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Broadband becoming a basic human need, says ST-Ericsson - IEF2009

Thursday 01 October 2009 12:56

See also: International Electronics Forum 2009 - News Roundup

Broadband is an economic stimulant, according to Alain Dutheil, CEO of ST-Ericsson, quoting a World Bank finding that every ten per cent increase in broadband penetration delivers a 1.2% increase of a country's GDP.

Dutheil was speaking on the opening day of the International Electronics Forum 2009 (IEF2009) organized by Future Horizons in Geneva today.

"Broadband is almost becoming a basic human need", said Dutheil. In addition to economic benefits broadband delivers, he said: "More responsive governments which we need, especially in Europe."

The broadband penetration across the regions illustrates this. In North America penetration is 73.9%, in Oceania/Australia it's 60%, in Europe 50%, in Latin America and the Caribbean 30%, in the Middle East 23.7%, in Asia 18.5%, in Africa 6.7%.

The scope for considerable increases in both economic activity and the responsiveness of governments is shown by the average broadband penetration across all the world's regions - 24.7%.

The method of accessing broadband is changing quickly with people moving from fixed links to mobile. This is a good thing, said Dutheil, "Because mobile infrastructure is easier to maintain and upgrade."

Next year mobile broadband subscribers would overtake fixed line broadband suppliers, he said, and by 2014 two thirds of broadband subscribers would be mobile users.

Dutheil pointed out that the handset market declined least of all the chip markets in the 2006 to 2009 timeframe, and said that was: "Because handset terminals have been moving closer to responding to basic human needs."

Dutheil, who is handing over the CEO-ship of ST-Ericsson (formed from integrating the mobile operations of NXP, ST and Ericsson mobile platforms) to Gilles Delfassy, formerly of Texas Instruments, told Electronics Weekly: "The integration has been completed. I have been spending 50% of my time on ST-Ericsson and 50% of my time at ST (where he is COO)."

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