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</o:shapelayout></xml><![endif]--></head><body bgcolor=white lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>FYI…<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>In early 2013, ICANN commissioned the <i>Boston Consulting Group (BCG)</i> to study the impact of e-friction on the hindering of economies; mainly the digital economy. While the report was published in early 2014 (see <a href="https://www.icann.org/news/announcement-2-2014-02-24-en?routing_type=path">https://www.icann.org/news/announcement-2-2014-02-24-en?routing_type=path</a>), the below is an update to the same study.<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>It is a very interesting read, and I would encourage you to share this with the decision makers and policy makers in your respective countries.<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Happy reading!<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>Fahd Batayneh<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'>ICANN<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>Sent:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> Friday, April 17, 2015 3:14 AM<br><b>Subject:</b> ICANN News Alert -- Update to BCG Study - Country Clusters Analysis Now Available<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><div style='border:solid #CCCCCC 1.0pt;padding:8.0pt 8.0pt 8.0pt 8.0pt'><div><p class=MsoNormal><a href="http://www.icann.org/"><span style='font-family:"Arial","sans-serif";text-decoration:none'><img border=0 width=94 height=94 id="_x0000_i1027" src="cid:image001.jpg@01D0790C.3B52B970" alt=ICANN></span></a><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><h2 style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>News Alert<o:p></o:p></span></h2><p style='mso-margin-top-alt:0in;margin-right:0in;margin-bottom:7.5pt;margin-left:0in;text-align:justify'><span style='font-family:"Arial","sans-serif"'><a href="https://www.icann.org/news/announcement-2-2015-04-16-en">https://www.icann.org/news/announcement-2-2015-04-16-en</a><o:p></o:p></span></p><div style='margin-top:15.0pt'><div class=MsoNormal align=center style='text-align:center'><span style='font-family:"Arial","sans-serif"'><hr size=2 width="100%" align=center></span></div></div><h2 style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify'><span style='font-family:"Arial","sans-serif"'>Update to BCG Study - Country Clusters Analysis Now Available<o:p></o:p></span></h2><p style='mso-margin-top-alt:11.25pt;margin-right:0in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'><span style='font-family:"Arial","sans-serif"'>16 April 2015<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'><a href="https://www.icann.org/en/system/files/files/bcg-wheels-grease-friction-16apr15-en.pdf">Click here to download the update</a> [PDF, 241 KB]<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'><a href="https://www.bcgperspectives.com/content/articles/telecommunications-public-sector-which-wheels-to-grease/">Click here to view the update on the BCG Perspectives website</a><o:p></o:p></span></p><p style='text-align:justify'><em><span style='font-family:"Arial","sans-serif"'>Which Wheels to Grease? Reducing Friction in the Internet Economy</span></em><span style='font-family:"Arial","sans-serif"'> is an update to the 2014 report <em><span style='font-family:"Arial","sans-serif"'>Greasing the Wheels of the Internet Economy</span></em> by the Boston Consulting Group commissioned by ICANN. This update expands on the analysis of "e-friction" by looking at its major causes and by defining clusters of countries that face similar challenges and can work together towards similar solutions.<o:p></o:p></span></p><div class=MsoNormal align=center style='text-align:center'><span style='font-family:"Arial","sans-serif"'><hr size=2 width="100%" align=center></span></div><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'><a href="http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-183326">Click here to read the full release on BCG's website</a><o:p></o:p></span></p><h3 style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>Reducing e-Friction Delivers Economic Benefits and Speeds Growth<o:p></o:p></span></h3><p style='text-align:justify'><em><span style='font-family:"Arial","sans-serif"'>Update to 2014 BCG Study Reveals Five Causes of e-Friction and Suggests Solutions</span></em><span style='font-family:"Arial","sans-serif"'><o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>Addressing the five main causes of "e-friction" can help countries realize greater economic and social benefits from the digital economy and spur growth, according to an analysis by <a href="http://www.bcg.com">The Boston Consulting Group (BCG)</a>.<o:p></o:p></span></p><p style='text-align:justify'><em><span style='font-family:"Arial","sans-serif"'>Which Wheels to Grease? Reducing e-Friction in the Internet Economy</span></em><span style='font-family:"Arial","sans-serif"'> updates BCG's 2014 study of e-friction in 65 economies that encompass more than 80 percent of the world's population and more than 90 percent of the world's economic activity. That report introduced the BCG e-Friction Index, which identified 55 individual e-friction indicators in four categories: infrastructure, industry, individuals, and information.<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>Low e-friction correlates closely with high Internet penetration and strong digital economies. Top-ranking e-friction countries have Internet penetration rates of more than 80 percent, while many low-ranking nations have penetration rates of 50 percent or less.<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>The five major causes of e-friction identified in the 2015 update are wealth, population density, the urban-rural population mix, literacy, and English-language skills. Wealth is an important factor, but it does not explain e-friction on its own. The common causes of friction suggest high-potential solutions.<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>"Digital trade enriches nations," said Paul Zwillenberg, a BCG partner and coauthor of both the 2014 report and the update. "But not all nations engage equally in the exchange of goods, services, ideas, and information, as e-friction gets in the way. Some of the causes of e-friction can be influenced by policy initiatives; others require more creative approaches."<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>Analyzing economies by their e-friction scores and their per capita GDP results in eight clusters, split into three groups by income levels. Those looking to reduce e-friction should start by prioritizing the relative significance of each cause, then developing a strategy for each. Those in the same cluster face common challenges and are likely in some, but by no means all, instances to pursue similar solutions.<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>Developing rural nations face multiple issues of basic infrastructure. A number of emerging markets are experimenting with several funding and operating models. The optimal technology depends on local conditions, with a combination of mobile and fixed wireless generally the most cost effective for rural areas and satellite typically the best bet for truly remote areas.<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>Middle-income nations may benefit substantially from efforts to demonstrate to their populations the value of the Internet and bring more people online. There are good models to follow in four key areas: furthering local content development, building digital literacy, simplifying access and use, and bringing down cost.<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>Even countries with relatively low e-friction face thorny digital issues, such privacy and data security, which clumsily handled or left unresolved can throw sand in the gears. Some have more sources of friction to address, such as those related to outdated regulation, excessive bureaucracy, and impediments to investment; they need to focus their interventions with care.<o:p></o:p></span></p><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>"The digital economy is expected to grow at an annual rate of 10 percent globally over the next several years and at 15 to 25 percent in developing markets," said Fadi Chehade, president and CEO of the Internet Corporation for Assigned Names and Numbers (ICANN), which commissioned the 2014 report and the update. "National competitiveness will increasingly depend on how well countries address e-friction. The digital economy is one place almost any nation can look to for increasing business revenues and jobs."<o:p></o:p></span></p><h3 style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>About The Boston Consulting Group<o:p></o:p></span></h3><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit <a href="http://www.bcg.com/">bcg.com</a>.<o:p></o:p></span></p><h3 style='text-align:justify'><span style='font-family:"Arial","sans-serif"'>About bcgperspectives.com<o:p></o:p></span></h3><p style='text-align:justify'><span style='font-family:"Arial","sans-serif"'><a href="http://www.bcgperspectives.com/">Bcgperspectives.com</a> features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by <a href="https://www.bcgperspectives.com/">PC</a>, mobile, <a href="http://itunes.apple.com/us/app/bcg.perspectives/id436835085?mt=8">iPad</a>, <a href="https://www.facebook.com/TheBostonConsultingGroup">Facebook</a>, <a href="http://twitter.com/#!/BCGPerspectives">Twitter</a> and <a href="https://www.linkedin.com/uas/login?session_redirect=http%3A%2F%2Fwww%2Elinkedin%2Ecom%2FpostLogin%3Fsession_rikey%3D6ND_t14tLp6gzPHi-In55tq5WAlxk2DRGiPIfgVjzfixjCYCdn4c-uW745geru0z1K6tXdh89AdAxECR17HlId-B9yfmDX1X0cc%26l%3Dhttp%253A%252F%252Fwww%252Elinkedin%252Ecom%252Fgroups%253Fgid%253D4096174%2526about%253D%26id%3D0%26b%3D2dc90cf9-f88e-493a-85dc-27661d2e5210%26h%3DE-Gi%26m%3DGET">LinkedIn</a>.<o:p></o:p></span></p></div></div></div></body></html>