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CSTI Talks

PROCEEDINGS OF THE CSTI TALKS OF 22 MARCH 2002
«Digital Technology for Everybody - What Actions should the public authorities undertake?»




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INTRODUCTION TO THE TALKS

by Alain Costes, Technology Director at the Ministry of Research, and Didier Lombard, Secretary General of CSTI


ROUND TABLES AND DEBATES

moderated by Jean-Louis Caffier, Chief Editor at LCI

Digital proximity, a vital issue for SMEs and individuals

Debate with the public

Forces driving change: training, innovating, accelerating the digital transformation

  • Jean-Marie Cadiou, Director of the Institute for Prospective Technological Studies (IPTS), Joint Research Centre, European Commission
  • Gérard Roucairol, Scientific Director of Bull
  • Jacques Dunogué, member of the executive board of Alcatel
  • Agnès Touraine, Chairman and CEO of Vivendi Universal Publishing
  • Jean-Jacques Duby, Director-General of the École supérieure d'électricité (higher electricity school)
  • Jacques Stern, Director of the data processing department at the École normale supérieure (higher school for training teachers)
Debate with the public

Synthesis of the talks, by Didier Lombard

 

INTRODUCTION TO THE TALKS :

Alain COSTES :
« The action taken by the Ministry of Research in the subject discussed today is based around the following three main points:
- the creation of innovative technology companies,
- partnership between the economic community and that of public research,
- and lastly Europe.
Regarding the creation of innovative technology companies, I'll now give you a few indicators and results.
The competition, launched in 1999, rewarded seven hundred and eighty-two prize-winners and above all led to the creation of three hundred and two companies over the past two years, 57% of which belong to the information and communication technologies sector.
We have also set up a certain number of incubators, particularly to help public sector researchers to create their company. Thirty-one incubators are today operational, four hundred and forty projects have already incubated and one hundred and sixty-one companies have been created this way, 42% of them belonging to the information and communications technologies sector.
Great efforts have been made to create innovative companies: in two years, after the July 1999 Act on Innovation, nearly five hundred companies have been created, 47% of which are in the field discussed today.
Turning to the technological partnership between the socioeconomic sector and public research, great effort is devoted to the national networks of innovative technological research. There are sixteen such networks today, four directly concerning the subject of today's debates:
- the software technologies network,
- the telecommunications network,
- the micro and nanotechnologies network,
- the content network, with in particular everything related to the audiovisual sector, in other words the RIAM (Audiovisual Multimedia Research and Innovation) network.
These networks take the form of projects. Incidentally, as far as the Ministry of Research is concerned, no project file took more than eight months to be addressed positively. Files are today processed in an average of seven months and we hope be even quicker. Any 'label' given by the network is validated by the ministry.
There are currently sixteen national technological research centres and some of them are devoted to technology and information sciences:
- Grenoble for micro and nanotechnologies,
- Marcoussis for optics and optoelectronics,
- Rennes-Lannion-Brest for images,
- and Sofia Antipolis for telecommunications in general.
Lastly, Europe forms the major challenge for the months ahead. As you know, the Minister for Research has been very active on behalf of the French government in preparing the sixth framework programme as regards three main points. First, focussing on a certain number of fields that are very important to our mind, where Europe contributes a major plus; second, more flexibility; and third, use of the new instruments-excellence networks and integrated programmes.
I feel I can say that the efforts made by research bodies, universities, businesses and manufacturers have enabled France to be entirely ready today for the sixth framework programme for which you know that the call for proposals and ideas was launched around 20 March 2002. In this respect we undertook a vast information and awareness-raising campaign in the field throughout France.
Also one should not forget either the major issues of intellectual or industrial property, which will probably be the most difficult point to address in setting consortiums in place.
These are therefore the actions taken by the ministry. Lastly I wish to offer you all the minister's excuses for his absence today. Remember, the ministry is particularly attentive to CSTI's work.»

Didier LOMBARD :

« I firstly wish to recall, for those who are unaware, what the CSTI is and what it achieves.
Created less than a year ago, on 11 April 2001, CSTI is a board composed of businessmen, researchers and a few financiers. No general government representative sits on it, and that's voluntary. The board has been created to think about the measures to be taken to facilitate the advent of the world of information and communication technologies in France. All issues are analysed collegially and freely in it. CSTI is also led to give opinions on more specific matters.
We work with the resources allocated by our supporting ministries, especially the Ministry of Industry and the CGTI (General Council for Information Technologies). Furthermore the Ministry of Research has given us all the means to carry out the studies whose results will be presented to you later.
I therefore thank our two ministries and understand their frustration. They give us the means to live but do not participate in our work and they will also endure the conclusions we reach! Indeed we do not have an operational role and our conclusions are communicated as part of the normal decisional process of administrative bodies.
We have as a model two organisations more famous than ours. The first is the Conseil de politiques économiques (CPE-Economic Policies Board), which has communicated many important reports for the country. Our second model is of course the PITAC (President's Information Technology Advisory Committee). That committee also operates with the help of business managers and researchers in advising the President of the United States on the policies to be implemented. Those who are curious can moreover consult its website, a real mine of extremely detailed and documented reports on all the topics of interest to us.
Since last year, two points have shown that CSTI could take visible action. I'm referring, first, to UMTS licenses and technology, a matter about which we were questioned immediately at the time of our creation. I'm unaware of the influence of our intervention on the final decision, but we at least participated in it. CSTI has also contributed actively to the standardisation of the e-learning industry by helping in producing the Internet schools charter and by implementing the procedures to grant these schools a label. You'll see later on just how essential training is in information technology policies, and e-learning is very important in this respect.
As for the work of the committee itself, we identified at the time of our creation four major topics which were to be the basis of our discussions.
The first concerned access and speed aspects: what needed to be done so that everyone could have access to the speed necessary for him to carry on his activity, wherever he might be in the territory? This brought up the issue of the digital or geographical divide.
The second subject is a corollary of the latter, referring to service contents and the take-up by the general public of all these marvellous opportunities we all imagine but which do not always enjoy the success they deserve.
Apart from these two prerequisites, there are two factors of success.
The first comprises everything to do with training-without limiting oneself to the training of post-graduates, which is the quite natural tendency of our country. France indeed too often devotes its attention to the grandes écoles. We at CSTI have done everything necessary so that the telecommunications schools considerably increase their output of engineers. But it is also vital to have all the necessary technicians for the networks to operate.
The second factor, certainly not the lesser, concerns all research and innovation matters. Everyone knows that our country has only very few natural resources. The 'deposit' on which a large part of its economic activity is based is innovation and the strength of its laboratories and research centres, whether private or public.
I was in this respect very pleased to hear Mr Coste's remarks. Everything which improves the 'machine's output' is heading in the right direction. This is a deposit on which we absolutely must capitalise.
Summing up, that's the action CSTI has been taking for nearly a year. A few days ago, we communicated our interim report-will our work ever come to an end?-to the Prime Minister. It was indeed logical for us to transmit to him before the end of this parliamentary term the work he had commissioned from us.
Furthermore, we also thought it was necessary for us, at this stage, to open and broaden the debate. A board like ours is, per se, closed. It's a kind of small club where we hear experts from the sector. But a number of our fellow citizens certainly have good ideas and must feel frustrated at not being able to inform us of them.
That's the reason why we're holding these first CSTI talks-which implies others will follow-in order to broaden our discussions and enrich them with the viewpoints of the various players involved who were ignored to date by our work. »

 

DIGITAL PROXIMITY, A VITAL ISSUE FOR SMEs AND INDIVIDUALS

René TRÉGOUËT :

« The Rhône department decided already thirteen years ago, whereas the law was scarcely on its side, to build an optical network. At the time it was accused of being unrealistic. It was to be a large dimension network. It can be said today that the Rhône department is the only place in France where all villages are served, even the smallest.

Everyone knows our department by its chief town, Lyon. Yet it should also be known that, on its own, the Rhône is a mini French territory. You find vineyards, forests and some villages of under a hundred inhabitants. This department is not therefore specifically urban: a third of its population lives in the countryside.

We realised that if we left things alone without intervening, a department like ours, with a large dynamic city, was likely to experience two-speed growth before fifteen years were up. The chief town would be inevitably equipped with high technologies and the rest of the department would lack them. Given the importance these new technologies are going to assume in human activity in the years ahead, such a difference would have been against the department's purpose to provide services locally.

We therefore launched this project that was entirely unique for the time. It took a lot of political determination. We launched a European invitation to tender, following which the Time Warner group arrived by our side in the mid-1990s. Network construction will be totally finished within the next fourteen months and will have cost some 1.6 billion francs.

This unique hub in France will allow 80% of the population to be served in a department that nevertheless has some 1.65 million inhabitants. Our department is already, to date, the only one in France where this optical network offers not only cable TV, but also high-speed Internet and telephone services. Annecy had, admittedly, started experimentation but has not commercialised it on a large scale.

Why carry out this operation? It appeared important to us to establish another network alongside-or opposite, many debates are taking place on this subject-that of France Télécom. In effect, there is no point in legislation being enacted on unbundling: as long as there is no infrastructure competing with that of the dominating operator, our country will not turn the corner. This is evidenced by the fact that, given the speed with which our optical fibre is progressing, our department is the one where the dominating operator is making most proposals-and even in small towns-for ADSL technology. Moreover it is entirely right to take advantage of the situation, it's the law of the market.

This example quite clearly shows that new technologies develop faster in places where genuine competition exists. The Rhône department, enjoying such extraordinary experimentation, is living proof of this.

We have devoted some four hundred and fifty million francs of public money to this operation. No operator will find any immediate profitability in a small village, so the entire operation was therefore balanced by public money.

We in fact asked for a reciprocal concession, and in the mid-1990s nobody thought that would be possible. The telecommunications deregulation Act had not yet been voted. Since we were investing public money, this network was to have a capacity reserved free of charge to the community. That way we created an Intranet complying with that condition, and it will become the biggest in France. I even think that this coherent public Intranet will be immediately able to connect some one thousand five hundred public access points, each of which will have a speed of 2 megabits. The Intranet will therefore connect the department's schools, colleges and libraries, free of charge, all round the clock every day of the year.

A recent study has shown us that the rollout of an Intranet of this size by a private operator, without the agreement we made with UPS, would have reached a financial cost far beyond our resources. Thanks to the system set in place, it can be estimated that our investment of four hundred and fifty million francs will be recouped in less than ten years while integrating, of course, in the calculation the cost-effectiveness for public bodies today enjoying use of this network.

In addition-perhaps this will make you smile-we asked the operator, today UPC, to give us simply 1% of the turnover when he starts making money. Perhaps we should have drawn inspiration from this agreement for the UMTS?

We will thus have carried out an extraordinary spatial planning initiative: all the inhabitants will be served. We are currently in phase 3 and the physical networks reach 80% of the population. We are currently starting, with ART's (Telecommunications Regulatory Authority) authorisation, experimentation on radio technologies to cover the remaining 20%; this network will of course be based on optical fibre technology.

Once this work is completed we'll be able to consider we have done a useful job for our department because the professions of the future will be able to be exercised not only in la Part-Dieu, in downtown Lyon, but also anywhere else in the department. We indeed know very well that, before five years are up, no company will set up in any part of France without access to a broadband digital connection. Everyone should be clearly aware of that.

Lastly, I wish to emphasise that this project, not a virtual reality but well advanced, shows us the way we should head. »

Jean-François ABRAMATIC :

« The papers presented till now concerned the infrastructure and networks, in other words everything below the IP layer. Our group has mainly taken an interest, within CSTI, in applications and services.

The aim of CSTI's work is to try and take stock of the situation, define the major challenges and see what actions could be implemented in the short term so as to head to a more distant goal. Finding ourselves today in a large lecture hall like this allows us to get our breath back and envisage the prospects awaiting us in the longer term.

I will insist on a field which, within the applications and services sector, has given rise to most enthusiasm: the Web. Everything that has been done around its development will allow me to guide our discussions on the way in which information technologies can influence the evolution of society, thereby playing their role in developing the information society.

Speaking of a vision entails projecting oneself into the future; however the past, in this field, is not so distant. The Web was invented as recently as 1990 by Tim Berners-Lee, at the CERN in Geneva, a laboratory using information technologies. It was not invented in a data processing or telecommunications research laboratory so researchers must not be too arrogant.

There is a certain logic in this: information technologies are built on the results of previous work. These technologies develop and accumulate over time and if the Web has developed so rapidly it's because it has been based on forty years work. For instance Tim Berners-Lee developed his prototype with the benefit of the telecommunications infrastructure rolled out in previous years.

Still today our work is based on the body of technologies accumulated over the past forty years. We should remember that befofre projecting ourselves into the future.

Our discussions can be based on three subjects. First we must try to make computers serve users.

Once again I will use the Web as an example, even if my remarks can of course be generalised to other Internet applications. When Tim Berners-Lee had the idea of combining hypertext navigation with the Internet network the concept appeared so megalomaniac-clicking on a link and seeking information at the other end of the planet-that he proposed very simple technological elements. For example, the chosen language (HTML) can describe text and images, but Tim Berners-Lee's version comprised only text. It was Marc Andriessen's version, in 1993 that allowed Internet deployment of Web pages and the introduction of images.

Text and images are what could be called in the world of knowledge the raw material of information-sequences of characters or of bits describing a document or image. We would however find it difficult to make computers serve users with such a 'raw' raw material. Among the work-coordinated in particular by W3C-which the Web community has undertaken in recent years, the great idea has therefore been to better structure information.

This project has led to the development of XML language allowing structured data to be described and allowing other materials than text and images to become 'first class citizens' on the Web. I am thinking for instance about databases. The entire range of information in a company can now find its place on the Web, and finally the user stands to gain.

The products and services being developed at technology small and large companies are therefore based on this new infrastructure with greater functionalities than the infrastructure that allowed access to the general public.

But how is the user going to turn this to good account? That's where the currently emerging wave of Web services should allow individuals and SMEs to turn this infrastructure to better account.

The following two subjects of our discussion, more focused on the user himself, are both major challenges: universal access and the Web of trust.

It should be recalled that today less than 5% of the world population has Internet access. A developed country like France has only 20 to 30% of users-the figures vary depending on the way indicators are interpreted-mostly using computers.

Obviously, to impact the information society, the Web will require more than that single channel. Internet access will naturally have to be extended to other terminals than computers.

Furthermore, the work on internationalisation and ease of access will naturally be essential in achieving the universality aim implied by the determination to build an information society. Such a society cannot be built by leaving 95% of the population by the wayside.

As for the Web of trust, it should be recalled that we are today using Tim Berners-Lee's Web prototype. I explained previously the technological reasons for this while referring to the evolution of contents from text and images to structured data. Other aspects concern the trust one can have in this set of products and services in executing the critical tasks of everyday life, whether as an individual or an SME.

All the issues regarding security, confidentiality, personal data protection, and combating illicit contents, are therefore fundamental. Lastly, another important point, royalties are today essential and an ever growing challenge, whether in terms of contents or technologies. Technology must allow innovation to be protected and give creators a fair return on their investment. »

Robert VERRUE :

« I will begin by presenting you with what could be an idealised digital vision from the European viewpoint, and I will illustrate, through two examples, the manner in which we are trying in practice to bring together the conditions for digital proximity, particularly for SMEs and SMIs.

As with all its other fields of action-and above all when industrial and technological challenges are involved-the European Union tries to take advantage of the size effects represented by the world's first market of approximately 350 million inhabitants, without mentioning the candidate countries which, in our fields, are already taking pains to follow regulatory approaches close to ours. We hope, moreover, that the new regulatory framework recently adopted by the European Union ministers for telecommunications will lead us to fairer competition throughout this large European market.

As for digital proximity, our approach is based on four points: infrastructures, affordable tariffs, easy access to a large number of applications (particularly professional) and access to a diversified portfolio of technologies.

I will address first of all digital proximity from the viewpoint of infrastructures. This problem is not of course specific to information and communication technologies. It is complicated however by the fact that the development of infrastructures supported particularly by the public authorities-including European authorities via the funding of projects through structural funds-must take account of the efficacy of a competition policy.

Public intervention is still necessary today in many areas of the EU, including some French regions. This action concerns access to fixed or mobile technologies to encourage SMEs to set up in less favoured areas, and also infrastructures with bandwidths sufficiently broad to be considered professional.

Referring to the tariff approach to digital proximity, the European policy regarding the organisation of competition should ensure efficacy. This regulatory infrastructure should logically produce affordable tariff conditions allowing SMEs to overcome their possible access handicap. This official discourse is most often encountered in practice above all when the State manages to focus its intervention on the installation of complementary network meshing, especially in the local loop.

Our last two possible conceptions of digital proximity can easily be understood. Diversification in the form of access to applications as advanced and accessible as possible is indeed a prerequisite of digital proximity. This is the main field where SMEs suffer a major handicap with respect to large companies. The former must be able to find in the market applications, software or know-how, which the latter develop most often by themselves.

The European Union is particularly interested in digital proximity, and not only for regional policy or spatial planning reasons. More fundamentally, in terms of economic competitiveness, we are convinced that communication and information technologies-and above all their applications-will not produce all their economic effects until SMEs have access to advanced technologies in competitive conditions.

The information we have shows a frequent and dangerous underestimation-which could eventually be fatal-of many SMEs and SMIs: the importance of their mastery of these technologies for the long-term existence of their activity. In effect, through the North American example, it can be seen that the major platforms developed by manufacturing industries (particularly in the car sector) are going to jeopardise SMEs that have not launched sufficiently early into e-commerce. Digital proximity is thus becoming a prerequisite for the competitiveness of our companies.

Later on I'll give you two examples of the way in which the European Union intends to proceed.

Our reference framework is the e-Europe action plan. We share it with the other Member States which have on several occasions 'consolidated' it at the European Council. This programme was adopted at Lisbon under the Portuguese presidency. Its first deadline falls in 2002. The second deadline will be firmly established by the Seville European Council but was already the subject of discussions at the Barcelona European Council. The aim is to transform the first programme into a second action plan 2005, with a strengthened applications content.

In a way it's the 'railway timetable' that Europe intends to follow for everything related to stepping up the rollout of technologies and their applications towards the information society. In this context the EU is conducting a series of actions promoting digital proximity.
I will mention two of them:
- a European strategy for professional applications of chip cards;
- an initiative, called Go Digital, more targeted towards SMEs, promoting information society applications.

I know that chip card technology is well known in France but it should be stressed that it will be essential at world level for the development of everything related to mobile transactions. It raises a whole series of questions involving regulatory, security-related and interoperability-related aspects, which must be solved as soon as possible. We today have a European strategy in this field which is being developed by thirty or so manufacturers.

Our action is relevant in the digital proximity field, particularly for SMEs and SMIs which are indeed typically very open to mobile and remote transactions. However this type of transaction can be carried out only in satisfactory security conditions, the basic instrument being the chip card. The latter must, at one and the same time, be identified, secure and confidential, and this procedure is meaningless unless carried out at least at the European level.

Our initiative gave rise to strong interest at our two main partners, the USA and Japan, which leads us to believe that our present direction is the right one. There will be very concrete spin-off for SMEs.

Go Digital is an initiative of a different nature, which is aimed at removing the main obstacles, particularly regulatory, encountered by SMEs in accessing the major e-commerce platforms developed in recent years. It aims at making up for the shortcoming noted by a recent study on the relative absence of European SMEs in e-commerce, particularly in traditional industrial activities. Comparison with North American SMEs clearly shows this shortcoming. We therefore developed this GO Digital initiative on the basis of the weaknesses and blockages which are so many serious handicaps for European small and medium enterprises.

That is therefore what Brussels understands by digital proximity, what we try to do and the results we are witnessing are beginning to accumulate. In conclusion it should be stressed that we feel digital proximity is not only a vital challenge for SMEs but also a prerequisite for the competitiveness of the European economy as a whole. »

Thierry BRETON :

« Our working group has worked more specifically on the topic of infrastructures and networks in order to answer the question: what development is to be planned for infrastructures and what network rollout strategy is necessary?

CSTI is of course an independent body formed by people of various origins whose common point is their interest for technologies and for their country. I am therefore very pleased about Mr Verrue's presence upstream of an issue like that of the high-speed network.

I remember the UMTS issue where Europe arrived downstream of national decisions. We then had to manage a catastrophic situation at European level, even though CSTI had previously alerted the public authorities about a situation running against the interest of everyone, consumers and operators alike. We interceded with the Prime Minister who heeded us. While France thus took a great step forward, the rest of Europe unfortunately remains on the sidelines. This situation will probably impact the harmonisation and distortion of competition.

Hence the need to analyse together these issues very much upstream. We therefore worked together on the following topic: what should be done so that high-speed services avoid the digital, geographical and social divide?

In a first stage we gave the simplest definition of high speed, in other words the possibility of having a few hundred bits permanently accessible at home to download video or music and exchange files.

We then sought to draw up an appraisal of the situation in other European and world countries. Everyone knows that Korea has acquired a huge advance. We have also observed that countries where high-speed Internet is spreading massively are those where a strong public authority incentive exists in one form or another. This can be expressed directly at State level, but also, for instance, via the länder in Germany or the various states of the United States. This shows that the public authorities have become aware of their role in helping the development of high-speed Internet. The community should remember that.

Disparities at European level are still relatively limited. The time is therefore well chosen in France to discuss this issue. We haven't fallen dramatically behind other European countries and are moreover even ahead of some. France is simply average, whereas the technologies it has, the strength of its historic operator, the advent of alternative operators and the partiality of the French public should allow it to do much better. The stage is set for a quite rapid rollout of broadband in France, hopefully.

Our report and its annexes mention the case studies of the various European countries. In particular we followed with great interest countries like Sweden, the Netherlands and Germany.

We then tried to determine which available technologies would provide a rapid answer to the problem raised. In effect our work fits clearly into the framework of the government plan aimed at covering the entire French population with high speed Internet by 2005. This deadline still leaves us a bit of time but we must get to work straight away.

ADSL is of course one of these technologies. It appears today the most appropriate and best suited to meeting this demand in the months ahead. Cable is also on the list, even if it offers more limited access conditions. It concerns eight million French households, whereas France Télécom thinks it can offer ADSL to 75% of households before the end of 2002 and to 80% the following year. This is therefore a technology with the capacity to cover nearly all the French population, even if we are fully aware that the cover rate can never reach 100%..

Bidirectional satellite must for the moment be considered an alternative technology meeting needs specifically in areas not covered by other technologies. The local radio loop, for its part, is aimed rather at SMEs.

You will therefore have understood that CSTI clearly recommends supporting the rollout of ADSL in the national territory. This solution appears to us today the most relevant owing to its availability.

We have however identified a few elements that may hinder the development process, including the cost factor. I am in a good position to know that a difference of 10 or 20 euros for a radio receiver or a decoder can lead to a mass product or one priced out of the market. Mass penetration necessarily implies the major impact of a price difference. Perhaps the current 40 euros for subscribing to ADSL appear modest to you, but households feel very strongly the difference between 200 and 300 francs. Without taking a stand on price, we have clearly identified that a 300 franc subscription is a brake on mass penetration, at least during the initial phase. Without taking the place of the regulators or operators, we point out that cooperation on this aspect is essential if we want the operation to be launched rapidly.

I feel this issue is more important than that of the terminal itself. CSTI has a few ideas on the issue-like VAT reductions-and has noted them as matter of interest. It is essential that all the players take an interest in this issue very quickly. It appeared to CSTI that a price offer around 190 to 200 francs would represent an incentive to subscribe.

We also insisted on the preponderant role of the historic operator in this matter. It is moreover ready today to study our proposals. In any case we must move very fast, yet without destabilising the various players involved, including the historic operator.

Once this issue has been addressed, the question of shadow areas will remain. Our report classifies the various sectors into four areas. The first two, covered by existing technologies, could experience rapid penetration. In areas 3 and 4, the population is not dense enough for a sufficient economy of scale in these services. We therefore urge the national and local public authorities to intervene. The renegotiation of State-Region Plan Contracts is a good opportunity to integrate this dialectic here. It will be necessary to set up funding with a high degree of mixed participation to achieve balance. CSTI has moreover communicated various proposals in this respect. We insist on the fact that the public authorities will have to participate in one manner or another in areas 3 and 4

Lastly I wish to add that the discussion on high speed is merely an interim step: France must take an interest straight away in very high speed. Serge Tchuruk, Chairman and CEO of Alcatel and a member of CSTI, told us about his company's position in the optical fibre sector. This is an absolutely essential field. We believe that very high speed Internet should be carried almost exclusively by fibre. This topic also raises the complex problem of the connection of households and blocks of flats.

We have therefore listed the technologies which appear most relevant to us, particularly wireless networks and the much spoken of 802.11 standard, including 802.11B where we are on frequencies that are still higher.

We have used our capacity to make recommendations to the public authorities by putting forward the idea of a full-scale test of very high speed in one or two test towns. This entails frequencies of around 10 to 20 megabits/second. We need to test the possibility of connecting whole blocks of flats.

I will not speak here of the role that could be played by the company RTE (Réseaux de transport de l'électricité - electricity transport networks), but our group has studied the possibility of using it to lay optical fibres and create a large optical fibres backbone in France.

In conclusion, this issue is very important for the competitiveness of France and its companies. We are all aware that it will require European harmonisation and feel that the matter is this time being addressed at the right time. CSTI has, moreover, told the Prime Minister that there is still time to avoid the UMTS errors and encourage Europe to introduce the fullest harmonisation possible. »

Anne-Sophie PASTEL :

« Our group has more specifically worked on the topic of applications and services. The aim has been to determine the factors and actions that could introduce the conditions allowing French players to reach the best level in this field.

First, we focused on setting in place the conditions to develop the supply of applications and services. We strove to identify the blockages to be removed to ensure this development.

We firstly discussed how to make it easier to develop micropayment. Some offers and services can be paid by advertising or e-commerce. But a certain number of other services are already experiencing payment problems whereas simple micropayment solutions would be envisageable, along the lines of what has been done on the Minitel. Our group recommends the creation of a project team that can advance the topic, bearing in mind that while solutions exist, they are neither universal nor necessarily user-friendly.

The second element of this discussion concerned more specifically streaming. In effect, we are currently witnessing some royalty problems, for instance for the streaming of films over the Web. Here too we have made recommendations for Internet streaming rights to be acquired once a certain number of other rights have been assigned. In this respect we recommend several regulatory measures which are detailed in the report.

Lastly, our work also concerned the setting up of a uses observation laboratory observing and anticipating future behaviours, then sharing this information with the various players working on future developments.

Second, we focused on how to get the general public, SMEs and SMIs to take up these new technologies and how public action could facilitate the process.

As for the general public, incentives aimed at accelerating the digitising of holdings would allow our entire know-how heritage to be shared and exchanged.

Lastly, our third recommendation is to ensure that the various services and portals proposed by the Administration allow the user to monitor his personal information. Apart from the site http://www.service-public.fr, which provides only very general information, there is a need today to group the various administrative initiatives to simplify them and make them lighter for the user. »

 




DEBATE WITH THE PUBLIC

François DUBRULE, Chief Executive Officer of Angel-Invest :
« I manage a venture capital company and I heard Mr Breton tell us about his entire confidence in the software instruments available to high speed users. But one cannot help wondering today about the health of telecom operators.
You have heard, like me, that two companies which recently launched into high speed Internet have failed.
On what therefore do you base your confidence and your feeling that the entire French population will be concerned and positively impacted, bearing in mind the financial stress experienced presently by telecommunications companies? »

Thierry BRETON :
« I don't have to teach you your job, but companies working in emergent technologies must know how to invest at the right time and when the market allows.
We feel that, if all this is done voluntarily and if the technologies are ripe, the craze for high speed Internet coming to our attention is worth taking this industrial risk. Perhaps tariffs will have to be lowered initially, but demand should then be even greater.
In any case, the technologies are ready and ADSL rollout has already been very strong. I therefore feel the time is right to push our efforts to a new level. The market was relatively timid till now. France still has only 400,000 subscribers. A subscription price of approximately 30 euros should significantly boost the market.
But how can the existing operators manage to make an offer of this level? Demand is there, especially among youths. Prices should therefore be lowered, thereby ushering in a mass market.
Furthermore more and more services are being offered by this type of technology. People are beginning to download video today. A few weeks ago we managed to compress video using ADSL technologies at 700 kilobits/second, whereas a short while ago we did not believe we would exceed 1.5 megabits/second.
We can therefore propose real time television via ADSL. It can be believed that a whole range of pay-per-view services will emerge. Moreover we envisage the possibility of streaming, via ADSL, programme packages presently broadcast using other technologies. This would help to solve the problems encountered in towns in receiving satellite programme packages.
The price aspect will therefore be essential and we feel that if the regulator and the operators come to an agreement on an acceptable tariff, the operation should enjoy a considerable boost. Furthermore, services are arriving fast now, particularly as regards video. »

Didier LOTH, Deputy Director General at the General Council of the Oise Department :
« One of the reports refers to the need for local authorities to invest strongly in infrastructures. The example given by Mr Trégouët shows moreover the need to introduce competition to the situation everyone knows.
My second remark concerns the ongoing consultation on the draft circular drafted by DATAR, DiGITIP and the Ministry of the Interior on the implementation of Article 15-11-6 of the General code of territorial units. In its new drafting, the latter gives slightly more investment possibilities to territorial units than in the past.
However this draft raises the massive objection of all the elected representatives. The association des départements de France (Association of French departments) called for its immediate withdrawal, as did the association des maires des villes de France (Association of mayors of French towns). Apparently the drafters of the circular do not know about CSTI's work. There are two opinions within the governmental bodies and I ask CSTI to state its position on this draft circular. »

Thierry BRETON :
« Territorial units have been taking an interest in telecommunication issues for a long time, which is heartening. Moreover, the State-Region Plan Contracts have shown the progressive involvement of these units in these fields.
Once again, CSTI does not make laws: it just gives opinions. There is therefore no conflict here. We simply recommended dealing with shadow areas as regards high speed Internet. These, moreover, may well exist in densely populated sectors.
We therefore proposed an invitation to tender approach to map France so as to locate economically viable areas and ones which probably would not be so and would require public aid. The procedure is described in the report.
I know that some Regional or General Councils have got ahead, but it nevertheless appeared important to us that the Regions should acquire skills, even modest, in the telecommunications field. Some local authorities indeed wish to have their own independent experts.
We feel however that the State should keep a certain intervention and advice capacity. It is necessary to be somewhat selective regarding projects. In this respect the State can help via a sort of experts committee, which proposal was made by CSTI to the Prime Minister. »

René TRÉGOUËT :
« I feel that the circular should not be given more importance than it deserves. Moreover it is likely that it will never be applied. This circular went much further in its drafting and did not respect either the will or the spirit of the legislator. Historically, indeed, the well-known amendment of June 1999-the so-called 'black fibres' amendment-has been caught up by another decision of 2001.
This circular in no way meets the expectations of territorial units which hoped rather for an implementing decree to know how they could intervene financially. That decree is unfortunately not yet published, which is a handicap for French territorial units wishing to invest in this field.
Further, this circular is far from being technologically neutral. On reading it, it can be seen that it favours one of these technologies and underestimates all the others to cover the whole territory. However, the most important thing is to make it possible for territorial units to use all types of technology. I admit, as I know the subject well, that optical fibre will probably be the main carrier in the future.
To answer Mr Loth, I feel that the department is perfectly suited to this problem. Whenever communes (local government districts) are sufficiently densely populated they address the matter themselves and find balance within their own perimeter. They therefore leave aside the other communes of the department that do not have the required capacity. I come from a region which stretches from the Mediterranean to the Swiss border: it is unreasonable, in such a large territory, to imagine a coherent rollout in a very short time.
The department has always, for two centuries now, built all the major networks in France: departmental road networks, and the water and electricity networks. Departments therefore find here a new challenge to fulfil their solidarity role between towns, medium-sized communes and small villages.
I also wish to draw CSTI's attention to the fact that one should above all avoid creating 'digital ghettos' where people would be helped to connect to high speed Internet. On the contrary, it is necessary to mix the poor and rich sectors of each department: this is the necessary prerequisite to find operators. Because, after building a network, profitability questions arise. And ghettos with a low population density will not interest operators.
We must be fully aware of this territorial solidarity and I feel the department provides a suitable answer. »

Didier LOMBARD :
« The consequence of CSTI's freedom is that it is not intended to be a decision-taking body. We will therefore circulate the report brought to the knowledge of the Prime Minister two days ago and will send it to all the prefects of France, which should shed new light on the issue for them.
It should be remembered that when René Trégouët built his network he was seen as a dangerous economic adventurer. He has today managed to demonstrate that his project could work.
I am firmly convinced that the procedure described in the report cannot work unless local authorities are thoroughly involved in them and keep some freedom to manoeuvre. They must also be given a minimum of expertise, since in this circle many try to get paid for services with doubtful results. »

Jean-Jacques DAMLAMIAN, Chief Executive Officer, France Télécom :
« I am a member of CSTI and work at France Télécom, so my intervention will show this double-hattedness.
The title of our meeting, 'Digital Technology for Everybody - What Actions should the public authorities undertake?', already contains a certain number of sub-questions. Does 'for everybody' mean at the level of Europe, France, the region, a village…? Then this other simple question arises: since the expected prices must be equalised, who is going to pay? This is the central issue.
Solidarity in the Rhône department, jolly good! But perhaps the Landes department will not deal with the question the same way. If this is to be accepted at national level, remember that prices will not be the same in the Rhône, the Landes or the Oise. Is France ready to accept this? I think that, for the time being, the republican spirit does not accept this very well.
However, as Mr Trégouët told us, 450 million francs will have been spent on the inhabitants of the Rhône department.
It is therefore a kind of change in the equalisation that took place in this department. Do we wish to extend this type of behaviour to France as a whole? This is a real political problem and one cannot have a different policy on the subject depending on whether you live in Paris or Lyon, otherwise we would experience even more deviations than those we see today.
Lastly, Mr Trégouët, I don't really see how the 1% collected on the income of operators-when they start making money-will enable repayment of 450 million francs. To achieve that they would have to make a turnover of 45 billion francs whereas we see UPC withdrawing today from the Seine-et-Marne department. Allow me therefore to doubt that this money will one day find its way into the coffers of the General Council.
Excuse me for putting it this way, but you have to know when to be realistic. You can be for reducing taxes, for zero homeless persons, for ADSL for everybody, but you can't be for all that at the same time. »

René TRÉGOUËT :
« You know, for the past twelve years now, whenever I make a speech a member of France Télécom objects to me with this type of problem.
You have forgotten to say that I gave two elements for our return on investment. Our Intranet would indeed be very expensive for us if we also had to finance it and we should not underestimate the importance of the public Intranet for departmental solidarity. We can make use of it for free and the 450 million francs will be recouped well before thirty years, the operator's 1% acting like a kind of cherry on the cake.
I don't think I spent public money poorly in this respect. We will be told one day that this was necessary for national solidarity. We politicians cannot accept a France with thirty-six speeds. A person without access to high speed Internet tomorrow will no longer be in the mainstream.
Of course I know my argumentation differs from that of France Télécom, but we need real competition. You know very well that some European countries feel there is a shortage in high speed distribution if there aren't two distributors, simply because competition is essential. Otherwise there will be no point in us inventing all sorts of measures, the playing field will not be level.
I am at the head of a department that has been fighting for a long time to achieve this and I will continue the fight. »

Didier LOMBARD :
« I wish to mention that the proposals made to the Prime Minister by CSTI are aimed at getting the State to correct the disparities between departments. Furthermore, the correlation between competition and the rollout of high speed Internet appeared very clearly to CSTI in all the countries studied. »

Martine LAPIERRE, chief technology officer, Alcatel :
« Like Thierry Breton said, we feel that interactive audiovisual television on broadband is a market that can place both operators and telecom manufacturers on the crest of the wave again. What is Europe doing and what can it do to bring new life to this sector ? »

Robert VERRUE :
« As for high speeds, the first useful thing we can do is to ensure that the matter is understood in a roughly comparable way between States.
We have seen with interest that, since Lisbon, these issues have been discussed recurrently at the level of heads of State and government. Few industrial sectors can boast such an interest at such a high political level. I find it rather encouraging that broadband access conditions are recognised at the highest political level as a fundamental issue.
An interactive discussion is currently taking place between the States, and the e-Europe 2005 action plan will very certainly comprise a chapter on the promotion of high speed.
This issue appears among the most important and it isn't the first time that it will be discussed at European level. I am thinking in particular of the European regulation on unbundled access to the local loop, an essential matter with reference to the rollout of access to broadband over the last kilometre. I must acknowledge that, because it neglected in the past the technological neutrality requirement recalled just now by Mr Trégouët, Europe shirked for too long the need for an identical approach to the unbundling of the local loop. Now that all that is done, we can see the cost generated by this delay and unbundling is advancing far too slow today throughout the European Union.
As for the funding of infrastructures in the peripheral regions or regions receiving community credits under objectives 1 and 2, the European Structural Funds intervene to back up national aids. Similarly, the competition policy adjusts the framework for aids, particularly to productive infrastructures, depending on the situation of regions.
I also think it is necessary to allow the relevant levels to decide and that one should not determine, in advance, minute details at European level, which would be absolutely inoperative. But in a certain number of cases-of which the unbundling of the local loop is a typical or even clinical example given the delay we are incurring-Europe can put forward concepts framed in common.
Also Mr Trégouët is right when he insists on the need to avoid favouring one technology at the expense of another. This is an extremely dangerous game and the choice of technologies must remain in the hands of operators who are to be placed in competition. Otherwise there is a risk of finding oneself with technologies for which large sums will have been invested, whereas the risk has not been taken by the operators.
Mr Damlamian asked just now what was meant by the word 'everybody' in the title of our debate. I feel like answering him: everybody means everybody! As the Member States have committed to a universal service, they cannot tolerate any exclusion. We experienced this problem with electricity where tariffs must necessarily be modulated. Moreover the guiding principle on the costs of access to essential infrastructures inevitably leads us to tariff modulation. The marginal cost of an additional kilometre for a given number of megabits can never be the same from one region to another. It is important for access to infrastructures to be open so that no region finds itself trapped with one technology and so that access tariffs reflect costs.
As for the remark on operators not making enough profits, the accounts of France Télécom have just been presented and it is interesting to look closely at the figures. At France Télécom, as at many other operational European telecom operators, including the historic operators, the results are fairly positive. Their balance sheet situation is another matter. »

Dany VANDROMME, Director GIP RENATER :
« I would like to draw CSTI's attention to two specific points. We too often tend to consider the Internet as a magical remedy that can cure all ills. We don't take a sufficient interest in what the Internet really is. It is also made up of international organisations and technologies.
We are too little aware of the action taken, particularly at European level, to make it a medium for the development of these technologies which, in the future, will constitute the world Internet standard. The EU's action in this respect is exemplary in coordinating the major actions in this field.
We often regret the absence of politics at standardisation bodies. However, standardisation or a standard cannot be imposed only on technological criteria. Political support from the government or the Commission is also necessary.
I feel that security and exchange authentication are not discussed enough. If exchanges were as secure as is said, micropayment wouldn't be spoken about today: it would be automatically included in them. The Internet of the future will necessarily be built on a base of security for all exchanges, which will allow the existing economic model to be scaled up. »

Jacques STERN :
« I wish to remark on what Mr Abramatic said just now when he spoke about trust. As I participated in the discussions that led to the liberalisation of cryptology, I know that we have escaped a great danger.
That said, I occasionally panicked during today's debate. When ADSL is spoken about I think of threats of intrusion; as for when 802.11 is mentioned, I think of threats to private life. Furthermore, how are we going to be able to promote micropayment? I am often asked if one can safely give one's Blue Card number on Internet. I must admit that, in some cases, people are right not to do so. What therefore can be achieved by public action to develop trust? »

Jean-François ABRAMATIC :
« Under the word 'trust' I had grouped several questions on security, the protection of royalties and the protection of personal data.
It is necessary, above all, to take stock of the situation, see in which fields technology exists and merely has to be rolled out, and those where technology is lacking. In the event of a mere rollout, the question arises as to the funding of a global and universal rollout of technology, a prerequisite for full trust.
In today's international environment, I feel that no technology can protect against illicit contents. Research and development work must therefore be carried out to understand what infrastructure changes would be necessary. CSTI's work should therefore be oriented towards mapping the challenges that lie immediately ahead: rollout in some cases, development in others. »

Robert VERRUE :
« True, the security issue was long underestimated. It became essential only when people started having bad experiences. It also became essential with the change in the nature of transactions, because of their financial aspect or the confidentiality of files.
Our 'Benchmarking e-Europe' report estimates that 25% of European users of the Internet have had at least one significant security problem. In the USA there are between two hundred and fifty to three hundred secure servers per million inhabitants, but less than eighty in Europe. Furthermore the present changes are not leading to any catching up. Lastly, it should be borne in mind that 80% of disputed bankcard transactions concern the Web.
The security problem is a major brake on the development of Internet transactions. Surveys conducted among individuals or SMEs and SMIs show, moreover, that this point is far more significant than the cost factor.
The European Union has therefore undertaken a whole series of technological projects to develop secure applications and interoperable encryption solutions at European level. Without speaking of a single solution for the whole of the European Union, at least an interoperable solution must be found to this security problem.
We are working on this, but here again the risk exists of getting trapped with one technology. I remember that three years ago the focus of our attention was the digital signature. Today we speak of the e-signature.
In conclusion it is essential for Europe to address the problem with interoperable solutions rather than seek solutions based on a single technology. »


FORCES DRIVING CHANGE: TRAINING, INNOVATING, ACCELERATING THE DIGITAL TRANSFORMATION

Jean-Marie CADIOU :
« I find the current pessimism about information and communication technologies rather exaggerated. I am not referring to the present audience but to the general public in general. The speculative bubble surrounding the market value of NICT stocks was as exaggerated as the overly blackened picture we are sometimes painted.
The European situation is not that bad. A recent study shows that growth in Europe is slightly better than elsewhere: plus 5% in 2001. Its share in the world market has grown. Telecom services have for their part grown even slightly faster, around 6%, and software has gained 8%.
In the longer term, technological changes could alter the way we interface with the various infrastructure parts mentioned just now.
Let's take the example of the mobile phone. In two or three years we will have large size folding screens, highly advanced voice commands and, lastly, batteries with much higher performances. This considerable progress in the various infrastructure parts in mobile phones will probably transform our behaviours.
Another example, this morning we were talking about high speed Internet, yet terminals capable of making use of it are needed: watching a film on today's mobiles isn't yet either user-friendly or satisfactory.
We spoke a lot this morning about trust. This is indeed an extremely important criterion for the development of e-commerce. We must also have good business models. If we compare DoCoMo's i-mode strategy in Japan with those developed in Europe-UMTS licences and others-it can be seen that some are clearly better than others. A good business model encourages operators to develop services, which is always more effective than introducing very high licences in the first place.
My second point will concern the skills gap, which relates to the various types of divides. We spoke a great deal this morning about the geographical divide and, implicitly and explicitly, about the income divide. A divide which we haven't yet referred to-and which is particularly important for Europe-is the demographic divide.
In 2007 in Europe the 55-65 years age band will on average be larger than the 15-25 years band, even if in France the phenomenon will occur slightly later. Further, the difference will escalate. The problem is therefore to keep on board these slightly older people who have slightly more difficulties than others in accessing these technologies. Equipment manufacturers will therefore necessarily have to design their machines with this in mind, all the more so since the higher age bands generally have a higher purchasing power.
This leads us to rethink our education model. We are no longer in the baby-boom period when education, work and retirement followed each other in a natural sequence. The cycle is now entirely different with knowledge becoming obsolete every three years, which implies a new continuing education system.
What's more, some sectors are witnessing a decline in the volume of skilled labour. We would therefore have to devise a different model than the present one, delaying the arrival of youths on the labour market and accelerating the initial education cycle. I am nevertheless fully aware of the difficulty of implementing this idea.
I will now refer to the question of European Union enlargement. On 1 January 2004, Europe will pass from fifteen to twenty-five members. This very close date is of course giving rise to questions on the opportunities and risks. Obviously, information and communication technologies can be a factor accelerating integration. At the same time, the cohesion funds and structural funds will have to be used in a way avoiding too high a divide with these new countries. »

Gérard ROUCAIROL :
« Our working group concerned research and development, and more specifically the ways in which the public authorities support this sector in France. You need to understand that nearly 25% of the French private research and development (R&D) budget is already devoted to information and communication technologies (ICTs).
Public and industrial R&D, for its part, is structured around four main technological networks: telecommunications, software, audiovisual media and microelectronics. The concept of networks is based on the delegation to professionals- manufacturers and public research-of the main orientations and the assessment of proposals.
After four years of operation it can be considered that this model has had an extremely mobilising effect on the entire community formed by public laboratories, SMEs and large groups. Using its telecommunication networks, France can for instance set up very high speed experimentation platforms competing with what has been done in the USA with the Internet 2 programmes and especially the Abilene network.
If large virtual reality systems called 'immersion caves' are beginning to become available in France for the aeronautics or car industry, it's partly thanks to the software network.
This system therefore works. Yet can't we go further? Not only must we eliminate the sand grains that can jam the mechanism, we must also be more ambitious.
That's CSTI's determination and what it always proposes: it is legitimate to believe that France can act as the leader in the development of new technologies in Europe. To reach this aim our group has long wished for the creation of a 'single structure' based on three main subject areas:
- 'Consolidating' existing actions.
It is essential to provide technology networks with the logistic support allowing them to fulfil their tasks, attract new players, and extend synergies (between-networks, public/private, large group/SME, innovations/uses, …), particularly as part of large multiannual projects.
- 'Optimising' the periods needed to draw up and assess files.
Alain Costes reminded us of the efforts already made in this respect. The optimisation notion should also apply to the very nature of R&D aids. In this respect, a very broad consensus is being reached at the level of large industrial groups and also among SMEs to say that the present repayable cash advance system is not the right one to fund R&D. In this field, the only good model is subsidising.
- 'Extending' its actions.
It is indeed clear that they cannot be optimised within metropolitan France alone. They obviously need to be extended to European level and also to the level of international standards organisations. Such an extension cannot be organised without an ad hoc structure, which could be the 'single structure' strongly recommended by CSTI.
I will finish with a word about the funding of R&D. At European level, in particular, we have seen in the figures announced by the sixth FRDP some stagnation in ICTs, without any real reason.
In France we have admittedly seen an increase in R&D credits devoted to ICTs in public laboratories. We have for instance seen a significant increase in the personnel at GET, INRIA and CNRS. On the other hand, industrial aid has for its part stagnated and in a context where, since France Télécom's change in legal status, the action taken in particular by the DAII (Industrial and International Affairs Directorate at the Directorate General of Telecommunications) to inject nearly 2 billion francs into the industrial sector is no longer to be found in the accounts. CSTI wishes to recall that one should be attentive to the evolution of industrial credits and R&D for ICTs, in a context where the latter are growing in industrialised countries and especially in the United States. »

Jacques DUNOGUÉ :
« As you know, Alcatel has been investing for a long time in practically all the broadband technologies mentioned today: ADSL, local radio loop, and optical fibres to connect households.
Broadband is as important for the country's general economy as it is for that of the telecommunications. I was somewhat surprised just now to see that the difficulties of our sector were dismissed summarily. Even if the French players are not the badly off ones- probably because of the investments and the strategic efforts made in recent years-you should realise that all these companies are suffering from the present market conditions. Broadband represents one of the rare growth hopes for our sector.
One of the underlying problems of the telecommunications sector-operators or suppliers-is the erosion of traditional voice business owing to competition and the various technological changes. However, to date, neither Internet nor another technology have compensated this shrinking market.
Broadband probably affords the opportunity to really compensate the erosion suffered by voice business. It will allow us to head in new directions such as multimedia or interactive television. Alcatel has been promoting this concept for some time: it's beginning to become a reality. Most operators are starting to take a very serious interest in it today. Some already have pre-sales departments, particularly in Spain or Italy.
Why is it so important? For the past twenty years households have been spending more and more money on multimedia products or audiovisual media, and this tendency is growing. When a new games console is placed on the market people queue up at midnight to buy it!
The leaps and bounds of technology in recent years is today found in the services offered to households. Yesterday cable, not very interactive at all, allowed television to be carried. Today ADSL technology carries interactive multimedia via telephone wires.
To finish this subject of the session, a quick word now on research and training. It should be remembered that research is taking place worldwide in integrated hubs-grouping in the same place public and private laboratories and universities-focusing on a specific technology.
I could mention the example of the Optics Valley in the Paris region where the public authorities, university, public research centres, and large and small manufacturers work together.
In this respect the government has an extremely important role to play in defining the types of technologies Frances wants to develop. This helps to clarify the debate, build the necessary infrastructures and thereby attract investment. We then enter a virtuous cycle of investment and technology development.
To define these choices, several partners need to sit around the table. This is a field where public/private partnership is certainly most efficient
. »

Agnès TOURAINE :
« Technology is spoken about too often without taking contents into account. CSTI is to be thanked for having made this an important topic.
Digital technology is profoundly changing the publishing universe. While, in the past, publishing had no other choice than the paper medium, its content has now been set free with digital technology and can be carried on various media like DVDs, Internet, CD-ROMs or the telephone.
This represents a deep change in publishing production methods, which has spread moreover to all the sector. This evolution implies new training for publishing professionals, including for instance knowledge of data bases and digitising and indexing techniques.
The key factor is of course to have single digitising standards. In this respect the Open eBook Forum is the International Trade and Standards Organization for the eBook Industry.
Indexing is also fundamental since it helps to build DTDs that help to find information. Contrary to what is believed, DTDs cannot be elaborated by machine. This work must be done by publishers themselves. The fact, for instance, that Larousse digitised the entire Larousse contents has saved this company. Four years ago when Microsoft arrived on the market nobody imagined that an American specialised in data processing could become the main competitor of the Larousse or Robert! When Encarta arrived, French publishing houses were however highly threatened. Thanks to digital technology, Larousse is today present in fifty countries and probably the most successful publishing house in France.
Digital technology has therefore deeply changed production methods, the relation between content and medium and, of course, all the issues related to royalties.
Another important factor is that previously written contents can be made use of again. Using this technology they can be grouped or separated, which, once again, raises serious intellectual property and royalty questions, but also provides a kind of new creation meeting needs and services of another kind.
In the education field, all countries worldwide are facing the same problems. Some answers can be provided using digital technology and especially what is called remediation, in other words the capacity to adapt contents to the child's level.
Another example: in Spain seventeen maths books have to be published, as many as there are regions, to meet the requirements of each of them. We meet this challenge thanks to digital technology.
This technology is therefore extraordinary in that it allows a granularisation of publishing which did not previously exist. It also allows printing on demand. Everyone indeed knows that printing below three thousand copies of any given work is very difficult for a publisher. Today however one can publish fifty, sixty or three hundred copies, which means that book collections previously doomed, like those from MASPERO, can be printed again.
That said, we should be wary of fantasies of the type: 'teachers will be replaced by computers'. Being one of the foremost educational publishers, we are perfectly aware that technologies are at the service of contents and not the opposite. Everything will not change overnight simply because schools have high speed Internet; that wouldn't be desirable any way. Education is above all a question of teaching skills, of transmitting and elaborating knowledge, whatever the network and the medium used.
While we obviously need high speed at schools, we need pedagogical reflection on this new technology.
We must also be wary of the automatic structuring of databases. You have for example 'path', then 'God' and you obtain: 'all paths lead to God'. Endless structures and links can always be elaborated, but DTDs will have to be built with publishing know-how, otherwise one will get ridiculous absurdities.
We must also be on our guard against the fantasy of a universal knowledge service which would be carried, free of charge and for all, on a digital Internet. It should be recalled here that knowledge stems from authors and these should be paid. Universal access to free knowledge is an absolute trap that can lead to a State culture. Creation cannot exist without authors, nor authors without royalties.
In conclusion I wish to stress the importance of reaching a single digitising standard to ensure that small publishers, large groups and the other professionals of the publishing sector can access and work on the same digital standards.
One of the key points also concerns the partnership between the public authorities and publishers. Two to three years from now, the electronic schoolbag, on which Nathan is working, will probably be entirely different from what it is today. Only joint work between the public authorities, publishers and pupils will allow the art of teaching and the technological tool to be combined in the service of education. Teacher training is of course absolutely essential in this field.
Lastly, CSTI recommends that micropayment be placed at the heart of the system. The fact that we have reached this granularity of knowledge and information indeed implies the possibility of making payments at very fine levels. Coherent micropayment structures are absolutely essential
. »

Jean-Jacques DUBY :
« The question of training and digital technologies is, to my mind, too often badly addressed. It's not so much a matter of training in digital technologies as training in their use. And, just as the best training in research consists in training through research, training in digital technologies must be made by actually using them and at all levels, engineers schools and primary schools alike.
The relations between training and information and communication technologies got off to a bad start in France. Very early, we based ourselves on the principle that all kinds of knowledge had to be learnt before using information technologies. At the beginning of the 1970s, the maths teaching reform laid down, for instance, the learning of numeration systems straight away at primary school, under the pretext that computers communicated in binary language. You'll agree with me that we didn't have much foresight at the time!
Similarly, in the 1980s, the teaching of data processing was introduced in secondary schools on the ground that it was a prerequisite to the use of computers. More recently, one of CSTI's recommendations stipulates 'Information technologies at school: a subject to be taught'. I personally totally disagree with that: if you had to be familiar with data processing to use a computer, Bill Gates wouldn't be a multibillionaire!
Almost all professional branches today use digital technologies and in doing so have changed their very jobs: a banker, tool dresser/trimming operative, railway signalman, etc., no longer work today like thirty years ago. In contrast, teachers still work the same way and the national education authority hasn't changed at all, which doesn't contribute to the prestige of the French educational system among children sending SMS messages or playing on Internet with other children in Australia.
That said, I don't feel this is the main reason why digital technologies must become an integral part of training. Nor is it for reasons of productivity gains, which appear illusory to me except in very special applications. The real challenge is to set an example, familiarise youths with non-play applications of digital technologies and achieve genuine training through actually using them.
That's why I agree with CSTI when it says that the key to digitising French society resides in equipment and training in information technology as a work tool and teaching medium. And that it is therefore necessary to invest and train. But I no longer agree when I read that CSTI recommends 'a massive effort to train teachers.' When the national education authority speaks of a 'massive effort', we know what is meant: several million or even several billion euros. And we know the capacity of the French educational system to absorb millions of euros without any convincing result. We need more than an 'effort': a multiannual plan is required with goals, deadlines and coordinators, like that of banks, for instance, in the 1970s and 1980s. Nothing short of a change of paradigm is necessary, and change needs coordinators to be managed correctly. This also implies going much further than CSTI's recommendation to 'reward personal investment'. If bankers had had to simply rely on the 'personal investment' of their wage-earners to introduce computerisation, their tellers would still be writing with a quill pen !
»

Jacques STERN :
« My remarks will address information and communication sciences as a cultural phenomenon and I'll start with a historic example. I will then adopt an epistemological approach. Lastly, I will try and see what challenges they raise for society.
My example is drawn from my speciality, cryptology. At the beginning of the Second World War the British sought to crack the secret German codes. To do so they brought together in the suburbs of London a number of talented scientists including the famous logician Alan Turing. Their inventiveness, combined with the electromechanical machines of the time, allowed them to decipher the German messages. The latter subsequently complicated their codes. Turing then felt that is was not only necessary to have faster machines but an instrument genuinely capable of taking logical decisions. He therefore had the Colossus Mark II built in 1944, a genuine computer way ahead of its time.
This example illustrates the amazing conceptual feat of data processing recreating logic by mechanical means and it must remain present in our minds when we speak today of information sciences and technologies.
Indeed, from an epistemological viewpoint, data processing is not a vague technique, some modern form of slide rule or table of logarithms. It's a new field born of the interaction between thought and matter. At the beginning of data processing, ill-considered remarks were made about artificial intelligence, purporting that the machine would do better than man. However, I object to the idea that data processing is specifically pluridisciplinary and that you need another discipline to understand it.
One of my colleagues, a former Cambridge chancellor, gave a very clear explanation of this problem the other day. By taking as an example a well known-and moreover imaginary science-astrobotany, he drew a distinction between computational astrobotanics, in other words the contribution of new tools to traditional astrobotany and the potential interactions that could mutually fertilise both disciplines by combining the concepts and methods of data processing and astrobotany.
This leads me to my third point: society will not perceive the challenge of information and communication technologies if it does not understand what the heart of the discipline is.
Nowadays, especially on the Web, research allows the reproduction in a digital environment of mechanisms-often symbolic-that we knew how to use without the computer, but that we can now use differently and better.
Consequently, in tomorrow's virtual agora (and even in today's) all citizens-as we said this morning-need to understand and master the operation of data processing systems. Otherwise the digital divide would widen.
In conclusion, data processing should be present from school onwards as a fully-fledged discipline and not only as a pluridisciplinary awakening activity.
»

 

 

DEBATE WITH THE PUBLIC

Marc MORONVAL, professor, EIPC :
« The previous remarks have given me the strong impression of non-maturity or of a deliberate will to prevent technology from becoming widespread. Everyone today knows that you don't need to understand the operation of the combustion engine to drive your car.
The report spoke of the 'Internet school' whereas I expected to read 'school using Internet' or 'using technology'. I would therefore have liked to hear about the speakers' vision of the situation, of the trends and above all of the impacts of the introduction of information technologies on the role of teachers/learners, on infrastructures and on the economy in general . »

Agnès TOURAINE :
« You are indeed right in emphasising that we need to be very careful not to be completely abstruse when speaking of technologies, especially in the field of education and contents. That's why CSTI recommends working as often as possible on open systems and not on proprietary systems.
It is indeed very important to digitise publishers' book collections on open systems accepted by everyone and that can be carried by Internet. Today, for instance, CYTALE's Cybook is a proprietary system, therefore necessarily complex.
Turning to the teachers/learners relationship, many tend to feel their children are proficient computer users and that, in the future, teachers will have to change their method as a result. We, for our part, are absolutely convinced, as an educational publisher, that the teacher must remain the central figure in education. The more digitising takes place, the more access there is to knowledge, the greater the need for interfacing. The teacher's role must of course evolve, but it would be absurd to believe that 'a lot of information for a lot of pupils' can work without their interfacing.
The real future challenge for teachers, publishers and pupils will therefore be to take up this technology in the educational setting.
What strikes me most with publishers like Nathan, Bordas, etc., is that there is a lot of talk about technology or high speed, but not enough about pedagogy. Yet the art of teaching is pivotal to education. New technologies must be at its service and not the opposite. We must therefore train new teachers in the new technologies and in their use and bring about a change in their job entailing their interfacing with these fantastic new contents.
Infrastructures are admittedly important but do not suffice on their own. There is no point rolling out high speed everywhere without paying thought to pedagogy, which was the case in the United States. Other examples can be found in France. When you see the cost of the project of video satellite transmission to schools, whereas a Chronopost package has exactly the same result… This is meaningless without an educational project behind.
The investment will depend on a good partnership between the national education authority, teachers, publishers, and pupils' parents in elaborating coherent projects and not shambles. »

Jacques STERN :
« I would like to remark on the combustion engine example. You learn to drive at a driving school. This learning is therefore outside the school system, so why can't data processing also be taught outside it? To my mind, the answer has to be negative.
Continuing with this type of metaphor, you can study how to pilot a plane. Before flying, you study air lift or drag and try to understand why a plane can fly. You can of course fly without knowing all this but, should a critical situation occur, the risk of a crash will be much higher.
I feel the same applies to data processing. If you don't have minimum knowledge of how a computer works, you soon run the risk of encountering difficulties or even using your computer purely passively like a mere games console. I therefore think that the place of data processing is at school and that it should be learnt actively. »

Jean-Jacques DUBY :
« Your question also addressed the issue from the economic viewpoint. Obviously a change like that I have just mentioned and that has already taken place at banks and insurance companies costs a very lot. It involves a considerable material and human investment.
In the market sector, company managers expected productivity gains in the 1970s and 80s, which were moreover promised to them by data processing manufacturers… However, it is known today that computerisation barely influences productivity: this is the Solow paradox. This is true if only the quantitative aspects are considered but, in qualitative terms, a bank today obviously deals with services and products that are entirely different from its previous activities.
I therefore feel that the computerisation of the teacher's job should allow teachers to impart to pupils new knowledge. We still do not know its precise nature today because it will in fact be up to teachers to invent it hands-on. »

Jacques DUNOGUÉ :
« I merely wished to contribute my pragmatic viewpoint as a manufacturer to this very intellectual debate.
To say, as has been said, that data processing has not entailed productivity gains is wrong. The energy freed up has been used in other activities. For instance, Alcatel which previously delivered its telephone exchanges in six months, does so today in a fortnight.
As to whether the notion of productivity gains can apply to teaching, we can at the very least ask ourselves if interactivity will not fundamentally change the teacher/learner relationship. Interactivity should certainly supply the education authority will the tools to bring about a positive change in teacher/learner relationships. I would moreover be curious to know if Vivendi or other bodies are working on this subject. »

Agnès TOURAINE :
« Il est vrai que nous étudions le sujet - qui est d'ailleurs plus tabou We were indeed studying the subject-moreover the most taboo in France-of adapting contents to levels. This work requires very complicated software systems.
This project must fit into the framework of a curriculum based on the postulate that 'all should have the same knowledge at the end of the year.' Yet it must be admitted that children do not necessarily all have the same learning rhythm or the same comprehension speed. Many school systems fail to understand this and feel that all must learn the same thing at the same time.
Discussion is therefore taking place on the possibility-as part of a curriculum-to adapt the programme to the child's specific level. As I said previously, this approach is based on complicated software systems and requires the teacher to adapt his lesson not to the class as a whole, but to each pupil.
This method also implies previously testing the pupil, not in terms of potential but in terms of his knowledge level. For example a pupil who has barely any knowledge of Egypt will receive a different printed lesson than a pupil already knowledgeable.
Even if the subject is taboo, we cannot hide from ourselves the fact that the more mass education we have, the less we manage to educate children. Fewer and fewer children know how to read and write on starting secondary school. In the name of democracy we must of course ensure that all have equal chances, but it must obviously be understood that it is not by teaching the same thing to everyone and at the same speed that we will reach this goal . »

Jean-Louis BERNAUDIN, IBM :
« In my company I deal with relations with universities and grandes écoles.
I wish to return to the metaphor of the combustion engine. I'll speak here only about what I know about, in other words higher education. The French model is constituted by professors/researchers sharing their knowledge with students, with a certain degree of specialisation.
As far as the teaching of information technologies is concerned, whether data processing, cryptology or network architecture, specialists of given subjects are to be found who try to impart their knowledge to students who absorb it more or less well.
A short while ago I was in front of an audience of Arts et Métiers (higher school of applied arts and crafts) students in their last year. These will soon be led to do mechanics in industrial companies. They are certainly unbeatable on the use of CAD methods at a given work station with a given software, but none of them had any understanding of the contributions of these technologies to the supply chain, in other words to the entire chain of supply and transmission, step after step, from the manufacturer to the client. Isn't this what should be taught when we speak of learning to make use of data processing ? »

Gérard ROUCAIROL :
« You mention the question of the learning, at engineers schools and in higher education, of the use of data processing in the automation and computerisation of companies. There is indeed a real problem in this field: this teaching is badly done.
When I was young, a higher universities board was tasked with promoting university professors. It comprised two main sections: administrative data processing and data processing on its own. Good researchers entered this latter section and those who were apparently not as good entered the former. This has had a profound influence on the French university fabric. Many researchers are not interested in mechanics and in applying data processing to optimising company management.
You spoke just now of the supply chain, which indeed supposes the setting in place of grade computing across the continent, connecting suppliers and partners. These concepts are poorly mastered by French researchers and professors at engineers schools and also at universities.
Also, technology is spoken about a lot but nobody should forget, not even manufacturers, that science is behind technology. Those who took a scientific course certainly remember they had to solve integrals. And these serve to modelise combustion engines. Having learnt to calculate them is not, to my knowledge, a handicap in using a car… »

Jean-Marie CADIOU :
« I agree in saying that a scientific basis is behind all these technologies, but the real problems arise rather in their use. Europe is lagging behind as regards its liking for these technologies and the more you lead people to believe that their use requires arid and complicated know-how, the more you will frighten them.
You should realise that the average length of time that knowledge remains valid is now approximately three years. Therefore, whatever the degree of initial training, knowledge very soon becomes almost obsolete.
In my student days, data processing was unheard of. Then I worked at IBM where our OS/360 manuals formed a pile several metres high. Even today the manual on my mobile is fatter than the mobile itself, but anyway I don't consult it: if I have a problem I just call someone for advice.
I have nothing against the creation of an Internet school, but while people are being trained to teach there, Internet will already have changed a great deal. We therefore need a dynamic vision of the issue, distinguishing very carefully general use (where a large part of the market is situated) from professional uses. As regards professional uses, companies will have to organise retraining courses with perhaps personal investment on the part of staff.
Increasingly older people must be given the opportunity to use these technologies, overcoming any mental block, in all environments where they will have to use them, both at home and at work.
The public authorities certainly have a responsibility to take in this field, but companies and individuals must also participate actively here. The investment will certainly be high, but you shouldn't believe that spending a lot of money is sufficient to solve the problem. »

Jacques STERN :
« We are reviewing here a set of very different questions: training in data processing and in communication sciences; the use of data processing in teaching or training engineers in data processing applications.
I agree with you: this matter must be dealt with vertically and we must study data processing at all levels where it intervenes. However, if we forget the conceptual base, we will finish up with situations like that I've already seen where, to produce a management software, old pieces written in COBOL were used whereas in the meanwhile research work had introduced object-oriented programming.
Doing without the conceptual base would therefore lead us to subsequent technological problems . »

Jacques DUNOGUÉ :
« We indeed know how being simple can be particularly complicated. Admittedly, interactivity brings a new dimension to the Internet as we know it today. In particular it is going to lead to distinguishing two types of use.
On the one hand there will be interactive users of the network and, on the other, leisure users 'in their armchair', probably more numerous in the future. The effort the latter make must be minimal, even if the service itself is very sophisticated. For example, the maximum effort in front of a TV set is to zap. Interactivity will be a success if the growing number of services can be accessed with the same ease of use. Also, when we speak of pay-per-view television, we transpose it too often to today's Internet uses by thinking about access to image banks, films, etc… I would tend to think that the most popular uses will concern other services just as much, such as playback television: watching the news at the time that suits you or watching a soap ahead of its scheduled time the following day. Other services, other solutions.
However that may be, as manufacturers, our role is clearly to use the most sophisticated technologies to provide simple to use services. Success depends on that ? »

Christian SCHACH, chargé d'affaires, French secretariat Eurêka:
« My question concerns online teaching. I remember having read an article on the budgets the United States devotes to R&D. With high speed and interactivity, videoconferencing should be of far higher quality, which will open up the possibility of 'attending' or going back over a lecture whenever you like. What is CSTI's approach to online teaching and its present possibilities? »

Agnès TOURAINE :
« Online teaching covers several issues. As you know, Harvard placed its lectures on line free of charge. Some professors then filed a suit for royalties.
At university level, the question arises differently since the two teaching media are not interchangeable: online teaching is not intended to replace lectures professors give to an audience of students. The two media are on the contrary complementary. Six hundred American websites concern the university field, because in the United States each book has its web companion. Teaching uses more and more supporting companions. You have, for instance, a book, a web companion for the student and another for the professor.
The second stage, far more complicated, would be pure e-training, in other words training completely from home. Everyone is today seeking the right e-training system. This idea was all the rage a while ago but now it's no longer in vogue. For the time being nothing really conclusive has been achieved in the field. Publishers worldwide are working on the idea but, repeating myself, online teaching needs to be combined with tutoring.
It's probably a promising solution, but I don't know today of any example of e-training that works perfectly well .»

Jean-Jacques DUBY :
« It should be remembered that the basis of pedagogy was defined remarkably briefly by Benoît de Nurcie-better known as Saint Benoît-in the year 540. The illustrious author of St Benedict's Rule tells us: 'He who knows, speaks and teaches; he who does not know, remains silent, listens and learns.' That is still the basis of modern pedagogy. A rule that remains valid for one thousand five hundred years really is extremely astute and it must be difficult to do better!
The older and the more widespread a technology is, the more difficult it is to replace. E-training is of interest in that it allows people to be taught who cannot leave home. As Mme Touraine said, tutoring nevertheless remains essential in this respect. We must therefore pinpoint e-education's strong point, apart from the fact that not all students have to go to their courses at the same time or else the fact that everyone can learn at his own rhythm. Some techniques also allow the pupil to navigate in a lesson on the basis of what he already knows or by checking his knowledge progressively.
Several additional educational offers therefore exist today, but all this is difficult and moreover very expensive. »

Jonathan ROBIN, Internet Society, Unesco-OECD liaison :
« On both sides of the assembly, we have so far mentioned the impact of digitising on publishing and education in the broad sense of the term.
Digitising is part of a historic change in the way we access knowledge. However, work for instance by IRCAM and in the context of the new Internet architecture Ipv6-which instead of interconnecting computers will literally and figuratively serve as an interface between uses and users-may revolutionise the traditional paradigms of biological and societal contexts.
How does CSTI envisage raising the public and private players' awareness of these new challenges? »

Serge HIREL, journalist :
« I would like to refer to the issue of creation and royalties. Mme Touraine said just now, 'Creation cannot exist without authors, nor authors without royalties.' I'd like to add: 'no rights without remuneration.'
Among group B's recommendation we find that, to facilitate the streaming of audiovisual material, it would be necessary for Internet streaming rights to be deemed acquired once the rights to exploit audiovisual rights have been assigned. However most communication groups are today seeking to create a new market, that of Internet rights. Isn't there a contradiction between these two viewpoints? »

Agnès TOURAINE :
« As you know, the main difference between our law and copyright, for instance, is that in the latter all rights are deemed acquired. We must above all not militate in favour of an extension of this Anglo-Saxon system.
The problem in France is that between moral rights and royalties, it is very difficult to create new rights, particularly in the digital field. Further, it is difficult for us to explain to some digital authors that we cannot pay the same royalties for all media.
An educational CD-ROM will contain for example music, video and text. You cannot pay SACEM for this music at the same rate as when you buy a CD containing only music. In France we have reached absurd situations where in some projects 95% of the selling price is made up of royalties.
Royalties must of course be protected, but must be renegotiated depending on the media. CSTI has made some recommendations but everyone knows that the subject is giving rise to many discussions in France and worldwide. We feel that this creation of new rights must thoroughly comply with royalties without the latter being an obstacle. We must also be sure, when faced with multiple royalty digital works, that the cost is not the sum of the royalties of each single work.
As you know, a recent report attempted to challenge the notion of collective works. Imagine what this notion implies when eight hundred people contribute for instance to an encyclopaedia! Challenging the collective work notion would require negotiating with these eight hundred people, a few hundred of whom often have family beneficiaries!
As a result some prefer to produce elsewhere. We shouldn't reach a situation in France where excessive protection leads to the relocation of intellectual production. We therefore absolutely must simplify the regulations on royalties. In a nutshell, the author creates and the beneficiaries 'collect the dough', and I assure you there is sometimes nothing worse than negotiating with some of the latter!
This is therefore a complex issue requiring very complicated negotiations, but I feel sure we will find a solution in France and at European level. »

Jacques DUNOGUÉ :
« I feel that the companies collecting these royalties should take a bit more interest in modern methods and reduce their costs. Internet losses of the present system are very high and I'm not sure that royalties are finally paid to the entitled parties. One day we will have to address this issue. The same instruments that are tasked with protecting Internet rights will also help to invoice them more easily and more precisely. »

SYNTHESIS OF THE TALKS


Didier LOMBARD :
« I would simply like to recall the broad lines of the debates which are soon going to be over for today.
I have noted a strong momentum in line with CSTI's guidelines, even if slight differences may of course exist between different viewpoints. I could summarise them as follows:
- Don't make networks if you don't know what content to put in them.
- Everyone must take his driving test, but it is perhaps not necessary beforehand to know how to disassemble the engine.
I also heard many other remarks of the same type this morning.
I think that today CSTI really has started its work. The aim was indeed to interact with society, even if we previously had to work in a closed circuit. Our doors are now wider open than before. Today's debates will be printed as proceedings and distributed to everyone. We will pursue our work by going deeper into a certain number of topics. Whoever wishes to make a contribution will be welcome.
Our aim is to keep an active advisory role so that our conclusions then enter the decisional process. One of our credos is that any decision taken in our field, particularly as regards networks and the development of services, implies bringing in all the local authorities in an operating method perhaps more flexible than today's. We certainly have some progress to make here.
We are all working for our country to be the best possible and we today see enough enthusiasm to achieve this goal. We will continue to organise this type of talks as our work advances. »

 
 
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