Nokia Siemens Networks: The Connectivity Scorecard

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Submitted by Nokia Siemens Networks 2010-07-12 14:33:08 EDT
Theme(s): Building Digital Skills, Digital Infrastructure, Growing the ICT Industry, Innovation Using Digital Technologies


July 12, 2010

The Honourable Tony Clement
Minister of Industry
Industry Canada
C.D. Howe Building
235 Queen Street
Ottawa, Ontario, K1A 0H5

Dear Mr. Clement,

Nokia Siemens Networks ("NSN") applauds the Government of Canada's recognition of the importance of a broader examination of issues in the development of a Digital Economy Strategy. NSN believes that one of the main pillars of a strategy to drive the digital economy is to establish leadership in digital technologies — or Information and Communications Technologies (ICT).

NSN1 is a leading global enabler of communications services. The company provides a complete, well–balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. NSN is one of the largest telecommunications infrastructure companies with operations in 150 countries. NSN has a significant market presence in Canada. Our technologies power many of the nation's communications networks, both large and small.

NSN has observed that many countries focus too narrowly on telecommunications infrastructure which is only one part of a complex suite of issues. NSN has commissioned an independent research study, the Connectivity Scorecard, and is working with University of Calgary Dean of Business, Professor Leonard Waverman, to lead its development. The Connectivity Scorecard has been designed to encourage and promote dialogue with all key stakeholders in the ICT sector, including industry, governments, regulators, trade and standards associations, partners, industry bodies, financial institutions, NGOs, development agencies, analysts and media.

The Connectivity Scorecard is a global ICT index and, unlike other availability research, is the first of its kind to rank countries in terms of "useful connectivity". That is, not only the deployment of ICT infrastructure, but also the extent to which governments, businesses and consumers "make use" of connectivity technologies to enhance social and economic prosperity. This "Useful connectivity" is defined as the bundle of infrastructure, complementary skills, software and informed usage that makes ICT the key driver of productivity and economic growth.

The Connectivity Scorecard has, for the last three years, ranked 50 economies, including 25 advanced countries, on the broad telecoms/ICT eco–system — 28 measures of infrastructure, usage, skills and the complementary capital required to make ICT a tool for productivity enhancement and economic growth.

We believe that the Connectivity Scorecard is germane to the Digital Economy consultation.

In the Connectivity Scorecard 2010 rankings, Canada stands 9th out of the 25 advanced countries, tied with the UK and only behind the Nordic countries and the USA. Canada does lag the two leaders in residential broadband — Japan and Korea, but as Professor Waverman emphasizes, residential broadband is not a major tool for productivity enhancement, with the caveat that we see increasing numbers of tele–workers and small office/home office ("SOHO") enterprises that rely on residential broadband for business connectivity.

A disproportionate amount of the discussion in Canada seems to focus on networks, but as is observed in the Connectivity Scorecard, the major Canadian wireline and wireless operators now have some of the most robust networks in the world. Canadian fixed investment as a share of revenue has outpaced Europe this century. Similarly, investment in 4G advanced wireless networks is also near the top in any comparison.

Areas in which Canada has a more worrying track record are in developing applications and services, and using applications and services to drive business growth. These obviously are more difficult issues for policy–makers to address, but are key in reducing Canada's productivity gap with the USA. That gap should be of critical concern to the Government.

NSN believes that the Connectivity Scorecard's insights can provide a valuable contribution to the development of the Digital Economy Strategy, and we respectfully request their inclusion in the records of this consultation.

NSN would welcome the opportunity to address any follow–up questions on the Connectivity Scorecard. Along with Professor Waverman, we also would be very pleased to visit with you and other interested government representatives to present the Scorecard and its findings.

Yours truly,

Joy Rychlik
Country Director — Canada

1 For more information visit Nokia Networks

Suggested URL: The Connectivity Scorecard


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