E-G8 Forum 2011

Index
Preface 5 the call of history

Maurice Lvy, Chairman and CEO, Publicis Groupe 8
changing the World internet matters Plenaries
Nicolas Sarkozy, President of the French Republic 13
Presentation by the McKinsey Global Institute 22
session 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 Transformation 36
sPecial talks
Digitals Next Frontier: Education Rupert Murdoch, Chairman and CEO of News Corporation 40 Groupon: A Case Study Andrew Mason, Founder & CEO of Groupon, talks with Gilles Babinet, Entrepreneur and Chairman of Frances Conseil National du Numrique 42
Broadband For All Neelie Kroes, European Commissioner for the Digital Agenda, talks with Ben Verwaayen, CEO of Alcatel-Lucent 44 A Universal Human Need Mark Zuckerberg, Founder and CEO of Facebook, talks with Maurice Lvy, Chairman and CEO of Publicis Groupe 46
WorkshoPs
i-1 Building Blocks: The art of the start-up 50 i-2 King Content: Entertainment in the digital age 52 i-3 Electronic Liberty: New tools for freedom 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 64 iii-3 The Data Dilemma 66
concluding Press release 70
e-g8 forum May 24-25, 2011
Preface
Fittingly, this e-book is a virtual incarnation of an event whose physical existence was fleeting, but whose impact will endure. Opened on May 24, 2011 in Paris by French President Nicolas Sarkozy, the e-G8 Forum gathered together the finest minds and most skillful operators of the Internet for just two days. But the Forums effect as a catalyston participants, on the G8 Summit that succeeded it, and on public policy by governments worldwidewas, and will continue to be, far more meaningful. The Forum was an intense and ambitious gathering of 1500 participants from more than 30 countries. It culminated in a delegation to the G8 Summit of Heads and State and governments, where questions regarding the Internet were on the agenda for the first time in the history of international summit meetings. The delegation was led by Maurice Lvy, Chairman and CEO of Publicis Groupe, and comprised Hiroski Mikitani, the CEO of Rakuten; Yuri Milner, CEO of Digital Sky Technologies; Stphane Richard, CEO of France Telecom-Orange; Eric Schmidt, CEO of Google; and Mark Zuckerberg, founder and CEO of Facebook. With them, they took a message. The Internet is a powerful vector for individual empowerment, free expression and personal growth. It is an enormously positive force for change and transformation of civic groups, industries, organizations and nations. Its impact as a locomotive of job creation and economic growth is spectacular. As it moves into a new phase that will even more profoundly modify our environment, governments need to grasp more fully the need for greater understanding of the phenomenon.
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Policy-leaders everywhere need a free Internet. They need to encourage investment and to guarantee all citizens rapid, broadband access to an Internet that is secure. As with any breakthrough technology, the digital revolution may have unintended side-effects that may harm individual and collective rights. Thus as it progresses, the Internets growth will need to be accompanied by careful and measured government action to protect consumers and creators alike. This will require a partnership of intense dialogue with all the stakeholders: civil society, industry and creators of all kinds. Youll find here a succinct narrative of every plenary session, workshop session, informal talk and keynote conversation that took place during the e-G8 Forum; photographs and links to video reportages and to the full-stream video that was broadcast live on the e-G8 Forum website from all plenary sessions; and the Forums final press release. This may give you a sense of how a gathering of interconnected, sometimes competing individuals joined into a vast, concentrated mass of intelligencenot a consensus, but a passionate interplay of debate, dispute and effervescent, vivid, spontaneous ideas, in the service of the future of our digital world. As our societies look forward to the Third Revolutionthe digital revolutionwe hope that you will find this little e-book both informative and thought-provoking.
e-G8 FORUM May 24-25, 2011
The Call of History

Speech by Maurice Lvy, Chairman and CEO of Publicis Groupe
Monsieur le Prsident de la Rpublique; my dear friends; First, my heartfelt thanks to all of you, for coming here to be part of a moment that I believe will be historic. Mr. President, it is a joy and an immense honor for me to welcome you to this Forum on Internet and the Digital Economy, the first ever to precede a summit of the G8 nations. This gathering takes place at your initiative. You asked that the Internet should be placed on the agenda of the G8 summit in Deauville, which you will preside. It was your wish that the key players of the Internet and all its stakeholders should be able to express their insights here in open and unrestricted debate, and that the conclusions of their discussions should be made known to the Heads of State and government of the G8. In other words, you wanted this Forum to take place in the same spirit in which the Internet functions: open, participative, and free. You can be sure that this will be the case. I was particularly moved by the honor that you did in giving me the responsibility for organizing this eG8 Forum, and it is with great pride that I observe this assembly. Despite their heavy schedules and our very short lead-time, all the key players of the Internet, with few exceptions, are present among us. They have made huge efforts to shift their agendas in response to your invitation. I think I can say that all of them fully understand how important this meeting is, and the challenging task ahead of us. I wont take the timeor take the riskof citing every one of their names: the list is too long; and I might forget one of my friends.
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In our audience are represented all the components of the digital ecosystem, in all its diversity: infrastructures, manufacturers, software, telecommunications, search engines, social networks, e-merchants, content, and the start-ups of today and of tomorrow. All of them are presenteven advertizing is here!alongside representatives of the academic world and social communities, in order to debate the future of the Internet and its impact on our economies and our societies. There have been a number of conferences about computers and about the Internet. But none was destined to nourish the debates of Heads of State. I think, then, that I can say, without a trace of an advertisers habitual exaggeration, that this Forum is truly historic. It is historic, first, because in two days time, a summit will take place in Deauville in which the Heads of State and government of the eight major industralized countries will discuss, under your Presidency and at your initiative, a number of specific issues regarding the Internet phenomenon as it develops at a speed never before observed in human history. Historic, too, because this sector is a global phenomenon. Almost two billion people are connected to the Internet: one person in three. More than four billion have a cell-phone: two-thirds of the planet. And as you know well, Mr. President, the digital industry abolishes frontiers, erases distinctions and creates a new paradigm in every sphere: knowledge, technology, information, creation, innovation, relationships, exchanges, commerce, economics, communicationin short, every aspect of life. Finally, what makes these two days so special is the very nature of this Forum. It gives voice to the economic and social actors of this sector to content creators: powerful generators of innovation, platforms or companies; to players, big and small; to inventors, trend-setters, citizenbloggers or entrepreneurs, whether they be freshly minted or simply vigilant of that common good that is the Internet. These individuals will debate freely, exchanging points of view, laying down their own
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conclusions and proposing fresh ideas. It is a signal honor, and I am certain that they will show themselves worthy of it. Thus this is a historic moment, and a historic responsibility. Of course it would be easy to use this occasion to express a few platitudes: opinions that we all share. Every day the Internet does indeed transform the way in which people live, work, communicate, bond, play, enjoy themselves, live and love. And indeed, the Internet is a powerful motor for economic development, a mine of productivity and job-creation. This exceptional space of technological innovation is indeed also a source of individual initiatives, pioneers, trend-setters, inventors. And the Internet does indeed create a wind of openness and democracy wherever it is accessible. It offers those who use it possibilities for communication and self-realization unparalleled in our history. But we know that. We are convinced of those truths. The real questions that we need to askand debate here, in this Forumare: How will the Internet contribute to the creation of more wealth, more jobs, more freedom? How can we go further? How, too, can we be even more respectful of the rights of otherstheir intellectual creations and their private lives? How can we ensure a proper balance in value sharing? How can we be both free of constraint and responsible? We have organized round-tables and workshops for debate with the worlds most pertinent players in the field and all participants, in order to attempt to discover paths towards more effective thought about the questions that we all ask ourselves. How can we improve our products, our services and practices so that they can be more easily adapted and used? How can we reassure consumers and clients about the dangerssome of them very realof using digital tools? How can we eliminate or restrict some practices that penalize our digital sector in the eyes of the public, for example in terms of protection of privacy or the fight against cybercrime? How can we organize the transition so that actors from the physical, non-digital
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world can move, as they need to do, increasingly on-line, to the virtual world? For that is the real world of tomorrow. How can we convince the reticentall those not born in the digital universeof its interest and its importance? How can we balance our exchanges? Respect intellectual and artistic property? How can we finance major infrastructures in this sector, as it continues its exponential growth? And, lets dare to use the wordwhat regulation can be put in place that would prevent abuses but would in no way restrict the liberty of the Net, its development or use, particularly in tomorrows mobile world. If we want this Forum to succeed, we absolutely need to ask ourselves these questions with sincerity. We need to imagine, in a spirit of responsibility, possible paths towards solutions capable of bringing to you, Mr. President, and to the Heads of State of the G8, some elements of deeper thought and the viewpoint of the key actors in the field. As you can see, it will take a lot of work to make this e-G8 Forum a success. Of course we dont plan to resolve everything in two days; far from it. But I am convinced that we have here a historic opportunity to move the Internet forward, and to bring our experiences and insights to the table of the G8 Heads of State. Mr. President, my dear friends, I have a particular affection for a quote from Albert Einstein: Imagination is more important than knowledge. Einstein would definitely have loved the Internet. It is both the fruit of human imagination and a space for sharing knowledge that makes it accessible to all humanity. All of us here today have a little knowledge about the Net. But now its time to mobilize our imagination: to create a collective picture of how Internet will develop in the world of the future.
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Changing the World

Address by the President of 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 forces of an era seem to want to converge. And it is in the hope that Paris would become the capital of the Internet for a few days that I wanted to bring you here together, just before the G8 Summit. This is an important moment, because to my knowledge it is the first time that all those who, with their talent and ingenuity, helped change the worldor I should say, make us change the worldare meeting in one and the same place. France and the G8 have indeed the honour to welcome the men and women whose names are now associated with the emergence of a new form of civilization. If we are able to listen to each other, speak to each other and understand each other, I am convinced that we will be able to give this G8 a historic dimension, so that our era becomes fully self-aware and moves beyond its tremendous individual adventures to become a part of collective history. Our world has already experienced two different globalizations. From the first one, that of great discoveries, we inherited a complete world, a world which Magellan could circumnavigate, a world that could be explored and charted. From the second, that of industrial revolutions, we inherited a space that was not only complete, but domesticated, and at times subjugated.With the third globalization, that in which you both play a role and are promoting, you have changed the way the world sees itself.
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You have changed the notion of space, because the Internet has not only eliminated the distance separating people, but has also opened up a virtual world that is, by definition, limitless. A world in which everyone can make contact with everyone else. A world in which everyone can create their own territory, their own community, even their own society. You have changed the notion of time, getting rid of the very concept of something happening over a period of time, making everything immediate, giving everyone the possibility of reaching others and accessing information instantly, and in short, making anything possible. You have even changed how we see history because transparency, even if at times it can be contested, both in its method and its effects, has imposed itself on countries. You have changed our relationship with things and objects with the single phenomenon of dematerialization. You have changed the very notion of knowledge and have made it possible for everyone to access all knowledge and not only access, but contribute to this knowledge. The dream of a universal library that would include knowledge from all over the world, this dream that is old as time itself, has now become a reality for millions of Internet users. In just a few years, you have rocked the very foundations of the world economy in which you now play a major role. You have changed the world. For me, you have changed the world, just as Columbus and Galileo did; just as Newton and Edison did. You have changed the world with the imagination of inventors and the boldness of entrepreneurs. Unique in history, this total revolution has been immediately and irrevocably global. Unique in history, this revolution does not belong to anybody, it does not have a flag, it does not have a slogan: this revolution is a common good. Unique in history, this revolution has occurred without violence. The discovery of the New World brought about the total destruction of American Indian civilizations. The global revolution that you incarnate is a peaceful one. It did not emerge on battlefields but on university campuses. It arose from the miraculous combination of science and culture, and the determination to acquire knowledge and the determination to transmit it.
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With regard to the origins of your sector, legend has it that Google was created in a garage: the thing I remember most is that Google was born in a university library. The imaginary world of Hollywood wanted Facebook to be seen as the result of a failed love affair: wed like to see many more like that. The thing I remember most is that Facebook was created at a top ranking university campus. This revolution that went so far as to change our perception of time and space has played a decisive role in other revolutions. In Tunisia and Egypt alike, mere individuals were able overturn a power that was completely discredited by building virtual barricades and organizing very real rallies. Peoples in Arab countries thus showed the world that the Internet does not belong to States. International opinion was able to see that the Internet had become, for freedom of speech, a medium for expressing unprecedented power. Like any revolution, the technological and cultural revolution you began holds promise. Huge promise. Promise that is commensurate with the considerable progress you incarnate. Now that this revolution has reached the first stage in its maturity, it should not forget the promise of its origins. If you have designed tools that are now your own, it is because you dreamed of a world that would be more open. If you have built social networks that currently connect millions of men and women, it is because you dreamed of a world that would be more socially minded. If you have given utopia concrete expression, it is because you have faith in humankind and its future. If you have achieved worldwide success so swiftly, it is because this promise reflects universal values. Your work should thus be considered historic and help drive civilization. And that is the importance of your responsibilitybecause you do have a responsibility. Our responsibility, as Heads of State and Government, is no less important. We must support a revolution that was born at the heart of civil society for civil society and that has a direct impact on the
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life of States. Because if technology is neutral and must remain so, we have clearly seen that the ways the Internet is used are not. Today, discussing and shaping the Internet is a real historic responsibility and this responsibility can only be shared, by you and us. The idea is for the G8 States, which include some of the most powerful countries in the world, to recognize the role that is now yours in the course of history. We would like to hear about your expertise, because we have things to learn. We have things to understand. Just like individuals and companies, States do not want to miss an opportunity for progress that you have created and that you incarnate. How can we use the Internet to bolster democracy, social dialogue and solidarity? How can we use the Internet to improve the way States function? How can we inject this spirit of innovation and enterprise which is characteristic of your sector into States? Also, the States we represent need to make it known that the world you represent is not a parallel universe, free of legal and moral rules and more generally all the basis principles that govern society in democratic countries. Now that the Internet is an integral part of most peoples lives, it would be contradictory to exclude governments from this huge forum. Nobody could nor should forget that these governments are the only legitimate representatives of the will of the people in our democracies. To forget this is to run the risk of democratic chaos and hence anarchy. To forget this would be to confuse populism with democracy of opinion. Juxtaposed individual wishes have never constituted the will of the people. And a social contract cannot be drawn up by simply lumping together individual aspirations. States and Governments have also learned from history, and I am speaking to you on behalf of the country that drew up the Declaration of the Rights of Man and of the Citizen. So, ladies and gentlemen, be loyal to the promise of the revolution that you began, as France has sought to be loyal to hers for over two centuries.
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I know that the market has its own regulatory mechanisms but trade is never truly free if the terms of this trade are unfair. Do not allow new barriers to be built where you have toppled the longstanding walls of the old world. Do not allow new monopolies to take root where you have overturned long-established situations that seemed unshakeable. In giving all individuals, regardless of where they live or from where they speak, the possibility to be heard by everyone everywhere, you have provided all citizens of the world with a freedom of speech that is unprecedented in history. This outstanding leap in individual freedoms cannot be taken at the expense of the rights of others. Do not allow the revolution you began to violate peoples fundamental right to privacy and to be fully autonomous. Complete transparency, which never allows a person to rest, will sooner or later come up against the very principle of individual freedom. Let us not forget 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 forget that the sincerity of your promise will be assessed in the commitment of your companies to contribute fairly to national ecosystems. Do not allow the revolution you began to violate the basic right of children to lives that are protected from the moral turpitude of certain adults. Do not allow the revolution you began to be a vehicle for maliciousness, unobstructed and unrestricted. Do not allow this revolution become an instrument in the hands of those who wish to jeopardize our security and in doing so, our freedom and our integrity. You have allowed everyone, with the mere magic of the Web, to access all the cultural treasures of the world in a simple click. It would be something of a paradox if the Web contributed to draining them over time. The immense cultural wealth that provides our civilizations with such beauty is a product of the creative forces of our artists, authors and thinkers. Basically, it is the product of all those who work on enchanting
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the world. Yet these creative forces are fragile because when creative minds are deprived of the fruit of their talents, they are not just ruined, whats worse, they lose their independence, they will be required to pawn their freedom. Im telling you this with a man in mind: a Frenchman who died over two centuries ago, who with a single play brought down a nearly onethousand-year-old monarchy; a man who also, with Lafayette, was one of the first defenders of American Independence! This man was like you because, starting with nothing but his intelligence, he overturned an order that was believed to be immovable and eternal. This man was Beaumarchais. This same man invented the principle of copyright. He went one step further than giving authors ownership rights of their works, he ensured their independence, he offered them freedom. I know and I understand that our French idea of copyright is not the same 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 of the Rights of Man and of the Citizen lay down: nobody can have his ideas, work, imagination and intellectual property expropriated without this being punished. What I would like to express here is that each of you should be able to be heard, because before being entrepreneurs you are creators. It is under this copyright law for creative work that you have been able to found companies that have become empires. These algorithms that constitute your power, this continual innovation that constitutes your strength, this technology that is changing the world, are your property and nobody can contest that. Each of you, each of us, can therefore understand that writers, directors, musicians and actors can have the same rights. This copyright law for creative work enabling artists to receive fair payment for their ideas and their talents, is also valid for each of the States we represent. States invest in training of those who then join your
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companies. States invest in the technical and technological infrastructure that provides transport for the services and content that are circulated on the Web. States would like to engage in dialogue with you so that a balanced way forward can be found one day that is mindful of your interests, those of Internet users that give you overwhelming support every day and those lastly of citizens and taxpayers of every nation who also have rights. We are emerging from a terrible crisis, resulting from the blindness of financial powers who have lost sight of what was important to sacrifice everything for money. These powers that did not want to be accountable to people and the powers that wanted to avoid dialogue with elected governments that have the interest of the people in mind. It is simply a call for collective responsibility that I am issuing here. A call for responsibility and a call for common sense. We believe in the same values. I am therefore convinced that a way forward is possible. A way forward that will enable the world you created and the world we have inherited to work alongside each other in the interest of a world that has become global, which is largely thanks to you. So let us begin together this crucial dialogue. Let us open and build this new forum. I would like to thank you, because when I had the idea for this forum, at first everyone told me that it was a bad ideaexcept Maurice Levy, when I asked him to be in charge of organizing it. First my fellow Heads of 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 worst risk is that of not speaking to each other. And I think that we never take risks when we call on the intelligence of people, from your world, who have said to themselves what can we do with Heads of State and Government? I think that we have a lot to accomplish together and Ill be very happy, on Thursday, if a delegation made up of some of the participants here today could engage in dialogue with my fellow Heads of State and
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Government. We need this dialogue, we need to understand your expectations, your aspirations, your needs. And you need to hear our limitations, our red lines, the problems we shoulder in the name of the general interest of our societies. I am so pleased to welcome you here in Paris today and would be even more pleased if this forum could be held every year prior to the G8 Summit so that we have a clear idea of where you are in your progress and so that you know what we are thinking. Thank you.
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Presentation
Internet Matters
A groundbreaking report by the McKinsey Global Institute shows the Internet is one of the biggest drivers of global economic growth.
synoPsis Presented at the e-G8 Forum, a recent study by the McKinsey Global Institute took a detailed and comprehensive look at the Internets impact on growth, jobs, and wealth creation in 13 countries that together account for more than 70% of global GDP.
The study found that the Internet accounts for an average 3.4% of GDP in Britain, France, Germany, Italy, Russia, Sweden, Brazil, Canada, the US, China, India, Japan and South Korea. If it were a sector, its weight in GDP would be bigger than energy, agriculture, or several other critical industries. There is also a great deal of room for further development. While the Net accounts for around 6% of GDP in Sweden and Britain, in 9 out of these 13 countries its contribution is still less than 4%. It is also a powerful catalyst for job creation. While the Internet has eliminated 500,000 jobs in France over the past 15 years, it has created 1.2 million others 2.4 jobs created for every job destroyed. Moreover it creates substantial value for users, ranging from 13 ($18) a month per user in Germany to 20 ($28) in the United States. Total consumer surplus generated by the Internet in 2009 ranged from 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 of $500 in real per capita GDP in developed countries. It took the Industrial Revolution of the 19th century 50 years to achieve the same results. All industries have benefited. Across sectors, small and medium-sized companies with strong Web presence grew more than twice as quickly as those that had minimal presence on the Net. They also reported a share of total revenues from export that was twice as large, and created more than twice the number of jobs. Armed with a better understanding of howand how muchthe Internet contributes to national economies, policy makers and business executives can act more effectively. In particular, the report suggests they should consider the following immediate steps:
Use public spending to support innovation. Countries with the highest public investment in the Internet also have the largest non-public Internet contribution to GDP . All business leaders, not just e-CEOs, should put the Internet at the top of their strategic agenda, looking to reinvent their business models to boost growth, performance, and productivity. A dialogue between government and business leaders can help the Internet ecosystem flourish. Standards for digital identities and intellectual property protection must be addressed; other relevant topics include net neutrality, the availability of talent, and the overall business environment.
Download the full report at www.mckinsey.com/mgi
The Internet spirit of cooperation and consultation: left to right, Ben Verwaayen, CEO of Alcatel-Lucent, with French Finance Minister Christine Lagarde; James Manyika, Director at McKinsey and Co. San Francisco; the audience was lively and knowledgeable; Jimmy Wales, the founder of Wikipedia; Pascal Ngre, President and CEO of Universal Music France; Nigel Shadbolt, Professor of Artificial Intelligence at the University of Southampton; Sheryl Sandberg, COO of Facebook.
e-g8 forum Tuesday May 24, 2011 e-g8 forum Tuesday May 24, 2011
Plenary session i
The Internet & Economic Growth
Information technology and the digital ecosystem have been powerful accelerators of economic growth and employment. How to ensure that this can continue?
session Panelists Christine Lagarde, Minister for Economy, Finance and Industry, France John Donahoe, President and CEO, eBay Jean-Bernard Lvy, Chief Executive Officer, Vivendi Hiroshi 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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for full-stream video of this session
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synoPsis The Internet is a critical locomotive for growth, Minister Christine Lagarde reported: in France, the digital sector currently generates 3.7% of GDP and this is likely to rise to 5.5% in the short term. By encouraging entrepreneurship, the Internet creates value, jobs, and unique opportunities for todays global citizens to establish new ventures at minimum cost, regardless of geographic location or other physical difficulties. Ebay has 17,000 employees globally, but 1.3 million people make their primary or secondary income from sales via the Ebay platform.
Moreover, this increasing growth is also exponentially accelerating in impact. A small startup company creates the idea for platform which, if successful, can be almost immediately globalized; as Eric Schmidt pointed out, this platform (PayPal, Rakuten) then becomes an ecosystem used as a launch-pad by multiple entrepreneurs, creating great wealth. Mobile phones in developing nations provide the same platform-like ability 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 of delivering health services and improve the health of consumers, thus also boosting productivity and income. Whether in G8 or developing countries, digital job creation occurs largely among small businesses and individuals, although of course the Net does also permit large corporations to improve productivity and create new positions. Several panelists urged governments to analyze factors that might curb entrepreneurship and digital businesses in their countries. Most of the panel agreed that above all, governments should ensure broadband access to all citizens, with optimal physical infrastructure for connectivity. The panel also discussed the need to regulate certain sectors, for example e-currencies and mobile banking: Hiroshi Mikitani pointed out that by offering credit, these essentially create money. Government rules would increase security in this field and thus also consumer confidence. However, Eric Schmidt argued that before turning to a regulatory approach to any issue in this brand-new, innovative and resilient field, leaders should examine possible technological solutions from the private sector. These may be quicker and better adapted to problems occurring in the Internet ecosystem today. Examples: NFC chips for secure digital banking (more secure than credit cards); content-ID programs to sniff out pirated material; LTE technology, for four-times greater spectral efficiency in the wireless band.
Plenary session ii
The Internet & Society

The Internet transforms everything it touches--how we communicate, market, work, learn and play. Some of the most profound changes involve how we organize into communities, re-envision government and share information. And thats only the beginning.
session Panelists Tom Glocer, CEO, Thomson Reuters Andrew Mason, Founder & CEO, Groupon Stphane Richard, Chairman & CEO, France Telecom - Orange Sheryl Sandberg, COO, Facebook Klaus Schwab, Founder & Executive Chairman, World Economic Forum Jimmy Wales, Founder, Wikipedia moderated by Maurice Lvy, Chairman and CEO, Publicis Groupe
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synoPsis The Internets tools for knowledge open the possibility of lifelong education for millions. They mean that people are now much more likely to seek out information, Jimmy Wales noted; Wikipedia is available in more than 200 languages and for some (ex. Swahili) this is their firstever encyclopedia. This already huge impact on the worlds cultures will exponentially increase as improvements in networks bring billions more people online in the developing world.
But the Internet has moved beyond information retrieval to social discovery. Social networks such as Facebook aggregate individuals into self-defined, overlapping communities with collective voices loud enough to effect change. This outsourcing of personality also requires sophisticated management of personal privacy by every individual. Prof. Schwab felt that the development of social networks may mean that young people may vote less in elections, as other forms of expression become more pertinent. Sheryl Sandberg pointed to the 2008 Obama social-network campaign that encouraged striking numbers of young people to vote. All agreed that the rise of social networks will empower youth in particular, and spur governments to greater dialogue with citizens. This will be particularly transformative in the developing world, as Jimmy Wales pointed out. All successful new technologies reduce costs and friction, improving quality of life, Tom Glocer said. But any new tool can also be harmful. Faced with pedophiles or terrorists there is a need for oversight or governance. This will have to be based on cooperation, because business alone cannot solve the problems, but neither can civil society or government. Stphane Richard noted that another vital area of cooperation is the dual question of Net neutrality and Internet access. Everyone, even in remote areas, should have access to broadband. But this requires costly investment in physical infrastructure; moreover, the spectrum is limited. Without careful co-management, the Nets infrastructure could one day face congestion or collapse, he warned. There is still room to expand e-commerce. At present, only 5% of commerce occurs on-line, while 80% of disposable income is spent within a 2-mile radius of a consumers home. A niche exists in local e-commerce: small businesses using websites like Andrew Masons Groupon for performance-guaranteed, personalized marketing.
Plenary session iii
Future Net: Whats Next?
Limitless bandwidth. Massive data. Total mobility. Technology continues to accelerate. Will the infrastructure keep pace?
session Panelists Peter Chou, CEO, HTC Michel de Rosen, CEO, Eutelsat Paul Hermelin, Chairman and CEO, Capgemini Danny Hillis, Co-Chairman and CTO, Applied Minds Paul Jacobs, Chair and CEO, Qualcomm Craig Mundie, Chief Research and Strategy Officer, Microsoft moderated by David Rowan, Editor, Wired UK
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synoPsis Technology in the next 5-10 years will eliminate the need to master the traditional computer interface. This will change how we relate to computers and the services we expect from them. Remote wireless monitoring will transform the health-care industry, increasing productivity and optimizing outcome, said Paul Jacobs. He detailed a list of futuristic devices, including implantable fertility monitors and implantable defibrillators, which tests have shown can reduce mortality by 50%.
Machines will increasingly talk directly to other machines. Cars will warn each other when they are too close, and in gaming, avatars will interact in human-like ways. A new generation of smartphones will offer consumers broad choices in mobile TV and video, and travelers may encounter a world of curated chips describing the history of landmarks. There will also be more 3D TV and connected TV. As this flood of data increases it will be exploited, in a world of personalized marketing and individual choice. Students may demand personalized education. Governments may seek to establish predictive patterns for terrorism or tax fraud. These opportunities entail serious risks. An infrastructure of talking machines will increasingly bypass the ability of government to manage or even understand it, warned Danny Hills. Breakdowns will be much more likely, and their consequences catastrophic. Reliance on digital technology will increase the threat of data theft and hacking. New enhanced services will also outrun current bandwidth capacity. Revenue may need to be split differently so that the operators who lay down infrastructure have incentives to keep pace with massive new needs in the networks. Other somber messages: battery capacity will strain to keep pace with the needs of new devices. Michel de Rosen warned that the world could splinter into digital haves and have-nots. He proposed that the G8 could declare Internet access to be a universal service obligation; in effect, this is already the case in Switzerland and Finland, and is an official commitment by the EU. Craig Mundie also called on governments to improve technological education.The panel broadly agreed that it is governments role to create the conditions in which people can be creative and prosper. That means they must urgently focus on one area: anticipating and planning for potentially disastrous breakdown of the infrastructure and networks that underlie digital services.
Plenary session iV
Intellectual property in the digital age
Whats at stake for culture and business? What should be the new rules to encourage and stimulate content creation on the Internet?
session Panelists John Perry Barlow, Vice Chairman, Electronic Frontier Foundation Antoine Gallimard, President Groupe Gallimard and President, Syndiact National de lEdition Jim Gianopulos, Chairman, Fox Filmed Entertainment Frdric Mitterrand, Minister of Culture and Communication, France Pascal Ngre, Chairman and CEO, Universal Music France Hartmut 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 Ngre called the creatio, industries: film, books and music. It is a huge opportunity one-third of the music industrys revenue comes from the digital sector but also the locus of massive copyright infringement and piracy. Service providers say 25% of traffic stems from illegal downloading.
With one exception, the panelists felt that a healthy and creative digital economy cannot exist without assertive protection of intellectual property. If the work of artists is not protected and paid for, creation (and content) will dry up. Record labels invest $5 billion per year on new talent, Pascal Ngre said, and get their money back only 1 time out of 7 or 8. It is not only a question of return on investment but also the ongoing vitality of creativity. Copyright is a source of freedom, said Minister Frdric Mitterrand (himself a movie director and author): the freedom to continue to create. The panel noted Eric Schmidts earlier suggestion that content-ID programs could trawl the Internet to identify, and remove, illegal content. Jim Gianopoulos regretted that this technology just isnt there yet, not even close. He felt the best solutions stem from voluntary agreements between the tech and creation industries to protect intellectual property, but where those are not possible, governments should enforce rules. In this regard most panelists approved the recent French legislation, Hadopi. In contrast, John Perry Barlow attacked the very notion that expression can be equated to property. For the first time in history, he said, the Internet makes it possible to give every human the right to satisfy his/her curiosity to the fullest and to find an audience. To deny those rights is to preserve outmoded institutions. Instead of tightening the regulation of creative content, global leaders should talk about incentivizing creativity. This view that freedom means that everything should be free of charge was hotly disputed. Jim Gianopoulos insisted that no new, alternative business models exist that could generate the kind of cash required to return investment on a major film. The creation industries generate cultural diversity, jobs and tax revenue, and they are a major driver of the demand for high bandwidth. Although opinions may differ as to the details or complexity of the arrangements required, some mechanism for remunerating content will probably be necessary.
e-g8 forum Tuesday May 24, 2011 2011 e-g8 forum Wednesday May 25,
Plenary session V
Fostering Innovation How to build the future

session Panelists Eric Besson, Minister of Industry, Energy and the Digital Economy, France Lawrence Lessig/Professor, Harvard Law School Xavier Niel, Founder & Chairman, Iliad Yuri Milner, CEO & Managing Partner, Digital Sky Technologies Sean Parker, Managing Partner, Founders Fund Niklas Zennstrom, CEO and Founding Partner, Atomico moderated by John Gapper, Chief Business Commentator, Financial Times
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synoPsis As a business and creative environment, the Internet is characterized by a dynamic in which innovative outsiders kids, immigrants, dropouts challenge incumbents with their new and better ideas. Prof. Lawrence Lessig observed that because of powerful lobbies government regulations usually protect the interests of incumbents, thus ultimately harming consumers. He therefore urged governments to stay out of the way, aiming for minimal interference.
Copyright was a hotly argued subject. Lessig and others agreed that creators should be compensated, but that the current architecture of regulation no longer makes sense. The recent report published by Professor Hargreaves for the UK government characterized the current system as obstructive of innovation and economic growth. The French Hadopi three strikes legislation, which punishes piracy by cutting Internet access, was seen as poorly thought-out. A better system is urgently required, the panel felt: it should be one that makes sense in a digital world where everything can be copied. It should also be less fragmented; currently you almost have to pick which laws youre going to comply with, said Niklas Zennstrom, because Internet-based (thus global) companies cannot comply with all. Startups in Europe face obstructions due to the limited size of each national market and fragmented legislation on data protection and tax. In Europe failure also carries a stigma and there is a cultural reluctance to take risk, Niklas Zennstrom said. Yuri Milner pointed out that the two largest internet companies in Europe are both Russian (Yandex and Mail.ru); he attributed this to Russias very open and lightly regulated environment. Minister Eric Besson agreed that governments need to encourage spending on research and innovation via tax incentives, as well as ensuring good networks (fiber optics or 4G cellphone networks) and laying down strong technological education for engineers. Governments also need to foster startups through competitive centers. Former Napster founder Sean Parker noted that the music industry which has recently shrunk from a global $45 billion industry to $12 billion may soon see a rush of revenue. Just as has been happening in the book publishing industry, he predicted that record labels back catalogues will rise massively in value.
e-g8 forum Wednesday May 25, 2011
Plenary session Vi
Digital Transformation:
How traditional businesses are being re-invented
session Panelists Franco Bernab, Chairman and CEO, Telecom Italia Rosabeth Moss Kanter, Professor, Harvard Business School Eric Labaye, Chairman, McKinsey Global Institute Stephen A. Schwarzman, Chairman and CEO, The Blackstone Group Mark Thompson,Director-General, BBC moderated by Jeff Cole, Executive Director, USC Annenberg Center for the Digital Future
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synoPsis Theres not a company on earth that hasnt been affected by digital technology, observed Jeff Cole. Most have been transformed. This transformation affects what Harvards professor Rosabeth Kanter called the five Ps of corporate life: products, processes, partners, people and purpose. The metamorphosis creates efficiencies and opportunities, and is often exhilarating as well as profitable. Remote work may revive rural areas, and self-organizing development teams and e-learning provide a new modes for workers to continuously upgrade skills, changing the way companies operate.70% of employees say Internet technology has made them more productive.
But the change is also disruptive, both to corporations and their various stakeholders. Franco Bernab warned that traditional telecom industries are shedding jobs rapidly. Of course there is also new job creation; but what the figures dont show, he said, is the shift from a protected workforce to less secure jobs. This entails social dislocation. Additionally, Stephen Schwarzman pointed out that by reducing friction in the financial markets, digital tools have greatly increased the markets volatility. He warned that this may not always be in societys interest. Companies can remain true to their identities as they re-invent the way they do business, observed Mark Thompson: the BBC may deliver news digitally, but remains aware of its core business as an authoritative source of information. Incumbents can rely on their traditional strengths and should not focus, as they currently often do, on a defensive strategy. A limber approach to organization is necessary to avoid a split between a shiny new digital unit and a grim declining old one. Social networking adds to the transformative pressure on big corporations by demanding more openness and faster reactions from corporate leadership. It also provides an opportunity for real-time market research, Eric Labaye pointed out, giving companies the tools to match customer needs more effectively and quicker. This works to increase the effectiveness of advertising budgets. There are also other, less quantifiable benefits when networking allows businesses to establish new kinds of relationships with customers. Pepsi, for instance, asked Internet viewers to determine where it should direct its charitable contributions instead of advertising on the Super Bowl, thereby redefining its image and allowing customers to feel more closely involved.
Free and wide-ranging debate: Xavier Niel, founder and Chairman of Iliad, with Sean Parker, Managing Partner at Founders Fund; Frdric Mitterrand, Frances Minister of Culture; in the public were many key stakeholders of the Net; French President Nicolas Sarkozy speaking with Google CEO Eric Schmidt; a coffee and networking break in Paris landmark Tuileries Gardens; Stphane Richard, Executive Officer of France Telecom Orange; Luca Ascani, co-founder and Chairman of Populis.
sPecial talk Ruppert Murdoch, Chairman and CEO of News Corporation:
Digitals Next Frontier: Education

Limitless bandwidth. Massive data. Total mobility. Technology continues to accelerate. Will infrastructure keep pace?
Advances brought about by technology and the Internet are evident everywhere but in education. Schools remain the last holdout from the digital revolution; todays classroom looks almost exactly as it did in the Victorian age. This represents a colossal failure of imagination and an abdication of responsibility to our children. Throwing money at this problem is no solution. In my country, weve doubled spending on primary and secondary education over the last three decades, while test scores remained flat. Some claim the problem is students coming from poverty, broken homes, or immigrant families. This is arrogant, elitist and unacceptable. The era of one-size-fits-all education, which frustrates the bright kids and leaves the struggling ones behind, is over. Education-specific algorithms can be used to help determine what a student needs to learn. With digital technology we can bring the best educators to children anywhere in world at low cost. Stephen Hawking explaining principles in physics or Yo Yo Ma teaching harmony could be brought to any classroom for what we now pay to download a song.
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An outstanding example of technologically improved education is found in New York City, at an African American charter school in Harlem. The school is located in a neighborhood with all the pathologies normally used to explain away failure. Yet the school tests students, insists parents check homework, and uses technology including the Kindle ebook reader and laptops. Its student test scores are now equal to schools filled with gifted and privileged students. Technology will not replace the teacher but will take the drudgery out of their responsibilities. The Ikea school in Sweden is supported by a knowledge portal that contains the entire syllabus and other teaching tools. Freed from administrative work, the teacher can give students far more personalized attention. Software, rather than hardware, is key to innovation in classrooms. Well designed, it teaches concepts while helping students learn for themselves. The more interactive and intimate, the better the student will perform. In two small California schools a textbook publisher is using iPads and education apps to offer guided instruction, instant feedback, and access to hundreds of videos which students use at their own pace. If we can bring these kinds of advantages to the entire world, we will ensure that a poor child in Manila will have the same opportunities as a rich child in Manhattan.
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conVersation Andrew Mason, Founder & CEO of Groupon, talks with Gilles Babinet, Entrepreneur and Chairman of Frances Conseil National du Numrique
Groupon: A Case Study

Launched in November 2008, Groupon now stakes the claim of being the fastest growing company in the world, employing 7,500 people to offer localized deal-of-the-day coupons to customers. Its group discounts are negotiated by Groupon itself with local businesses in 500 different cities across 46 countries, mainly in the food and entertainment industry. Andrew Mason said the company has found the Groupon model surprisingly effective in every region of the world. Specifically focusing on customer happiness was key for Groupons success with a local-centric e-commerce model that had never succeeded before; a business value that is not as complicated as some companies may think. Its as simple as talking to your customers and understanding what they want and making sure you do those things, Mason said. Critical was the companys ability to put themselves in the shoes of customers to understand their priorities. Relating to a highly demanding customer mindset, the company was able to work to serve it. Groupon found it was a mistake to try to be all things for all people. It realized that doing a great job serving a selection of customers was far more valuable than doing an okay job serving everyone. Another key discovery was that self-service was not always the answer in building e-commerce models. Groupons expanding sales force was an essential ingredient to growing its network of local merchants.
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The company focuses on relevance today -- refining personalization technology to find products that will be of maximum interest to every individual consumer. It has also added a real-time element with its Groupon Now service, based on the premise that customers often make food and entertainment decisions at the very last minute. Providing an effective real-time experience required moving from a push model to the more difficult pull experience. Instead of browsing offers Groupon found for them, the customer tells the service specifically what they want and when. Groupon Now uses relationships with thousands of merchants to offer real-time deals in a window of a few hours. Mason said Groupon has had the effect of catalyzing lifelong passions among customers. A discount of 70% off at local rock-climbing classes can lead to discovery of interest in the sport among people who would otherwise never had considered becoming a rock-climbing enthusiast. It exposes people to things they wouldnt otherwise do. Thus Groupons phases of development reflect the evolution of Internetbased businesses towards increased personalization and real-time deals. It started with a push sales strategy, offering deal-a-day for customers to browse; it is now developing a more personalized demand-based pull service called Groupon Now. Groupons overall business model is based on using the Internet for collective action, allowing individuals to come together to achieve a common goal. The model has also repeatedly been used for more altruistic purposes with success.
e-g8 forum Tuesday May 24, 25, 2011 Wednesday May 2011
conVersation Neelie Kroes, European Commissioner for the Digital Agenda, talks with Ben Verwaayen, CEO of Alcatel-Lucent
Broadband For All
The European Unions Digital Agenda sets ambitious goals for the 27 EU member states. To spur growth, jobs, research/innovation, and better policies on education and other issues, the EU has promised that by 2013 every single European citizen will have high-speed connection to the Internet. By 2015, every European should have a 30 MB connection, with 100 MB connections for at least 50% of Europeans by 2020. Yesterdays debates at the e-G8 Forum expressed passionate conviction that governments should stay out of the way. Thats tempting. However, some issues do require rules of the game. Those rules can be set by the parties themselves: the EU needs to listen to business leaders, bankers, broadcasters, the telecoms and content people, and they need to take responsibility. Only if the digital sector does not take up its responsibilities should political leaders step in to replace them.
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Political leaders need to take into account how incredibly rapid change is in this area; were in a hurry, and we must learn to be far more alert. We also need to realize that the rules should be global. Theres no sense in the EU setting its own regulations. We need to look at this with the OECD, with the G8 and later the G20. But meanwhile, we have a single European market and it should be a digital single market. National legislation on these questions is completely pointless. Its absurd that you 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 proper remuneration for artists; but the borders for these rules should be redrawn. To the G8 Heads of State, we need to say: Take this issue seriously. Its on your agenda now and it needs to stay there. Make decisions, implement them and keep coming back to review them. E-health, e-government, e-learning. This needs to be a daily activity of every member state.
conVersation Mark Zuckerberg, Founder and CEO of Facebook, talks with Maurice Lvy, Chairman and CEO of Publicis Groupe
A Universal Human Need

The phenomenal success of Facebook owes much to a basic human desire that turns out to be even more universal and more powerful than Facebooks Mark Zuckerberg appreciated when he founded the social networking site as a student at Harvard in 2004. I just wanted to let people stay in touch with people around them, Zuckerberg said. It turns out thats a universal need. Equally important is Facebooks role as a forum in which people interact under their real identities. There is room on the Net for anonymous social networking media and there are even advantages to interacting anonymouslya willingness to speak controversial truths, for instance. Facebook, however, has staked its future on peoples growing willingness to share more of themselves without the cloak of anonymity. For one thing, it promotes sincerity. With transparency comes accountability, said Zuckerberg. Your real name is attached. Do people share too much information? Only they can decide where the boundary line falls, Zuckerberg said, but that boundary appears to be shifting ever outward. In Facebooks early days people were reluctant to share much of anything. But more people are discovering the value in sharing different aspects of their lives. The past few years have seen a huge leap in the number of people sharing their location, for example, so they can see which of their friends might be nearby. Future growth will be propelled in large part by companies that build social networking into applications hosted on Facebooks platform. The best examples are social gaming applications like Zynga and Playfish, which are now at the forefront of the gaming business. Facebook will
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never launch its own applications like these, says Zuckerberg. Any one company can only do one or two things well. We know technology and psychology, but we know nothing about games. In future, he adds, media and music companies will increasingly bake in a social design, and Zuckerberg is hoping Facebook will serve as one of their primary platforms. Zuckerberg downplayed Facebooks role as an agent of change in the democratic movements of the Middle East, North Africa and elsewhere. It is the power of the internet that lets people share their thoughts, both trivial and passionate, with one another. Facebook was just part of a bigger trend, he said. However, he does feel proud, he added, to see heads of state communicate directly with the citizenry through their Facebook pages, because Thats what democracy is about. So is Facebook just a trend, a flash in the pan, asked a Facebook user ? The mediums of social networking will change. Facebook itself has changed considerably since its early days, and is still changing. Some 300 million Facebook users access the site through mobile phones, and that segment is growing much faster than the web. But the basic need to share ones self with family and friends will remain.
Support for innovation: Tony Wang, Twitters General Manager Europe; questions were focused and often hotly debated; former Greatful Dead lyricist and founder of the Electronic Frontier Foundation John Perry Barlow, during a workshop session on Electronic Liberty; debates during plenaries often spilled over into breaks; workshops zeroed in on issues ranging from smartphones to intellectual property and open data; Susan Pointer, Director of Public Policy for Googles EMEA.
WorkshoP i session i
Building blocks: The art of the startup

session Panelists Samir Arora, Chairman & CEO, Glam Media, Inc. Luca Ascani, Co-Founder & Chairman, Populis Bruce Golden, Partner, Accel Partners Rick Marini, Founder & CEO, Branch Out Shaukat Shamin, Founder & CEO Buysight moderated by Esther Dyson, Chairman, EDventure
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synoPsis To best help startup companies, many feel that governments should aim to stay largely out of the way. However, they can help encourage growth by ensuring high-quality Internet infrastructure and business regulations that foster growth. Universal high-speed Internet access and friendly hiring and taxation laws are policies that make starting an international business easier to navigate and afford. Government can also encourage growth by preventing brain drain the loss of a countrys most talented and educated workers overseas.
To help start-ups expand and operate across borders, governments should standardize their practices as much as possible, making their business requirements and services accessible and intelligible to a broad international audience. The G8 could even promote a governmentcoordinated information portal, where businesses can go to grasp the wide variety of international issues confronting them, such as tax treaties, visa requirements, resident permits, employment rules, and local practices. Across the world, Internet entrepreneurs encounter law-makers with very little detailed knowledge of the issues theyre facing. To produce policies that will positively assist startups struggling to expand into new markets, governments should work to educate legislators and administrators on the issues that should shape business legislation. After starting up a business, another hard challenge is creating sustainable, larger businesses that will last. This can be especially difficult in the diverse marketplaces of Europe, where there is more friction facing a startup due to the different treatment of regulations, hiring laws and even employee stock options among countries. Young Internet companies based in Europe often keep a presence in Silicon Valley, and this environment which is more conducive to growthgreatly increases their chances of turning innovative ideas into a successful business.
WorkshoP i session ii
King Content: Entertainment in the digital age

session Panelists David Drummond, Senior Vice President, Google David Kenny, President, Akamai Mikael Hed, CEO, Rovio Mobile Carolyn Reidy, President & CEO, Simon & Schuster Martin Rogard, General Manager France, Dailymotion Patrick Zelnik, CEO, Nave moderated by Spencer Reiss, Program Director, Monaco Media Forum
synoPsis The Internets infrastructure makes it easier for people to access media on their terms, deciding if they want to own, rent, or access content for free. Most industry experts believe global leaders should discuss how best to finance creation on the Internet so it benefits the artist as well as society and culture as a whole.
The demand for TV, movies, and games remains unchanged: people consume as much or more media content than ever. The factor that continues to change as a result of the Internet and emerging technologies is how people consume this media. Mobile technology, for instance, is rapidly changing the way consumers behave and interact with content.
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A growing segment of end-users now expect content to be made available to them instantly, in any location, for free. Book publishers point out that prior to the Internet, physical space was an issue when it came to the release of new publications: old titles had to be eliminated in order to make room for new releases. Thanks to the Internet this problem has been eliminated. There is also an exciting new market for reissuing previously out-of-print books. As online consumer behaviors differ significantly, the question for Internet players becomes how to transition from one business model (i.e. providing free content) to another (i.e. providing for-pay content) with the hope of maximizing the consumer experience while maintaining high-quality content. Experts agree that being able to quickly adapt to new business models is essential for todays online players to keep up with rapidly advancing technologies. The pressing and politically-charged issue of Internet regulation reemerged in the context of online content. While industry experts remain divided on the subject, most agree the issue should be taken up at the international level by todays global leaders and policymakers. Some experts also point out that regulation is not the evildoer its opponents make it out to be; they believe rules are necessary in any community be it physical or virtual and guard freedom. Others assert that aggregated data shows a large percentage of people who are stealing media content online do not know theyre doing it. Instead, those of this opinion believe that todays online consumers lack the necessary literacy on how to use media responsibly and legally on the Internet. Industry should address this problem. The enforcement of regulation who enforces what, and how? is also a growing concern for Internet players on both sides of the regulation argument. The general consensus is that the matter should be addressed at the international level. Further, the harmonization of rules and regulations between countries should also be on the international agenda in discussions concerning online media content. Different countries have different rules, and this poses problems for those consuming and distributing media in the borderless, virtual world.
WorkshoP i session iii
Electronic Liberty: New Tools for Freedom

session Panelists Hassan Fattah, Editor-in-Chief, The National Jean-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 of 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 of major Internet companies can unintentionally have devastating impact on the personal security of active concerned citizens living in authoritarian regimes. Facebooks insistence that each profile should correspond to a readily identifiable person might make sense in a democracy, but in other regions it can create enormous problems. Thousands of Internet users are in prison around the world for the crime of expressing their opinions.
The company policies of Google and Twitter made it possible for Internet users in the Middle East, for example, to communicate freely but without the danger of being identified. However, for a mainstream traditional media outlet which places a high premium on the reliability of its sources of information, the anonymity of informal sources poses a huge problem. There was also heated debate about whether to permit encryption for online messaging services, with no consensus. It is easy for an undemocratic regime to restrict access to the Net, but no government can ever shut down freedom of expression. We recently saw courageous Libyans smuggling telecoms and internet equipment into Benghazi after the Qaddafi regime had knocked out their transmission towers. In open societies, the Internet is rapidly progressing as a sophisticated tool for political strategy and communication. The innovative techniques used by the Obama 2008 campaign are now mainstream tools used by everyone. The panel expressed strong feeling that there should be a well structured, global Commitment to Internet Freedom, backed up by the certainty of a collective response to any major infringements based on Article 19 of the United Nations Treaty of 1948. This is extremely urgent, and should be enforced as a greater priority than either any agreement about Internet content regulation or copyright enforcement. Despite all the concerns for individual freedoms, and their possible limitations, users in wealthy, Western democracies should not just take the Internet for granted: there are many places in the world where even simple access to the Web is greeted with infectious excitement and optimism.
WorkshoP ii session i
Be Here Now: Mobility Changes Everything

session Panelists Tod Cohen, Deputy General Counsel and VP Government Relations International, eBay Bart Decrem, SVP & GM, Disney Mobile George-Edouard Dias, Head of LOreal Digital Business Group Eric Hazan, Partner, McKinsey & Co David Jones, Global CEO, Euro RSCG Worldwide Alexandre Mars, CEO of Phone Valley Olivier Roussat, Director-General, Bouygues Telecom Richard Wong, Accel Partners moderated by David Barroux, Les Echos
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synoPsis Smart phones are increasingly the tail that wags the Internet dog. They are already being used for search and browsing functions that had been the exclusive preserve of PCs : mobile searches are up 64% and social networking use is up 57% since 2009. Overall mobile media consumption is twice what it was three years ago, and accelerating at an increasing rate. Samsung predicts that smart phones will be twice as powerful in 2013, making them essentially a portable computers.
As they grow more powerful, smart phones will be the agent of change in the market. Blurring all lines between communication, social networking and commerce, they will become even more versatile. Theres already newly-minted jargon to point the way forward: Mocial the interaction of mobile telephony and social networking ; Metail a mix of mobile phone and retail; and, most musically, Solomo social networking, mobile phoning and localization. The mobile phone has already become the basic computer medium in much of the developing world; in Kenya, 13 million people use mobile banking. These highly personalized tools will require vigorous safeguards for data privacy and security. However, most agreed that this does not necessitate greater government regulation. User reaction will police the market adequately. As Accel Partners Richard Wong put it, Any company that breaks the consumers trust (by releasing personal data improperly) will be hit by a backlash so bad that it will keep everyone from overstpping the line. Still, governments may need to take action in one specific area. Unlike the Internet, smart phones are dominated by a small number of operating systems, notably Apple and Android. They function as the markets gatekeepers, potentially curbing competition as they determine what content can and cant have access to their systems. As one panelist said, We are afraid of closed systems. Many agreed that competitive markets characterized by multiple choices and the ability for new entrants to move in are the best business environment overall, and this may imply stronger antitrust oversight. Additionally, unlike fixed bandwidth (which is functionally limitless), smart phone capacity may become restricted by the limits of the radio spectrum. Although some have an unwavering political commitment to Net Neutrality, others feel that some kind of soft regulation, drawn up in cooperation with industry, may be necessary to apportion limited spectrum capacity.
WorkshoP ii session ii
Disinter-Media: Is Internet killing or relaunching the press?

session Panelists Carlo De Benedetti, Chairman, Gruppo Editoriale LEspresso Norman Pearlstine, Chief Content Officer, Bloomberg LLC Robert Shrimsley, Managing Editor, FT.com Arthur Sulzberger, Jr., Chairman & CEO, The New York Times Robert Thomson, Editor-in-Chief, Dow Jones moderated by Frdric Filloux, CEO, E-Presse
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synoPsis Internet will not kill newspapers, but it is re-defining the newspaper industry. Traditional business models that have worked for decades or even centuries need to be scrapped in favor of more flexibility, adaptability and consistency. There is no single solution: national, international and regional papers face differing challenges. Bloomberg LLC, a business and financial news provider, has a business model whereby all subscribers pay the same price, no discounts. FT.coms system delivers a portion of initial content free; it then becomes a paying service. The New York Times had a money-making model in place that charged for selected articles, but decided it could make more money by removing the pay structure and returning to advertising. There are many possible models for success.
Whatever newspapers decide to do, the one thing they will have in common: expect to make mistakes. As one participant warned: if you dont fail occasionally, youre not trying hard enough. Also, expect change. No successful strategy will have a long shelf life. As technology continues to morph and evolve at breakneck speed, what works today may be outdated tomorrow. The industry learned that painful lesson when they were caught out with 5-year projections that completely failed to take into account the rapid development of social media. Devised correctly, Internet tools can greatly complement newspapers, even if the physical papers have fewer readers. Its all about content. Content, not the means of distribution, is what defines every organ from The New York Times to the Wall Street Journal to the Financial Times. As content creators, the Net and the newspaper have more in common than in conflict. Most newspapers will find that their website offers an opportunity to engage more deeply with readers. The website -- which provides content readers want and content they can use to help make decisions -- redefines the role of the journalist, and although this is a challenge it can be a very positive one. The key will be how to balance digital revenues and sustainability long-term.
WorkshoP ii session iii
Open Government, Open Data: For the People, by the Internet

session Panelists Laurent Blanchard,Vice-President, European Markets and General Manager, Cisco France Carlos A. Primo Braga, Special Representative and Director, EXT, Europe, The World Bank Jean-Philippe Courtois, President, Microsoft International Sverin Naudet, Director, ETALAB, data.gouv.fr Andrew Rasiej, Founder, Personal Democracy Forum Professor Nigel Shadbolt, University of Southampton moderated by Stanislas Magniant, Co-Founder, Netpolitique.net
synoPsis Governments in countries with widely differing levels of economic development and democratic freedom grapple with issues regarding Open Data systems. The process can (and optimally does) include national and local governments and international administrative and non-profit organizations, as well as commercial organizations and private individuals. Open Data systems are evolving at uneven speeds, even within countries. In the US, the quality and the amount of available government data on the White House website (www.whitehouse.gov) has increased impressively since 2000, but the open-data site www.data.gov only 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 on their childrens education. In Kenya, www.ushahidi.com was developed to monitor violence and foul play during the 2008 elections; it is now being used to lay out all kinds of interactive maps, in Africa and elsewhere. In Madrid a crowd source application tracks the condition of the Spanish capitals trees. While there is strong political support in France for the principle of open data government and the launch of data.gouv.fr, perhaps the most advanced G8 member country in terms of civic open data systems is the UK. Data.gov.uk boasts almost 7000 national data sets, from detailed, street-by-street crime maps to the location of bus stops. (Individuals often contribute, to the benefit of all: scrutiny by Net users revealed that at least 6% of the British bus stops were initially located in the wrong place, and crowd-sourcing eliminated the errors). In response to widespread public indignation regarding politicians personal and public spending, every expense over 500 must now registered on the site and all 355 administrative areas in Britain now publish their full budgets on line. The World Bank, like other international organizations, now publishes most of its data free online. It also actively encourages developing countries to make use of it, democratizing development economics. Only when countries specifically request that their economic data remain classified is it not made available to the public. The private sector has an important role to play in spurring the development of Open Data and spreading its benefits to society at large. Private corporations developing Government IT systems can help make public sector data more easily accessible and reusable. The ecosystem of developers, corporations and Web entrepreneurs can reuse public data, to invent new services for citizen, and to create new economic activity, which can participate in strengthening growth and job creation. Some panel members concluded with the recommendation that all nonpersonal government data should be made available online, in machinereadable format.
WorkshoP iii session i
The Disrupters: Extreme Innovation

session Panelists Lars Bjork, CEO, QlikTech Jacques-Antoine Granjon, CEO and Founder, vente-privee.com Brent Hoberman, Co-Founder, mydeco, made.com, PROfounders Capital Pierre Kosciusko-Morizet, Co-Founder and CEO, PriceMinister, part of the Rakuten Group Xavier Niel, Founder and Chairman, Iliad Marc Simoncini, Founder and CEO, Meetic Yossi Vardi, Chairman, International Technologies Martin Varsavsky, Founder & CEO, FON Wireless, Ltd. moderated by Loic Le Meur, Founder, Seesmic and Le Web
synoPsis New technology has dramatically disrupted traditional telecommunications, news, music, and other industries. This disruption has been fueled by startups that appear to come from nowhere yet cause sudden and major changes in how people communicate, get information, and consume entertainment and services. Today, the way people make new friends and even manage love relationships are being disrupted by media like Facebook and Blackberry Messenger. Tomorrows disruptions are, necessarily, unpredictable.
Increasingly tech-savvy generations will become an important catalyst to the emergence of disruptive technologies. Children everywhere have
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a new relationship to technology. Disrupters therefore dont only look for new products and services for todays population, but for more technologically fluent generations to come. This creates a spiral of increasingly younger disruptive entrepreneurs. Executives at emerging technology companies identify various market conditions that fuel the growth of their disruptive products and services. They encourage countries to create environments that foster productive disruptions in tomorrows economies. Above all, they implore regulators to keep their hands off the Internet. Past disruptions have succeeded because the early commercial Internet grew for many years before regulators even understood the phenomenon. A policy of do no harm frees disruptive companies to forge their own path without additional business burdens. According to several participants, software patents present an especially difficult obstacle to the spread of disruptive technologies. The need to obtain patents for emerging technologies preoccupies companies with resource-wasting patent battles. Many disruptive entrepreneurs would like to see software patents eliminated. Governments are strongly encouraged to promote universal access to the Internet. Additionally, entrepreneurs are eager for more harmonization of business laws among countries, to flatten barriers and create a workable European framework. These conditions make it easier for inexperienced, minimally resourced startups to grow. Also, when making laws that will affect emerging disruptive business models, legislators should consider the long term, with laws that will still be relevant in years to come. Constantly changing regulations are an obstacle for the success of disruptive technologies. Todays disrupters face competition from emerging markets. Countries like China have produced competitors in American and European markets, while Chinas domestic Internet access is closed or controlled for political and commercial reasons. This is a barrier for foreign companies trying to compete. However, in previously closed Middle Eastern countries, Internet markets are beginning to open. The Arab Spring revolutions represent a unique opportunity for the disruptive business model to succeed in newly open markets.
WorkshoP iii session ii
Sharing Value: How to divide the digital bounty among creators, distributors and governments?
session Panelists Frank Esser, CEO and Chairman, SFR Gabrielle Gauthey, Executive Vice President, Global Government & Public Affairs, Alcatel Reed Hundt, Chairman, Aspen Institute IDEA conference Alain Minc, President, AM Conseil Ezra Suleiman, IBM Professor in International Studies, Princeton University moderated by Gilles Babinet, Entrepreneur, Chairman of the French Conseil National du Numerique
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synoPsis Access to the Internets data is easy, and in this market segment it could be said that 90% of the effort of making money is just showing up. You are not creating a product or even necessarily selling a product: simply collecting data can, in and of itself, create valuejobs or revenue. Moreover, it isnt necessary to capture an entire market, just a section of it, and aggregate from there. There remains little control or supervision by either countries or companies, partly because the Internet became a common medium for reasons of historic accident and was driven by non-profit impulses.
In the Internet, all value creation depends on the collective commitment to maintain a common medium. If this were not the case, no value either economic or socialwould be created for anybody. Today preferred sectors for investment are dynamic search engines, social networks, and device networks. This may change. Today, in the worlds 100 largest cities there are 400 smartphones per square km. By 2016 that number is predicted to climb to at least 13,000. By then the price of smartphones will have substantially decreased and in Africa even the poor will have access to them. Thats a signal to many industry insiders that something in the current value chain needs to change. One recent change has been the reemergence of government, specifically in providing Internet service to areas not currently covered. In the US, for example, billions of government dollars are being spent to provide Internet to non-access areas. This is vital, because the market alone will not organize itself in a way that will reach out to the less dense areas.
WorkshoP iii session iii
The Data Dilemma
Social media and the explosion of data are driving the Internets growth, and raising important questions about privacy and data security
session Panelists Mitchell Baker, Chair, Mozilla Steve Baker, Author The Numerati and Final Jeopardy Jeff Jarvis, Buzzmachine Andrew Keen, Author, Digital Vertigo Alain Lvy, CEO, Weborama Christian Morales, VP & General Manager EMEA, Dave Morgan, Founder & CEO, Simulmedia Christopher 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, in which search engines use keywords to aggregate data while additional online tools collect user information. Protecting user privacy and guarding sensitive data has become a growing concern. The Net risks losing users unless these privacy concerns are addressed.
Consumers should be able to control their personal data and who has access to it. Thats what privacy is. Today, sophisticated Net users are aware that advertising companies, social networking sites, and governments (among others) actively mine information about them while theyre online. These users know how to navigate the virtual world safely and protect their personal information. But ordinary, average Internet users are unaware that various entities are culling, storing, and frequently selling information about them while they use the Internet. Industry leaders agree that the average Internet user must be educated and empowered to help maintain privacy online. Consumers should be able to decide how much, or little, information they reveal about themselves while using the Internet; it should not be a blind process. Further, technologists should be encouraged to develop online systems and tools so that Internet users who are interested in protecting their personal data can do so. One key recommendation is to give people the ability to opt in or out of tracking and data gathering processes. Global leaders should also work to distinguish between online data mining thats acceptable versus that which is an actual security threat. If Internet users begin to feel they are being stalked by online parties, their trust in the virtual world will be compromised and Internet usage will drop. The governments role should be to regulate and enforce rules about how to protect privacy and maintain data security. However, policymakers should be mindful of the possible unintended consequences that privacy laws might have on freedom of speech. Technologists likewise warn that regulators should be cautious not to over-regulate or demonize exciting emerging technologies. Giving people control of their data could be a long-term solution to protecting user privacy. Many Internet dont want to reveal information about their private lives when they go online. As the Web 3.0 world moves in, global leaders and industry experts need more dialogue about possible technological solutions to this problem.
The co-Chairs during the closing plenary that laid out the Forums message to the G8 Heads of State: left to right, Paul Hermelin, CEO of Cap-gemini; Stphane Richard, Executive Officer of France Telecom-Orange; BenVerwaayen, CEO of Alcatel-Lucent; Jean-Philippe Courtois, President of Microsoft International; Jean-Bernard Lvy, the Executive Director of Vivendi; Maurice Lvy, Chairman and CEO of Publicis Groupe; Joe Schoendorf, Partner at Accel Partners; Eric Schmidt, Executive Chairman of Google; Xavier Niel, founder and Chairman of Iliad; Hiroshi Mikitani, Chairman and CEO of Rakuten; and Sun Yafang, Chairwoman of Huawei.
e-g8 forum May 24-25, 2011
ConCluding Press release

After two days of intense discussion in Paris, a delegation from the e-G8 Forum traveled to Deauville (France) for a dialogue with leaders of the G8 nations. For the first time in the history of international summit meetings, the Internet and related issues were placed on the agenda of a meeting of Heads of State and government by France, the presiding country of the G8-G20. Present in Deauville were Angela Merkel (Germany); Stephen Harper (Canada); Barack Obama (United States); Nicolas Sarkozy (France); Silvio Berlusconi (Italy); Naoto Kan (Japan); David Cameron (United Kingdom); and Dmitry Medvedev (Russia). President Sarkozy had placed the Internet on the agenda of the G8 summit meeting, and had requested that stake-holders of the Internet take up the responsibility of organizing a Forum, in order that all the relevant stake-holders could debate the salient topics before the meeting with the G8 Heads of State and government. On Thursday May 26, this ambitious process culminated in a one-hour meeting in Deauville between the G8 leaders and a delegation from the e-G8 Forum. The delegation was led by Maurice Lvy, the Chairman and CEO of Publicis Groupe and Chairman of the e-G8, and comprised Hiroshi Mikitani, CEO of Rakuten; Yuri Milner, CEO of Digital Sky Technologies; Stphane Richard, CEO of France Telecom-Orange; Eric Schmidt, Executive Chairman of Google; and Mark Zuckerberg, founder and CEO of Facebook. The two-day e-G8 gathering was an opportunity for debate and collective reflection on a wide number of key themes involving the Internet. They included support for innovation; future development of the Internet; freedom of networks; protection of personal data from cybercrime; protection of minors; and, more broadly, the practical impact of virtual and digital applications on fields as varied as economic growth, job creation, democracy, government administration, education, news and health. The Forums six plenary sessions and nine workshops featured free and wide-ranging debate. Even when opinions were strongly held, the discussions that ensued were sincere and respectful. The e-G8 Forum adopted the Internet spirit of cooperation and consultation; thus all pre-conditions were united so that reason, as well as imagination, could be placed at the service of the digital future. I want to thank all those who worked to make this e-G8 Forum a success, including of course the major world leaders who shifted their schedules in order to attend, the sponsors who graciously accepted to finance it, and all those who showed, by their presence and their contribution to the debates, their interest in the future of the Internet, said Maurice Lvy, Chairman of the e-G8. Those who feared that this first e-G8 had been organized exclusively in order to regulate or restrict the Net have been disproven. Our debates have been open, rich and constructive. Given this success, I think I can say that there will be a second e-G8. Maurice Lvy requested that the process of preparing the message to be delivered to
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Deauville by the Forums delegation should be completely open and transparent. The closing plenary gathering thus reviewed the work of all the sessions that took place during the Forum and defined a number of fundamental themes. The members of the delegation used this as their basis when they drafted their message for Deauville. From the outset of their discussion with the G8 leaders, members of the delegation emphasized that the Internet is a powerful vector of individual fulfillment, free expression and personal development. Moreover, as a collective tool, the Internet is a positive force for change, capable of renewing the way in which groups and organizations cooperate and act; this was spectacularly confirmed by the movements of the Arab Spring. The Internet is also a strong economic locomotive, creating wealth and jobs. It has led to a profound reconfiguration of the way in which modern economies function. This digital transformation of every economic sector has been accompanied by a net creation of jobs: for every job that is eliminated, 2.6 new ones are created. Thus the delegation emphasized that in every sector of society, energies that are ready to invest in digital technology need to be freed up to do so. In order to maximize these benefits, the delegation invited the G8 leaders to ensure proactive policies regarding investment, or regarding the support and encouragement of investment, in order to guarantee all citizens access to an Internet that is free, rapid and safe. The delegation spoke openly about the existence of unresolved debates among Forum members regarding regulation. These were notably a feature of discussions on intellectual property, software patents, protection of personal privacy, and cybercrime. The key notions of the discussion that the first e-G8 Forum sought to engage and to structure were: protect, without constraining; regulate, without adulterating the fundamental liberty on which the Internet has been built. The delegation also stressed that exponential growth in the flow of information, and the increasing interconnection of networks, call for action by public authorities in order to ensure the stability, security and development of the physical infrastructure without which the Internet could not exist. The G8 leaders made very positive comments regarding the e-G8 gathering itself and the main results achieved to date. In their statements about the delegations messages, the Heads of State and government recognized the Internets exceptional achievements in terms of economic growth and social change, and its potential for positive impact on democratic processes, government administration, and education. The first e-G8 Forum was organized at extremely short notice, with a lead time of barely eight weeks. Grasping the importance and the challenge of the meeting, 1500 stake-holders of the digital ecosystem made the journey to Paris, where they began to work together and to sketch out possible improvements to a future Forum, in order to put the e-G8 fully at the service of the Internet and the digital economy. The possibility of a second, future e-G8 Forum was discussed; this echoed calls that were made in Paris during the Forum itself.
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Textes ??????? ???????????????? Photographies Raphael Soret / Subjectice.com Graphic design we-we.fr
Produced by PublicisLive Edited by Ruth Marshall Photos Raphael Soret / Subjective.com / Prsidence de la Rpublique-C. Alix Graphic design we-we.fr

E-G8 Forum 2011

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Index

Preface 5 the call of history

changing the World internet matters Plenaries

Nicolas Sarkozy, President of the French Republic 13

Presentation by the McKinsey Global Institute 22

concluding Press release 70

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-G8 FORUM May 24-25, 2011

The Call of History

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

Changing the World

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum May 24-25, 2011

e-g8 forum Tuesday May 24, 2011

Download the full report at www.mckinsey.com/mgi

The Internet & Economic Growth

for full-stream video of this session

e-g8 forum Tuesday May 24, 2011

The Internet & Society

for full-stream video of this session

Plenary session iii

Future Net: Whats Next?

for full-stream video of this session

e-g8 forum Tuesday May 24, 2011

Intellectual property in the digital age

for full-stream video of this session

Fostering Innovation How to build the future

for full-stream video of this session

e-g8 forum Wednesday May 25, 2011

for full-stream video of this session

e-g8 forum Tuesday May 24, 2011

sPecial talk Ruppert Murdoch, Chairman and CEO of News Corporation:

Digitals Next Frontier: Education

Groupon: A Case Study

Broadband For All

A Universal Human Need

e-g8 forum Wednesday May 25, 2011

Building blocks: The art of the startup

e-g8 forum Wednesday May 25, 2011

King Content: Entertainment in the digital age

e-g8 forum Wednesday May 25, 2011

WorkshoP i session iii

Electronic Liberty: New Tools for Freedom

e-g8 forum Wednesday May 25, 2011

Be Here Now: Mobility Changes Everything

e-g8 forum Wednesday May 25, 2011

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

e-g8 forum Wednesday May 25, 2011

WorkshoP ii session iii

Open Government, Open Data: For the People, by the Internet

e-g8 forum Wednesday May 25, 2011

WorkshoP iii session i

The Disrupters: Extreme Innovation