# Presentation: 402825

## U.S. Commercial Service CS Belgium

**Capitalizing on Europe's Evolving IT/Telecom Market**

**April 2007**

## What is Showcase Europe?

- Aerospace/Defense - Paris
- Automotive- The Hague
- Environmental - Prague
- Energy - Turkey

- Information/Communications Technology (ICT) - Brussels
- Medical/Pharmaceutical – Düsseldorf
- Safety/Security - Milan
- Travel/Tourism - London

**Showcase Europe is the**
**regional coordination of commercial specialists’ efforts by industry sector**

_*SCE is active in the following industry sectors:*_

**Notes:**
ICT spans many industries and influences many others.

We can assist regionally in all these other sectors and on a case by case in all other sectors.

## The E.U.’s role in ICT

- Per many historians the greatest economic development since WWII
- U.S. largest trading partner at $375 billion in trade
- The EEA and EFTA provide for freedom of movement
- The Euro-zone provides for financial transparency.
- Central and Eastern Europe’s economies are growing fast

- _The European Union is:_

**Notes:**
There has been a lot of media attention recently about China and the East.  It is important to mention that although we have a lot of trade with China, the Europeans are the United States’ largest buyer.  In 2005, U.S. investment in Belgium was 4 times that of China, for example.

The EEA (European Economic Area) Agreement in force since 2004 is concerned principally with the four fundamental pillars of the Internal Market, “the four freedoms", i.e. freedom of movement of goods, persons, services and capital. Three (Norway, Iceland and Liechtenstein) of the four European Free Trade Agreement members (excluding Switzerland) joined in the freedom of movement space.

However, each country is distinct.  It is best to find a single representative per country.

## CS Belgium heads Dynamic Coverage of Best Prospect Sector

- Strong worldwide growth: 4%
- ICT growth in Western Europe: 3.3%
- ICT growth in Central and Eastern Europe: 6.1%
- European ICT market size:  $643 billion
- European Telecom market size:  $283 billion
- Employs 6 million Europeans and represents 7.4% of European GDP
- European Union institutional awareness and support through i2010 initiative
- Convergence means all other industry sectors are affected

- _Information and Communications Technology:_

**Notes:**
Central and Eastern Europe has very strong growth numbers but Western Europe has the largest markets.

7.4% of Europe’s GDP is a very significant number.

## i2010

- Since 2005, EU is promoting its new i2010 plan
- i2010 has three pillars:
- A European information space that promotes a competitive digital economy
- Increasing investment in information and communication technologies research
- Fostering social inclusion, public services and quality of life through the use of ICT
- The overall balance sheet for 2006 is positive. The main indicators are moving in the right direction.

- _A European Information Society for Growth _
- _and Employment:_

**Notes:**
The European Union’s ICT market is immense yet growth numbers are slowing down.  Because of this, the EU is actively implementing the i2010 strategy.  This strategy promotes competition, R&D and integrating ICT into quality of life.  According to the EU (a survey yet to be released officially) current indicators reflect a positive impact of the i2010 initiative.  Growth is mainly in the software/e-business solutions sub sector with large corporations and early-adopters at the forefront.  Many member States now have high level of broadband penetration.  This translates into a slowdown of the telecom market and will likely result in further growth in the software and IT sub sectors as Value Added Service (VAS) multiply and take advantage of the high-end infrastructure.  The growth is already clear in the content market with increased online music sales and new digital devices. Movie distribution and online TV are also advancing.

## Some Market Figures

- _Market Overview & Prospects: _
- _ __Belgium & Luxembourg_
**IT Market has continued to grow since 2004**

**Notes:**
Belgium and Luxembourg’s numbers are consistent with the rest of the EU.  Belgium is following the EU’s lead and, to a degree, has preempted i2010 by implementing several e-government programs and promoting PC and Internet access to schools and modest-income households.  Over the past three years Belgium has been sowing seeds for future growth.

## Some Market Figures

- _Market Overview & Prospects: _
- _ __Belgium & Luxembourg_
- Telecommunications Market has continued to increase since 2002

**Notes:**
Again, Belgium and Luxembourg’s numbers are consistent with the rest of the EU. Belgacom, the former state run telecom operator and still 51% state-owned is the big boy on the playground.  They own their own infrastructure: copper wire and fiber.  Telenet owns most of the cable infrastructure.  We do not believe that the infrastructure layout will change much in the near future.  Competition is mainly VAS-centered.  

Mobile telephony is still expensive.  This is due to the limited competition and the fact the Belgacom, through wholly-owned Proximus, owns the mobile infrastructure.

TO BE UPDATED

## Some Market Figures

- _Worldwide ICT Market Annual Growth, 2005-2007:_

**Notes:**
There has been a strong recovery worldwide in the ICT sector.  Central and Eastern Europe are experiencing very strong growth.

ICT is a special industry sector as it affects all areas of society, from the way we do business to the way we socialize.  

The chain effects of ICT development are far reaching and often unpredictable.

NOTE:  source for European figures are the European IT Observatory or EITO and IDC.

## Some Market Figures

- _Worldwide ICT Market By Region, 2006:_

**Notes:**
Although Europe’s figures, on the previous slide, were slowing down compared to the rest of the world, Europe still represents the lion’s share of the global ICT market.  Furthermore, the EU, through its i2010 program has recognized the importance of fostering growth in the CIT industry.

## Some Market Figures

- _EU ICT Market Growth By Segment, 2005-2007:_

**Notes:**
As infrastructure and hardware advances settle, the software and services are catching up to make the most of the advances.

## Some Market Figures

- _European ICT market structure, 2006:_

**Notes:**
Carrier services are still the greatest share of the market.  The software and IT services share is growing.  The software and IT services share is expected to supercede the carrier sector by 2010.

## Some Market Figures

- _Worldwide IT Market Annual Growth, 2005-2007:_

**Notes:**
Europe’s IT market growth numbers are expected to increase in years to come.

## Some Market Figures

- _Worldwide IT Market by Region, 2006:_

**Notes:**
Here Europe has 35.4% of the global IT market in terms of GDP. However, Europe should have the largest share of the global IT market by 2010.

## Some Market Figures

- _Worldwide Telecom Market Annual Growth, 2005-2007:_

**Notes:**
Ever since the liberalization of the telecom markets in the EU the dust has been settling after scores of consolidations, acquisitions and mergers.  Although this market’s growth is modest, its advances are feeding the IT market.

The rest of the world’s high growth rates reflect countries such as China developing their telecom infrastructure.

## Some Market Figures

- _Worldwide Telecom Market by Region, 2006:_

## Some Market Figures

- _EU Carrier Services Market Growth by Segment, 2005-2007_

**Notes:**
Again, growth is in services.

## Some Market Figures

- _EU ICT expenditures per capita, 2005, in Euro_

**Notes:**
It is notable that although Eastern and central Europe have higher ICT growth figures, Western Europe still has higher per capita ICT expenditures.

## Some Market Figures

- _Internet Commerce in Western Europe, 2005 and 2009, in billion Euro_

**Notes:**
Incredible projections here.  Over the next few years, the B2C market is expected to nearly quadruple and B2B will nearly double.  Together this will double the Western European e-commerce market.

## CS Belgium Results-oriented SCE ICT Strategy:

- Regional foothold for clients
- Coordination of 30 posts’ market expertise
- Trade fair program
- Mobilize CS resources

- _SCE ICT initiatives:_

**Notes:**
We assist American companies trying to export to Europe.  We give them insight and direction.  We are one-stop-shop.
Our team is flexible and can meet on-the-fly needs.  We can provide tailored solutions to clients.
We maximize our impact at trade fairs by the intelligent use of CS resources.
By organizing our logistics we save CS resources.
We use technology to maximize our turnaround time and effectiveness.

## Showtime
Logistical support
Industry Focus Promotion
Outreach

- Logistical support
- Industry Focus Promotion
- Outreach

- Quicktake
- Trade Fair support
- SCE ICT Guide
- Training and Team Building

- _More specifically:_

**CS Belgium Results-oriented SCE ICT Strategy:**

**Notes:**
All of these programs incorporate our CS priorities.

CS Belgium, as the cutting-edge Showcase Europe ICT coordinating post, has been actively creating new tools and services for our clients, leveraging technology as well as our workforce across Europe to tap into this unique market.  Our SCE ICT activities netted U.S. exporters about 250 million dollars in FY 2005 and the Commercial Service nearly 100 success stories for 800 new company clients.

CS Belgium has developed an impressive arsenal of services and program for SCE ICT: Showtime, Quicktake, Meet the U.S. Exporter promotion, Eurotech News Newsletter and European coordinated market research.  All services dovetail with our CS priorities of client service, customized solutions, cost recovery, automation and technology, and enhanced workforce value-added. 

Showtime: At trade fairs, a client briefs our gathered SCE ICT specialists.  In return our SCE team gives feedback and market direction.  We make the most of our team’s expertise.
Logistical support: We secure group prices for lodging and transportation.  By centralizing activities, we also avoid the team individually performing redundant tasks saving time and money.
“Industry Focus Promotion:” A program where we promote U.S. exhibitor products to foreign buyers.
Outreach: With Commercial Specialists gathered at a trade fair we can reach out to all the U.S. exhibitors and personally introduce them to the CS.  We maximize our clout at trade shows.
Quicktake:  Helps sell CS services.  Uses technology for improved efficient service.  Is tailored to the client’s needs and is SME-friendly.  Saves resources.
Eurotech news:  Helps USEACs get a better view of the European market.  The Newsletter typically includes:  New programs, highlights, country focus and tenders.
SCE ICT Guide: We coordinate our market research and can provide a formatted overview of the ICT markets spanning 30 posts.  A great tool for USEACs as well as clients.
Training and Team Building:  The key to our success, a tightly knit trained team brought you Showtime.  Typically we training and team build at CeBIT, our annual get-together.

## A focused tool to complement shotgun market reports
Product-specific survey canvassing up to 30 European Market specialists
15-day turnaround time.
Takes advantage of technology
Final report is concise, clear and easy to read
“Expert Opinion” on the market: on a product’s or service’s potential in these markets; targeted feedback on the product or service and advice on where to start in Europe; information on current demand, future demand, competition and more; suggested next steps; insight on relevant European Union regulations, standards and legislation included
Rave reviews from clients

- Product-specific survey canvassing up to 30 European Market specialists
- 15-day turnaround time.
- Takes advantage of technology
- Final report is concise, clear and easy to read
- “Expert Opinion” on the market: on a product’s or service’s potential in these markets; targeted feedback on the product or service and advice on where to start in Europe; information on current demand, future demand, competition and more; suggested next steps; insight on relevant European Union regulations, standards and legislation included
- Rave reviews from clients

**Quicktake, a New Direction**

- _You are ready to export Europe but don’t know where to start ?  Quicktake is for you!_

**Notes:**
QT is fast (15-day turnaround) and tailored to the client’s specific product.  We have gotten rave reviews from clients.  At $750, QT seems to be appropriately priced.

## 14 QTs delivered in the ICT sector.
8 Success stories
Over one million dollars worth of Export Action
2 GKS sold and 2 Platinum Keys pending
Officially launched as a for fee service in April
Already one paying QT delivered and another pending.

- 8 Success stories
- Over one million dollars worth of Export Action
- 2 GKS sold and 2 Platinum Keys pending
- Officially launched as a for fee service in April
- Already one paying QT delivered and another pending.

**Quicktake, a New Direction**

- _Some results:_

## "All of our major goals were met. . . The success of the entire program is a tribute to the close cooperation and support we enjoyed with the US Commercial Service, the Baltimore US Export Assistance Center, and the individual analysts and specialists with whom we have had the pleasure of working. We have been very pleased with the relationships and with the results we have enjoyed. . . Bring on those customer satisfaction surveys!!!!” 

“We have found the QT to be invaluable, with Ireland, the Netherlands, and Poland markets which make the most sense to enter for powerplant optimization.  (...) As author of the QT which started it all your name will surely not be forgotten... and we look forward to lifting a glass in your honor with the first contract signed for business in the Czech Republic!”

“Just a quick note to say that your QT report was not only professional but also immensely helpful... and with any luck its timely delivery (yes, I spent my weekend thinking things over after devouring the text on Friday) will lead to a Gold Key in Ireland, the Netherlands, or Poland.”

- “We have found the QT to be invaluable, with Ireland, the Netherlands, and Poland markets which make the most sense to enter for powerplant optimization.  (...) As author of the QT which started it all your name will surely not be forgotten... and we look forward to lifting a glass in your honor with the first contract signed for business in the Czech Republic!”
- “Just a quick note to say that your QT report was not only professional but also immensely helpful... and with any luck its timely delivery (yes, I spent my weekend thinking things over after devouring the text on Friday) will lead to a Gold Key in Ireland, the Netherlands, or Poland.”

**Quicktake, a New Direction**

- _Some Client Feedback_

**Notes:**
Our clients are mot eloquent about QT

## 655 clients served
90 export success stories
$246 million exports
55 CS services delivered. (GKS, IPS and BFS)
$57,935 direct revenue generated to posts

- 90 export success stories
- $246 million exports
- 55 CS services delivered. (GKS, IPS and BFS)
- $57,935 direct revenue generated to posts

**CS Belgium Results-oriented SCE ICT Strategy:**

- _Some 2005 results:_

**Notes:**
Numbers that speak for themselves...

## Quicktake
Seamless connection to organizers
International Focus Promotion
CeBIT (Hanover), Svyaz (Moscow), IBC (Amsterdam), SMAU (Milan), and Bilisim (Istanbul)

- Seamless connection to organizers
- International Focus Promotion
- CeBIT (Hanover), Svyaz (Moscow), IBC (Amsterdam), SMAU (Milan), and Bilisim (Istanbul)

**CS Belgium Results-oriented SCE ICT Strategy:**

- _Upcoming programs:_

**Notes:**
Quicktake: We expect that QT will spread throughout Europe to other regions as well as to other industry sectors.  QT saves resources, serves clients efficiently and  leverages our for-fee services.  We have already seen how QT changes the way CS does business.

Closer ties to show organizers:  The idea is to maximize our cooperation with trade fair organizers to make sure that the Commercial Service has assisted each and every U.S. exhibitors and recruit the efforts of the trade fair organizer to harvest export success stories

The IPS+ is a new service in which we have much confidence.  It originated in CS The Netherlands for IBC.  The idea is to sell IPS to be delivered to the U.S. exhibitors at the show.  And to contact visiting foreign buyers prior to the show using lists provided by the fair organizers.

## U.S. Commercial Service CS Belgium

***Thank You!***

**November, 2005**

***Camille Sailer***
***Senior Commercial Officer***
***CS Brussels, Belgium***
***Tel: +32.2.508.2425***
***Email: camille.sailer@mail.doc.gov***