 Godwell. Good morning everybody. It's a great pleasure for me to be here. My name's Martin Cave. I'm a Professor at Warwick Business School and I've been taking an interest in the regulation of the sector for a number of years. This is my first time in Qatar and I'm very glad to see the sun for the first time for about four months. I'm looking forward to the way in which this conference will develop. Mae'r penlydd yna wedi gweld o bwrdd eisiau y trafn o'i ddweudio allan hwn yma, ond wedi yna'n gweld ar y ddesgrifedd yma, ymlaen o'i ddweudio'r cymdeithas. Mae'n ddweudio'r cymdeithas yma arall o'i ddweudio. Mae'n ddweudio ar y gyrslo'r technolig a'r hwn yn ymdweudio'r technolig yma ac mae'n ddweudio'r technoligau gyrslo'r technolig yma yma ar 21 yma. We've seen how it can influence both production and consumption. There's a lot of focus on meetings like this about consumption, but production is very important, particularly for small and medium-sized enterprises, giving them access to technologies and capabilities which otherwise would be confined to a small number of leading states. In consumption, as we've heard from the previous speaker, we're talking not only about what I might describe as private consumption, entertainment, but also fundamentally about the consumption of public goods such as health, e-government, things of that kind, replacement of paper methods by electronic methods. All these things are hugely important. We've already seen well-banked studies which demonstrate that an increase in broadband penetration can have a major effect upon economic growth. Therefore, by implication, a country which fails to get on that particular train is going to suffer by comparison with others. I'm not surprised, but delighted to see that ICT Qatar has come up with a comprehensive programme for ensuring that this country benefits from those advantages. Now, what do you need for the thing to work? Well, first of all, clearly, you need access to networks, and we've heard about the degree to which that is likely to be provided, particularly in a competitive environment, but also that there's a need for government intervention to ensure that remote areas also get access in order to provide universal service and ensure that everybody benefits. But another key point, which we'll revert to, I'm sure, throughout the day, is the importance of what I might describe as the collateral investments. These would be PCs for households which find difficulty in affording PCs, other devices for people who don't particularly want PCs, but nonetheless have to be brought into the broadband network, particularly for the delivery of public services. I'm thinking here perhaps of older people, and also just general increases in educational capability in human capital throughout the region. So it's a very big and important agenda, and I think ICT Qatar is well placed to pursue it because it's able to adopt a holistic approach, not only regulating networks, but also ensuring that these other investments come into play. Now, the panel which we have this morning is a very interesting one. I'll very briefly introduce all the speakers, if I may, and then ask them to deliver their presentations in sequence. We're reserving 20 minutes for discussion afterwards, and I'm hoping that the audience will participate in this, and I may turn my attention to particular people and ask them for their views. So watch out particularly those sitting in the front row, and don't forget too that you will have the protection of the famous Chatham House Rules, which means that whatever you say as a member of the audience, it can't be quoted against you in any future circumstances. So the three presentations which we have, first we begin with Harmood Binhamannad Al-Qusair, who's vice president of regulatory affairs and regulatory public affairs at Saudi Telecom, and he will give a perspective from his country and from the Middle East. Then we have a perspective from Asia by Sonda Chuk, who's the head of the regulatory division of OFTA, the telecoms regulator in Hong Kong. Now anybody who has the slightest acquaintance with the Hong Kong market will probably be as staggered as I have by the speed and quality and cheapness of the services prevailing there. It's like nowhere else on earth, in my experience. So that is a success story, which we'll want to learn from. Then finally, Dr Geoffrey Cole of the Annenberg Centre of the University of Southern California, a place which I've had the benefit of visiting, and I can assure you it's a very pleasant environment, will give a talk about broadband and the consumer, what do we know. Now I've asked the speakers to confine themselves to 15 minutes, and I will sort of signal to them when we're approaching the end of that period in order to ensure that we have a scope for broad discussion. So without further ado, let me invite Harmood Binhamad Al-Qusair to make the first presentation from Saudi Telecom. Thank you. Bismillahir rahmanir raheem. As-salam aleykum wa rahmatullahi wa barakatuh. I will be challenged because some of my thoughts and ideas already, Dr Hussar, already talk about them. Maybe I will start by saying that Amina region is in the recent years noticing decline in the growth of the mobile revenue and also declining in the revenue itself, in the growth of the fixed revenue. And this is obvious because we are reaching in the mobile about the saturation. We have very high penetration. We reach very high penetration. And also in the fixed already is competed by the mobile. People are with the competition and the involvement of the mobile. People are leaving the voice application. This is now mainly voice application. But the good news is that broadband expected to experience significant growth similar to what happened in the mobile. In the mobile, in the last decade, we about four times the growth, we noticed four times growth. And I think in the second wave of growth and revenue in the region and internationally is in the broadband. I will just take your attention to something. I mean, if 10 years ago, if somebody came to the household and told him that you will be four times or five times your bill, he will not believe that. He will not expect it. I mean, people were not thinking about that. But today, because of the mobile, everybody using the mobile in the home more than the fixed, we are already being about four, five times the revenue. And this is develop the sector and improve the sector. And why is that? We are because we need mobile. We need the application. And I think this is the same situation will happen in the broadband. The broadband will be vital for the people. The application will be vital. So I think there is another wave that will take this sector high, which is the broadband and the application for broadband. Especially in the Middle East, we are in this area. We are privileged. I mean, we already know there is forecast of about 20% revenue increase. But I think this is also without the new planning of the fiber networks. Why broadband is vital? I think it was noticed that 10% penetration is correlated with 1.5 growth in productivity. And this is vital for the economy and vital for the country. I mean, if you increase 1.5 growth in the productivity, this is really potential for the whole region. Same wise with competitiveness. It was shown that, I mean, there is strong link between the national competitiveness and broadband penetration. And you can see that, I mean, our region still have huge potential to grow. And this is really opportunity. If I will go just to give idea about STC, what we done as incumbent operator. And we need to invest in the broadband. Our strategy was in two phases. I mean, we took two things. I mean, we are trying to increase penetration of the broadband and also optimize services and something. But our next phase is maximizing customer lifetime value. We need to give customer more value, more application, more entertainment. And this will really fulfill his potential. Our way, our path for that, we started by pure connectivity. We were offering just pure connectivity. And then after that, we add application. We became application provider and internet provider. And then the end that we like to be is the broadband multimedia service provider. Where we can merge, I mean, gaming, advertising, IBTV, networking and content. Our home sector has a strategy of five pillars. First of all, we wanted to increase the speed that we are offering to the customers. I mean, you know that we started initially with low speed. And then gradually we are trying to give more speed to the customers sometime by encouraging them, by promotions, by advertising. And sometime we give them the situation that they must take the highest speed. And they need it anyway. So this is the first one. And then penetration, increased penetration. By having different offers, by trying to reach sector that we couldn't reach before. And this was essential for us and we will continue. Also the third one is to develop portal for the customers. And we have portal called Maacum. And it is now successful portal. Where people, I mean like all my children use this portal all the time. And they go to that portal, they found content which is very controlled content and very news and gaming, sport, everything. And we think this is essential. You need to develop the right content for the people to evolve the application. Finally, we need to adopt the IBTV. We notice very huge growth. It's exponential growth in the last few years only. And in the fixed, in 2008 we closed by about 1 million. Now we are reaching 1.4 million. And Maacum will reach about 50,000 user. Saudi Arabia in total because of the growth of broadband is in 2008. By end of 2008 it was the fourth growth country. It was ranked as the fourth internationally in the growth of broadband. Saying that, this is not enough. I think we are looking for the future. And the future have more opportunities for us. Higher speed services is required much more than what we are offering today. I mean we should reach 1 giga, 100 mega and 1 gigabit. Because there are application and promise of application that require that high speed network. And the whole country is depending on that. I mean telelearning, telemedicine or e-commerce and e-applications. And in this case, I mean there should be investment in the future of these networks. And that of course will serve LTEs and will connect fiber to everybody. What's the problem of broadband? Why in the past in the country that Europe internationally faced that difficulty? It was because of two things. Regulation and financial situation. And Europe, the regulation was restricting investment by the operators in the right time. And that was because cost-based regulation, high-royality and retail regulation and many others. This maybe Dr Hossa already mentioned this. And because of that people, operators in Europe were sensitive about investing that because they don't know that they will get their investment back. And also now the situation of the financial crisis, but more pressure in this investment. If we take just a glance about how much that will cost the operators as example, it will cost Dutch telecom about if they take 10% yearly cabx, it will take them 25 years to find this project. So it is a cost, a tremendous cost to the fixed operator. Specially now the revenue is not coming to the fixed operators, it's coming to the mobile operator that they are not interesting in this. Although they need it. So I mean the investment is required for the whole country. No operator will do without it. I mean the fixed operator need it. The mobile operator need it for their future services. LTE will not work without fiber connectivity. But I mean the situation is it's a lot of good luck. Internationally, leaders are all leaders I mean now, saying that the broadband is the solution for the country and the evolution of the business and it is essential. This is why with this realization many countries start to fund expansion in the network, in the fiber network and be vital. There are a variety of models, but I mean in total the message is that the countries and the government are involved to initiate if you like and initiate this sector. And with the promise that when this you build the network, the whole growth, the whole imagination will happen. And some country in fact, I visit some of them went further to that. They said we will not just support building the network, but we will support stimulating the demand. And that is essential for them and I think it is essential. This is come to my second slide. I mean it's important that the government in the MENA region is implementing cross sector IT plans and also stimulate the demand and relax the regulation. Stimulate demand is important. I mean Singapore, they have quite a huge group of people just to stimulate the demand. They are not just supporting building the network, but they have a group where they are targeting specific application. Because if you just build the network without application, without stimulation of the demand, nobody will win. It will not be a good business case. And finally also you need to have the right regulation for that business case to succeed. And you need the group and the sector to be more cooperative sector. More working together positively to evolve the sector. This is my end of the session. Thank you very much. Thank you. That was very interesting and raised a lot of pertinent questions about whether in order to encourage the construction of new fibre-based networks we need to revisit the access regime, the regulation of access by competitors to assets built by the incumbent. Well, we are now going to hear from Hong Kong, as I've indicated, from Senator Chuuk, from OFTA, the Hong Kong regulator. Thank you. Thank you, Chairman. Asia is leading the world in terms of broadband, deployment and take-up. According to a survey done by OECD, the more developed economies, in terms of household penetration of broadband, Korea is number one among the more developed economies. And if we use the same set of data, though Hong Kong is not a member of OECD, we can conclude that Hong Kong will rank number three in terms of broadband penetration 4 to 8. For deployment of the more high-speed, next-generation optical fibre-based infrastructure, the situation is even more impressive for the Asian economies. So according to some of the latest survey done by the FTTH council, South Korea, Hong Kong, Japan, Taiwan, and all these Asian economies, they score the top position in FTTH and FTDP deployment in the world. So what's the reason behind? We believe that consumer demand is, of course, a very important drive for broadband development. And I'm not going to go into details because I think Dr Koh and other more distinguished speakers in later part of this forum will be more qualified than me to delve into the details. But we should not forget that behind these impressive broadband developments in Asia, they are driven by a more proactive government role for these broadband developments. So among those economies that I have mentioned, except for Hong Kong, these economies have some kind of a national broadband development programme. In particular, to drive the deployment of the high-speed, next-generation broadband networks. So I take, for example, the Japan, they have a U-Japan policy package. In Korea, they have a plan for deploying a U broadband convergence network targeting to provide broadband up to 1 gigabit per second to the 90% of population to 1.0 or to 1.2. In Singapore, they have the next-generation national broadband network, which is primarily funded or subsidised by the government. And it will also target to roll out to 95% of the population for a speed of 100 megabit per second or even to 1 gigabit per second in a few years' time frame. And last year, Australia also announced its plan to create a state-owned company to build a national broadband network with government funding of nearly a billion of dollars within eight years. So it seems that all governments are recognising the importance of broadband deployment in driving their economies, and I think that the benefit of broadband is well known to all. However, in Hong Kong, we have a different approach. Consistent with our market-driven policy, the government has never been involved in investing or in subsidising any telecom infrastructure. So telecom networks wholly rely on private sector investment, and we believe that the market is more suitable to decide on the form and pace of development for broadband infrastructure, in fact, for all kinds of telecom infrastructure. The proper role for the government is to play a facilitating role. The regulator should create a conducive regulatory environment so that there would be minimum barriers to investment on telecom infrastructure, and the government should play a role to facilitate the role of broadband networks by the private sector. So I give a few statistics to demonstrate that this approach really works in Hong Kong. Hong Kong is a small place with an area of 1,100 square kilometres, but it is densely populated with 7 million people. We have started the liberalisation of the telecommunications sector in 1995, and after 15 years of liberalisation, we now have 11 fixed network operators and five mobile network operators, and the competition in all aspects of telecommunications services is fierce. I would say that. At present, our broadband networks cover 97% of households, and they are achieved by a variety of broadband technologies such as XDSL, the hybrid fibre coaxial, and also the FTDBH, FTDB technologies, providing up to 1 gigabit per second. Last year, we have seen a new broadband operator promoting a broadband package for 100 megabit per second at the price of less than 100 Hong Kong dollars. That's a little bit less than 13 US dollars. So it seems that the price and the quality and the spread of the broadband access are driven by competition. In Hong Kong, we benefit not only at a surface level based competition, but also a high level of facility-based competition. According to our statistics, at present, 85% of households in Hong Kong have at least two self-built networks, and for 66% of them, there are in fact three networks. Our FTDBH coverage or penetration now exceeds 30% and is ranked second in the world according to the previous survey I've mentioned done by the FTDBH council. If we look at today, the broadband penetration is 79% household, but we must not forget, broadband only comes into the scene in the year 2000. So within 10 years, we have zero penetration for the household broadband surface to nearly 80%. We also have excellent external connectivity and also a ubiquitous Wi-Fi network covering nearly 9,000 hotspots in Hong Kong. The government also provides free internet access via Wi-Fi at some 370 government premises such as libraries, recreation centres and museums and so on. Apart from fixed broadband, mobile broadband is also taking off. In Hong Kong, we have four 3G operators, and now they have all rolled out 3.5G technology using HSDPA providing up to 21 Mbps speed. In last month, we have done a survey among the prices of mobile broadband in Hong Kong, and we found that we are able to have a package of $188 US under Hong Kong dollars. That means about $25 US for unlimited data usage up to 7.2 Mbps. In the future, we see that there will be more broadband providers in the mobile sector. Last year, we have put our spectrum for auction in the 2.5 and 2.6 GHz band, and three operators have successfully built the spectrum, and we expect them to have trials within this year and roll their surface based on the LTE technologies. So we will see that like the traditional telephony, the mobile broadband will take up as far as the mobile telephony in the future, and in fact, some people are projecting that the mobile broadband maybe at some point in time surpass the fixed broadband. We only have mobile broadband starting from 2002, and so within six to seven years' time, we have crime penetration rate of about 40%. If we look at the mobile data travel, it's even more impressive. We have an explosion of data usage in the last three years, and last year alone, we witnessed a drum of four times for the mobile data usage. So what's the customers are using broadband for? The government in Hong Kong has done some kind of annual survey, and according to the last survey done last year, we have some interesting observations. We surveyed the customer demand for broadband services, among different age groups in Hong Kong, and these are the top six most popular applications. And if you look at these figures, we can observe that for use of the internet to do information searching. It is a common application across all age groups, no matter teenagers, middle-aged or the senior people. But for the youngsters, the more appealing applications nowadays are the networking, online digital entertainment, downloading of software, and these applications are more bandwidth hungry. So our conclusion is that we will have a continued and sustained demand for bandwidth in the future, and we also see that the access to internet and the need for broadband is not only for the youngsters, but in fact the same usage pattern is rolling out to the more aged people, and in fact if you look at the survey, it seems that may be surprised to some of you even people over the age of 55 are using internet for various kinds of applications. So I have been in the forum yesterday and some people are talking about the communication literacy for the teenagers, but you see in ten years' time these teenagers will become adults, they will become middle-aged people, and so the trend is obvious. Broadband is for all. The broadband demand is clear. So it is up to us operators, regulators, government and the private sectors to work together to meet this sustained and clear demand. So what's the approach we are using in Hong Kong? Consisted with a pro-competition and pro-consumer policy adopted by the government, the regulator has been following a market-driven approach to the regulation of the telecommunication sector. All the telecom companies are privately owned with no government participation or subsidy and there is no foreign ownership restriction. The government or the regulator will minimise intervention in the market and let the market serve public interest to the maximum extent and the regulator will only step in if there is some deficiency in market competition. Under this market-led approach we presume that the market is wiser or better than the government in making commercial investment and there is no need for government intervention unless the market fails to achieve public policy objectives. We are a little bit concerned about the role of government in making direct investment in broadband networks because we are concerned that this will inadvertently affect the business case of private investors may to some extent dampen the investment sentiment and last but not least, it may create some expectation that the public will become reliant on government funding for future telecom infrastructure. On the other hand, we think that the role of the government should be a facilitator. We prefer to adopt a more light-handed regulated approach that encourage facility-based competition and rely on market force to drive telecommunications infrastructure development. We will create an enabling environment conducive to business investment. Our role is to safeguard the public interest the promotion and the enforcement of effective competition to establish a clear, transparent and predictable regular framework for the business to make investment in and to make a level-playing field for all the parties. Having said that, there is a role for the regulator to play and in Hong Kong we have adopted a package of measures in order to facilitate broadband deployment by the private sector. First, the regulator will coordinate with various government departments for major infrastructure projects like highways, tunnels and also the new train routes so that the infrastructure requirements of telecom operators like new optical cables, radio-based stations and so on will be incorporated in these major infrastructure projects so that the operators can make more economic deployment of these telecom facilities. Second, we will allow the operators to make use of government and public facilities like roads, highways, bridges, tunnels, lampposts and even payphone kills for installation of their telecom cables and radio-based stations and we will only charge them a nominal rental fee for using these public facilities to install their telecom facilities. Third, we are aware that the fixed broadband will have limited coverage as far as more remote and rural areas are concerned. So in this regard, we encourage the mobile operators to extend their mobile broadband coverage to these more remote and rural areas. We will assign frequencies for them to build microwave backhaul networks and we will also allow the mobile operators to use hilltop sites to construct radio-based stations in order to have a better coverage of their radio network in the rural areas. Fourth, we will release radio spectrum as soon as they are available through market-based mechanisms such as spectrum auction so that the spectrum will go to the parties which makes the best use of this radio spectrum. Last year, we have successfully auctioned spectrum in the 2.5-2.6 gigahertz band for broadband wireless access and we expect that the bidders will use this spectrum to roll out new mobile broadband networks based on LTE technologies and for this year, we will have two more spectrum auctions. One is in the UHF band for mobile TV service and another is in the 800 and 900 and also the 18,000 megahertz bands for the new, maybe the GSM or the LTE or whatever kind of technology based on the technology neutral approach. Fifth, we are now considering to launch a registration scheme for buildings with optical fibre-based access networks. We will launch a voluntary scheme such that networks or buildings covered by FTDH network will be qualified as a star grey and for buildings with FTDB coverage, it will be classified as a quality brand. These proposals are under consultation but we believe that this kind of scheme, though voluntary in nature, will encourage the operators to have more incentive in rolling out their optical fibre networks and for the consumers, they will have more transparent information as to whether their buildings are covered by optical fibre networks and for the building owners, we expect that it will create better value for their buildings. So this is a win-win strategy for all. Finally, we will streamline procedure in order to allow interested parties to land submarine cables in Hong Kong. The inter-opter will act as the single point of contact for interested parties to make an application to different government agencies like marine, land, time planning and environmental agencies to obtain the necessary statutory approval to make the entering works in constructing new cable landing stations as well as expansion of existing ones. Finally, my conclusion is that the government plays an important role in driving broadband infrastructure development. We have seen a mix of approach from different Asian economies including the government-led approach, such as the government will directly invest and build a network or the government provides some kind of funding through relevant subsidy loans and incentive schemes but we also see a market-led approach such as those that are adopted in Hong Kong in which the government plays a fascinating role by using a package of policy and regular measures to help broadband to roll out by the private sector. No particular approach I must emphasise is absolutely right or wrong. It really depends on the state of development for individual economies and it will depend on the number of factors including competitiveness in the telecommunications market, incentives for private investment in that economy as well as public policy objectives. So I will conclude my presentation here. I look forward to more stimulating exchanges with the audience. Thank you. Well, I think that's probably left us all slightly envious talk of getting a 100 megs connection for $13. I guess I have to say in the UK the norm would be to get an 8 megs connection for something like $40. So we've got a long way to go in the UK to catch up with Hong Kong as I'm sure the rest of the world has. Anyway, moving on, the final presentation before we move to the general discussion is from Professor Cole of the University of Southern California Annaberg Centre and he's to get to talk about broadband and the consumer. Thank you, Martin. I'm actually getting very comfortable up here. About three and a half years ago the Minister of Communications in Australia said that no one other than a downloading pirate or a pornographer would ever need more than one megabit per second of internet speed. Now, I mentioned that not to criticize her, but to show how foolish it is to predict what the demand's going to be if a 100 megs, which sounds like far more than we could ever want today, will actually be enough when all those 100 meg systems get built. But I believe, and I'm going to, for those of you who heard me yesterday, I'm going to repeat about 15 seconds of what I said yesterday and then go into a whole discussion of broadband, but I believe that broadband is not just a faster internet. That broadband changes everything. That there's a bigger gap between dial-up and broadband than there is between non-use and dial-up. And let me show you some of the ways we found in our work tracking people in 30 countries around the world how broadband does change everything. If you think back to the dial-up era, if you think back to your household in those days of the annoying whirls and clicks, we saw the average dial-up household went online two to three times a day for 20 to 30 minutes at a time. We went online in these buckets of minutes because we aggregated our tasks or we combined our tasks. We'd write down in the back of an envelope all the things we wanted to do before we logged on, and we viewed dialing up as a big deal. If we logged off forgetting to do something, we'd get really irritated at ourselves. So we would go online for 20 or 30 minutes. One of the first things we saw in dial-up was where people had a choice they would move the internet into the backstage of the home if their home had a backstage. If you lived in a studio apartment or a college dormitory, you didn't have a backstage. But where people had a choice, they would move the internet into a back bedroom, an office, someplace to be undisturbed for these 20 or 30 minutes. As we went online, it was generally a bucket of 20 or 30 minutes spent not talking to the other members of the household, although they could wander into the backstage of the home and talk to you. It was generally 20 or 30 minutes spent not watching television, although many people had a television in the backstage of the home and were multitasking from the very beginning. Broadband comes along. We saw a beginning in about 2000, but for most of us, 2003, 4, 5 and 6, and all of a sudden, people weren't online two or three times a day. We were online 30, 40, 50 times a day, not for 20 or 30 minutes at a time, but for two or three minutes at a time. No longer in buckets of minutes, but pockets of minutes. We could go on for shorter amounts because we didn't have to aggregate or combine our tasks. We could go to the web since it was always on, do two or three things, and if we remembered a third or fourth thing two minutes later, we just came back and did it again because it was there waiting for us. Well, since we were going online 30, 40, 50 times a day, we didn't want the internet in the backstage of the home. We wanted it in the center stage of the home. We wanted it where we are. One of the themes we're going to see of all future internet development. We want it where we happen to be. So we began to move the internet out of the backstage of the home, into the center stage of the home, into the family room, into the den and into the most humanly networked room in the house. Most of you probably know the kitchen. The kitchen, the first room in which most people stop when they first enter the home, the room in which most women leave their purses. You're going to leave a message for another member of the household. You almost always do so in the kitchen. In most cultures, the kitchen also contains the family art gallery, also known as the refrigerator. So we were moving the internet to where we are, to where we were living. We wanted it close to us. We wanted it integrated into our lives. And then as Wi-Fi came along, all of a sudden we could move it upstairs, into the backyard, into the garage, into the front yard anywhere. As a matter of fact, about four years ago, the Wall Street Journal called us, really interested in our work on the use of the internet in the kitchen. And they wanted to know what our work showed about the use of the internet in the bathroom. And I had to admit it never dawned on me to even ask whether people were using the internet in the bathroom. So they went off and did their own study. We gave them a little bit of technical advice, and they found that of those that had Wi-Fi, because you had to have Wi-Fi. I don't think there's a person on earth who's ever hardwired their bathroom, or at least I hope there isn't. But they found that of those that have Wi-Fi, over 50% use the internet at least some of the time in the bathroom. And when I first heard this, I was sort of puzzled because I realized, well, you can't use it in the shower or the tub, and then how classless to use it sitting. But then I realized every hotel room I ever stay in, including this beautiful hotel here, has a telephone in the bathroom, and the telephone is not next to the tub, and it's not next to the shower, and it's far less classy to be on the telephone than it is to be on the internet. And to clean this up, what the journal found was the majority of people using the internet in the bathroom used it sitting on the toilet with the lid closed. They used it as a refuge, as a place to have privacy, to get away from the chaos of the other people in the household. So all of a sudden, with broadband, it's not interfering with family conversation time. It's occurring during the natural rhythms of family conversations. And it's not interfering with television programming viewing anymore. All of a sudden, since we're going online in these pockets of minutes, we're going online before the program starts, after it ends, or even more worrisome for some broadcasters, it becomes another thing we do during the commercial. Broadband is turning out to be the best friend television has ever had. Broadband is moving television not just from that set on the schedule in our home but to our mobile phones to everywhere in our lives. As I mentioned very briefly yesterday, television is escaping from the home. Television is becoming our constant companion. It's going with us everywhere. Who's our constant companion now? If we're stuck at the airport waiting for a flight, most of us don't pull out a book or a newspaper. We pull out a mobile phone and start calling people. It's only after someone answers do we figure out whether we really have anything we want to say to them. My mother figured this out a long time ago. Whenever I call my mother, she'll say, What? You're stuck somewhere? You have nothing better to do than to call me? And she's right, but she also figured out, Hey, it means we get to talk more often. Newspapers, I talked a little bit about yesterday about how newspapers in every country in the world where internet penetrations over 30%, printed newspaper sales are beginning to decline and that every time a newspaper reader dies, they're not being replaced by a new reader. Broadband is going to be the savior, I think, of some newspapers because Broadband changes everything for newspapers as they go online. If you look here in Qatar, your English newspaper peninsula, there's no way it could ever compete with the English language edition of Al Jazeera. In the UK, there's no way the Guardian could ever compete with the BBC. It's a matter of timeliness. We wanted to see, since newspapers only come out once a day, if you're standing on your doorstep, the moment that newspaper arrives, it's already six hours out of date. If you read a story and you want an update, you have to wait 24 hours, we wanted to see how up to the moment does a newspaper on the web have to be. The answer is 30 to 60 seconds. If I'm driving home listening to a game, I pull into the garage, I walk into the house and into the kitchen and say hello to everybody and then go to the internet, I don't want the score 20 or 30 minutes ago. I don't want the score 20 or 30 minutes since I parked my car. Well, there's no way a newspaper in its old form as a printed newspaper could ever compete with television. Television's live, it has audio, it has video. Newspapers are once a day, they have no audio, they have no video, they only have still pictures. Most of them are black and white, but increasingly in color. On the web, that all disappears. As newspapers go on the web, they have audio, they have video, they become live. And just as my favorite cartoon from the 90s, some of you may know this cartoon, showed a dog sitting in front of a computer with the caption, on the internet, no one knows you're a dog. Well today, on the internet, no one knows you're a newspaper because newspaper is what you used to be. On the internet, newspapers will need a new term. We're not going to get one, but we need a new term. Newspapers can compete with television and have a future and become much more important than they've ever been. One of the things we saw worldwide, we saw it in the US and the UK and Japan and Australia, but we saw it in a few other places as well, during the global financial crisis, at the height of it, all percentage of households decided they would give up broadband as a way to save money. They would revert back to dial-up. Maybe they had nostalgia for those worlds and clicks, but clearly it was a way to save money. But what we found was the people who gave up broadband came back almost immediately. They didn't realize that whole swaths of the internet they had grown accustomed to, starting with things like YouTube and video were not even conceivable in a dial-up era. What we're learning is that broadband has become an indispensable part of internet life. That broadband really has become the backbone of our lives, and we notice profoundly when something changes. As I was a graduate student, one of the most interesting studies I can remember occurred in New York City in 1948 on the eve of the introduction of television during a newspaper strike, when, because of printing press and union issues, all newspapers stopped publishing. After about three weeks, Bernard Barrelson, a great sociologist, studied what was happening to the people of New York who weren't getting their newspapers. They were going through withdrawal. They were confused. Some of them made charming comments like breakfast just didn't make sense anymore without a newspaper, but I would argue today that of all the newspapers in the world ground to a halt, no one under the age of 30 would even notice. But if the internet stopped for 15 minutes, they would go through serious pangs of withdrawal. We really are in a world where broadband has completely integrated the internet into everything we do into every moment of our lives. If you look at the recent Kaiser Family study that came out last month, it shows the teenagers spend practically every waking moment in front of a screen, except when they're in school and even some of them do that in school as well. We've also seen with broadband some extraordinary and very inspiring, although there can be uninspiring stories as well, inspiring stories of collaboration. In 2003, when we were experiencing the SARS virus, and if you remember back to that point, we didn't know if that was the next new black plague, if that was going to kill tens of millions of people, thankfully it didn't. But before SARS, to diagnose a virus, a new virus traditionally took about nine months to a year, lots of competition between medical teams, well all of a sudden this was the first virus they tried to diagnose in the age of the internet. What we found was that European and Middle Eastern laboratories would work all day and as they went to sleep, they would share their work with American and Canadian laboratories, and as the Americans and Canadians went to sleep, they would then share that work with the Asian laboratories so that all of a sudden people could actually do three times as much work in the same day. The SARS virus was diagnosed as a crown virus in nine days, something that wasn't conceivable before the internet, that there could be that much immediate collaboration. Something not quite as dramatic in importance, but just showing as dramatic in its ability to mobilize when the latest Harry Potter book was released. In China, it was announced that it was going to take about six to eight months for the Chinese translation of the latest Harry Potter book. Instead of waiting fans of Harry Potter in China simply divided up by pages, the book translated it within three days. The entire Harry Potter book was available in China. I'm not sure it was licensed properly, but if they wanted it to be licensed properly, they should have gotten it out on time. So we're seeing extraordinary changes in our lives. You saw from Dr Hesse and you heard from others everything that's happening in distance learning, telemedicine, all of these exciting and dramatic changes. And I think we're going to see this become a key part of all of our lives. As I mentioned yesterday, and as many of you know, the government of Finland has already declared that the right to have high speed broadband is a fundamental civil right in Finnish society. I think that's a pretty bold statement in instance to take. I think the rest of the world is going to follow. Some parts of it more slowly than others. We know one of the questions I get asked frequently and many of you get asked as well is how are we going to know or when are we going to get to Web 3.0 or Web 4.0 or what's the next killer app or the next new thing. I don't know any of those things and seriously I'm not being disingenuous today, I'm not even sure what Web 2.0 means. But I do know we get to the next level, the level that all of your presentations so articulately talked about. We get to the next level when we never talk about broadband speed ever again. When broadband simply does what we need it to do and becomes like electricity. When you walk into your home and flip the switch, you're not flipping it, hoping against hope that there's enough power in there to run all of your appliances. It just does everything you want it to do when you don't notice it unless there's a power outage and then you realize everything in your life is based on electricity. But when we no longer think about broadband speed and importantly for uploading as well as downloading. Uploading got really relegated to a distant second place in the year 2000. No one ever conceiving of the kind of uploading that we started doing three, four, five years ago. The feeling was that uploading would only be things like email or things like that. So when we never talk about broadband speed ever again, when we can do whatever we want, when we want it, on our schedule, the way we want it, sometimes we'll pay and avoid advertising, sometimes we'll take advertising and avoid paying. And it's always on and it's always there. I think we've gotten to the next level. Thank you.