology has made them more productive.
  1096.  
  1097. But the change is also disruptive, both to corporations and their various
  1098. stakeholders. Franco Bernabè warned that traditional telecom industries
  1099. are shedding jobs rapidly. Of course there is also new job creation; but
  1100. what the figures don’t show, he said, is the shift from a protected workforce
  1101. to less secure jobs. This entails social dislocation. Additionally, Stephen
  1102. Schwarzman pointed out that by reducing friction in the financial
  1103. markets, digital tools have greatly increased the markets’ volatility. He
  1104. warned that this may not always be in society’s interest.
  1105. Companies can remain true to their identities as they re-invent the way
  1106. they do business, observed Mark Thompson: the BBC may deliver news
  1107. digitally, but remains aware of its core business as an authoritative
  1108. source of information. Incumbents can rely on their traditional strengths
  1109. and should not focus, as they currently often do, on a defensive strategy.
  1110. A limber approach to organization is necessary to avoid a split between
  1111. a “shiny new digital” unit and a “grim declining old” one.
  1112. Social networking adds to the transformative pressure on big corporations
  1113. by demanding more openness and faster reactions from corporate
  1114. leadership. It also provides an opportunity for real-time market research,
  1115. Eric Labaye pointed out, giving companies the tools to match customer
  1116. needs more effectively and quicker. This works to increase the
  1117. effectiveness of advertising budgets. There are also other, less quantifiable
  1118. benefits when networking allows businesses to establish new kinds of
  1119. relationships with customers. Pepsi, for instance, asked Internet viewers
  1120. to determine where it should direct its charitable contributions instead
  1121. of advertising on the Super Bowl, thereby redefining its image and
  1122. allowing customers to feel more closely involved.
  1123.  
  1124. e-G8_cloture_FINAL - 2.indd 37
  1125.  
  1126. 03/06/11 15:15
  1127.  
  1128. Free and wide-ranging debate: Xavier Niel,
  1129. founder and Chairman of Iliad, with Sean Parker,
  1130. Managing Partner at Founders Fund; Frédéric
  1131. Mitterrand, France’s Minister of Culture; in the
  1132. public were many key stakeholders of the Net;
  1133. French President Nicolas Sarkozy speaking with
  1134. Google CEO Eric Schmidt; a coffee and networking break in Paris’ landmark Tuileries Gardens;
  1135. Stéphane Richard, Executive Officer of France
  1136. Telecom Orange; Luca Ascani, co-founder and
  1137. Chairman of Populis.
  1138.  
  1139. e-G8_cloture_FINAL - 2.indd 38
  1140.  
  1141. 03/06/11 15:15
  1142.  
  1143. e-G8_cloture_FINAL - 2.indd 39
  1144.  
  1145. 03/06/11 15:15
  1146.  
  1147. e-G8 FORUM Tuesday May 24, 2011
  1148.  
  1149. special talk
  1150. Ruppert Murdoch, Chairman and CEO of News Corporation:
  1151.  
  1152. Digital’s Next Frontier:
  1153. Education
  1154. Limitless bandwidth. Massive data.
  1155. Total mobility. Technology continues to
  1156. accelerate. Will infrastructure keep pace?
  1157.  
  1158. Advances brought about by technology and the Internet are evident
  1159. everywhere but in education. Schools remain the last holdout from the
  1160. digital revolution; today’s classroom looks almost exactly as it did in the
  1161. Victorian age. This represents a colossal failure of imagination and an
  1162. abdication of responsibility to our children. Throwing money at this
  1163. problem is no solution. In my country, we’ve doubled spending on
  1164. primary and secondary education over the last three decades, while test
  1165. scores remained flat. Some claim the problem is students coming from
  1166. poverty, broken homes, or immigrant families. This is arrogant, elitist
  1167. and unacceptable.
  1168. The era of one-size-fits-all education, which frustrates the bright kids
  1169. and leaves the struggling ones behind, is over. Education-specific
  1170. algorithms can be used to help determine what a student needs to learn.
  1171. With digital technology we can bring the best educators to children
  1172. anywhere in world at low cost. Stephen Hawking explaining principles
  1173. in physics or Yo Yo Ma teaching harmony could be brought to any
  1174. classroom for what we now pay to download a song.
  1175.  
  1176. ➤ 40
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  1178. e-G8_cloture_FINAL - 2.indd 40
  1179.  
  1180. 03/06/11 15:15
  1181.  
  1182. An outstanding example of technologically improved education is found
  1183. in New York City, at an African American charter school in Harlem. The
  1184. school is located in a neighborhood with all the pathologies normally
  1185. used to explain away failure. Yet the school tests students, insists parents
  1186. check homework, and uses technology including the Kindle ebook
  1187. reader and laptops. Its student test scores are now equal to schools filled
  1188. with gifted and privileged students.
  1189. Technology will not replace the teacher but will take the drudgery out
  1190. of their responsibilities. The Ikea school in Sweden is supported by a
  1191. knowledge portal that contains the entire syllabus and other teaching
  1192. tools. Freed from administrative work, the teacher can give students far
  1193. more personalized attention.
  1194. Software, rather than hardware, is key to innovation in classrooms. Well
  1195. designed, it teaches concepts while helping students learn for themselves.
  1196. The more interactive and intimate, the better the student will perform.
  1197. In two small California schools a textbook publisher is using iPads and
  1198. education apps to offer guided instruction, instant feedback, and access
  1199. to hundreds of videos which students use at their own pace.
  1200. If we can bring these kinds of advantages to the entire world, we will
  1201. ensure that a poor child in Manila will have the same opportunities as
  1202. a rich child in Manhattan.
  1203.  
  1204. ➤ 41
  1205.  
  1206. e-G8_cloture_FINAL - 2.indd 41
  1207.  
  1208. 03/06/11 15:15
  1209.  
  1210. e-G8 FORUM Tuesday May 24, 2011
  1211. e-G8 FORUM Tuesday May 24, 2011
  1212.  
  1213. Conversation
  1214. Andrew Mason, Founder & CEO of Groupon, talks with
  1215. Gilles Babinet, Entrepreneur and Chairman of France’s Conseil
  1216. National du Numérique
  1217.  
  1218. Groupon: A Case Study
  1219. Launched in November 2008, Groupon now stakes the claim of being
  1220. the fastest growing company in the world, employing 7,500 people to
  1221. offer localized “deal-of-the-day” coupons to customers. Its group
  1222. discounts are negotiated by Groupon itself with local businesses in 500
  1223. different cities across 46 countries, mainly in the food and entertainment
  1224. industry. Andrew Mason said the company has found the Groupon
  1225. model surprisingly effective in every region of the world.
  1226. Specifically focusing on customer happiness was key for Groupon’s
  1227. success with a local-centric
  1228. e-commerce model that had never succeeded before; a business value
  1229. that is not as complicated as some companies may think. “It’s as simple
  1230. as talking to your customers and understanding what they want and
  1231. making sure you do those things,” Mason said. Critical was the company’s
  1232. ability to put themselves in the shoes of customers to understand their
  1233. priorities. Relating to a highly demanding customer mindset, the company
  1234. was able to work to serve it.
  1235. Groupon found it was a mistake to try “to be all things for all people.” It
  1236. realized that doing a great job serving a selection of customers was far
  1237. more valuable than doing an okay job serving everyone. Another key
  1238. discovery was that self-service was not always the answer in building
  1239. e-commerce models. Groupon’s expanding sales force was an essential
  1240. ingredient to growing its network of local merchants.
  1241.  
  1242. ➤ 12 42
  1243.  
  1244. e-G8_cloture_FINAL - 2.indd 42
  1245.  
  1246. 03/06/11 15:15
  1247.  
  1248. The company focuses on “relevance” today -- refining personalization
  1249. technology to find products that will be of maximum interest to every
  1250. individual consumer. It has also added a real-time element with its
  1251. Groupon Now service, based on the premise that customers often make
  1252. food and entertainment decisions at the very last minute. Providing an
  1253. effective real-time experience required moving from a “push” model to
  1254. the more difficult “pull experience.” Instead of browsing offers Groupon
  1255. found for them, the customer tells the service specifically what they
  1256. want and when. Groupon Now uses relationships with thousands of
  1257. merchants to offer real-time deals in a window of a few hours.
  1258. Mason said Groupon has had the effect of “catalyzing” lifelong passions
  1259. among customers. A discount of 70% off at local rock-climbing classes
  1260. can lead to discovery of interest in the sport among people who would
  1261. otherwise never had considered becoming a rock-climbing enthusiast.
  1262. “It exposes people to things they wouldn’t otherwise do.”
  1263. Thus Groupon’s phases of development reflect the evolution of Internetbased businesses towards increased personalization and real-time deals.
  1264. It started with a push sales strategy, offering deal-a-day for customers
  1265. to browse; it is now developing a more personalized demand-based
  1266. “pull service” called Groupon Now. Groupon’s overall business model
  1267. is based on using the Internet for collective action, allowing individuals
  1268. to come together to achieve a common goal. The model has also
  1269. repeatedly been used for more altruistic purposes with success.
  1270.  
  1271. e-G8_cloture_FINAL - 2.indd 43
  1272.  
  1273. 03/06/11 15:15
  1274.  
  1275. e-G8 FORUM Tuesday May 24, 25, 2011
  1276. Wednesday May 2011
  1277.  
  1278. Conversation
  1279. Neelie Kroes, European Commissioner for the Digital Agenda, talks with
  1280. Ben Verwaayen, CEO of Alcatel-Lucent
  1281.  
  1282. Broadband For All
  1283.  
  1284. The European Union’s Digital Agenda sets ambitious goals for the 27
  1285. EU member states. To spur growth, jobs, research/innovation, and better
  1286. policies on education and other issues, the EU has promised that by
  1287. 2013 every single European citizen will have high-speed connection to
  1288. the Internet. By 2015, every European should have a 30 MB connection,
  1289. with 100 MB connections for at least 50% of Europeans by 2020.
  1290. Yesterday’s debates at the e-G8 Forum expressed passionate conviction
  1291. that governments should stay out of the way. That’s tempting. However,
  1292. some issues do require rules of the game. Those rules can be set by the
  1293. parties themselves: the EU needs to listen to business leaders, bankers,
  1294. broadcasters, the telecoms and content people, and they need to take
  1295. responsibility. Only if the digital sector does not take up its responsibilities
  1296. should political leaders step in to replace them.
  1297.  
  1298. ➤ 12 44
  1299.  
  1300. e-G8_cloture_FINAL - 2.indd 44
  1301.  
  1302. 03/06/11 15:15
  1303.  
  1304. Political leaders need to take into account how incredibly rapid change
  1305. is in this area; we’re in a hurry, and we must learn to be far more alert.
  1306. We also need to realize that the rules should be global. There’s no sense
  1307. in the EU setting its own regulations. We need to look at this with the
  1308. OECD, with the G8 and later the G20. But meanwhile, we have a single
  1309. European market and it should be a digital single market. National
  1310. legislation on these questions is completely pointless. It’s absurd that
  1311. you can’t buy a movie on-line in some countries but you can in others,
  1312. and it drives consumers to piracy. We need rules; we need proper
  1313. remuneration for artists; but the borders for these rules should be
  1314. redrawn.
  1315. To the G8 Heads of State, we need to say: Take this issue seriously. It’s
  1316. on your agenda now and it needs to stay there. Make decisions, implement
  1317. them and keep coming back to review them. E-health, e-government,
  1318. e-learning. This needs to be a daily activity of every member state.
  1319.  
  1320. e-G8_cloture_FINAL - 2.indd 45
  1321.  
  1322. 03/06/11 15:15
  1323.  
  1324. e-G8 FORUM Tuesday May 24, 2011
  1325. e-G8 FORUM Tuesday May 24, 2011
  1326.  
  1327. Conversation
  1328. Mark Zuckerberg, Founder and CEO of Facebook, talks with
  1329. Maurice Lévy, Chairman and CEO of Publicis Groupe
  1330.  
  1331. A Universal Human Need
  1332. The phenomenal success of Facebook owes much to a basic human
  1333. desire that turns out to be even more universal and more powerful than
  1334. Facebook’s Mark Zuckerberg appreciated when he founded the social
  1335. networking site as a student at Harvard in 2004. “I just wanted to let
  1336. people stay in touch with people around them,” Zuckerberg said. “It
  1337. turns out that’s a universal need.”
  1338. Equally important is Facebook’s role as a forum in which people interact
  1339. under their real identities. There is room on the Net for anonymous
  1340. social networking media and there are even advantages to interacting
  1341. anonymously—a willingness to speak controversial truths, for instance.
  1342. Facebook, however, has staked its future on people’s growing willingness
  1343. to share more of themselves without the cloak of anonymity. For one
  1344. thing, it promotes sincerity. “With transparency comes accountability,”
  1345. said Zuckerberg. “Your real name is attached.”
  1346. Do people share too much information? Only they can decide where
  1347. the boundary line falls, Zuckerberg said, but that boundary appears to
  1348. be shifting ever outward. In Facebook’s early days people were reluctant
  1349. to share much of anything. But more people are discovering the value
  1350. in sharing different aspects of their lives. The past few years have seen
  1351. a huge leap in the number of people sharing their location, for example,
  1352. so they can see which of their friends might be nearby.
  1353. Future growth will be propelled in large part by companies that build
  1354. social networking into applications hosted on Facebook’s platform. The
  1355. best examples are social gaming applications like Zynga and Playfish,
  1356. which are now at the forefront of the gaming business. Facebook will
  1357.  
  1358. ➤ 12 46
  1359.  
  1360. e-G8_cloture_FINAL - 2.indd 46
  1361.  
  1362. 03/06/11 15:15
  1363.  
  1364. never launch its own applications like these, says Zuckerberg. “Any one
  1365. company can only do one or two things well. We know technology and
  1366. psychology, but we know nothing about games.” In future, he adds, media
  1367. and music companies will increasingly “bake in” a social design, and
  1368. Zuckerberg is hoping Facebook will serve as one of their primary platforms.
  1369. Zuckerberg downplayed Facebook’s role as an agent of change in the
  1370. democratic movements of the Middle East, North Africa and elsewhere.
  1371. It is the power of the internet that lets people share their thoughts, both
  1372. trivial and passionate, with one another. Facebook was just part of a
  1373. bigger trend, he said. However, he does feel proud, he added, to see
  1374. heads of state communicate directly with the citizenry through their
  1375. Facebook pages, because “That’s what democracy is about”.
  1376. So is Facebook just a trend, a flash in the pan, asked a Facebook user ?
  1377. The mediums of social networking will change. Facebook itself has
  1378. changed considerably since its early days, and is still changing. Some
  1379. 300 million Facebook users access the site through mobile phones, and
  1380. that segment is growing much faster than the web. But the basic need
  1381. to share one’s self with family and friends will remain.
  1382.  
  1383. e-G8_cloture_FINAL - 2.indd 47
  1384.  
  1385. 03/06/11 15:15
  1386.  
  1387. Support for innovation: Tony Wang, Twitter’s
  1388. General Manager Europe; questions were focused and often hotly debated; former Greatful
  1389. Dead lyricist and founder of the Electronic
  1390. Frontier Foundation John Perry Barlow, during
  1391. a workshop session on Electronic Liberty; debates during plenaries often spilled over into
  1392. breaks; workshops zeroed in on issues ranging
  1393. from smartphones to intellectual property and
  1394. open data; Susan Pointer, Director of Public
  1395. Policy for Google’s EMEA.
  1396.  
  1397. e-G8_cloture_FINAL - 2.indd 48
  1398.  
  1399. 03/06/11 15:15
  1400.  
  1401. e-G8_cloture_FINAL - 2.indd 49
  1402.  
  1403. 03/06/11 15:15
  1404.  
  1405. e-G8 FORUM Wednesday May 25, 2011
  1406.  
  1407. workshop i session i
  1408.  
  1409. Building blocks:
  1410. The art of the startup
  1411. Session Panelists
  1412. Samir Arora, Chairman & CEO, Glam Media, Inc.
  1413. Luca Ascani, Co-Founder & Chairman, Populis
  1414. Bruce Golden, Partner, Accel Partners
  1415. Rick Marini, Founder & CEO, Branch Out
  1416. Shaukat Shamin, Founder & CEO Buysight
  1417. Moderated by
  1418. Esther Dyson, Chairman, EDventure
  1419.  
  1420. ➤ 50
  1421.  
  1422. e-G8_cloture_FINAL - 2.indd 50
  1423.  
  1424. 03/06/11 15:15
  1425.  
  1426. synopsis To best help startup companies, many feel that governments
  1427. should aim to stay largely out of the way. However, they can help
  1428. encourage growth by ensuring high-quality Internet infrastructure and
  1429. business regulations that foster growth. Universal high-speed Internet
  1430. access and friendly hiring and taxation laws are policies that make
  1431. starting an international business easier to navigate and afford.
  1432. Government can also encourage growth by preventing “brain drain”
  1433. — the loss of a country’s most talented and educated workers overseas.
  1434.  
  1435. To help start-ups expand and operate across borders, governments should
  1436. standardize their practices as much as possible, making their business
  1437. requirements and services accessible and intelligible to a broad
  1438. international audience. The G8 could even promote a governmentcoordinated information portal, where businesses can go to grasp the
  1439. wide variety of international issues confronting them, such as tax treaties,
  1440. visa requirements, resident permits, employment rules, and local practices.
  1441. Across the world, Internet entrepreneurs encounter law-makers
  1442. with very little detailed knowledge of the issues they’re facing. To produce
  1443. policies that will positively assist startups struggling to expand into new
  1444. markets, governments should work to educate legislators and
  1445. administrators on the issues that should shape business legislation.
  1446. After starting up a business, another hard challenge is creating sustainable,
  1447. larger businesses that will last. This can be especially difficult in the diverse
  1448. marketplaces of Europe, where there is more friction facing a startup due
  1449. to the different treatment of regulations, hiring laws and even employee
  1450. stock options among countries. Young Internet companies based in
  1451. Europe often keep a presence in Silicon Valley, and this environment—
  1452. which is more conducive to growth—greatly increases their chances of
  1453. turning innovative ideas into a successful business.
  1454.  
  1455. e-G8_cloture_FINAL - 2.indd 51
  1456.  
  1457. 03/06/11 15:15
  1458.  
  1459. e-G8 FORUM Wednesday May 25, 2011
  1460.  
  1461. workshop i Session Ii
  1462.  
  1463. King Content:
  1464. Entertainment in
  1465. the digital age
  1466. Session Panelists
  1467. David Drummond, Senior Vice President, Google
  1468. David Kenny, President, Akamai
  1469. Mikael Hed, CEO, Rovio Mobile
  1470. Carolyn Reidy, President & CEO, Simon & Schuster
  1471. Martin Rogard, General Manager France, Dailymotion
  1472. Patrick Zelnik, CEO, Naïve
  1473. Moderated by
  1474. Spencer Reiss, Program Director, Monaco Media Forum
  1475.  
  1476. synopsis The Internet’s infrastructure makes it easier for people to access
  1477. media on their terms, deciding if they want to own, rent, or access content
  1478. for free. Most industry experts believe global leaders should discuss how
  1479. best to finance creation on the Internet so it benefits the artist as well as
  1480. society and culture as a whole.
  1481.  
  1482. The demand for TV, movies, and games remains unchanged: people
  1483. consume as much or more media content than ever. The factor that
  1484. continues to change as a result of the Internet and emerging technologies
  1485. is how people consume this media. Mobile technology, for instance, is
  1486. rapidly changing the way consumers behave and interact with content.
  1487.  
  1488. ➤ 52
  1489.  
  1490. e-G8_cloture_FINAL - 2.indd 52
  1491.  
  1492. 03/06/11 15:15
  1493.  
  1494. A growing segment of end-users now expect content to be made available
  1495. to them instantly, in any location, for free. Book publishers point out that
  1496. prior to the Internet, physical space was an issue when it came to the
  1497. release of new publications: old titles had to be eliminated in order to
  1498. make room for new releases. Thanks to the Internet this problem has been
  1499. eliminated. There is also an exciting new market for reissuing previously
  1500. out-of-print books.
  1501. As online consumer behaviors differ significantly, the question for Internet
  1502. players becomes how to transition from one business model (i.e. providing
  1503. free content) to another (i.e. providing for-pay content) with the hope of
  1504. maximizing the consumer experience while maintaining high-quality
  1505. content. Experts agree that being able to quickly adapt to new business
  1506. models is essential for today’s online players to keep up with rapidly
  1507. advancing technologies.
  1508. The pressing and politically-charged issue of Internet regulation reemerged
  1509. in the context of online content. While industry experts remain divided on
  1510. the subject, most agree the issue should be taken up at the international
  1511. level by today’s global leaders and policymakers. Some experts also point
  1512. out that regulation is not the evildoer its opponents make it out to be; they
  1513. believe rules are necessary in any community — be it physical or virtual — and
  1514. guard freedom. Others assert that aggregated data shows a large percentage
  1515. of people who are “stealing” media content online do not know they’re
  1516. doing it. Instead, those of this opinion believe that today’s online consumers
  1517. lack the necessary literacy on how to use media responsibly and legally on
  1518. the Internet. Industry should address this problem.
  1519. The enforcement of regulation  who enforces what, and how? 
  1520. — 
  1521. — 
  1522. is also a growing concern for Internet players on both sides of the regulation
  1523. argument. The general consensus is that the matter should be addressed
  1524. at the international level. Further, the harmonization of rules and
  1525. regulations between countries should also be on the international agenda
  1526. in discussions concerning online media content. Different countries have
  1527. different rules, and this poses problems for those consuming and
  1528. distributing media in the borderless, virtual world.
  1529.  
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  1531.  
  1532. 03/06/11 15:15
  1533.  
  1534. e-G8 FORUM Wednesday May 25, 2011
  1535.  
  1536. workshop i session iii
  1537.  
  1538. Electronic Liberty:
  1539. New Tools for Freedom
  1540. Session Panelists
  1541. Hassan Fattah, Editor-in-Chief, The National
  1542. Jean-François Julliard, Secretary-General, Reporters Without Borders
  1543. Jamal Khashoggi, General Manager, Alwaleed 24News channel
  1544. Susan Pointer, Director, Public Policy & Government Relations EMEA, Google
  1545. Alec Ross, Special Advisor to U.S. Secretary of State Hillary Clinton
  1546. Nadine Wahab, Egyptian activist
  1547. Tony Wang, General Manager Europe, Twitter
  1548. Moderated by
  1549. Olivier Fleurot, CEO, MSLGROUP
  1550.  
  1551. ➤ 54
  1552.  
  1553. e-G8_cloture_FINAL - 2.indd 54
  1554.  
  1555. 03/06/11 15:15
  1556.  
  1557. synopsis Policies of major Internet companies can unintentionally have
  1558. devastating impact on the personal security of active concerned citizens
  1559. living in authoritarian regimes. Facebook’s insistence that each profile
  1560. should correspond to a readily identifiable person might make sense in
  1561. a democracy, but in other regions it can create enormous problems.
  1562. Thousands of Internet users are in prison around the world for the
  1563. “crime” of expressing their opinions.
  1564.  
  1565. The company policies of Google and Twitter made it possible for Internet
  1566. users in the Middle East, for example, to communicate freely but without
  1567. the danger of being identified. However, for a mainstream traditional
  1568. media outlet which places a high premium on the reliability of its sources
  1569. of information, the anonymity of informal sources poses a huge problem.
  1570. There was also heated debate about whether to permit encryption for
  1571. online messaging services, with no consensus.
  1572. It is easy for an undemocratic regime to restrict access to the Net, but
  1573. no government can ever shut down freedom of expression. We recently
  1574. saw courageous Libyans smuggling telecoms and internet equipment
  1575. into Benghazi after the Qaddafi regime had knocked out their transmission
  1576. towers.
  1577. In open societies, the Internet is rapidly progressing as a sophisticated tool
  1578. for political strategy and communication. The innovative techniques used
  1579. by the Obama 2008 campaign are now mainstream tools used by everyone.
  1580. The panel expressed strong feeling that there should be a well structured,
  1581. global Commitment to Internet Freedom, backed up by the certainty of
  1582. a collective response to any major infringements based on Article 19 of
  1583. the United Nations Treaty of 1948. This is extremely urgent, and should
  1584. be enforced as a greater priority than either any agreement about
  1585. Internet content regulation or copyright enforcement.
  1586. Despite all the concerns for individual freedoms, and their possible
  1587. limitations, users in wealthy, Western democracies should not just take
  1588. the Internet for granted: there are many places in the world where even
  1589. simple access to the Web is greeted with infectious excitement and
  1590. optimism.
  1591.  
  1592. e-G8_cloture_FINAL - 2.indd 55
  1593.  
  1594. 03/06/11 15:15
  1595.  
  1596. e-G8 FORUM Wednesday May 25, 2011
  1597.  
  1598. workshop ii session i
  1599.  
  1600. Be Here Now: Mobility
  1601. Changes Everything
  1602. Session Panelists
  1603. Tod Cohen, Deputy General Counsel and VP Government Relations
  1604. International, eBay
  1605. Bart Decrem, SVP & GM, Disney Mobile
  1606. George-Edouard Dias, Head of L’Oreal Digital Business Group
  1607. Eric Hazan, Partner, McKinsey & Co
  1608. David Jones, Global CEO, Euro RSCG Worldwide
  1609. Alexandre Mars, CEO of Phone Valley
  1610. Olivier Roussat, Director-General, Bouygues Telecom
  1611. Richard Wong, Accel Partners
  1612. Moderated by
  1613. David Barroux, Les Echos
  1614.  
  1615. ➤ 56
  1616.  
  1617. e-G8_cloture_FINAL - 2.indd 56
  1618.  
  1619. 03/06/11 15:15
  1620.  
  1621. synopsis Smart phones are increasingly the tail that wags the Internet
  1622. dog. They are already being used for search and browsing functions that
  1623. had been the exclusive preserve of PCs : mobile searches are up 64%
  1624. and social networking use is up 57% since 2009. Overall mobile media
  1625. consumption is twice what it was three years ago, and accelerating at
  1626. an increasing rate. Samsung predicts that smart phones will be twice as
  1627. powerful in 2013, making them essentially a portable computers.
  1628.  
  1629. As they grow more powerful, smart phones will be the agent of change
  1630. in the market. Blurring all lines between communication, social
  1631. networking and commerce, they will become even more versatile. There’s
  1632. already newly-minted jargon to point the way forward: Mocial — the
  1633. interaction of mobile telephony and social networking ; Metail — a mix
  1634. of mobile phone and retail; and, most musically, Solomo — social
  1635. networking, mobile phoning and localization. The mobile phone has
  1636. already become the basic computer medium in much of the developing
  1637. world; in Kenya, 13 million people use mobile banking.
  1638. These highly personalized tools will require vigorous safeguards for data
  1639. privacy and security. However, most agreed that this does not necessitate
  1640. greater government regulation. User reaction will police the market
  1641. adequately. As Accel Partners’ Richard Wong put it, “Any company that breaks
  1642. the consumer’s trust (by releasing personal data improperly) will be hit by
  1643. a backlash so bad that it will keep everyone from overstpping the line.”
  1644. Still, governments may need to take action in one specific area. Unlike
  1645. the Internet, smart phones are dominated by a small number of operating
  1646. systems, notably Apple and Android. They function as the market’s
  1647. gatekeepers, potentially curbing competition as they determine what
  1648. content can and can’t have access to their systems. As one panelist said,
  1649. “We are afraid of closed systems”. Many agreed that competitive markets
  1650. characterized by multiple choices and the ability for new entrants to
  1651. move in are the best business environment overall, and this may imply
  1652. stronger antitrust oversight.
  1653. Additionally, unlike fixed bandwidth (which is functionally limitless),
  1654. smart phone capacity may become restricted by the limits of the radio
  1655. spectrum. Although some have an unwavering political commitment
  1656. to Net Neutrality, others feel that some kind of «soft» regulation, drawn
  1657. up in cooperation with industry, may be necessary to apportion limited
  1658. spectrum capacity.
  1659.  
  1660. e-G8_cloture_FINAL - 2.indd 57
  1661.  
  1662. 03/06/11 15:15
  1663.  
  1664. e-G8 FORUM Wednesday May 25, 2011
  1665.  
  1666. workshop ii session ii
  1667.  
  1668. Disinter-Media:
  1669. Is Internet killing 
  1670. — or relaunching — 
  1671. the press?
  1672. Session Panelists
  1673. Carlo De Benedetti, Chairman, Gruppo Editoriale L’Espresso
  1674. Norman Pearlstine, Chief Content Officer, Bloomberg LLC
  1675. Robert Shrimsley, Managing Editor, FT.com
  1676. Arthur Sulzberger, Jr., Chairman & CEO, The New York Times
  1677. Robert Thomson, Editor-in-Chief, Dow Jones
  1678. Moderated by
  1679. Frédéric Filloux, CEO, E-Presse
  1680.  
  1681. ➤ 58
  1682.  
  1683. e-G8_cloture_FINAL - 2.indd 58
  1684.  
  1685. 03/06/11 15:15
  1686.  
  1687. synopsis Internet will not kill newspapers, but it is re-defining the
  1688. newspaper industry. Traditional business models that have worked for
  1689. decades or even centuries need to be scrapped in favor of more flexibility,
  1690. adaptability and consistency. There is no single solution: national,
  1691. international and regional papers face differing challenges. Bloomberg
  1692. LLC, a business and financial news provider, has a business model
  1693. whereby all subscribers pay the same price, no discounts. FT.com’s
  1694. system delivers a portion of initial content free; it then becomes a paying
  1695. service. The New York Times had a money-making model in place that
  1696. charged for selected articles, but decided it could make more money by
  1697. removing the pay structure and returning to advertising. There are many
  1698. possible models for success.
  1699.  
  1700. Whatever newspapers decide to do, the one thing they will have in
  1701. common: expect to make mistakes. As one participant warned: if you
  1702. don’t fail occasionally, you’re not trying hard enough. Also, expect
  1703. change. No successful strategy will have a long shelf life. As technology
  1704. continues to morph and evolve at breakneck speed, what works today
  1705. may be outdated tomorrow. The industry learned that painful lesson
  1706. when they were caught out with 5-year projections that completely failed
  1707. to take into account the rapid development of social media.
  1708. Devised correctly, Internet tools can greatly complement newspapers,
  1709. even if the physical papers have fewer readers. It’s all about content.
  1710. Content, not the means of distribution, is what defines every organ from
  1711. The New York Times to the Wall Street Journal to the Financial Times.
  1712. As content creators, the Net and the newspaper have more in common
  1713. than in conflict. Most newspapers will find that their website offers an
  1714. opportunity to engage more deeply with readers. The website -- which
  1715. provides content readers want and content they can use to help make
  1716. decisions -- redefines the role of the journalist, and although this is a
  1717. challenge it can be a very positive one. The key will be how to balance
  1718. digital revenues and sustainability long-term.
  1719.  
  1720. e-G8_cloture_FINAL - 2.indd 59
  1721.  
  1722. 03/06/11 15:15
  1723.  
  1724. e-G8 FORUM Wednesday May 25, 2011
  1725.  
  1726. workshop ii session iii
  1727.  
  1728. Open Government,
  1729. Open Data: For the
  1730. People, by the Internet
  1731. Session Panelists
  1732. Laurent Blanchard,Vice-President, European Markets
  1733. and General Manager, Cisco France
  1734. Carlos A. Primo Braga, Special Representative and Director,
  1735. EXT, Europe, The World Bank
  1736. Jean-Philippe Courtois, President, Microsoft International
  1737. Séverin Naudet, Director, ETALAB, data.gouv.fr
  1738. Andrew Rasiej, Founder, Personal Democracy Forum
  1739. Professor Nigel Shadbolt, University of Southampton
  1740. Moderated by
  1741. Stanislas Magniant, Co-Founder, Netpolitique.net
  1742.  
  1743. synopsis Governments in countries with widely differing levels of
  1744. economic development and democratic freedom grapple with issues
  1745. regarding Open Data systems. The process can (and optimally does)
  1746. include national and local governments and international administrative
  1747. and non-profit organizations, as well as commercial organizations and
  1748. private individuals. Open Data systems are evolving at uneven speeds,
  1749. even within countries. In the US, the quality and the amount of available
  1750. government data on the White House website (www.whitehouse.gov) has
  1751. increased impressively since 2000, but the open-data site www.data.gov
  1752. only launched two years ago. But not all open data systems are concerned
  1753.  
  1754. ➤ 60
  1755.  
  1756. e-G8_cloture_FINAL - 2.indd 60
  1757.  
  1758. 03/06/11 15:15
  1759.  
  1760. with government. A highly impressive crowd source website in the
  1761. Philippines, www.checkmyschool.org, lets concerned parents check on
  1762. their children’s education. In Kenya, www.ushahidi.com was developed
  1763. to monitor violence and foul play during the 2008 elections; it is now being
  1764. used to lay out all kinds of interactive maps, in Africa and elsewhere. In
  1765. Madrid a crowd source application tracks the condition of the Spanish
  1766. capital’s trees.
  1767. While there is strong political support in France for the principle of open
  1768. data government and the launch of data.gouv.fr, perhaps the most
  1769. advanced G8 member country in terms of civic open data systems is the
  1770. UK. Data.gov.uk boasts almost 7000 national data sets, from detailed,
  1771. street-by-street crime maps to the location of bus stops. (Individuals often
  1772. contribute, to the benefit of all: scrutiny by Net users revealed that at least
  1773. 6% of the British bus stops were initially located in the wrong place, and
  1774. crowd-sourcing eliminated the errors). In response to widespread public
  1775. indignation regarding politicians’ personal and public spending, every
  1776. expense over £500 must now registered on the site and all 355 administrative
  1777. areas in Britain now publish their full budgets on line.
  1778. The World Bank, like other international organizations, now publishes
  1779. most of its data free online. It also actively encourages developing
  1780. countries to make use of it, democratizing development economics.
  1781. Only when countries specifically request that their economic data
  1782. remain classified is it not made available to the public.
  1783. The private sector has an important role to play in spurring the
  1784. development of Open Data and spreading its benefits to society at large.
  1785. Private corporations developing Government IT systems can help make
  1786. public sector data more easily accessible and reusable. The ecosystem
  1787. of developers, corporations and Web entrepreneurs can reuse public
  1788. data, to invent new services for citizen, and to create new economic
  1789. activity, which can participate in strengthening growth and job creation.
  1790. Some panel members concluded with the recommendation that all nonpersonal government data should be made available online, in machinereadable format.
  1791.  
  1792. e-G8_cloture_FINAL - 2.indd 61
  1793.  
  1794. 03/06/11 15:15
  1795.  
  1796. e-G8 FORUM Wednesday May 25, 2011
  1797.  
  1798. workshop iii session i
  1799.  
  1800. The Disrupters:
  1801. Extreme Innovation
  1802. Session Panelists
  1803. Lars Bjork, CEO, QlikTech
  1804. Jacques-Antoine Granjon, CEO and Founder, vente-privee.com
  1805. Brent Hoberman, Co-Founder, mydeco, made.com, PROfounders Capital
  1806. Pierre Kosciusko-Morizet, Co-Founder and CEO, PriceMinister,
  1807. part of the Rakuten Group
  1808. Xavier Niel, Founder and Chairman, Iliad
  1809. Marc Simoncini, Founder and CEO, Meetic
  1810. Yossi Vardi, Chairman, International Technologies
  1811. Martin Varsavsky, Founder & CEO, FON Wireless, Ltd.
  1812. Moderated by
  1813. Loic Le Meur, Founder, Seesmic and Le Web
  1814.  
  1815. synopsis New technology has dramatically disrupted traditional
  1816. telecommunications, news, music, and other industries. This disruption
  1817. has been fueled by startups that appear to come from nowhere yet cause
  1818. sudden and major changes in how people communicate, get information,
  1819. and consume entertainment and services. Today, the way people make
  1820. new friends and even manage love relationships are being disrupted by
  1821. media like Facebook and Blackberry Messenger. Tomorrow’s disruptions
  1822. are, necessarily, unpredictable.
  1823.  
  1824. Increasingly tech-savvy generations will become an important catalyst
  1825. to the emergence of disruptive technologies. Children everywhere have
  1826. ➤ 62
  1827.  
  1828. e-G8_cloture_FINAL - 2.indd 62
  1829.  
  1830. 03/06/11 15:15
  1831.  
  1832. a new relationship to technology. Disrupters therefore don’t only look
  1833. for new products and services for today’s population, but for more
  1834. technologically fluent generations to come. This creates a spiral of
  1835. increasingly younger disruptive entrepreneurs.
  1836. Executives at emerging technology companies identify various market
  1837. conditions that fuel the growth of their disruptive products and services.
  1838. They encourage countries to create environments that foster productive
  1839. disruptions in tomorrow’s economies. Above all, they implore regulators
  1840. to «keep their hands off the Internet.” Past disruptions have succeeded
  1841. because the early commercial Internet grew for many years before
  1842. regulators even understood the phenomenon. A policy of ”do no harm”
  1843. frees disruptive companies to forge their own path without additional
  1844. business burdens.
  1845. According to several participants, software patents present an especially
  1846. difficult obstacle to the spread of disruptive technologies. The need to
  1847. obtain patents for emerging technologies preoccupies companies with
  1848. resource-wasting patent battles. Many disruptive entrepreneurs would
  1849. like to see software patents eliminated.
  1850. Governments are strongly encouraged to promote universal access to
  1851. the Internet. Additionally, entrepreneurs are eager for more
  1852. harmonization of business laws among countries, to flatten barriers
  1853. and create a workable European framework. These conditions make it
  1854. easier for inexperienced, minimally resourced startups to grow. Also,
  1855. when making laws that will affect emerging disruptive business models,
  1856. legislators should consider the long term, with laws that will still be
  1857. relevant in years to come. Constantly changing regulations are an
  1858. obstacle for the success of disruptive technologies.
  1859. Today’s disrupters face competition from emerging markets. Countries
  1860. like China have produced competitors in American and European
  1861. markets, while China’s domestic Internet access is closed or controlled
  1862. for political and commercial reasons. This is a barrier for foreign
  1863. companies trying to compete. However, in previously closed Middle
  1864. Eastern countries, Internet markets are beginning to open. The Arab
  1865. Spring revolutions represent a unique opportunity for the disruptive
  1866. business model to succeed in newly open markets.
  1867.  
  1868. e-G8_cloture_FINAL - 2.indd 63
  1869.  
  1870. 03/06/11 15:15
  1871.  
  1872. e-G8 FORUM Wednesday May 25, 2011
  1873.  
  1874. workshop iii session ii
  1875.  
  1876. Sharing Value:
  1877. How to divide
  1878. the digital bounty
  1879. among creators,
  1880. distributors – and
  1881. governments?
  1882. Session Panelists
  1883. Frank Esser, CEO and Chairman, SFR
  1884. Gabrielle Gauthey, Executive Vice President,
  1885. Global Government & Public Affairs, Alcatel
  1886. Reed Hundt, Chairman, Aspen Institute IDEA conference
  1887. Alain Minc, President, AM Conseil
  1888. Ezra Suleiman, IBM Professor in International Studies, Princeton
  1889. University
  1890. Moderated by
  1891. Gilles Babinet, Entrepreneur, Chairman of the French Conseil
  1892. National du Numerique
  1893.  
  1894. ➤ 64
  1895.  
  1896. e-G8_cloture_FINAL - 2.indd 64
  1897.  
  1898. 03/06/11 15:15
  1899.  
  1900. synopsis Access to the Internet’s data is easy, and in this market segment
  1901. it could be said that 90% of the effort of making money is just showing
  1902. up. You are not creating a product or even necessarily selling a product:
  1903. simply collecting data can, in and of itself, create value—jobs or revenue.
  1904. Moreover, it isn’t necessary to capture an entire market, just a section
  1905. of it, and aggregate from there. There remains little control or supervision
  1906. by either countries or companies, partly because the Internet became
  1907. a common medium for reasons of historic accident and was driven by
  1908. non-profit impulses.
  1909.  
  1910. In the Internet, all value creation depends on the collective commitment
  1911. to maintain a common medium. If this were not the case, no value—
  1912. either economic or social—would be created for anybody. Today
  1913. preferred sectors for investment are dynamic search engines, social
  1914. networks, and device networks. This may change.
  1915. Today, in the world’s 100 largest cities there are 400 smartphones per
  1916. square km. By 2016 that number is predicted to climb to at least 13,000.
  1917. By then the price of smartphones will have substantially decreased and
  1918. in Africa even the poor will have access to them. That’s a signal to many
  1919. industry insiders that something in the current value chain needs to
  1920. change.
  1921. One recent change has been the reemergence of government, specifically
  1922. in providing Internet service to areas not currently covered. In the US,
  1923. for example, billions of government dollars are being spent to provide
  1924. Internet to non-access areas. This is vital, because the market alone will
  1925. not organize itself in a way that will reach out to the less dense areas.
  1926.  
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  1928.  
  1929. 03/06/11 15:15
  1930.  
  1931. e-G8 FORUM Wednesday May 25, 2011
  1932.  
  1933. workshop iii session iii
  1934.  
  1935. The Data Dilemma
  1936.  
  1937. Social media and the explosion of data
  1938. are driving the Internet’s growth, and raising
  1939. important questions about privacy
  1940. and data security
  1941. Session Panelists
  1942. Mitchell Baker, Chair, Mozilla
  1943. Steve Baker, Author The Numerati and Final Jeopardy
  1944. Jeff Jarvis, Buzzmachine
  1945. Andrew Keen, Author, Digital Vertigo
  1946. Alain Lévy, CEO, Weborama
  1947. Christian Morales, VP & General Manager EMEA,
  1948. Dave Morgan, Founder & CEO, Simulmedia
  1949. Christopher Wolf, Partner, Hogan Lovells
  1950. Moderated by
  1951. Curt Hecht, Vivaki Nerve Center
  1952.  
  1953. ➤ 66
  1954.  
  1955. e-G8_cloture_FINAL - 2.indd 66
  1956.  
  1957. 03/06/11 15:15
  1958.  
  1959. synopsis The Internet is entering a stage experts term “Web 3.0,” in
  1960. which search engines use keywords to aggregate data while additional
  1961. online tools collect user information. Protecting user privacy and
  1962. guarding sensitive data has become a growing concern. The Net risks
  1963. losing users unless these privacy concerns are addressed.
  1964.  
  1965. Consumers should be able to control their personal data and who has
  1966. access to it. That’s what privacy is. Today, sophisticated Net users are
  1967. aware that advertising companies, social networking sites, and
  1968. governments (among others) actively mine information about them
  1969. while they’re online. These users know how to navigate the virtual world
  1970. safely and protect their personal information. But “ordinary”, “average”
  1971. Internet users are unaware that various entities are culling, storing, and
  1972. frequently selling information about them while they use the Internet.
  1973. Industry leaders agree that the average Internet user must be educated
  1974. and empowered to help maintain privacy online. Consumers should be
  1975. able to decide how much, or little, information they reveal about
  1976. themselves while using the Internet; it should not be a blind process.
  1977. Further, technologists should be encouraged to develop online systems
  1978. and tools so that Internet users who are interested in protecting their
  1979. personal data can do so. One key recommendation is to give people the
  1980. ability to opt in or out of tracking and data gathering processes.
  1981. Global leaders should also work to distinguish between online data mining
  1982. that’s acceptable versus that which is an actual security threat. If Internet
  1983. users begin to feel they are being “stalked” by online parties, their trust
  1984. in the virtual world will be compromised and Internet usage will drop.
  1985. The government’s role should be to regulate and enforce rules about
  1986. how to protect privacy and maintain data security. However, policymakers should be mindful of the possible unintended consequences
  1987. that privacy laws might have on freedom of speech. Technologists
  1988. likewise warn that regulators should be cautious not to over-regulate or
  1989. demonize exciting emerging technologies.
  1990. Giving people control of their data could be a long-term solution to
  1991. protecting user privacy. Many Internet don’t want to reveal information
  1992. about their private lives when they go online. As the Web 3.0 world moves
  1993. in, global leaders and industry experts need more dialogue about
  1994. possible technological solutions to this problem.
  1995.  
  1996. e-G8_cloture_FINAL - 2.indd 67
  1997.  
  1998. 03/06/11 15:15
  1999.  
  2000. The co-Chairs during the closing plenary that laid out the
  2001. Forum’s message to the G8 Heads of State: left to right, Paul
  2002. Hermelin, CEO of Cap-gemini; Stéphane Richard, Executive Officer of France Telecom-Orange; BenVerwaayen,
  2003. CEO of Alcatel-Lucent; Jean-Philippe Courtois, President
  2004. of Microsoft International; Jean-Bernard Lévy, the Executive Director of Vivendi; Maurice Lévy, Chairman and CEO
  2005. of Publicis Groupe; Joe Schoendorf, Partner at Accel Partners; Eric Schmidt, Executive Chairman of Google; Xavier
  2006. Niel, founder and Chairman of Iliad; Hiroshi Mikitani,
  2007. Chairman and CEO of Rakuten; and Sun Yafang, Chairwoman of Huawei.
  2008.  
  2009. e-G8_cloture_FINAL - 2.indd 68
  2010.  
  2011. 03/06/11 15:15
  2012.  
  2013. e-G8_cloture_FINAL - 2.indd 69
  2014.  
  2015. 03/06/11 15:15
  2016.  
  2017. e-G8 FORUM May 24-25, 2011
  2018.  
  2019. Concluding Press Release
  2020. After two days of intense discussion in Paris, a delegation from the e-G8 Forum traveled
  2021. to Deauville (France) for a dialogue with leaders of the G8 nations.
  2022. For the first time in the history of international summit meetings, the Internet and related
  2023. issues were placed on the agenda of a meeting of Heads of State and government by
  2024. France, the presiding country of the G8-G20. Present in Deauville were Angela Merkel
  2025. (Germany); Stephen Harper (Canada); Barack Obama (United States); Nicolas Sarkozy
  2026. (France); Silvio Berlusconi (Italy); Naoto Kan (Japan); David Cameron (United Kingdom);
  2027. and Dmitry Medvedev (Russia).
  2028. President Sarkozy had placed the Internet on the agenda of the G8 summit meeting, and
  2029. had requested that stake-holders of the Internet take up the responsibility of organizing a
  2030. Forum, in order that all the relevant stake-holders could debate the salient topics before
  2031. the meeting with the G8 Heads of State and government.
  2032. On Thursday May 26, this ambitious process culminated in a one-hour meeting in Deauville
  2033. between the G8 leaders and a delegation from the e-G8 Forum. The delegation was led
  2034. by Maurice Lévy, the Chairman and CEO of Publicis Groupe and Chairman of the e-G8,
  2035. and comprised Hiroshi Mikitani, CEO of Rakuten; Yuri Milner, CEO of Digital Sky
  2036. Technologies; Stéphane Richard, CEO of France Telecom-Orange; Eric Schmidt, Executive
  2037. Chairman of Google; and Mark Zuckerberg, founder and CEO of Facebook.
  2038. The two-day e-G8 gathering was an opportunity for debate and collective reflection on a
  2039. wide number of key themes involving the Internet. They included support for innovation;
  2040. future development of the Internet; freedom of networks; protection of personal data from
  2041. cybercrime; protection of minors; and, more broadly, the practical impact of virtual and
  2042. digital applications on fields as varied as economic growth, job creation, democracy,
  2043. government administration, education, news and health.
  2044. The Forum’s six plenary sessions and nine workshops featured free and wide-ranging debate.
  2045. Even when opinions were strongly held, the discussions that ensued were sincere and
  2046. respectful. The e-G8 Forum adopted the Internet spirit of cooperation and consultation;
  2047. thus all pre-conditions were united so that reason, as well as imagination, could be placed
  2048. at the service of the digital future.
  2049. “I want to thank all those who worked to make this e-G8 Forum a success, including of course
  2050. the major world leaders who shifted their schedules in order to attend, the sponsors who
  2051. graciously accepted to finance it, and all those who showed, by their presence and their
  2052. contribution to the debates, their interest in the future of the Internet,” said Maurice Lévy,
  2053. Chairman of the e-G8. “Those who feared that this first e-G8 had been organized exclusively
  2054. in order to regulate or restrict the Net have been disproven. Our debates have been open, rich
  2055. and constructive. Given this success, I think I can say that there will be a second e-G8.”
  2056. Maurice Lévy requested that the process of preparing the message to be delivered to
  2057.  
  2058. ➤ 70
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  2061.  
  2062. 03/06/11 15:15
  2063.  
  2064. Deauville by the Forum’s delegation should be completely open and transparent. The
  2065. closing plenary gathering thus reviewed the work of all the sessions that took place during
  2066. the Forum and defined a number of fundamental themes. The members of the delegation
  2067. used this as their basis when they drafted their message for Deauville.
  2068. From the outset of their discussion with the G8 leaders, members of the delegation
  2069. emphasized that the Internet is a powerful vector of individual fulfillment, free expression
  2070. and personal development. Moreover, as a collective tool, the Internet is a positive force
  2071. for change, capable of renewing the way in which groups and organizations cooperate and
  2072. act; this was spectacularly confirmed by the movements of the Arab Spring.
  2073. The Internet is also a strong economic locomotive, creating wealth and jobs. It has led to a profound
  2074. reconfiguration of the way in which modern economies function. This digital transformation of
  2075. every economic sector has been accompanied by a net creation of jobs: for every job that is
  2076. eliminated, 2.6 new ones are created. Thus the delegation emphasized that in every sector of
  2077. society, energies that are ready to invest in digital technology need to be freed up to do so.
  2078. In order to maximize these benefits, the delegation invited the G8 leaders to ensure proactive
  2079. policies regarding investment, or regarding the support and encouragement of investment,
  2080. in order to guarantee all citizens access to an Internet that is free, rapid and safe.
  2081. The delegation spoke openly about the existence of unresolved debates among Forum
  2082. members regarding regulation. These were notably a feature of discussions on intellectual
  2083. property, software patents, protection of personal privacy, and cybercrime. The key notions
  2084. of the discussion that the first e-G8 Forum sought to engage and to structure were: protect,
  2085. without constraining; regulate, without adulterating the fundamental liberty on which the
  2086. Internet has been built.
  2087. The delegation also stressed that exponential growth in the flow of information, and the
  2088. increasing interconnection of networks, call for action by public authorities in order to
  2089. ensure the stability, security and development of the physical infrastructure without which
  2090. the Internet could not exist.
  2091. The G8 leaders made very positive comments regarding the e-G8 gathering itself and the
  2092. main results achieved to date. In their statements about the delegation’s messages, the
  2093. Heads of State and government recognized the Internet’s exceptional achievements in
  2094. terms of economic growth and social change, and its potential for positive impact on
  2095. democratic processes, government administration, and education.
  2096. The first e-G8 Forum was organized at extremely short notice, with a lead time of barely
  2097. eight weeks. Grasping the importance and the challenge of the meeting, 1500 stake-holders
  2098. of the digital ecosystem made the journey to Paris, where they began to work together and
  2099. to sketch out possible improvements to a future Forum, in order to put the e-G8 fully at
  2100. the service of the Internet and the digital economy.
  2101. The possibility of a second, future e-G8 Forum was discussed; this echoed calls that were
  2102. made in Paris during the Forum itself.
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  2120. Photographies
  2121. © Raphael Soret / © Subjectice.com
  2122. Graphic design
  2123. we-we.fr
  2124.  
  2125. Produced by PublicisLive
  2126. Edited by Ruth Marshall
  2127. Photos
  2128. © Raphael Soret / © Subjective.com / © Présidence de la République-C. Alix
  2129. Graphic design
  2130. we-we.fr
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