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Reaching the Next Billion with
Prepaid Telco Programs
Innovative Sales Model Accelerates
Growth in New Markets
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Intel’s Vision
This decade we will create
and extend computing
technology to connect
and enrich the lives of
every person on Earth.
—Paul S. Otellini,
CEO and President,
Intel Corporation
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INTEL CONFIDENTIAL

Reaching the Next Billion
• Over 2 billion people have
Internet access 1
• Over 2 billion people have
purchased PCs 2
Intel World Ahead Program goal
provide broadband service and PCs
to the next billion technology users.
1
ITU-D—Measuring the Information Society, 2010
2
Intel research
3 INTEL CONFIDENTIAL

Broadband Matters
Economic growth: Increasing broadband penetration boosts
economic growth 1% or more. 1
Jobs: In Latin America, increasing broadband penetration 5.5% to
7.7% would generate an estimated 378,000 new jobs. 2
Healthcare: Telemedicine improves access to care, reduces travel,
and facilitates diagnosis and treatment. 3
Education: Household Internet access is associated with better
educational performance. 4
Small and Medium Businesses: Studies show that
broadband promotes small and medium enterprises. 13
1 See, for instance, Qiang, Christine Z., 2009. “Telecommunications and Economic Growth.” Unpublished paper. World Bank, Washington. D.C., and Booz & Company,
2009, Digital Highways: The Role of Government In 21st Century Infrastructure.
2 Dr. Raul L. Katz. “Estimating broadband demand and its economic impact in Latin America,” Sept. 4, 2009.
3 World Bank, “Information and Communication for Development: Extending reach and increasing impact,” 2009.
4 ITU, “Measuring the Information Society,” 2010.
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Market Challenges
Two key issues hinder the pace of growth:
• Desirability: Citizens may not recognize the value of broadband
service and PCs.
• Affordability: The initial cost of investment is sometimes too high,
especially for first-time buyers.
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INTEL CONFIDENTIAL

Desirability
Broadband and PCs are desirable.
• Broadband and PCs offer value beyond that of mobile phones.
• Fast Internet access and the ability to create and store content
appeals to students, small businesses, and other citizens.
• Preloaded digital content in local languages increases value.
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INTEL CONFIDENTIAL

Affordability
Broadband and PCs are affordable.
• Good-better-best purchase options appeal to first-time
buyers.
• Prepaid/subscription payment models lower the cost of entry.
• Innovative financing schemes can reduce initial cash outlay.
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INTEL CONFIDENTIAL

Market Opportunity
• Prepaid/subscription packages lower TCO up to 50%.
• Lowered package costs dramatically increase the number of
people that can afford to buy
• Proof
– Vietnam – pop. that could afford increased from 15% to 70% 1
– Sri Lanka – subscription growth went from 20% to 100%
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Intel research
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INTEL CONFIDENTIAL

Solution: New Sales Model
Intel and partners have developed an innovative sales model to reach
the next billion technology users.
Based on the prepaid miracle for mobile phones, packages are sold
at local PC/telco retail outlets at a lower TCO. Packages include:
• Broadband: Prepaid or subscription broadband service (data-capped)
• PCs: Intel-based PCs (netbooks, notebooks, desktops)
• Digital Content: Preloaded software in local languages
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INTEL CONFIDENTIAL

Benefits: Affordability
Broadband
• Variety of price points for different amounts of data
• Prepaid or subscription payment options
PCs
• Available at new, entry-level price points
• Good-better-best options
– Choice of features, performance,
and form factors
Digital Content
• Preloaded software in local languages
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INTEL CONFIDENTIAL

Benefits: Desirability
Available digital content includes:
• Education
– British Council Learning Series: Language
courses help users learn English 1
– Khan Academy: Thousands of tutorial videos
explore math and science solutions 1
– Intel ® skoool content: Award-winning
online learning content helps students
and teachers
1
In partnership with Intel
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INTEL CONFIDENTIAL

Benefits: Desirability
Available digital content includes:
• Education
• Digital Literacy
– Intel ® Easy Steps: Popular digital literacy
program includes free software, online
support, and in-person training seminars
– Intel ® PC Basics: Introductory software
helps new users learn to use a PC and surf
the Internet
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INTEL CONFIDENTIAL

Benefits: Desirability
Available digital content includes:
• Education
• Digital Literacy
• Entertainment
– Intel ® AppUp SM center: An online
source with thousands of applications,
many of them free, including games,
finance, and travel
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INTEL CONFIDENTIAL

Worldwide Movement
BB acceleration
program
PC+BB subsidy
for schools,
students, seniors
BB + PC
for schools
Rural connectivity
+ telecenter
Nationwide
wireless
data buildout
STIMULUS
PACKAGE
TAXES/VAT/
XG LICENSEE
USF
Rural connectivity
+ telecenter
Nationwide
wireless buildout
+ BB subsidy
VAT reduction
For BB services
BB + PC
for schools
Rural PC
+ BB subsidy
1:1 education
Nationwide
wireless
data buildout
Infrastructure Subsidy PC + BB Reduce BB taxes ICT programs
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INTEL CONFIDENTIAL

Telco Opportunities
• Reach new users and accelerate
growth in new markets
Examples:
• Increase subscriptions and revenue
• Team with Intel on a program with
proven results
• Egypt: Telcos achieved 286% sales growth over two years.
• Sri Lanka: Number of subscribers nearly doubled from 2010 to 2011.
• Indonesia: Over 280,000 packages sold in first six months.
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INTEL CONFIDENTIAL

PC Manufacturer Opportunities
• Better business relationships
• Increased visibility
• Stronger brand association
• Improved perception of PC value
• More sales to new buyers
Examples:
• Indonesia: Over 280,000 PC and broadband packages sold in
first six months.
• Kenya: 101% growth in PC ownership in 2010—compared to just 3% in
rest of Africa. 1
• Vietnam: Helped Lenovo increase monthly sales of
netbooks by 78%.
1
IDC research
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INTEL CONFIDENTIAL

Government Opportunities
• Greater technology access for citizens
• Economic development
• Improved social services
• Better business relationships
Examples:
• Indonesia: More than 280,000 broadband and PC packages sold in
first six months
• Kenya: 101% growth in PC ownership in 2010—compared to just 3%
in rest of Africa 1
• Vietnam: Helped Lenovo increase monthly sales of
netbooks by 78%
1
IDC research
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INTEL CONFIDENTIAL

Intel Assistance
• Strategic planning based on best-known methods
• Intel technology—expertise and products
• Valuable software applications
• Sales and marketing support
Team with Intel on a program with proven results.
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INTEL CONFIDENTIAL

Summary
• New sales program reaching the next billion technology buyers
• Technology packages with increased affordability and
desirability for first-time buyers
• Packages include:
– Broadband service
– PCs preloaded with valuable digital content
• Results:
– Millions of new users enjoying technology benefits for the first time
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INTEL CONFIDENTIAL

Get Started!
Let Intel help you develop a program for your country.
Contact your local Intel representative,
or select Contact Usat
intel.com/worldahead
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INTEL CONFIDENTIAL