e-London

Colin Jenkinse-business Advisor

&Alex Bax

Senior Policy Officer

Objective of an e-business advisor

to ensure London’s competitiveness, business expansion, and inward investment is maintained and further developed through the impact of e-business

Perception of the most important Internet Centre

0% 10% 20% 30% 40% 50%

Don't Know

None

Stockholm

Amsterdam

Paris

Frankfurt

London

Q: Which city do you think will be the most important European centres for internet related business and services in the next five years?

Source: European Cities Monitor

The World Cities Internet Capacity

3,349

1,883

957

4,092

5,212

10,510

12,347

14,148

24,340

26,680

Frankfurt -Amsterdam

London -Amsterdam

Frankfurt -Paris

London -Paris

London - NY

Route CapacityMbits

1999 2000

10,516

13,204

9,687

10,874

17,969

52,332

61,070

62,198

68,301

86,589

Frankfurt

New York

Paris

Amsterdam

London

Internet CapacityMbits

1999 2000

Source: Telegeoghraphy 2000

Level 3

Energis

London’s Local Access

Inner London• Multitude of Fibre rings

Rest of London • DSL enabled across London • Cable modem access patchy • BWA Licences issued• Free Space Laser

London’s National and International Focus

TAT 12/13TAT 12/13

CELTICCELTIC

UK NL12UK NL12

UK NLUK NL 14 14

CANTAT3CANTAT3

RIOJARIOJAUKUKFRANCE 3FRANCE 3

UKUKFRANCE 5FRANCE 5

UKUKBL 6BL 6

UKUKGERMANY 6GERMANY 6

SOLASSOLAS

TAT 14TAT 14

FLAGFLAG

SiriusSirius

AC1AC1

GeminiGemini

Economies of scale through• focus for UK• focus for Europe

SEAMEWE 3SEAMEWE 3

London’s StrengthsPrime e-businesses

Summary ofLondon’s Current Standing

• Overwhelming perception as leading European e-business City

• More internet capacity than any other City worldwide

• More IDC space in service and available for service than other European Cities

• Focus of all UK internet activity

• Focus for UK and European connectivity

• Centre for many innovative industries

How to stay ahead

The Treat to London’s Position

Why is London is a leading e-business centre, on a par with New York and ahead of the rest of Europe?

– Supported by early competitive telecoms environment

– leading regulatory reforms

– high level of telecoms investment in central London

Future success is fragile. How does London maintain its competitive edge?

BUT

– European telecoms environment is becoming more competitive– EC is now leading on regulatory reforms and UK is slipping

behind the pace– Outside Central London advanced telecoms supply options are

limited and Broadband is not happening– Euro Cities such as Frankfurt, Amsterdam, and Paris are catching

up whilst new city environments (Berlin) threaten quantum leap

e-issues

Servicese-procuremente-retaile-governmente-financeKnowledge managementCRM, CSM, MRO …..Supply chain compressionTeleworking

ConnectivityTerminal deviceNarrowband access

• Friaco• Modems• ISDN

Broadband access• Fibre• DSL• Cable Modems• BWA• 3G• Satellite

StreetworksRoofworksPowerCollocation space

EducationICT skills (Practitioners)e-appreciation gap (Users)e-basic skills (Literacy)

EnablersStandards

• security Smart cardsaccounting practice

Stakeholders

Three Major Issues

1 Affordable Broadband access• high speed access from Outer London• Businesses and Home

2 Education • ICT industry Shortage• Appreciation Gap• Basic e-skills

3 e-government as a lead adopter• Government services• Strategies• Working Practices• Digital divide

Government’s Objective

“to achieve the goal of making the UK the most extensive and competitive broadband market in the G7 by 2005”

UK online: the broadband future

G7 Broadband Penetration per ‘000 Pop’n(Jan 2001)

54

34

1612 10

7 5

Canada USA Japan France Germany UK Italy

Source: Ovum

G7 Countries: Broadband Forecast per ‘000 Pop’n

0

20

40

60

80

100

120

140

160

180

2001 2002 2003 2004 2005 2006

Use

rs p

er '0

00 P

op'n

Canada

USA

Japan

France

Germany

UK

Italy

Source: Ovum

Broadband Penetration per ‘000 Population(Jan 2001)

3

5

5

6

7

10

12

13

14

14

14

15

16

16

17

20

20

20

23

34

38

52

54

62

Malaysia

Portugal

Italy

Spain

UK

Germany

France

Luxembourg

A ustralia

Taiwan

New Zealand

A ustria

Belgium

Japan

Finland

Netherlands

Norway

Sweden

Denmark

USA

Singapore

Hong Kong

Canada

Korea

Source: Ovum

Broadband access price comparison, dominant operator, April 2001

0

10

20

30

40

50

60

70

80

90

ADSL

Cable modem

Ethernet

Source, Analysys, Interactive Consumer Broadband: Sex, Sport & Shopping? June 2001

Broadband Access: Push or Pull ?

Broadband Access

Serviceinnovation

CriticalMass?

“North Sea Gas Conversion”

Maintain current position

Stronger Regulatoryintervention - BT

Wholesale accessto Cable Networks

Industry re-engineering:• Spin off BT Local Access• Stand alone BT owned• BT minority stake• Stakes by other companies• Merge with Cable TV access co

Local/Regional Authorityintervention:• Ducts• Dark Fibre• Free space laser• Building Regulations• Newham Option• Stockholm Option

Fiscal intervention:• Subsidy• Tax breaks• Loans• employer incentives

Broadband Options Spectrum(evolution or revolution)

Collaboration:• Between Companies• Companies and Local Authorities

Government Broadband Initiatives• Schools access + content• Libraries access + content• e-government service• SME initiatives

Potential Initiatives• earlier analogue TV turn off

Addressing the Major Issues: Education

Practitioner• Demand outstripping supply = worldwide shortage

Appreciation Gap• Companies not embracing “e”• Companies not embracing “e” properly• Companies where “e” is not endemic

Basic e-skills• First-time entrants to the workforce• Career-break re-entrants• Unemployed/newly redundent• “Greys”• European Computer Driving Licence?

Addressing the Major Issues: Education

Training

BasicSkills

Practitioner Appreciation

Basic skillsqualificationfor all

Lead Adopterplus

“Bugbuster”approach

Focusedapproach

MajorProgrammes

What Can the Mayor do?

Broadband Spatial Issues• Outside central areas broadband connectivity is not happening fast

enough– not affordable for Businesses or Home– which technologies are sustainable– when will it happen

• Impact of e-services on land use– transport systems - change in working patterns– space requirements for offices, IDCs– e-commerce, e-retail, e-collection centre, …..– virtual clustering, declustering– environmental

Spatial Development Strategy“Towards the London Plan”

• Include telecoms infrastructure in planning with every other utility

• New developments

– Duct nests

– building entry

– e-enabling new buildings

• Roofworks: compliance to industry best practice guidelines

• Ensure Power requirements are part of the integrated planning process

Spatial Development Strategy

ll

lll

l

l

ll l

l

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l

ll

l

l

l

l

l

Channel TunnelRail Link

Thameslink2000

Thames Gateway

CrossRail

CrossRail

East London Transit

To Stansted

Waterfront Transit

City

Lee Valley

Central Area

Cross River Transit

Hackney / South West

Wandle Valley

To Gatwick

Thameslink2000

Core OrbiRailCrossRail

Western Wedge

Thameslink2000

CrossRail

Uxbridge Road Transit

Heathrow

Croydon

Bromley

Kings Cross

PaddingtonWaterloo

Battersea / Vauxhall

Elephant & Castle

London BridgeRoyal Docks

GreenwichPenninsula

Isle of DogsBeckton

Dagenham RiversideErith and Belvedere

Barking Reach

Thamesmead

Stratford

Wembley

Park Royal Bishopsgate

Kingston

Ilford

Ealing

Sutton

Romford

Hounslow

Harrow

Wood GreenTottenham Hale

Woolwich

Upper Lee Valley

ll

lll

l

l

ll l

l

l l

l

ll

l

l

l

l

l

Channel TunnelRail Link

Thameslink2000

Thames Gateway

CrossRail

CrossRail

East London Transit

To Stansted

Waterfront Transit

City

Lee Valley

Central Area

Cross River Transit

Hackney / South West

Wandle Valley

To Gatwick

Thameslink2000

Core OrbiRailCrossRail

Western Wedge

Thameslink2000

CrossRail

Uxbridge Road Transit

Heathrow

Croydon

Bromley

Kings Cross

PaddingtonWaterloo

Battersea / Vauxhall

Elephant & Castle

London BridgeRoyal Docks

GreenwichPenninsula

Isle of DogsBeckton

Dagenham RiversideErith and Belvedere

Barking Reach

Thamesmead

Stratford

Wembley

Park Royal Bishopsgate

Kingston

Ilford

Ealing

Sutton

Romford

Hounslow

Harrow

Wood GreenTottenham Hale

Woolwich

Upper Lee Valley

Spatial Development Strategy

ll

lll

l

l

ll l

l

l l

l

ll

l

l

l

l

l

Channel TunnelRail Link

Thameslink2000

Thames Gateway

CrossRail

CrossRail

East London Transit

To Stansted

Waterfront Transit

City

Lee Valley

Central Area

Cross River Transit

Hackney / South West

Wandle Valley

To Gatwick

Thameslink2000

Core OrbiRailCrossRail

Western Wedge

Thameslink2000

CrossRail

Uxbridge Road Transit

Heathrow

Croydon

Bromley

Kings Cross

PaddingtonWaterloo

Battersea / Vauxhall

Elephant & Castle

London BridgeRoyal Docks

GreenwichPenninsula

Isle of DogsBeckton

Dagenham RiversideErith and Belvedere

Barking Reach

Thamesmead

Stratford

Wembley

Park Royal Bishopsgate

Kingston

Ilford

Ealing

Sutton

Romford

Hounslow

Harrow

Wood GreenTottenham Hale

Woolwich

Upper Lee Valley

Other Strategies

Economic Development• Skills

– ICT skills (Practitioners)– e-appreciation gap (Users)– e-basic skills (Literacy)

• Innovation clusters

Transport• Co-ordinating streetworks and encouraging joint digs• e-retail implications• Impact of changing working practices• Travel information

– Wider dissemination– Real time timetables

Summary

London currently enjoys a strong competitive position

But

• Industry alone will not maintain that competitive advantage

• A new approach to broadband access is required

• The approach needs to be underpinned by major training and education initiatives

SoHow can Regional and Local government play its part as a lead adopter

e-Government

Alex BaxSenior Policy Officer

Greater London Authority

• Current concerns in e-government– Electronic Service Delivery– e-democracy– the digital divide

• What is London doing?

London and e-government

What is e-government?

‘E-government’ is concerned with the impact of the ICT revolution on all aspects of the business of government

Electronic Service Delivery

100 percent electronically available by 2005

25 percent by 2002

457 national government services

150+ local government services

Central government services

Barriers to implementing e-government

The digital divide

• Internet penetration to home at 40 percent• Mobile penetration is 57 percent (per capita)• National data shows internet correlates to social

class• Mobile, Satellite t.v. and other technologies

reverse this trend• Poor public services

The digital divide - 2

• Individuals, groups or businesses• Socio-demographic factors• Education• Accessibility

Internet to the home

The London Information Economy

CITY

HAM & FULHAM

KEN & CHELSEAGB average = 19%

WESTMINSTER

ISLINGTON

HACKNEYCAMDEN

TOWER HAMS

NEWHAM

BRENT

BARKING & DAG

EALING

GREENWICHSOUTHWARK

HOUNSLOW

HILLINGDON

BEXLEY

HARINGEY REDBRIDGE

WALTHAMFOREST

HAVERING

RICHMOND

KINGSTON

WANDSWORTH

MERTON

LAMBETHLEWISHAM

BROMLEY

SUTTON CROYDON

HARROW

BARNET

ENFIELD

Information Society employment (%)

above 2519 to 2515 to 19below 15

Source: Local Futures Group

Digital TV household penetration

e-Democracy

•Process

•Not just voting - chads versus bits

•Content

•Democracy happens between elections!

1. Access to information held by the government.

2. Online interaction with the government on service programs available to the public.

3. Online discussion of the issues with other citizens.

4. Online discussion of the issues with subject-matter experts.

5. Online discussion of the issues with government officials.

6. Contribution of ideas relative to the issues undertaken by the government.

7. Voting on the issues.

Seven levels of e-democracy

Source: http://www1.govtech.net/magazine/story.phtml?id=2530000000002435&issue=

London Connects

• Developing a strategy

• Building coordinating capacity

• Stimulating London-wide initiatives

• Coordinating Implementing Electronic Government statements

Central Government

Business

Voluntary sector

Local government

Education

Health

LONDONERS

Greater London Authority

TfLLDA

PoliceFire

Central Government

Business

Voluntary sector

Local government

Education

Health

LONDONERS

Greater London Authority

TfLLDA

PoliceFire

Central Government

Business

Voluntary sector

Local government

Education

Health

LONDONERS

LondonConnectsGreater London Authority

TfLLDA

PoliceFire

Conclusions

• Issues are complex• London is complex• Resources are limited

but• Identifying key issues for London• Focus on the Mayor’s strategies• London Connects - to deliver

London has a wide range of Broadband Access Technologies

Fibre

Free Space Laser

Pt-Pt microwave

BWA

3G Mobile

DSL

Cable Modem

SatelliteiDTV