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Preface 5

the call of historyMaurice Lvy, Chairman and CEO, Publicis Groupe 8

changing the WorldNicolas Sarkozy, President o the French Republic 13

internet mattersPresentation by the McKinsey Global Institute 22

Plenariessession i

The Internet and Economic Growth 26

session ii

The Internet and Society 28

session iii

Future Net: Whats Next? 30

session iV

Intellectual Property in the Digital Age 32

session V

Fostering Innovation 34

session Vi

Digital Transormation 36

sPecial talksDigitals Next Frontier: EducationRupert Murdoch, Chairman and CEO o News Corporation 40

Groupon: A Case StudyAndrew Mason, Founder & CEO o Groupon, talks with Gilles Babinet,Entrepreneur and Chairman o Frances Conseil National du Numrique42

Index

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Broadband For AllNeelie Kroes, European Commissioner or the Digital Agenda, talks withBen Verwaayen, CEO o Alcatel-Lucent 44

A Universal Human NeedMark Zuckerberg, Founder and CEO o Facebook, talks with Maurice Lvy,Chairman and CEO o Publicis Groupe 46

WorkshoPsi-1

Building Blocks: The art o the start-up 50

i-2

King Content: Entertainment in the digital age 52

i-3

Electronic Liberty: New tools or reedom 54

ii-1

Be Here Now: Mobility changes everything 56

ii-2

Disinter-Media: Is Internet killing or relaunching the press? 58

ii-3

Open Government/Open data: For the people, by the Internet 60

iii-1

The Disrupters: Extreme innovation 62

iii-2

Sharing Value 64iii-3

The Data Dilemma 66

concluding Press release 70

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Preace

Fittingly, this e-book is a virtual incarnation o an event whose physicalexistence was eeting, but whose impact will endure. Opened on May24, 2011 in Paris by French President Nicolas Sarkozy, the e-G8 Forumgathered together the fnest minds and most skillul operators o theInternet or just two days. But the Forums eect as a catalystonparticipants, on the G8 Summit that succeeded it, and on public policyby governments worldwidewas, and will continue to be, ar moremeaningul.

The Forum was an intense and ambitious gathering o 1500 participantsrom more than 30 countries. It culminated in a delegation to the G8Summit o Heads and State and governments, where questions regardingthe Internet were on the agenda or the irst time in the history ointernational summit meetings. The delegation was led by Maurice Lvy,Chairman and CEO o Publicis Groupe, and comprised Hiroski Mikitani,the CEO o Rakuten; Yuri Milner, CEO o Digital Sky Technologies;Stphane Richard, CEO o France Telecom-Orange; Eric Schmidt, CEOo Google; and Mark Zuckerberg, ounder and CEO o Facebook. With

them, they took a message.

The Internet is a powerul vector or individual empowerment, reeexpression and personal growth. It is an enormously positive orce orchange and transormation o civic groups, industries, organizationsand nations. Its impact as a locomotive o job creation and economicgrowth is spectacular. As it moves into a new phase that will even moreprooundly modiy our environment, governments need to grasp moreully the need or greater understanding o the phenomenon.

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Policy-leaders everywhere need a ree Internet. They need to encourageinvestment and to guarantee all citizens rapid, broadband access to anInternet that is secure. As with any breakthrough technology, the digitalrevolution may have unintended side-eects that may harm individualand collective rights. Thus as it progresses, the Internets growth willneed to be accompanied by careul and measured government actionto protect consumers and creators alike. This will require a partnershipo intense dialogue with all the stakeholders: civil society, industry and

creators o all kinds.

Youll fnd here a succinct narrative o every plenary session, workshopsession, inormal talk and keynote conversation that took place duringthe e-G8 Forum; photographs and links to video reportages and to theull-stream video that was broadcast live on the e-G8 Forum websiterom all plenary sessions; and the Forums fnal press release. This maygive you a sense o how a gathering o interconnected, sometimescompeting individuals joined into a vast, concentrated mass o

intelligencenot a consensus, but a passionate interplay o debate,dispute and eervescent, vivid, spontaneous ideas, in the service o theuture o our digital world.

As our societies look orward to the Third Revolutionthe digitalrevolutionwe hope that you will fnd this little e-book both inormativeand thought-provoking.

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The Call o HistorySpeech by Maurice Lvy,Chairman and CEO of Publicis Groupe

Monsieur le Prsident de la Rpublique; my dear riends;

First, my heartelt thanks to all o you, or coming here to be part o amoment that I believe will be historic.

Mr. President, it is a joy and an immense honor or me to welcome youto this Forum on Internet and the Digital Economy, the frst ever toprecede a summit o the G8 nations. This gathering takes place at yourinitiative. You asked that the Internet should be placed on the agendao the G8 summit in Deauville, which you will preside. It was your wish

that the key players o the Internet and all its stakeholders should beable to express their insights here in open and unrestricted debate, andthat the conclusions o their discussions should be made known to theHeads o State and government o the G8.

In other words, you wanted this Forum to take place in the same spiritin which the Internet unctions: open, participative, and ree. You canbe sure that this will be the case.

I was particularly moved by the honor that you did in giving me theresponsibility or organizing this eG8 Forum, and it is with great pridethat I observe this assembly. Despite their heavy schedules and our veryshort lead-time, all the key players o the Internet, with ew exceptions,are present among us. They have made huge eorts to shit their agendasin response to your invitation. I think I can say that all o them ullyunderstand how important this meeting is, and the challenging taskahead o us. I wont take the timeor take the risko citing every oneo their names: the list is too long; and I might orget one o my riends.

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In our audience are represented all the components o the digitalecosystem, in all its diversity: inrastructures, manuacturers, sotware,telecommunications, search engines, social networks, e-merchants,content, and the start-ups o today and o tomorrow. All o them arepresenteven advertizing is here!alongside representatives o theacademic world and social communities, in order to debate the utureo the Internet and its impact on our economies and our societies.

There have been a number o conerences about computers and aboutthe Internet. But none was destined to nourish the debates o Heads oState. I think, then, that I can say, without a trace o an advertisershabitual exaggeration, that this Forum is truly historic.

It is historic, frst, because in two days time, a summit will take placein Deauville in which the Heads o State and government o the eightmajor industralized countries will discuss, under your Presidency andat your initiative, a number o specifc issues regarding the Internet

phenomenon as it develops at a speed never beore observed in humanhistory. Historic, too, because this sector is a global phenomenon. Almosttwo billion people are connected to the Internet: one person in three.More than our billion have a cell-phone: two-thirds o the planet.

And as you know well, Mr. President, the digital industry abolishesrontiers, erases distinctions and creates a new paradigm in every sphere:knowledge, technology, inormation, creation, innovation, relationships,exchanges, commerce, economics, communicationin short, every

aspect o lie.

Finally, what makes these two days so special is the very nature o thisForum. It gives voice to the economic and social actors o this sectorto content creators: powerul generators o innovation, platorms orcompanies; to players, big and small; to inventors, trend-setters, citizen-bloggers or entrepreneurs, whether they be reshly minted or simplyvigilant o that common good that is the Internet. These individualswill debate reely, exchanging points o view, laying down their own

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conclusions and proposing resh ideas. It is a signal honor, and I amcertain that they will show themselves worthy o it. Thus this is a historicmoment, and a historic responsibility.

O course it would be easy to use this occasion to express a ew platitudes:opinions that we all share. Every day the Internet does indeed transormthe way in which people live, work, communicate, bond, play, enjoythemselves, live and love. And indeed, the Internet is a powerul motor

or economic development, a mine o productivity and job-creation.This exceptional space o technological innovation is indeed also asource o individual initiatives, pioneers, trend-setters, inventors. Andthe Internet does indeed create a wind o openness and democracy wherever it is accessible. It oers those who use it possibilities orcommunication and sel-realization unparalleled in our history.

But we know that. We are convinced o those truths. The real questionsthat we need to askand debate here, in this Forumare: How will the

Internet contribute to the creation o more wealth, more jobs, morereedom? How can we go urther? How, too, can we be even morerespectul o the rights o otherstheir intellectual creations and theirprivate lives? How can we ensure a proper balance in value sharing?How can we be both ree o constraint and responsible?

We have organized round-tables and workshops or debate with theworlds most pertinent players in the feld and all participants, in orderto attempt to discover paths towards more eective thought about the

questions that we all ask ourselves.

How can we improve our products, our services and practices so thatthey can be more easily adapted and used? How can we reassureconsumers and clients about the dangerssome o them very realousing digital tools? How can we eliminate or restrict some practices thatpenalize our digital sector in the eyes o the public, or example in termso protection o privacy or the fght against cybercrime? How can weorganize the transition so that actors rom the physical, non-digital

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world can move, as they need to do, increasingly on-line, to the virtualworld? For that is the real world o tomorrow. How can we convince thereticentall those not born in the digital universeo its interest andits importance? How can we balance our exchanges? Respect intellectualand artistic property? How can we fnance major inrastructures in thissector, as it continues its exponential growth? And, lets dare to use thewordwhat regulation can be put in place that would prevent abusesbut would in no way restrict the liberty o the Net, its development or

use, particularly in tomorrows mobile world.

I we want this Forum to succeed, we absolutely need to ask ourselvesthese questions with sincerity. We need to imagine, in a spirit oresponsibility, possible paths towards solutions capable o bringing toyou, Mr. President, and to the Heads o State o the G8, some elementso deeper thought and the viewpoint o the key actors in the feld.

As you can see, it will take a lot o work to make this e-G8 Forum a

success. O course we dont plan to resolve everything in two days; arrom it. But I am convinced that we have here a historic opportunity tomove the Internet orward, and to bring our experiences and insightsto the table o the G8 Heads o State.

Mr. President, my dear riends, I have a particular aection or a quoterom Albert Einstein: Imagination is more important than knowledge.Einstein would defnitely have loved the Internet. It is both the ruit ohuman imagination and a space or sharing knowledge that makes it

accessible to all humanity. All o us here today have a little knowledgeabout the Net. But now its time to mobilize our imagination: to createa collective picture o how Internet will develop in the world o the uture.

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Changing the WorldAddress by the President o the French Republic,Nicolas Sarkozy, to the e-G8 Forum

Ladies and Gentlemen,

History always remembers those places where, at a given point in time,all creative orces o an era seem to want to converge. And it is in thehope that Paris would become the capital o the Internet or a ew daysthat I wanted to bring you here together, just beore the G8 Summit.

This is an important moment, because to my knowledge it is the frst

time that all those who, with their talent and ingenuity, helped changethe worldor I should say, make us change the worldare meeting inone and the same place. France and the G8 have indeed the honour towelcome the men and women whose names are now associated withthe emergence o a new orm o civilization. I we are able to listen toeach other, speak to each other and understand each other, I amconvinced that we will be able to give this G8 a historic dimension, sothat our era becomes ully sel-aware and moves beyond its tremendousindividual adventures to become a part o collective history.

Our world has already experienced two dierent globalizations. Fromthe frst one, that o great discoveries, we inherited a complete world, aworld which Magellan could circumnavigate, a world that could beexplored and charted. From the second, that o industrial revolutions,we inherited a space that was not only complete, but domesticated, andat times subjugated.With the third globalization, that in which you bothplay a role and are promoting, you have changed the way the world seesitsel.

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You have changed the notion o space, because the Internet has not onlyeliminated the distance separating people, but has also opened up avirtual world that is, by defnition, limitless. A world in which everyonecan make contact with everyone else. A world in which everyone cancreate their own territory, their own community, even their own society.You have changed the notion o time, getting rid o the very concept osomething happening over a period o time, making everythingimmediate, giving everyone the possibility o reaching others and

accessing inormation instantly, and in short, making anything possible.You have even changed how we see history because transparency, eveni at times it can be contested, both in its method and its eects, hasimposed itsel on countries. You have changed our relationship withthings and objects with the single phenomenon o dematerialization.You have changed the very notion o knowledge and have made itpossible or everyone to access all knowledge and not only access, butcontribute to this knowledge. The dream o a universal library that wouldinclude knowledge rom all over the world, this dream that is old as time

itsel, has now become a reality or millions o Internet users.

In just a ew years, you have rocked the very oundations o the worldeconomy in which you now play a major role. You have changed theworld. For me, you have changed the world, just as Columbus and Galileodid; just as Newton and Edison did. You have changed the world withthe imagination o inventors and the boldness o entrepreneurs.

Unique in history, this total revolution has been immediately and irrevocably

global. Unique in history, this revolution does not belong to anybody, itdoes not have a ag, it does not have a slogan: this revolution is a commongood. Unique in history, this revolution has occurred without violence.The discovery o the New World brought about the total destruction oAmerican Indian civilizations. The global revolution that you incarnateis a peaceul one. It did not emerge on battlefelds but on universitycampuses. It arose rom the miraculous combination o science andculture, and the determination to acquire knowledge and thedetermination to transmit it.

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With regard to the origins o your sector, legend has it that Google wascreated in a garage: the thing I remember most is that Google was bornin a university library. The imaginary world o Hollywood wantedFacebook to be seen as the result o a ailed love aair: wed like to seemany more like that. The thing I remember most is that Facebook wascreated at a top ranking university campus.

This revolution that went so ar as to change our perception o time and

space has played a decisive role in other revolutions. In Tunisia and Egyptalike, mere individuals were able overturn a power that was completelydiscredited by building virtual barricades and organizing very real rallies.Peoples in Arab countries thus showed the world that the Internet doesnot belong to States. International opinion was able to see that theInternet had become, or reedom o speech, a medium or expressingunprecedented power.

Like any revolution, the technological and cultural revolution you began

holds promise. Huge promise. Promise that is commensurate with theconsiderable progress you incarnate.

Now that this revolution has reached the frst stage in its maturity, itshould not orget the promise o its origins. I you have designed toolsthat are now your own, it is because you dreamed o a world that wouldbe more open. I you have built social networks that currently connectmillions o men and women, it is because you dreamed o a world that would be more socially minded. I you have given utopia concrete

expression, it is because you have aith in humankind and its uture. Iyou have achieved worldwide success so switly, it is because this promisereects universal values.

Your work should thus be considered historic and help drive civilization.And that is the importance o your responsibilitybecause you do havea responsibility. Our responsibility, as Heads o State and Government,is no less important. We must support a revolution that was born at theheart o civil society or civil society and that has a direct impact on the

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lie o States. Because i technology is neutral and must remain so, wehave clearly seen that the ways the Internet is used are not. Today,discussing and shaping the Internet is a real historic responsibility andthis responsibility can only be shared, by you and us.

The idea is or the G8 States, which include some o the most powerulcountries in the world, to recognize the role that is now yours in thecourse o history. We would like to hear about your expertise, because

we have things to learn. We have things to understand. Just like individualsand companies, States do not want to miss an opportunity or progressthat you have created and that you incarnate.

How can we use the Internet to bolster democracy, social dialogue andsolidarity? How can we use the Internet to improve the way Statesunction? How can we inject this spirit o innovation and enterprisewhich is characteristic o your sector into States?

Also, the States we represent need to make it known that the world yourepresent is not a parallel universe, ree o legal and moral rules andmore generally all the basis principles that govern society in democraticcountries. Now that the Internet is an integral part o most peoples lives,it would be contradictory to exclude governments rom this huge orum.Nobody could nor should orget that these governments are the onlylegitimate representatives o the will o the people in our democracies.To orget this is to run the risk o democratic chaos and hence anarchy.To orget this would be to conuse populism with democracy o opinion.

Juxtaposed individual wishes have never constituted the will o thepeople. And a social contract cannot be drawn up by simply lumpingtogether individual aspirations.

States and Governments have also learned rom history, and I amspeaking to you on behal o the country that drew up the Declarationo the Rights o Man and o the Citizen. So, ladies and gentlemen, beloyal to the promise o the revolution that you began, as France hassought to be loyal to hers or over two centuries.

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I know that the market has its own regulatory mechanisms but trade isnever truly ree i the terms o this trade are unair. Do not allow newbarriers to be built where you have toppled the longstanding walls othe old world. Do not allow new monopolies to take root where you haveoverturned long-established situations that seemed unshakeable. Ingiving all individuals, regardless o where they live or rom where theyspeak, the possibility to be heard by everyone everywhere, you haveprovided all citizens o the world with a reedom o speech that is

unprecedented in history.

This outstanding leap in individual reedoms cannot be taken at theexpense o the rights o others. Do not allow the revolution you beganto violate peoples undamental right to privacy and to be ullyautonomous. Complete transparency, which never allows a person torest, will sooner or later come up against the very principle o individualreedom. Let us not orget that behind an anonymous Internet user,there is a real citizen who is evolving in a society, a culture and an

organized nation to which he belongs and with laws he must abide by.

Do not orget that the sincerity o your promise will be assessed in thecommitment o your companies to contribute airly to nationalecosystems. Do not allow the revolution you began to violate the basicright o children to lives that are protected rom the moral turpitude ocertain adults. Do not allow the revolution you began to be a vehicle ormaliciousness, unobstructed and unrestricted. Do not allow thisrevolution become an instrument in the hands o those who wish to

jeopardize our security and in doing so, our reedom and our integrity.You have allowed everyone, with the mere magic o the Web, to accessall the cultural treasures o the world in a simple click.It would be something o a paradox i the Web contributed to drainingthem over time.

The immense cultural wealth that provides our civilizations with suchbeauty is a product o the creative orces o our artists, authors andthinkers. Basically, it is the product o all those who work on enchanting

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the world. Yet these creative orces are ragile because when creativeminds are deprived o the ruit o their talents, they are not just ruined,whats worse, they lose their independence, they will be required topawn their reedom.

Im telling you this with a man in mind: a Frenchman who died over twocenturies ago, who with a single play brought down a nearly one-thousand-year-old monarchy; a man who also, with Laayette, was one

o the frst deenders o American Independence! This man was like youbecause, starting with nothing but his intelligence, he overturned anorder that was believed to be immovable and eternal. This man wasBeaumarchais. This same man invented the principle o copyright. Hewent one step urther than giving authors ownership rights o theirworks, he ensured their independence, he oered them reedom.

I know and I understand that our French idea o copyright is not thesame as in the United States and other countries. I simply mean that

our commitment to universal principles, those that both the U.S.Constitution and the 1789 Declaration o the Rights o Man and o theCitizen lay down: nobody can have his ideas, work, imagination andintellectual property expropriated without this being punished.

What I would like to express here is that each o you should be able tobe heard, because beore being entrepreneurs you are creators. It isunder this copyright law or creative work that you have been able toound companies that have become empires. These algorithms that

constitute your power, this continual innovation that constitutes yourstrength, this technology that is changing the world, are your propertyand nobody can contest that. Each o you, each o us, can thereoreunderstand that writers, directors, musicians and actors can have thesame rights.

This copyright law or creative work enabling artists to receive airpayment or their ideas and their talents, is also valid or each o theStates we represent. States invest in training o those who then join your

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companies. States invest in the technical and technological inrastructurethat provides transport or the services and content that are circulatedon the Web. States would like to engage in dialogue with you so that abalanced way orward can be ound one day that is mindul o yourinterests, those o Internet users that give you overwhelming supportevery day and those lastly o citizens and taxpayers o every nation whoalso have rights.

We are emerging rom a terrible crisis, resulting rom the blindness ofnancial powers who have lost sight o what was important to sacrifceeverything or money. These powers that did not want to be accountableto people and the powers that wanted to avoid dialogue with electedgovernments that have the interest o the people in mind.

It is simply a call or collective responsibility that I am issuing here. Acall or responsibility and a call or common sense. We believe in thesame values. I am thereore convinced that a way orward is possible. A

way orward that will enable the world you created and the world wehave inherited to work alongside each other in the interest o a worldthat has become global, which is largely thanks to you. So let us begintogether this crucial dialogue. Let us open and build this new orum.

I would like to thank you, because when I had the idea or this orum,at frst everyone told me that it was a bad ideaexcept Maurice Levy,when I asked him to be in charge o organizing it. First my ellow Headso State and Government, who told me yet again, you take too many

risks. I personally think that the worst risk is not taking any; the worstrisk is that o not speaking to each other. And I think that we never takerisks when we call on the intelligence o people, rom your world, whohave said to themselves what can we do with Heads o State andGovernment?

I think that we have a lot to accomplish together and Ill be very happy,on Thursday, i a delegation made up o some o the participants heretoday could engage in dialogue with my ellow Heads o State and

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Government. We need this dialogue, we need to understand yourexpectations, your aspirations, your needs. And you need to hear ourlimitations, our red lines, the problems we shoulder in the name o thegeneral interest o our societies. I am so pleased to welcome you here inParis today and would be even more pleased i this orum could be heldevery year prior to the G8 Summit so that we have a clear idea o whereyou are in your progress and so that you know what we are thinking.

Thank you.

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Presentation

Internet MattersA groundbreaking report by the McKinseyGlobal Institute shows the Internet is one othe biggest drivers o global economic growth.

synoPsis Presented at the e-G8 Forum, a recent study by the McKinseyGlobal Institute took a detailed and comprehensive look at the Internets

impact on growth, jobs, and wealth creation in 13 countries that togetheraccount or more than 70% o global GDP.

The study ound that the Internet accounts or an average 3.4% o GDP inBritain, France, Germany, Italy, Russia, Sweden, Brazil, Canada, the US,China, India, Japan and South Korea. I it were a sector, its weight in GDPwould be bigger than energy, agriculture, or several other critical industries.There is also a great deal o room or urther development. While the Netaccounts or around 6% o GDP in Sweden and Britain, in 9 out o these13 countries its contribution is still less than 4%.

It is also a powerul catalyst or job creation. While the Internet haseliminated 500,000 jobs in France over the past 15 years, it has created1.2 million others 2.4 jobs created or every job destroyed. Moreoverit creates substantial value or users, ranging rom 13 ($18) a monthper user in Germany to 20 ($28) in the United States. Total consumersurplus generated by the Internet in 2009 ranged rom 7 billion (nearly$10 billion) in France to 46 billion ($64 billion) in the United States.

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Over the last 15 years the Internet has created an average increase o $500in real per capita GDP in developed countries. It took the IndustrialRevolution o the 19th century 50 years to achieve the same results. Allindustries have beneited. Across sectors, small and medium-sizedcompanies with strong Web presence grew more than twice as quickly asthose that had minimal presence on the Net. They also reported a share ototal revenues rom export that was twice as large, and created more thantwice the number o jobs.

Armed with a better understanding o howand how muchthe Internetcontributes to national economies, policy makers and business executivescan act more eectively. In particular, the report suggests they shouldconsider the ollowing immediate steps:

Use public spending to support innovation. Countries with the highestpublic investment in the Internet also have the largest non-publicInternet contribution to GDP.

All business leaders, not just e-CEOs, should put the Internet at the topo their strategic agenda, looking to reinvent their business models toboost growth, perormance, and productivity.

A dialogue between government and business leaders can help theInternet ecosystem ourish. Standards or digital identities and intellectual

property protection must be addressed; other relevant topics include netneutrality, the availability o talent, and the overall business environment.

Download the ull report atwww.mckinsey.com/mgi
http://www.mckinsey.com/mgihttp://www.mckinsey.com/mgi

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The Internet spirit o cooperation and consul-tation: let to right, Ben Verwaayen, CEO oAlcatel-Lucent, with French Finance MinisterChristine Lagarde; James Manyika, Directorat McKinsey and Co. San Francisco; the au-dience was lively and knowledgeable; JimmyWales, the ounder o Wikipedia; Pascal Ngre,President and CEO o Universal Music France;Nigel Shadbolt, Proessor o Artifcial Intelli-gence at the University o Southampton; SherylSandberg, COO o Facebook.

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Plenary session i

The Internet& Economic GrowthInormation technology and the digitalecosystem have been powerul acceleratorso economic growth and employment.How to ensure that this can continue?

session Panelists

Christine Lagarde,Minister or Economy, Finance and Industry, FranceJohn Donahoe, President and CEO, eBayJean-Bernard Lvy, Chie Executive Ofcer, VivendiHiroshi Mikitani, Chairman & CEO, Rakuten

Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Ltd.Eric Schmidt, Executive Chairman, Google Inc.

moderated by

Ben Verwaayen, CEO, Alcatel-Lucent


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synoPsis The Internet is a critical locomotive or growth, MinisterChristine Lagarde reported: in France, the digital sector currently generates3.7% o GDP and this is likely to rise to 5.5% in the short term. By

encouraging entrepreneurship, the Internet creates value, jobs, andunique opportunities or todays global citizens to establish new venturesat minimum cost, regardless o geographic location or other physicaldifculties. Ebay has 17,000 employees globally, but 1.3 million peoplemake their primary or secondary income rom sales via the Ebay platorm.

Moreover, this increasing growth is also exponentially accelerating inimpact. A small startup company creates the idea or platorm which,i successul, can be almost immediately globalized; as Eric Schmidt

pointed out, this platorm (PayPal, Rakuten) then becomes an ecosystemused as a launch-pad by multiple entrepreneurs, creating great wealth.Mobile phones in developing nations provide the same platorm-likeability to rapidly accelerate economic growth, noted Sunil Bharti Mittal.E-health and m-health (via mobile phone) also impact the economy,because they lower the cost o delivering health services and improvethe health o consumers, thus also boosting productivity and income.

Whether in G8 or developing countries, digital job creation occurs largelyamong small businesses and individuals, although o course the Netdoes also permit large corporations to improve productivity and createnew positions. Several panelists urged governments to analyze actorsthat might curb entrepreneurship and digital businesses in theircountries. Most o the panel agreed that above all, governments shouldensure broadband access to all citizens, with optimal physicalinrastructure or connectivity.

The panel also discussed the need to regulate certain sectors, or examplee-currencies and mobile banking: Hiroshi Mikitani pointed out that byoering credit, these essentially create money. Government rules wouldincrease security in this ield and thus also consumer conidence.However, Eric Schmidt argued that beore turning to a regulatoryapproach to any issue in this brand-new, innovative and resilient feld,leaders should examine possible technological solutions rom the privatesector. These may be quicker and better adapted to problems occurringin the Internet ecosystem today. Examples: NFC chips or secure digitalbanking (more secure than credit cards); content-ID programs to sniout pirated material; LTE technology, or our-times greater spectral

efciency in the wireless band.

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Plenary session ii

The Internet & SocietyThe Internet transorms everythingit touches--how we communicate, market,work, learn and play. Some o the most

proound changes involve how we organizeinto communities, re-envision governmentand share inormation. And thats onlythe beginning.

session Panelists

Tom Glocer, CEO, Thomson ReutersAndrew Mason, Founder & CEO, GrouponStphane Richard, Chairman & CEO, France Telecom - Orange

Sheryl Sandberg, COO, FacebookKlaus Schwab, Founder & Executive Chairman, World Economic ForumJimmy Wales, Founder, Wikipedia

moderated by

Maurice Lvy, Chairman and CEO, Publicis Groupe


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synoPsis The Internets tools or knowledge open the possibility o lie-long education or millions. They mean that people are now much morelikely to seek out inormation, Jimmy Wales noted; Wikipedia is availablein more than 200 languages and or some (ex. Swahili) this is their frst-ever encyclopedia. This already huge impact on the worlds cultures willexponentially increase as improvements in networks bring billions morepeople online in the developing world.

But the Internet has moved beyond inormation retrieval to socialdiscovery. Social networks such as Facebook aggregate individuals intosel-deined, overlapping communities with collective voices loudenough to eect change. This outsourcing o personality also requiressophisticated management o personal privacy by every individual. Pro.Schwab elt that the development o social networks may mean thatyoung people may vote less in elections, as other orms o expressionbecome more pertinent. Sheryl Sandberg pointed to the 2008 Obamasocial-network campaign that encouraged striking numbers o youngpeople to vote. All agreed that the rise o social networks will empoweryouth in particular, and spur governments to greater dialogue withcitizens. This will be particularly transormative in the developing world,as Jimmy Wales pointed out.

All successul new technologies reduce costs and riction, improvingquality o lie, Tom Glocer said. But any new tool can also be harmul.Faced with pedophiles or terrorists there is a need or oversight orgovernance. This will have to be based on cooperation, because businessalone cannot solve the problems, but neither can civil society orgovernment.

Stphane Richard noted that another vital area o cooperation is thedual question o Net neutrality and Internet access. Everyone, even in

remote areas, should have access to broadband. But this requires costlyinvestment in physical inrastructure; moreover, the spectrum is limited.Without careul co-management, the Nets inrastructure could one dayace congestion or collapse, he warned.

There is still room to expand e-commerce. At present, only 5% ocommerce occurs on-line, while 80% o disposable income is spentwithin a 2-mile radius o a consumers home. A niche exists in locale-commerce: small businesses using websites like Andrew Masons

Groupon or perormance-guaranteed, personalized marketing.

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12

Plenary session iii

Future Net:Whats Next?Limitless bandwidth. Massive data.

Total mobility. Technology continues toaccelerate. Will the inrastructure keep pace?

session Panelists

Peter Chou, CEO, HTCMichel de Rosen, CEO, EutelsatPaul Hermelin, Chairman and CEO, CapgeminiDanny Hillis, Co-Chairman and CTO, Applied Minds

Paul Jacobs, Chair and CEO, QualcommCraig Mundie, Chie Research and Strategy Ofcer, Microsot

moderated by

David Rowan, Editor, Wired UK


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synoPsis Technology in the next 5-10 years will eliminate the need tomaster the traditional computer interace. This will change how we relate

to computers and the services we expect rom them. Remote wirelessmonitoring will transorm the health-care industry, increasing productivityand optimizing outcome, said Paul Jacobs. He detailed a list o uturisticdevices, including implantable ertility monitors and implantabledefbrillators, which tests have shown can reduce mortality by 50%.

Machines will increasingly talk directly to other machines. Cars will warneach other when they are too close, and in gaming, avatars will interactin human-like ways. A new generation o smartphones will oer consumers

broad choices in mobile TV and video, and travelers may encounter aworld o curated chips describing the history o landmarks. There willalso be more 3D TV and connected TV. As this ood o data increases itwill be exploited, in a world o personalized marketing and individualchoice. Students may demand personalized education. Governmentsmay seek to establish predictive patterns or terrorism or tax raud.

These opportunities entail serious risks. An inrastructure o talkingmachines will increasingly bypass the ability o government to manageor even understand it, warned Danny Hills. Breakdowns will be muchmore likely, and their consequences catastrophic. Reliance on digitaltechnology will increase the threat o data thet and hacking. Newenhanced services will also outrun current bandwidth capacity. Revenuemay need to be split dierently so that the operators who lay downinrastructure have incentives to keep pace with massive new needs inthe networks.

Other somber messages: battery capacity will strain to keep pace with theneeds o new devices. Michel de Rosen warned that the world couldsplinter into digital haves and have-nots. He proposed that the G8 coulddeclare Internet access to be a universal service obligation; in eect, thisis already the case in Switzerland and Finland, and is an ofcial commitmentby the EU. Craig Mundie also called on governments to improvetechnological education.The panel broadly agreed that it is governmentsrole to create the conditions in which people can be creative and prosper.That means they must urgently ocus on one area: anticipating andplanning or potentially disastrous breakdown o the inrastructure andnetworks that underlie digital services.

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Plenary session iV

Intellectual propertyin the digital ageWhats at stake or culture and business?What should be the new rules to encourageand stimulate content creation on the Internet?

session Panelists

John Perry Barlow, Vice Chairman, Electronic Frontier FoundationAntoine Gallimard, President Groupe Gallimard and President,Syndiact National de lEditionJim Gianopulos, Chairman, Fox Filmed EntertainmentFrdric Mitterrand,Minister o Culture and Communication, France

Pascal Ngre, Chairman and CEO, Universal Music FranceHartmut Ostrowski, Chairman and CEO, Bertelsmann

moderated by

Bruno Patino, Digital Head, France Televisions


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synoPsis The Internet has overwhelming impact on what Pascal Ngrecalled the creatio, industries: ilm, books and music. It is a hugeopportunity one-third o the music industrys revenue comes rom thedigital sector but also the locus o massive copyright inringement andpiracy. Service providers say 25% o trafc stems rom illegal downloading.

With one exception, the panelists elt that a healthy and creative digitaleconomy cannot exist without assertive protection o intellectual property.I the work o artists is not protected and paid or, creation (and content)will dry up. Record labels invest $5 billion per year on new talent, PascalNgre said, and get their money back only 1 time out o 7 or 8. It is not only

a question o return on investment but also the ongoing vitality o creativity.Copyright is a source o reedom, said Minister Frdric Mitterrand (himsela movie director and author): the reedom to continue to create.

The panel noted Eric Schmidts earlier suggestion that content-IDprograms could trawl the Internet to identiy, and remove, illegal content.Jim Gianopoulos regretted that this technology just isnt there yet, noteven close. He elt the best solutions stem rom voluntary agreementsbetween the tech and creation industries to protect intellectual property,

but where those are not possible, governments should enorce rules. Inthis regard most panelists approved the recent French legislation, Hadopi.

In contrast, John Perry Barlow attacked the very notion that expressioncan be equated to property. For the frst time in history, he said, theInternet makes it possible to give every human the right to satisy his/hercuriosity to the ullest and to fnd an audience. To deny those rights is topreserve outmoded institutions. Instead o tightening the regulation ocreative content, global leaders should talk about incentivizing creativity.

This view that reedom means that everything should be ree o chargewas hotly disputed. Jim Gianopoulos insisted that no new, alternativebusiness models exist that could generate the kind o cash required toreturn investment on a major flm. The creation industries generatecultural diversity, jobs and tax revenue, and they are a major driver othe demand or high bandwidth. Although opinions may dier as to thedetails or complexity o the arrangements required, some mechanismor remunerating content will probably be necessary.

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Plenary session V

Fostering Innovation How to build the uturesession Panelists

Eric Besson,Minister o Industry,Energy and the Digital Economy, FranceLawrence Lessig/Proessor, Harvard Law SchoolXavier Niel, Founder & Chairman, IliadYuri Milner, CEO & Managing Partner, Digital Sky TechnologiesSean Parker,Managing Partner, Founders FundNiklas Zennstrom, CEO and Founding Partner, Atomico

moderated by

John Gapper, Chie Business Commentator, Financial Times

-g8 forumWednesday May 25, 2011

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synoPsis As a business and creative environment, the Internet ischaracterized by a dynamic in which innovative outsiders kids,immigrants, dropouts challenge incumbents with their new and

better ideas. Pro. Lawrence Lessig observed that because o powerullobbies government regulations usually protect the interests oincumbents, thus ultimately harming consumers. He thereore urgedgovernments to stay out o the way, aiming or minimal intererence.

Copyright was a hotly argued subject. Lessig and others agreed thatcreators should be compensated, but that the current architecture oregulation no longer makes sense. The recent report published byProessor Hargreaves or the UK government characterized the current

system as obstructive o innovation and economic growth. The FrenchHadopi three strikes legislation, which punishes piracy by cuttingInternet access, was seen as poorly thought-out. A better system isurgently required, the panel elt: it should be one that makes sense in adigital world where everything can be copied. It should also be lessragmented; currently you almost have to pick which laws youre goingto comply with, said Niklas Zennstrom, because Internet-based (thusglobal) companies cannot comply with all.

Startups in Europe ace obstructions due to the limited size o eachnational market and ragmented legislation on data protection and tax.In Europe ailure also carries a stigma and there is a cultural reluctanceto take risk, Niklas Zennstrom said. Yuri Milner pointed out that the twolargest internet companies in Europe are both Russian (Yandex andMail.ru); he attributed this to Russias very open and lightly regulatedenvironment.

Minister Eric Besson agreed that governments need to encouragespending on research and innovation via tax incentives, as well asensuring good networks (fber optics or 4G cellphone networks) andlaying down strong technological education or engineers. Governmentsalso need to oster startups through competitive centers.

Former Napster ounder Sean Parker noted that the music industry which has recently shrunk rom a global $45 billion industry to $12billion may soon see a rush o revenue. Just as has been happeningin the book publishing industry, he predicted that record labels backcatalogues will rise massively in value.

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Plenary session Vi

Digital Transormation:How traditional businessesare being re-invented

session Panelists

Franco Bernab, Chairman and CEO, Telecom ItaliaRosabeth Moss Kanter, Proessor, Harvard Business SchoolEric Labaye, Chairman, McKinsey Global InstituteStephen A. Schwarzman, Chairman and CEO, The Blackstone GroupMark Thompson,Director-General, BBC

moderated by

Jeff Cole, Executive Director, USC Annenberg Center or the Digital Future


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synoPsis Theres not a company on earth that hasnt been aected bydigital technology, observed Je Cole. Most have been transormed.

This transormation aects what Harvards proessor Rosabeth Kantercalled the fve Ps o corporate lie: products, processes, partners, peopleand purpose. The metamorphosis creates efciencies and opportunities,and is oten exhilarating as well as proftable. Remote work may reviverural areas, and sel-organizing development teams and e-learningprovide a new modes or workers to continuously upgrade skills,changing the way companies operate.70% o employees say Internettechnology has made them more productive.

But the change is also disruptive, both to corporations and their variousstakeholders. Franco Bernab warned that traditional telecom industriesare shedding jobs rapidly. O course there is also new job creation; butwhat the fgures dont show, he said, is the shit rom a protected workorceto less secure jobs. This entails social dislocation. Additionally, StephenSchwarzman pointed out that by reducing riction in the inancialmarkets, digital tools have greatly increased the markets volatility. Hewarned that this may not always be in societys interest.

Companies can remain true to their identities as they re-invent the waythey do business, observed Mark Thompson: the BBC may deliver newsdigitally, but remains aware o its core business as an authoritativesource o inormation. Incumbents can rely on their traditional strengthsand should not ocus, as they currently oten do, on a deensive strategy.A limber approach to organization is necessary to avoid a split betweena shiny new digital unit and a grim declining old one.

Social networking adds to the transormative pressure on big corporationsby demanding more openness and aster reactions rom corporateleadership. It also provides an opportunity or real-time market research,Eric Labaye pointed out, giving companies the tools to match customerneeds more eectively and quicker. This works to increase theeectiveness o advertising budgets. There are also other, less quantifablebenefts when networking allows businesses to establish new kinds orelationships with customers. Pepsi, or instance, asked Internet viewersto determine where it should direct its charitable contributions insteado advertising on the Super Bowl, thereby redefning its image andallowing customers to eel more closely involved.

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Free and wide-ranging debate: Xavier Niel,ounder and Chairman o Iliad, with Sean Parker,Managing Partner at Founders Fund; FrdricMitterrand, Frances Minister o Culture; in thepublic were many key stakeholders o the Net;French President Nicolas Sarkozy speaking withGoogle CEO Eric Schmidt; a coee and networ-king break in Paris landmark Tuileries Gardens;Stphane Richard, Executive Ofcer o FranceTelecom Orange; Luca Ascani, co-ounder andChairman o Populis.

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sPecial talkRuppert Murdoch, Chairman and CEO o News Corporation:

Digitals Next Frontier:EducationLimitless bandwidth. Massive data.Total mobility. Technology continues toaccelerate. Will inrastructure keep pace?

Advances brought about by technology and the Internet are evidenteverywhere but in education. Schools remain the last holdout rom thedigital revolution; todays classroom looks almost exactly as it did in theVictorian age. This represents a colossal ailure o imagination and anabdication o responsibility to our children. Throwing money at thisproblem is no solution. In my country, weve doubled spending onprimary and secondary education over the last three decades, while testscores remained at. Some claim the problem is students coming rompoverty, broken homes, or immigrant amilies. This is arrogant, elitistand unacceptable.

The era o one-size-fts-all education, which rustrates the bright kidsand leaves the struggling ones behind, is over. Education-speciicalgorithms can be used to help determine what a student needs to learn.With digital technology we can bring the best educators to childrenanywhere in world at low cost. Stephen Hawking explaining principlesin physics or Yo Yo Ma teaching harmony could be brought to anyclassroom or what we now pay to download a song.


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An outstanding example o technologically improved education is oundin New York City, at an Arican American charter school in Harlem. Theschool is located in a neighborhood with all the pathologies normallyused to explain away ailure. Yet the school tests students, insists parentscheck homework, and uses technology including the Kindle ebookreader and laptops. Its student test scores are now equal to schools flledwith gited and privileged students.

Technology will not replace the teacher but will take the drudgery outo their responsibilities. The Ikea school in Sweden is supported by aknowledge portal that contains the entire syllabus and other teachingtools. Freed rom administrative work, the teacher can give students armore personalized attention.

Sotware, rather than hardware, is key to innovation in classrooms. Welldesigned, it teaches concepts while helping students learn or themselves.The more interactive and intimate, the better the student will perorm.In two small Caliornia schools a textbook publisher is using iPads andeducation apps to oer guided instruction, instant eedback, and accessto hundreds o videos which students use at their own pace.

I we can bring these kinds o advantages to the entire world, we will

ensure that a poor child in Manila will have the same opportunities asa rich child in Manhattan.

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12

conVersation

Andrew Mason, Founder & CEO o Groupon, talks withGilles Babinet, Entrepreneur and Chairman o Frances ConseilNational du Numrique

Groupon: A Case Study

Launched in November 2008, Groupon now stakes the claim o beingthe astest growing company in the world, employing 7,500 people tooer localized deal-o-the-day coupons to customers. Its groupdiscounts are negotiated by Groupon itsel with local businesses in 500dierent cities across 46 countries, mainly in the ood and entertainmentindustry. Andrew Mason said the company has ound the Grouponmodel surprisingly eective in every region o the world.

Speciically ocusing on customer happiness was key or Grouponssuccess with a local-centric

e-commerce model that had never succeeded beore; a business valuethat is not as complicated as some companies may think. Its as simpleas talking to your customers and understanding what they want andmaking sure you do those things, Mason said. Critical was the companysability to put themselves in the shoes o customers to understand theirpriorities. Relating to a highly demanding customer mindset, the companywas able to work to serve it.

Groupon ound it was a mistake to try to be all things or all people. Itrealized that doing a great job serving a selection o customers was armore valuable than doing an okay job serving everyone. Another keydiscovery was that sel-service was not always the answer in buildinge-commerce models. Groupons expanding sales orce was an essentialingredient to growing its network o local merchants.


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The company ocuses on relevance today -- refning personalizationtechnology to fnd products that will be o maximum interest to everyindividual consumer. It has also added a real-time element with itsGroupon Now service, based on the premise that customers oten makeood and entertainment decisions at the very last minute. Providing aneective real-time experience required moving rom a push model tothe more difcult pull experience. Instead o browsing oers Grouponound or them, the customer tells the service specifcally what theywant and when. Groupon Now uses relationships with thousands omerchants to oer real-time deals in a window o a ew hours.

Mason said Groupon has had the eect o catalyzing lielong passionsamong customers. A discount o 70% o at local rock-climbing classescan lead to discovery o interest in the sport among people who wouldotherwise never had considered becoming a rock-climbing enthusiast.It exposes people to things they wouldnt otherwise do.

Thus Groupons phases o development reect the evolution o Internet-based businesses towards increased personalization and real-time deals.It started with a push sales strategy, oering deal-a-day or customersto browse; it is now developing a more personalized demand-basedpull service called Groupon Now. Groupons overall business model

is based on using the Internet or collective action, allowing individualsto come together to achieve a common goal. The model has alsorepeatedly been used or more altruistic purposes with success.

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12

conVersation

Neelie Kroes, European Commissioner or the Digital Agenda, talks withBen Verwaayen, CEO o Alcatel-Lucent

Broadband For All

The European Unions Digital Agenda sets ambitious goals or the 27EU member states. To spur growth, jobs, research/innovation, and betterpolicies on education and other issues, the EU has promised that by2013 every single European citizen will have high-speed connection tothe Internet. By 2015, every European should have a 30 MB connection,with 100 MB connections or at least 50% o Europeans by 2020.

Yesterdays debates at the e-G8 Forum expressed passionate convictionthat governments should stay out o the way. Thats tempting. However,some issues do require rules o the game. Those rules can be set by theparties themselves: the EU needs to listen to business leaders, bankers,broadcasters, the telecoms and content people, and they need to takeresponsibility. Only i the digital sector does not take up its responsibilitiesshould political leaders step in to replace them.


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Political leaders need to take into account how incredibly rapid changeis in this area; were in a hurry, and we must learn to be ar more alert.We also need to realize that the rules should be global. Theres no sensein the EU setting its own regulations. We need to look at this with theOECD, with the G8 and later the G20. But meanwhile, we have a singleEuropean market and it should be a digital single market. Nationallegislation on these questions is completely pointless. Its absurd thatyou cant buy a movie on-line in some countries but you can in others,and it drives consumers to piracy. We need rules; we need properremuneration or artists; but the borders or these rules should beredrawn.

To the G8 Heads o State, we need to say: Take this issue seriously. Itson your agenda now and it needs to stay there. Make decisions, implementthem and keep coming back to review them. E-health, e-government,e-learning. This needs to be a daily activity o every member state.

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12

conVersation

Mark Zuckerberg,Founder and CEO o Facebook, talks withMaurice Lvy,Chairman and CEO o Publicis Groupe

A Universal Human NeedThe phenomenal success o Facebook owes much to a basic human

desire that turns out to be even more universal and more powerul thanFacebooks Mark Zuckerberg appreciated when he ounded the socialnetworking site as a student at Harvard in 2004. I just wanted to letpeople stay in touch with people around them, Zuckerberg said. Itturns out thats a universal need.

Equally important is Facebooks role as a orum in which people interactunder their real identities. There is room on the Net or anonymoussocial networking media and there are even advantages to interacting

anonymouslya willingness to speak controversial truths, or instance.Facebook, however, has staked its uture on peoples growing willingnessto share more o themselves without the cloak o anonymity. For onething, it promotes sincerity. With transparency comes accountability,said Zuckerberg. Your real name is attached.

Do people share too much inormation? Only they can decide wherethe boundary line alls, Zuckerberg said, but that boundary appears tobe shiting ever outward. In Facebooks early days people were reluctantto share much o anything. But more people are discovering the valuein sharing dierent aspects o their lives. The past ew years have seena huge leap in the number o people sharing their location, or example,so they can see which o their riends might be nearby.

Future growth will be propelled in large part by companies that buildsocial networking into applications hosted on Facebooks platorm. Thebest examples are social gaming applications like Zynga and Playfsh,which are now at the oreront o the gaming business. Facebook will


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never launch its own applications like these, says Zuckerberg. Any onecompany can only do one or two things well. We know technology andpsychology, but we know nothing about games. In uture, he adds, mediaand music companies will increasingly bake in a social design, andZuckerberg is hoping Facebook will serve as one o their primary platorms.

Zuckerberg downplayed Facebooks role as an agent o change in thedemocratic movements o the Middle East, North Arica and elsewhere.It is the power o the internet that lets people share their thoughts, bothtrivial and passionate, with one another. Facebook was just part o abigger trend, he said. However, he does eel proud, he added, to seeheads o state communicate directly with the citizenry through theirFacebook pages, because Thats what democracy is about.

So is Facebook just a trend, a ash in the pan, asked a Facebook user ?The mediums o social networking will change. Facebook itsel haschanged considerably since its early days, and is still changing. Some300 million Facebook users access the site through mobile phones, andthat segment is growing much aster than the web. But the basic needto share ones sel with amily and riends will remain.

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Support or innovation: Tony Wang, TwittersGeneral Manager Europe; questions were o-cused and oten hotly debated; ormer GreatulDead lyricist and ounder o the ElectronicFrontier Foundation John Perry Barlow, duringa workshop session on Electronic Liberty; de-bates during plenaries oten spilled over intobreaks; workshops zeroed in on issues rangingrom smartphones to intellectual property and

open data; Susan Pointer, Director o PublicPolicy or Googles EMEA.

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WorkshoP i session i

Building blocks:The art o the startupsession Panelists

Samir Arora, Chairman & CEO, Glam Media, Inc.Luca Ascani, Co-Founder & Chairman, PopulisBruce Golden, Partner, Accel PartnersRick Marini, Founder & CEO, Branch OutShaukat Shamin, Founder & CEO Buysight

moderated by

Esther Dyson, Chairman, EDventure


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synoPsis To best help startup companies, many eel that governmentsshould aim to stay largely out o the way. However, they can helpencourage growth by ensuring high-quality Internet inrastructure andbusiness regulations that oster growth. Universal high-speed Internetaccess and riendly hiring and taxation laws are policies that makestarting an international business easier to navigate and aord.Government can also encourage growth by preventing brain drain

the loss o a countrys most talented and educated workers overseas.

To help start-ups expand and operate across borders, governments shouldstandardize their practices as much as possible, making their businessrequirements and services accessible and intelligible to a broadinternational audience. The G8 could even promote a government-coordinated inormation portal, where businesses can go to grasp thewide variety o international issues conronting them, such as tax treaties,visa requirements, resident permits, employment rules, and local practices.

Across the world, Internet entrepreneurs encounter law-makerswith very little detailed knowledge o the issues theyre acing. To producepolicies that will positively assist startups struggling to expand into newmarkets, governments should work to educate legislators andadministrators on the issues that should shape business legislation.

Ater starting up a business, another hard challenge is creating sustainable,larger businesses that will last. This can be especially difcult in the diversemarketplaces o Europe, where there is more riction acing a startup dueto the dierent treatment o regulations, hiring laws and even employeestock options among countries. Young Internet companies based inEurope oten keep a presence in Silicon Valley, and this environmentwhich is more conducive to growthgreatly increases their chances oturning innovative ideas into a successul business.

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WorkshoP i session ii

King Content:Entertainment inthe digital age

session Panelists

David Drummond, Senior Vice President, GoogleDavid Kenny, President, AkamaiMikael Hed, CEO, Rovio Mobile

Carolyn Reidy, President & CEO, Simon & SchusterMartin Rogard, General Manager France, DailymotionPatrick Zelnik, CEO, Nave

moderated by

Spencer Reiss, Program Director, Monaco Media Forum

synoPsis The Internets inrastructure makes it easier or people to accessmedia on their terms, deciding i they want to own, rent, or access contentor ree. Most industry experts believe global leaders should discuss how

best to fnance creation on the Internet so it benefts the artist as well associety and culture as a whole.

The demand or TV, movies, and games remains unchanged: peopleconsume as much or more media content than ever. The actor thatcontinues to change as a result o the Internet and emerging technologiesis how people consume this media. Mobile technology, or instance, israpidly changing the way consumers behave and interact with content.


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A growing segment o end-users now expect content to be made availableto them instantly, in any location, or ree. Book publishers point out thatprior to the Internet, physical space was an issue when it came to therelease o new publications: old titles had to be eliminated in order tomake room or new releases. Thanks to the Internet this problem has beeneliminated. There is also an exciting new market or reissuing previouslyout-o-print books.

As online consumer behaviors dier signifcantly, the question or Internetplayers becomes how to transition rom one business model (i.e. providing

ree content) to another (i.e. providing or-pay content) with the hope omaximizing the consumer experience while maintaining high-qualitycontent. Experts agree that being able to quickly adapt to new businessmodels is essential or todays online players to keep up with rapidlyadvancing technologies.

The pressing and politically-charged issue o Internet regulation reemergedin the context o online content. While industry experts remain divided onthe subject, most agree the issue should be taken up at the international

level by todays global leaders and policymakers. Some experts also pointout that regulation is not the evildoer its opponents make it out to be; theybelieve rules are necessary in any community be it physical or virtual andguard reedom. Others assert that aggregated data shows a large percentageo people who are stealing media content online do not know theyredoing it. Instead, those o this opinion believe that todays online consumerslack the necessary literacy on how to use media responsibly and legally onthe Internet. Industry should address this problem.

The enorcement o regulation who enorces what, and how? is also a growing concern or Internet players on both sides o the regulationargument. The general consensus is that the matter should be addressedat the international level. Further, the harmonization o rules andregulations between countries should also be on the international agendain discussions concerning online media content. Dierent countries havedierent rules, and this poses problems or those consuming anddistributing media in the borderless, virtual world.

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WorkshoP i session iii

Electronic Liberty:New Tools or Freedomsession Panelists

Hassan Fattah, Editor-in-Chie, The NationalJean-Franois Julliard, Secretary-General, Reporters Without Borders

Jamal Khashoggi, General Manager, Alwaleed 24News channel

Susan Pointer, Director, Public Policy & Government Relations EMEA, Google

Alec Ross, Special Advisor to U.S. Secretary o State Hillary Clinton

Nadine Wahab, Egyptian activist

Tony Wang, General Manager Europe, Twitter

moderated by

Olivier Fleurot, CEO, MSLGROUP


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synoPsis Policies o major Internet companies can unintentionally havedevastating impact on the personal security o active concerned citizensliving in authoritarian regimes. Facebooks insistence that each profle

should correspond to a readily identifable person might make sense ina democracy, but in other regions it can create enormous problems.Thousands o Internet users are in prison around the world or thecrime o expressing their opinions.

The company policies o Google and Twitter made it possible or Internetusers in the Middle East, or example, to communicate reely but withoutthe danger o being identifed. However, or a mainstream traditionalmedia outlet which places a high premium on the reliability o its sources

o inormation, the anonymity o inormal sources poses a huge problem.There was also heated debate about whether to permit encryption oronline messaging services, with no consensus.

It is easy or an undemocratic regime to restrict access to the Net, butno government can ever shut down reedom o expression. We recentlysaw courageous Libyans smuggling telecoms and internet equipmentinto Benghazi ater the Qaddaf regime had knocked out their transmissiontowers.

In open societies, the Internet is rapidly progressing as a sophisticated toolor political strategy and communication. The innovative techniques usedby the Obama 2008 campaign are now mainstream tools used by everyone.

The panel expressed strong eeling that there should be a well structured,global Commitment to Internet Freedom, backed up by the certainty oa collective response to any major inringements based on Article 19 othe United Nations Treaty o 1948. This is extremely urgent, and shouldbe enorced as a greater priority than either any agreement aboutInternet content regulation or copyright enorcement.

Despite all the concerns or individual reedoms, and their possiblelimitations, users in wealthy, Western democracies should not just takethe Internet or granted: there are many places in the world where evensimple access to the Web is greeted with inectious excitement andoptimism.

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WorkshoP ii session i

Be Here Now: MobilityChanges Everythingsession Panelists

Tod Cohen, Deputy General Counsel and VP Government RelationsInternational, eBayBart Decrem, SVP & GM, Disney MobileGeorge-Edouard Dias, Head o LOreal Digital Business GroupEric Hazan, Partner, McKinsey & CoDavid Jones, Global CEO, Euro RSCG Worldwide

Alexandre Mars, CEO o Phone ValleyOlivier Roussat, Director-General, Bouygues TelecomRichard Wong,Accel Partners

moderated by

David Barroux, Les Echos


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synoPsis Smart phones are increasingly the tail that wags the Internetdog. They are already being used or search and browsing unctions thathad been the exclusive preserve o PCs : mobile searches are up 64%

and social networking use is up 57% since 2009. Overall mobile mediaconsumption is twice what it was three years ago, and accelerating atan increasing rate. Samsung predicts that smart phones will be twice aspowerul in 2013, making them essentially a portable computers.

As they grow more powerul, smart phones will be the agent o changein the market. Blurring all lines between communication, socialnetworking and commerce, they will become even more versatile. Theresalready newly-minted jargon to point the way orward: Mocial the

interaction o mobile telephony and social networking ; Metail a mixo mobile phone and retail; and, most musically, Solomo socialnetworking, mobile phoning and localization. The mobile phone hasalready become the basic computer medium in much o the developingworld; in Kenya, 13 million people use mobile banking.

These highly personalized tools will require vigorous saeguards or dataprivacy and security. However, most agreed that this does not necessitategreater government regulation. User reaction will police the marketadequately. As Accel Partners Richard Wong put it, Any company that breaksthe consumers trust (by releasing personal data improperly) will be hit bya backlash so bad that it will keep everyone rom overstpping the line.

Still, governments may need to take action in one specifc area. Unlikethe Internet, smart phones are dominated by a small number o operatingsystems, notably Apple and Android. They unction as the marketsgatekeepers, potentially curbing competition as they determine whatcontent can and cant have access to their systems. As one panelist said,We are araid o closed systems. Many agreed that competitive marketscharacterized by multiple choices and the ability or new entrants tomove in are the best business environment overall, and this may implystronger antitrust oversight.

Additionally, unlike fxed bandwidth (which is unctionally limitless),smart phone capacity may become restricted by the limits o the radiospectrum. Although some have an unwavering political commitmentto Net Neutrality, others eel that some kind o sot regulation, drawnup in cooperation with industry, may be necessary to apportion limited

spectrum capacity.

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WorkshoP ii session ii

Disinter-Media:Is Internet killing or relaunching the press?session Panelists

Carlo De Benedetti, Chairman, Gruppo Editoriale LEspressoNorman Pearlstine, Chie Content Ofcer, Bloomberg LLCRobert Shrimsley,Managing Editor, FT.comArthur Sulzberger, Jr., Chairman & CEO, The New York Times

Robert Thomson, Editor-in-Chie, Dow Jones

moderated by

Frdric Filloux, CEO, E-Presse


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synoPsis Internet will not kill newspapers, but it is re-defning thenewspaper industry. Traditional business models that have worked ordecades or even centuries need to be scrapped in avor o more exibility,adaptability and consistency. There is no single solution: national,international and regional papers ace diering challenges. BloombergLLC, a business and fnancial news provider, has a business modelwhereby all subscribers pay the same price, no discounts. FT.comssystem delivers a portion o initial content ree; it then becomes a paying

service. The New York Times had a money-making model in place thatcharged or selected articles, but decided it could make more money byremoving the pay structure and returning to advertising. There are manypossible models or success.

Whatever newspapers decide to do, the one thing they will have incommon: expect to make mistakes. As one participant warned: i youdont ail occasionally, youre not trying hard enough. Also, expectchange. No successul strategy will have a long shel lie. As technologycontinues to morph and evolve at breakneck speed, what works todaymay be outdated tomorrow. The industry learned that painul lessonwhen they were caught out with 5-year projections that completely ailedto take into account the rapid development o social media.

Devised correctly, Internet tools can greatly complement newspapers,even i the physical papers have ewer readers. Its all about content.Content, not the means o distribution, is what defnes every organ romThe New York Times to the Wall Street Journal to the Financial Times.As content creators, the Net and the newspaper have more in commonthan in conict. Most newspapers will fnd that their website oers anopportunity to engage more deeply with readers. The website -- whichprovides content readers want and content they can use to help makedecisions -- redefnes the role o the journalist, and although this is achallenge it can be a very positive one. The key will be how to balancedigital revenues and sustainability long-term.

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WorkshoP ii session iii

Open Government,Open Data: For the

People, by the Internetsession Panelists

Laurent Blanchard,Vice-President, European Marketsand General Manager, Cisco FranceCarlos A. Primo Braga, Special Representative and Director,EXT, Europe, The World BankJean-Philippe Courtois, President, Microsot InternationalSverin Naudet, Director, ETALAB, data.gouv.r

Andrew Rasiej, Founder, Personal Democracy ForumProfessor Nigel Shadbolt, University o Southampton

moderated by

Stanislas Magniant, Co-Founder, Netpolitique.net

synoPsis Governments in countries with widely diering levels oeconomic development and democratic reedom grapple with issuesregarding Open Data systems. The process can (and optimally does)include national and local governments and international administrativeand non-proft organizations, as well as commercial organizations andprivate individuals. Open Data systems are evolving at uneven speeds,even within countries. In the US, the quality and the amount o availablegovernment data on the White House website (www.whitehouse.gov)hasincreased impressively since 2000, but the open-data sitewww.data.govonly launched two years ago. But not all open data systems are concerned


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with government. A highly impressive crowd source website in the

Philippines,www.checkmyschool.org, lets concerned parents check ontheir childrens education. In Kenya,www.ushahidi.com was developedto monitor violence and oul play during the 2008 elections; it is now beingused to lay out all kinds o interactive maps, in Arica and elsewhere. InMadrid a crowd source application tracks the condition o the Spanishcapitals trees.

While there is strong political support in France or the principle o opendata government and the launch o data.gouv.r, perhaps the most

advanced G8 member country in terms o civic open data systems is theUK. Data.gov.uk boasts almost 7000 national data sets, rom detailed,street-by-street crime maps to the location o bus stops. (Individuals otencontribute, to the beneft o all: scrutiny by Net users revealed that at least6% o the British bus stops were initially located in the wrong place, andcrowd-sourcing eliminated the errors). In response to widespread publicindignation regarding politicians personal and public spending, everyexpense over 500 must now registered on the site and all 355 administrativeareas in Britain now publish their ull budgets on line.

The World Bank, like other international organizations, now publishesmost o its data ree online. It also actively encourages developingcountries to make use o it, democratizing development economics.Only when countries speciically request that their economic dataremain classifed is it not made available to the public.

The private sector has an important role to play in spurring thedevelopment o Open Data and spreading its benefts to society at large.Private corporations developing Government IT systems can help makepublic sector data more easily accessible and reusable. The ecosystemo developers, corporations and Web entrepreneurs can reuse publicdata, to invent new services or citizen, and to create new economicactivity, which can participate in strengthening growth and job creation.

Some panel members concluded with the recommendation that all non-personal government data should be made available online, in machine-readable ormat.
http://www.checkmyschool.org/http://www.ushahidi.com/http://www.ushahidi.com/http://www.checkmyschool.org/

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WorkshoP iii session i

The Disrupters:Extreme Innovationsession Panelists

Lars Bjork, CEO, QlikTechJacques-Antoine Granjon, CEO and Founder, vente-privee.comBrent Hoberman, Co-Founder, mydeco, made.com, PROounders CapitalPierre Kosciusko-Morizet, Co-Founder and CEO, PriceMinister,part o the Rakuten GroupXavier Niel, Founder and Chairman, IliadMarc Simoncini, Founder and CEO, MeeticYossi Vardi, Chairman, International TechnologiesMartin Varsavsky, Founder & CEO, FON Wireless, Ltd.

moderated byLoic Le Meur, Founder, Seesmic and Le Web

synoPsis New technology has dramatically disrupted traditionaltelecommunications, news, music, and other industries. This disruptionhas been ueled by startups that appear to come rom nowhere yet causesudden and major changes in how people communicate, get inormation,and consume entertainment and services. Today, the way people makenew riends and even manage love relationships are being disrupted bymedia like Facebook and Blackberry Messenger. Tomorrows disruptionsare, necessarily, unpredictable.

Increasingly tech-savvy generations will become an important catalystto the emergence o disruptive technologies. Children everywhere have


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a new relationship to technology. Disrupters thereore dont only lookor new products and services or todays population, but or more

technologically uent generations to come. This creates a spiral oincreasingly younger disruptive entrepreneurs.

Executives at emerging technology companies identiy various marketconditions that uel the growth o their disruptive products and services.They encourage countries to create environments that oster productivedisruptions in tomorrows economies. Above all, they implore regulatorsto keep their hands o the Internet. Past disruptions have succeededbecause the early commercial Internet grew or many years beore

regulators even understood the phenomenon. A policy o do no harmrees disruptive companies to orge their own path without additionalbusiness burdens.

According to several participants, sotware patents present an especiallydifcult obstacle to the spread o disruptive technologies. The need toobtain patents or emerging technologies preoccupies companies withresource-wasting patent battles. Many disruptive entrepreneurs wouldlike to see sotware patents eliminated.

Governments are strongly encouraged to promote universal access tothe Internet. Additionally, entrepreneurs are eager or moreharmonization o business laws among countries, to atten barriersand create a workable European ramework. These conditions make iteasier or inexperienced, minimally resourced startups to grow. Also,when making laws that will aect emerging disruptive business models,legislators should consider the long term, with laws that will still berelevant in years to come. Constantly changing regulations are anobstacle or the success o disruptive technologies.

Todays disrupters ace competition rom emerging markets. Countrieslike China have produced competitors in American and Europeanmarkets, while Chinas domestic Internet access is closed or controlledor political and commercial reasons. This is a barrier or oreigncompanies trying to compete. However, in previously closed MiddleEastern countries, Internet markets are beginning to open. The ArabSpring revolutions represent a unique opportunity or the disruptivebusiness model to succeed in newly open markets.

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WorkshoP iii session ii

Sharing Value:How to dividethe digital bountyamong creators,distributors andgovernments?session Panelists

Frank Esser, CEO and Chairman, SFRGabrielle Gauthey, Executive Vice President,Global Government & Public Aairs, AlcatelReed Hundt, Chairman, Aspen Institute IDEA conerenceAlain Minc, President, AM ConseilEzra Suleiman, IBM Proessor in International Studies, PrincetonUniversity

moderated by

Gilles Babinet, Entrepreneur, Chairman o the French Conseil

National du Numerique


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synoPsisAccess to the Internets data is easy, and in this market segmentit could be said that 90% o the eort o making money is just showingup. You are not creating a product or even necessarily selling a product:simply collecting data can, in and o itsel, create valuejobs or revenue.Moreover, it isnt necessary to capture an entire market, just a sectiono it, and aggregate rom there. There remains little control or supervision

by either countries or companies, partly because the Internet becamea common medium or reasons o historic accident and was driven bynon-proft impulses.

In the Internet, all value creation depends on the collective commitmentto maintain a common medium. I this were not the case, no valueeither economic or socialwould be created or anybody. Todaypreerred sectors or investment are dynamic search engines, socialnetworks, and device networks. This may change.

Today, in the worlds 100 largest cities there are 400 smartphones persquare km. By 2016 that number is predicted to climb to at least 13,000.By then the price o smartphones will have substantially decreased andin Arica even the poor will have access to them. Thats a signal to manyindustry insiders that something in the current value chain needs tochange.

One recent change has been the reemergence o government, specifcally

in providing Internet service to areas not currently covered. In the US,or example, billions o government dollars are being spent to provideInternet to non-access areas. This is vital, because the market alone willnot organize itsel in a way that will reach out to the less dense areas.

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WorkshoP iii session iii

The Data DilemmaSocial media and the explosion o dataare driving the Internets growth, and raisingimportant questions about privacy

and data securitysession Panelists

Mitchell Baker, Chair, MozillaSteve Baker,Author The Numerati and Final JeopardyJeff Jarvis, BuzzmachineAndrew Keen,Author, Digital Vertigo

Alain Lvy, CEO, WeboramaChristian Morales, VP & General Manager EMEA,

Dave Morgan, Founder & CEO, SimulmediaChristopher Wolf, Partner, Hogan Lovells

moderated by

Curt Hecht, Vivaki Nerve Center


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synoPsis The Internet is entering a stage experts term Web 3.0, inwhich search engines use keywords to aggregate data while additionalonline tools collect user inormation. Protecting user privacy and

guarding sensitive data has become a growing concern. The Net riskslosing users unless these privacy concerns are addressed.

Consumers should be able to control their personal data and who hasaccess to it. Thats what privacy is. Today, sophisticated Net users areaware that advertising companies, social networking sites, andgovernments (among others) actively mine inormation about themwhile theyre online. These users know how to navigate the virtual worldsaely

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