Corporate Deal Maker

Moving the growth needle at Procter & Gamble Co. (NYSE:PG) isn't easy. Not only is the company an $80 billion-in-sales behemoth, but it is after all in the consumer products business. And in the developed world at least, growing sales of shampoo and diapers faster than GDP is tough. Mostly, it's just a brutal battle for share.

Yet trying to move that needle is what CEOs, especially new ones, are all about. So how do things stand for Bob McDonald, who just reported his first quarter of results as chief executive at the company?

The good news, duly applauded by investors who bid the shares up more than 4% Thursday,  was that price cuts on the company's premium brands and the addition of lower-cost alternatives stemmed the defection of recession-stricken consumers to store brands. Earnings were down a mere 1%, to $3.35 billion, on sales that fell 6%, to $19.8 billion. Both numbers were better than predicted, and the company revised its forecast for organic sales growth in the fiscal year ahead upward to the 2% to 4% range.

But even 4% is not going to make people start calling P&G a growth company, which they were doing a few years back when A.G. Lafley (who remains chairman) was teaching everyone about open innovation and coming up with new twists for old brands, like Mr. Clean's Magic Eraser.

So M&A comes quickly to mind. The Wall Street Journal ran a piece on Wednesday speculating about P&G putting nonstrategic brands like Pringles and Duracell on the block if they don't start performing better. Of course, if they're nonstrategic, why wouldn't P&G sell them anyway, as it did Folgers and so many assets under Lafley?

The Journal piece also mused about P&G's possible shopping list, which might include haircare company Alberto-Culver Co. (NYSE:ACV) or, say, the consumer products portfolio Pfizer Inc. (NYSE:PFE) got when it bought Wyeth.

Yet attractive though they may be, they are small compared with P&G. Alberto-Culver has about $1.4 billion in sales, and the Wyeth portfolio, which includes Advil and Chapstick, has about $2.7 billion in sales. And are they even for sale? As tax expert Robert Willens explains, even if Pfizer wants out of consumer products (again), it faces a big tax hit on the sale of Wyeth assets, since the deal structure means it inherits Wyeth's low basis in them.

Neither of these --o r for that matter, P&G's possible purchase of the air-care part of Sara Lee Corp.'s international household products unit -- would deliver the jolt that Lafley achieved when he paid $57 billion for the Gillette Co. in 2005.

It's no secret that P&G remains interested in buying. Back in March Lafley was talking about the opportunities he hoped the downturn would create. Big pharmas eschewed megadeals for a while, but when the growing got tough this year Pfizer (a past practitioner) and Merck & Co. (NYSE:MRK) (a new one) embraced them once again. Could P&G be ready to think on that scale again?

In a presentation to investors in September, McDonald touted P&G's growth prospects around the globe, especially in emerging markets. He said he wants a billion more customers, and that if P&G can get per capita spending on P&G products in India and China up from $1 and $3, respectively, to the $20 level P&G enjoys in Mexico, that will translate into $40 billion in sales.

It's a compelling vision, but not one to be realized overnight, as this piece in Livemint shows. It explains what  P&G will have to do to extend its reach from urban to rural India, where it hopes to add half those billion customers by 2014.

The Gillette deal, by contrast, added $10.5 billion in revenue in a hurry. When Clay Daley stepped down as P&G's CFO in January, the company said he'd be taking on one more big project before leaving: codifying the lessons learned in the successful Gillette integration. He was expected to finish in September, so McDonald has the playbook handy if he should need it. - Kenneth Klee

Candidates for Scrutiny Under Barney Frank's Corporate 'Death Panel'

At Thursday's House Financial Services Committee hearing on systemic regulation, Chairman Barney Frank, Democrat of Massachusetts, argued that it is time to stop using taxpayer funds to save firms that pose a systemic risk to the U.S. economy. Frank knows exactly how he wants to put this practice to an end:

"There will be 'death panels' set up by Congress to put these institutions out of business," he said.
Frank has not yet provided details about how the "death panel" would make its decisions, nor can we even say if such a panel will in fact be created. But, a discussion draft the committee released on Tuesday proposed creating a Financial Services Oversight Council that will evaluate companies posing a risk to the U.S. economy.

The council would have nine voting members. Based on their current positions, the membership would include Treasury Secretary Timothy Geithner, Chairman of the Federal Reserve Board Benjamin Bernanke, Comptroller of the Currency John Dugan and six others. The panel also would have two non-voting members from the state banking and insurance regulatory bodies.

The council's broad responsibilities would include the authority "to advise the Congress on financial regulation and make recommendations that will enhance the integrity, efficiency, orderliness, competitiveness, and stability of the United States financial markets; and to monitor the financial services marketplace to identify potential threats to the stability of the United States financial system."

The discussion draft also says that the identity of the companies would remain secret. Despite that intent, it might not be difficult to determine which companies would fall under federal scrutiny.

For reasons explained below, the council might consider the following entities as candidates.

First, to identify potential threats to the stability of the financial system, the council should take a look at the most recent quarterly report from Dugan's Office of the Comptroller of the Currency (OCC). U.S. commercial banks now hold more than $200 trillion in derivatives, or nearly double the level at the end of 2005. Just five commercial banks account for 97 percent of that amount in notional derivatives and 88 percent of net credit exposure.

While the OCC data do not cover the entire derivatives market, when just five banks control such a large percentage of a market, we should be concerned. In order of their credit exposure to risk-based capital, these five are Goldman Sachs, J.P. Morgan Chase, Citibank, Bank of America and Wells Fargo Bank.

The potential systemic risk to the global economy these institutions create is obvious. They have more than $8 trillion combined assets, with J.P. Morgan Chase leading the pack with $2.2 trillion and Goldman Sachs bringing up the rear with its $880 billion. A failure of any of these banks would dwarf the impact of the Lehman Brothers failure, which had assets of $600 billion when it filed for bankruptcy.

Some might consider the insurance giant AIG to be a candidate for panel scrutiny, and based on media coverage of the company over the past year, this belief would seem justified. Yet, as most people might not realize, nearly all of AIG's troubles stemmed from a small band of traders located in AIG's London-based Financial Products unit, known as AIG-FP. It would be detrimental to punish AIG's generally successful insurance business (though some elements of the insurance business also invested in toxic mortgage-backed securities) for the misdeeds of its "London casino," as then-Sen. Paul Sarbanes termed the operation during hearings last October before the House Oversight Committee.

As is widely known, AIG-FP had a monumental exposure in the credit default swaps (CDS) market, with more than $500 billion in CDS outstanding at the end of 2007. Defaults in this market ultimately caused the near-collapse of what was then the world's largest insurance company. But keep in mind that most of the $180 billion AIG received from the federal government largely went to cover the mistakes made by about 400 of AIG's 160,000 employees.

As AIG's then-chairman, Edward G. Liddy, noted in his March testimony before the House Financial Services subcommittee, AIG's Financial Products unit had more than $1.6 trillion in notional derivative exposure with 1,500 major corporations. Liddy, who had become CEO of the company in September 2008, acknowledged that AIG was "too complex, too unwieldy and too opaque for its component businesses to be managed as one company."

AIG-FP perhaps epitomizes the greed that ruled in this sector. As AIG highlighted in its 2007 annual report, "the most significant component of . . . operating expenses [in the FP unit] is compensation." From 2003 through 2007, that unit paid $2.56 billion total compensation to its employees. AIG-FP's leader, Joseph Cassano, received more than $240 million during his eight years leading the unit. After AIG-FP reported losses of around $20 billion, Cassano left the company in March 2008 with a $34 million bonus, a $1 million-a-month consulting package and use of company housing.

There's one other fact about AIG that is important to recognize. The Office of Thrift Supervision (OTS) was responsible for regulating AIG-FP, but it failed to recognize the problems associated with the derivatives. Moreover, additional regulation in the United States would not have prevented the unit from entering into this business, as other regulators also fell down on the job. Although European regulators had granted the OTS the authority to supervise its European operations, the United Kingdom's Financial Services Authority could have regulated the London office of the Financial Products unit, but didn't. The U.K.'s Serious Fraud Office is now investigating potential irregularities in that office.

Given its reckless behavior, it is time to put AIG-FP out of its misery and to allow AIG to return to its roots as an insurance company that in 2008 insured the property of 94 percent of the Fortune 500 companies and 77 percent of the Financial Times 500 companies; it had more than 30 million policyholders in the U.S. and 74 million policyholders worldwide.

Next on the list are the financial units of General Motors and Chrysler. Putting these two entities under surveillance would meet the requirement that the council "facilitate information sharing and coordination . . . regarding financial services policy development." General Motor's financial arm, GMAC, which converted into a bank so that it would be eligible to receive federal bailout funds, is about to receive a third bailout from the U.S. government. This money would raise the government's stake in the company to about 35 percent and bring its total government funding to more than $12 billion. As with AIG, GMAC's biggest problem lies in its mortgage unit, which was responsible for $1.8 billion of GMAC's $3.9 billion losses in the second quarter this year.

Chrysler Financial received a $1.5 billion loan from the federal government that it repaid in July. Although Chrysler Financial has plans to exit the business in two years, its demise is not certain and, by examining its books, the panel could learn why the exit strategy has been considered. Chrysler Financial, which is owned by the private equity firm Cerberus Capital, is reportedly winding down its operations and transferring its business to GMAC. Cerberus Capital has stakes in both GMAC and Chrysler.

Finally, the creation of the council provides a perfect opportunity to dismantle Fannie Mae and Freddie Mac. Doing so would meet the first objective of the council, which is to make "recommendations that will enhance the integrity . . . of the United States financial markets." Investors believed that these government-sponsored entities had the implicit backing of the federal government. Although that was not the case, when the federal government placed Fannie and Freddie in conservatorship in September 2008, the implicit guarantee became explicit. Both entities were regulated by Office of Federal Housing Enterprise Oversight (OFHEO), but this regulation was not sufficient to prevent them from providing low-quality subprime mortgages.

Fannie and Freddie have lost a combined $165 billion since July 2007. The federal government has already given them $96 billion to help shore up their loans. Unfortunately, home foreclosures are still rising, meaning that the agencies are likely to continue to drain funds from taxpayers.

If the federal government is considering putting any agencies out of taxpayers' misery, as Barney Frank suggested, Fannie Mae and Freddie Mac should be on top of the list.

Despite Recession, World`s Leading Corporate Innovators Increased R&D Spending in 2008, Finds New Booz & CompanyStudy

Nine in 10 Companies Cite Innovation as "Critical" to Preparing for Upturn

Corporations Are Getting Better at Killing Bad Projects
NEW YORK--(Business Wire)--
In the face of a severe global recession, the world`s 1,000 largest publicly
traded corporate research and development spenders increased spending on R&D in
2008, affirming the critical importance of innovation to their corporate
strategies, according to global management consulting firm Booz & Company`s
fifth annual analysis of global innovation spending, released today. R&D outlays
for these companies rose by 5.7 percent to US$532 billion, even as sales were up
only 6.5 percent. While the increase in 2008 R&D spend was less dramatic than
2007's gain of 10 percent, it was just slightly less than the 7.1 percent global
five-year compound annual growth rate (CAGR) for R&D. 

Overall, more than two thirds of companies maintained or increased their R&D
spending in 2008, despite more than a third (34 percent) reporting that net
income plummeted last year, according to the study. More than a quarter of
companies decreased their R&D allocation in 2008. 

Booz & Company analyzed the world`s top 1,000 public corporate research and
development spenders - the Booz & Company Global Innovation 1000 - in what
continues to be the most comprehensive effort to assess the link between R&D and
corporate performance. The study looked at R&D spending and its link to
corporate performance, uncovering insights into how organizations can get the
greatest return on their innovation investment. New to the study this year is an
in-depth survey of nearly 300 senior managers and R&D professionals from 250
companies around the globe that probes the impact of the downturn on innovation
spending and strategy. 

Key findings of the report include: 

Innovation is viewed as increasingly vital to corporate strategy. More than 90
percent of those surveyed say that innovation is critical as their companies
prepare for the upturn, and fully 70 percent of respondents state their
companies are either maintaining or increasing their spending on R&D in 2009,
according to Booz & Company. Furthermore, the top 100 companies in the
Innovation 1000 clearly signaled their investment priorities by increasing R&D
spending by 3.2 percent while reducing overall capital expenditures by one
percent. 

"Reducing efforts on innovation would be similar to unilateral disarmament in
wartime," said Barry Jaruzelski, Partner at Booz & Company. "Now is an opportune
time to build advantage over competitors, especially weaker ones that may have
to skimp on R&D for financial reasons. Overall, the study demonstrates an
optimistic outlook on the part of the companies in the Innovation 1000." 

Companies are spending more, but more wisely. "One result of the recession is
that it has forced companies to think more carefully about their innovation
processes and portfolios - for both good times as well as bad," observed Kevin
Dehoff, a Booz & Company Partner. "This held true through the most turbulent
quarters these companies have navigated, indicating they`re ready to make smart
bets that will pay dividends in the coming upturn." Accordingly, the survey of
senior managers and R&D directors reveals that seven in 10 companies are now
adjusting their strategies to better capture changing customer requirements.
Nearly half of the respondents report becoming more risk averse in their
approach to innovation, changing the filters they apply when green lighting new
R&D projects. More than 40 percent said their companies are focusing on process
improvements to change R&D spend during the downturn, and a similar number say
they`re getting better at killing bad projects, as well as focusing more on
newer products that have the potential to grow faster. 

The top 20 innovation spenders increased their budgets by just 3.2 percent. This
gain is less than one-third the 10.7 percent rise in 2007 and was the result of
a precipitous 35 percent drop in net income among the 20 companies, which fell
from $115 billion in 2007 to just $75 billion in 2008. Still, the top 20
spenders accounted for 26 percent of spending by the entire Innovation 1000. 

Recession`s impacts on R&D vary widely by industry. In 2008, as last year,
two-thirds of R&D spending was concentrated in three industries: computing and
electronics (28 percent), health (23 percent), and automotive (16 percent).

* No industry felt the pain more than auto with nine out of the top 10 R&D
spenders in the category cutting their innovation outlays in 2008. Overall, 60
percent of auto companies in the Global Innovation 1000 decreased R&D spending,
compared with 25 percent who decreased R&D last year. Yet the remaining 40
percent of auto companies on the list increased spending enough that the auto
sector on a net basis slightly increased R&D spending overall by 0.6 percent. 
* The Software and Internet sector, on the other hand, clearly has seen the
recession as an opportunity. Eight out of the industry`s top 10 R&D spenders
increased their R&D spending last year. 
* R&D spending in the computing and electronics industry was up more than 4
percent, though the proportion of companies that increased R&D spending was
essentially unchanged from last year. 
* Healthcare companies spent the most on R&D as a percentage of sales -- 12
percent -- followed by Software and Internet (11.4 percent). In contrast
Telecom, and Chemicals and Energy, spent the least, 1.4 percent and 0.9 percent,
respectively. 
* Aerospace and Defense was the only industry to see innovation spending sink,
down 2.3 percent.

Every global region increased its spending. North American, European, and
Japan-based companies retained their 94 percent share of the global 1000
innovation spend. Every region, including China and India, increased its
expenditures, though they did so at slower rates. Japan upped its allocations by
just 0.5 percent, Europe by 6.3 percent and North America, 6.5 percent. These
levels were below the global five-year CAGR of 7.2 percent. 

Additional study findings include:

* The top 10 global R&D spenders in 2008 were, in descending order: Toyota,
Nokia, Roche Holding, Microsoft, General Motors, Pfizer, Johnson & Johnson,
Ford, Novartis and sanofi-Aventis. 
* R&D spending among the Global Innovation 1000 ranged from just under $9
billion spent by #1 Toyota to the $58 million spent by #1000 Laird PLC, a
London-based maker of electronics equipment, a wide range that explains why the
top 100 companies account for fully 62 percent of the total R&D spend of the
Innovation 1000. 
* Sales of the Global Innovation 1000 grew 6.5 percent to $15 trillion in 2008,
a significantly smaller increase than the 10 percent increase this group
registered in 2007, and R&D spending as a percentage of sales remained the same
as the previous year, 3.6 percent. 
* North American-headquartered companies on this year`s list spent 4.6 percent
of sales on R&D, a slight decrease compared with 2007, while
Japanese-headquartered companies spent 3.7 percent of sales, significantly up
from last year, and European-headquartered companies spent 3.2 percent, a
decrease from the prior year. 
* Booz & Company estimates that the Global Innovation 1000 accounts for 81
percent of 2008 total global corporate R&D spending of $660 billion.

Booz & Company Global Innovation 1000:Study Methodology

Booz & Company identified the 1,000 public companies around the world that spent
the most on research and development in 2008 (companies for which public data on
R&D spending was available). 

Booz & Company analyzed key financial metrics for each of the top 1,000
companies for 2001 through 2008 - sales, gross profit, operating profit, net
profit, R&D expenditures, and market capitalization. All expenditure figures
were translated into U.S. dollars according to the average exchange rate for the
year. In addition, total shareholder return was gathered and adjusted for each
company`s corresponding local market total shareholder return. 

Each company was coded into one of 10 industry sectors (or "other") according to
Bloomberg`s industry designations, and into one of five regional designations
according to reported headquarters locations for each company. To enable
meaningful comparisons across industries on R&D spending levels, Booz & Company
indexed the R&D spending level and financial performance metrics for each
company against the median R&D spending level for that industry. 

Booz & Company also conducted a web-based survey of over 300 senior managers and
R&D professionals from 250 different companies around the globe in order to
better understand the recession`s impact on R&D spending and strategy. The
companies participating represented more than $230 billion in R&D spending, or
44 percent of the total Innovation 1000 R&D spending for 2008. Respondents came
from all 10 industry sectors; geographically, 49 percent came from North
America, 38 percent from Europe, 13 percent from Asia, and less than 1 percent
from the rest of the world. 

The Global Innovation 1000 study is available online at
http://www.booz.com/media/uploads/Innovation_1000-2009.pdf

About Booz & Company

Booz & Company is a leading global management consulting firm, helping the
world`s top businesses, governments, and organizations. 

Our founder, Edwin Booz, defined the profession when he established the first
management consulting firm in 1914. 

Today, with more than 3,300 people in 58 offices around the world, we bring
foresight and knowledge, deep functional expertise, and a practical approach to
building capabilities and delivering real impact. We work closely with our
clients to create and deliver essential advantage. 

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5 Steps to Sustaining Success After Stumbling Into it

Entrepreneurs always dream their business will skyrocket to success. Yet, when it happens, the experience is often bittersweet. 

It's a period of highs and lows, elation and exhaustion—with little time for reflection. And if you weren't prepared to run a business, but seized an unexpected opportunity, sudden success can quickly lead to overwhelm. The time to prepare is now. Here's how.

No. 1: Build the right team. 

related links

• Don't Make These Mistakes of Accidental Entrepreneurs

Don't stretch yourself too thin trying to handle every aspect of your business. At some point, you need to let go of at least some control to grow the company. Set aside time to assess your strengths and weaknesses, then hire people who have skills you don't. 

"You need to scale the team as the business scales," said Jon Burgstone, founding faculty chair and adjunct professor at UC Berkeley's Center for Entrepreneurship & Technology. "You can bring on a partner or employees that complement you. Bring someone you trust into the business, then you can divide and conquer."

No. 2: Search for mentors. 

You'll want to find role models who have been there, done that—so you can reach out for advice to business challenges. 

"Any entrepreneurial venture is a roller coaster," Burgstone said. "Assemble your own personal board of advisors, a group of mentors who you can rely on for very technical information, business advice and emotional support. You'll need it." 

Entrepreneurs often fall prey to many of the same pitfalls. The right mentors can help you sidestep those business minefields — and avoid a lot of unnecessary angst. 

"Look for mentors who have been in your [type of] business, and been through something very similar," said Susan Urquhart-Brown, author of "The Accidental Entrepreneur: 50 Things I Wish Someone Had Told Me About Starting a Business." 

No. 3: Monitor cash flow. 

Don't be lulled into a false sense of financial security. Keep a close eye on cash flow, which is a measure of your company's health. 

"When money is coming in, entrepreneurs are often not so busy watching expenses or unexpected expenses," said Urquhart-Brown, also a small business coach in Oakland, Calif. 

Remember, it's just as important to track what you're spending as what you're earning. 

"You might be selling a lot of product, but you still need to pay your suppliers and purchase inventory," Burgstone said. 

Bring in trusted financial advisors, and review the numbers on a consistent basis.

No. 4: Silence your inner critic. 

Accidental entrepreneurs are especially prone to persistent self-criticism, said Urquhart-Brown. Maybe you have a great business idea, but don't have the same experience or education as other business owners. That's when, she said, your inner critic can emerge, serving up doubting thoughts like: I don't know if I can do this. I'm flying by the seat of my pants. I don't want people to know what I don't know. 

And so it goes.

"Your inner critic feeds into the feeling of overwhelm," Urquhart-Brown said. 

Even if you do everything right in your entrepreneurial venture, you'll face challenges along the way. It's how you handle them that matters most. 

"When you are the company, every success and every failure feels intensely personal," Burgstone said. "It can be very emotionally tumultuous. You need to build a good personal support system to help you through those highs and lows." 

Turn to family members and trusted loved ones to help you keep your business, and your life, in perspective.

No. 5: Breathe. 

Working around the clock with no break in sight, can lead straight to burnout. At some point, you have to force yourself to step away from the stressful environment to regroup and recharge. 

"Every week, carve out a chunk of time and don't allow yourself to think about the business," Burgstone said. "Find ways to serve others. It will help you take your mind off of what you're worrying about." 

And commit to checking in with yourself at different periods throughout each year — to reflect on where you are and where you want to be. 

"Ask yourself what life do you want to be leading," Burgstone said. "Those business successes, are they contributing to or detracting from your life? If they're detracting, see what adjustments you can make to the life you want to live." 

Shifting your focus to family and other loved ones also helps keep life in perspective. 

"Connect with them," Burgstone said, "and stay deeply connected through this crazy roller-coaster ride."

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Don't Make These Mistakes of Accidental Entrepreneurs

Owning a business is no small feat. The managerial maneuvering alone can often be daunting to even the most-seasoned entrepreneur. The challenges are even greater for those who stumble into a business with no experience, training or background in running a company.

Here are the stories of two such “accidental” entrepreneurs who learned some valuable lessons the hard way. Take their advice and save yourself from some unnecessary headaches and potential business breakers.

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What Makes a State Sexy to Eager Entrepreneurs?

Apparently business owners don’t have a one-track mind when it comes to location, location and location.

According to some economists, what a state demands a business pay in taxes ranks far down its priority list of attractive qualities. Business owners, they say, look at the whole package when choosing where to locate, taking into account quality of life, school systems, public safety and other services that said taxes end up paying for. If low taxes were the only thing that mattered, economists contend, we’d see mass migration to southeastern states, where it’s dirt cheap to start up a business.

“One could argue that the more traditionally high-tax communities like Massachusetts, New York, Wisconsin, do a much better job at attracting and retaining small firms” than those states with lower taxes, explained Rutgers University finance and social policy Professor Henry A. Coleman, who has also served as senior economist in the Office of the Chief Economist at the U.S. General Accounting Office. “What are you getting for the taxes that you pay? I think businesses are a lot more sophisticated than some of the simple thinking associated” with taxes.

There are other less-obvious, tax-related measures that come into play, as well.

For example, does a state allow a business to file as a business, or pay taxes through the personal-income tax? And does it offer small businesses the option of carrying over losses from one operating period to the next?

“We need to be mindful and flexible in looking at the total picture of all of those factors that influence those locational decisions. Are there any businesses that leave because those taxes are high? Sure,” but “I just can’t believe that taxes are the pivotal issue because otherwise, they would all be leaving for Louisiana and Mississippi,” said Coleman, who has also served as executive director of the New Jersey State and Local Expenditure and Revenue Policy Commission.

“If you look around the country, many of the states, say in the southeast ... have legendary low tax rates but not all big companies and certainly not all small companies move to those states,” he said.

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Woman Accused of Offering Sex for World Series Tickets on Craigslist

A Philadelphia woman was arrested Tuesday after she allegedly posted an ad on Craigslist offering to perform sex acts in exchange for World Series tickets, MyFoxPhilly reported.

Susan Finkelstein, 43, was charged with prostitution and related offenses after police say she advertised herself as a buxom, blond, die-hard Phillies fan who was desperately seeking World Series tickets and would have sex to get them.

"I'm the creative type! Maybe we can help each other," authorities say Finkelstein's online ad read. She described herself as "gorgeous" and said her price was negotiable, according to police.

Finkelstein was busted when, authorities say, an undercover officer responded to the Craigslist posting. She allegedly offered to perform sex acts on the officer in exchange for the coveted tickets of the baseball championship between the Philadelphia Phillies and the New York Yankees.

Police in Bucks County say a woman faces prostitution charges after posting an online ad seeking World Series tickets.

Bensalem Township police said they made contact with the female after viewing her add on Craigslist.com. The woman then allegedly solicited an undercover police officer to perform various sex acts in exchange for the tickets.

Charged with soliciting prostitution and related offenses was 43-year-old Susan Finkelstein, of the 900 block of St. Bernard Street in Philadelphia.

According to police, her online ad read: "DESPERATE BLONDE NEEDS WS TIX (Philadelphia) Diehard Phillies fan--gorgeous tall buxom blonde-- in desperate need of two World Series Tickets. Price negotiable--- I'm the creative type! Maybe we can help each other!"

"Her and her husband were looking for a chance to go to the World Series and she wound up in handcuffs," says Finkelstein's attorney Bill Brennan.

Brennan says the wording on his client’s online ad does not depict her as a woman looking for a sexual encounter. He says she’s misunderstood.

"You have a die-hard Phillies fan that uses a colloquial phrase and says 'I'll do anything for tickets!' and she's arrested. It's beyond the pale," believes Brennan. "For the life of me, can't figure out how there's criminal activity here."

On Finkelstein's Facebook page, she says she dreams of being "a Phillies groupie" and her attorney says her dream of going to the World Series is still alive, reported Fox 29’s Sean Tobin.

"She hopes so! She's looking for a couple of tickets, if anyone has a few," says Brennan.

Finkelstein has a preliminary court hearing scheduled for December 3.

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Anaheim substitute teacher arrested for allegedly having sex with student

An Anaheim substitute teacher has been arrested on charges of having sex with an underage student, police said today.

Marc Silberman, 27, was arrested Saturday night after a Savanna High School student told police that she had sexual contact with Silberman two days earlier, according to the Anaheim Police Department.

The girl told investigators that she had met Silberman when he was teaching at the high school, police said. Police declined to release the girl's age.

Silberman, an Anaheim resident, was booked on charges of sexual penetration with a foreign object and child annoyance, police said.

Anyone with information is asked to call investigators at (714) 765-1623.

-- Robert J. Lopez

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Female CEOs' pay fell more than men's: survey

NEW YORK (Reuters) - Female chief executives earned just 58 percent of what their male counterparts did in 2008, and their compensation packages were slashed three times as much as their male peers, according to a survey released on Monday.

Corporate governance research firm the Corporate Library said total realized compensation -- which includes base salary, bonuses, perquisites, benefits, and the value realized on the exercise of options and vesting of other equity -- fell by a median of 18.5 percent in 2008 for female CEOs.

In the same period, the compensation of male CEOs fell 6.1 percent, the survey revealed.

Top female chief executives' median base salary was $40,000 higher than that for male CEOs, but men's' discretionary bonuses were more than 3.5 times larger than those given to females, and men's perquisite payments were nearly twice the amount received by women, the survey said.

Female CEOs earned on average 58 percent of what males earned in realized compensation, the Corporate Library said.

United Therapeutics Corp's Martine Rothblatt was the only female CEO among the top 150 earners of 2008, with total compensation worth $21.8 million.

Among female CEOs, Rothblatt was followed by Avon Products Inc's Andrea Jung, with $13.9 million in total realized compensation, and TJX Companies Inc's Carol Meyrowitz, with $12.8 million.

The survey was based on compensation data of 2,703 U.S. listed companies. Women CEOs accounted for only 3 percent of the total, the Corporate Library wrote in the report.

The survey also found that women are more likely to serve as CEOs at smaller companies.

BPO provider Sutherland cited for rapid growth, local employment

Sutherland Global Services, a leading New York-based multinational Business Process Outsourcing (BPO) provider operating in the country since 2005, was recently cited for its accelerated expansion and its generation of sizeable local employment opportunities by US Ambassador to the Philippines Kristie A. Kenney during her recent visit to its delivery center here at Luisa Complex, Jacinto Extension, Davao City.

“I am amazed with the commitment and growth you have experienced in this part of the country. I am happy to note how Sutherland here in Davao City has given amazing career opportunities to so many talented young Filipinos,”Ambassador Kenney told more than 1,500 SGS employees.

Sutherland has grown its Davao operations in the last 18 months to become its third largest delivery center in the country. Handling a variety of front and back office business processes to support clients representing information technology, communications and retail, banking & finance industries, the Sutherland’s Davao site is equipped with state-of-the-art infrastructure, connectivity, employee recreational areas and a secured working environment.

Commenting on the global financial crisis affecting US companies and the Philippines, Ambassador Kenney, who was accompanied by USAID officials said, “You help make American companies become stronger. You provide excellent service to the customers of these American firms and in doing so help these companies and the American economy. With delighted customers, companies continue to survive this financial crisis, develop new products, continue to be more successful, and create more jobs, both back home and here in Davao.”

Sutherland vice president and country manager Craig Bauwens, along with Davao operations director Ranjit Ebenezer, were on hand to welcome the US Ambassador and at the same time, reaffirm the company’s continued commitment.

“We remain committed as ever to investing in our provincial growth model, our operations here in Davao and in the rest of the region. I invite more American, European and Asian companies to our delivery centers to meet our employees and see for themselves how they can provide a better customer experience,” said Bauwens.

“The sustainability and scalability of talent here in Davao and in the rest of the country is remarkable.

The performance of our operations in the Philippines has been impressive. Four years ago, we started with 100 employees and we now have over 8,000 employees in the country,” he added.

Sutherland Global Services Philippines also recently received two awards from the Department of Trade and Industry (DTI). The Philippine Quality Award (PQA) for Commitment to Quality Management was presented by President Gloria Macapagal-Arroyo accompanied by DTI Secretary Peter Favila at the Malacañang Palace during the 11th PQA conferment rites conducted annually by DTI. Sutherland is the first and only BPO in the last 10 years to have been given the prestigious award.

The DTI through the Center for International Trade Expositions and Missions (CITEM) and the Executive Committee of the 9th e-Services Global Outsourcing and Exhibition also recently awarded Sutherland Philippines “The Most Number of New Offices in the ‘Next Wave’ Cities for 2008”.

‘Next wave’ cities are cities outside Metro Manila that are seen as alternative investment destinations for BPOs outside crowded urban centers. Last year alone, Sutherland established new delivery centers in Taguig, Tarlac, Camarines Sur, and Davao in addition to its initial Makati and Clark sites.

Previously, Sutherland has been presented with the Outstanding Employer Award by the Philippine Economic Zone Authority (PEZA) for the breadth of Sutherland’s employee engagement initiatives, the level of technological innovation in its workplace and success in generating new employment opportunities in the country.

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List of Corporate Body - Bangladesh

Build-All Ltd.

• Build-All Ltd. is a trading house based in Dhaka, Bangladesh; trading actively in Cement & Clinkers, food & household products, waste paper, paint, Garments etc. Leveraging our vast experience and excellent relationships w ith our trading partners, we have been able to create a rich portfolio of goods that we can bring to our buyers all across the globe. Our strategic vision has been to explore new and innovative products at economical prices, while never compromising on quality. This vision is ...
• TEL.: 880 - 2 - 8112158 FAX.:1 - 309 - 4370106
• [Bangladesh]59/A West Rajabazar Dhaka 1215 Bangladesh

• Galaxy Trade International
• ... p with the top most persons in the various govt. departments and they are in a position to guide the foreign suppliers successfully to promote any business in Bangladesh. Tenders which are as follows: valves, Air filter for turbibe, rock-phosph ate, cement, clinkers, pig-iron foundry grade, hot & cold rolled steel strips, copper/Aluminum-wire, zinc ingot, chemicals, sugar, wheat, milk powder & crude petroleum lubricants, all sorts of paper & paper , Products, electric and electronic goods and te ...
• TEL.: 880 - 02 - 8856561 FAX.:880 - 02 - 9883466
• [Bangladesh]Road # 32, House # 491, New D.O.H.S. Mohakhali Dhaka Bangladesh

• Panacea International Ltd.
• ... isfactorily. We import : ( from exporter directly, no media ) 01. All kinds of waste paper ( Re-Cycling Purpose) such as ? OCC ( Old Corrugated Carton ) ? Mixed Paper ? Unprint ed White paper / cutting ? Unprinted Newsprint / cutting. ? Rejected New Cement Paper Bag ? Duplex/Liner board cutt ing etc. 02. Felts, Dryer Screen, Forming Fabrics etc. for Paper Industries. 03. Chemicala 04. Petr oleum Jelly 05. Copper Wire Rod. 06. Plaster of Paris ( Japan / Europe ) 07. Zircomium Silicate. * Pharmac ...
• TEL.: 880 - 01817514187 FAX.:880 - 01817514187
• [Bangladesh]83-B, Siddeswari Circular Road, Dhaka-1217, Bangladesh

• Moon Trading Co.
• WE ARE WORKING OF AGRO COMMODITY SECTORE, WE DEALING ALL KINDS OF AGRO COMMODITY. LIKE THE CORN, WHEAT, RICE, SOYA BEAN, SUGAR, CRUDE, OIL .. CEMENT, UREA, WE ARE WANTED TO IMPORTS PLEASE WELL COME, WE ARE VEYR MUCH WHISH TO YOU .. PLEASE GIVE ME YOUR ANY KINDS OF INQUIRY ANY COMMODITY, WE WELL RESPONDS WHITIN 2 WORKING HOUR NOON STOPS SERVICE, WE HAVE LOTS OF MANUFACTURE OF AGRO COMMIDITY .. ROUND THE WORLDWIDE, WE ARE VERY MUCH APPRECIATED YOUR FIRST CONTRACTING ME.
• TEL.: 880 - 2 - 8850988 FAX.:880 - 2 - 8855631
• [Bangladesh]H-407 (5th Floor), R-29, New DOHS, Mohakhali Dhaka Not applicable 1206 Bangladesh

• Aaron Engg. Services.
• ... adesh. Our company has a good link with various Manufacturing factories of Bangladesh in different sectors. We are basically in terested in Exporting Food items, Jute & Jute oriented products, Handicrafts, Cloths & Fashion wear, Towel & Accessories, Cement, Electrical Items, etc. We hope to make a good relation with your company on any item described above. If you are in terested in any other item other then these then don't hesitate to inform us your requirement. we will try our best to source ...
• TEL.: 880 - 018 - 244128 FAX.:880 - 02 - 9552928
• [Bangladesh]78, Motijheel C/A [4th Floor] Dhaka 1000 Bangladesh

• Richi International
• ... International is a proprietary Company owned by Syed Najmul Hussain having its registered office in Dhaka established in 1993 and the main business activities of this company are Import, Export, Indenting & Commission Agency in bulk commodities like Cement, Sugar, Fertilizer, Chemicals, Industrial Machineries & Raw Materials and all types of consumer goods. We are also exporting skilled and un-skilled man-power to different construction companies, industries, service oriented companies and agric ...
• TEL.: 880 - 2 - 9118920 FAX.:880 - 2 - 9341145
• [Bangladesh]92/2/A, (B#2 F#1) Wage Earners Buildings, Asad Avenue, Block-E, Mohammadpur Dhaka 1207 Bangladesh

• Asia Trading Company
• ... . ASIA TRADING has the capability of providing a bridge between our overseas EXPORTERS and local BUYER/manufacturers in Bangladesh to ensure premium service during sourcing of STEEL SCRAP, We are dealing various kind of produ ct Such as waste paper, Cement bag, Steel scrap, Jute bags, Super Enamel, Aluminum sheet etc. We have lot of inquiry for HMS 1 and HMS 1 & 2, Steel Billets, iron Bar cutting etc. Please send latest picture of steel scrap and quantity with CNF price for Chittagong port, Bang ...
• TEL.: 880 - 2 - 8954554 FAX.:880 - 2 - 8954554
• [Bangladesh]Road#15, House# 30, Khilkhat, Nikunja-2. Dhaka-1229 Dhaka Khilkhat, Nikunja-2 1229 Bangladesh

• Abul Khair Group.
• We are the leading manufacturer & exporter in Bangladesh. We have 18 heavy industries in different states of the country.We involve in FMCG & construction based industries in Bangladesh. We always assure quality as per demand of our valuable buyer. We have already got iso,hccap & halal certificate from concerned authority. 1. Beverage(fruit juice & flavoured milk) 2. Sweetened Condensed Milk. 3. Best Quality Tea. 4. Edible Oil. 5. Cement 6. Galvanized plain & corrugated sheet.
• TEL.: 880-31-714541 FAX.:880-31-710051
• [Bangladesh]D.T. Road, Pahartali, Chittagong.

• Natural Jute Products
• ... or jute bags with your entire satisfaction. We like to stress here that we are most competitive in price and committed to maintain the best quality and shipment schedule. Our bags are for package of agriculture (sugar, rice,flour,beans,seeds, stuff, cement, cocoa, wheat,cashewnet, corn,maize,cement,fertilizer, fruit and vegetable, animal feed,salt,chemical or dry food stuff and many more. Our Export Items of Jute are as follows : * HESSIAN CLOTH IN DIFFERENT SIZE , WEIGHT & PACKS. * JUTE BAGS : ...
• TEL.: 880-02-7319185 FAX.:880-02-9565717
• [Bangladesh]DHAKA

• Natural Jute Products
• ... or jute bags with your entire satisfaction. We like to stress here that we are most competitive in price and committed to maintain the best quality and shipment schedule. Our bags are for package of agriculture (sugar, rice,flour,beans,seeds, stuff, cement, cocoa, wheat,cashewnet, corn,maize,cement,fertilizer, fruit and vegetable, animal feed,salt,chemical or dry food stuff and many more. Our Export Items of Jute are as follows : * HESSIAN CLOTH IN DIFFERENT SIZE , WEIGHT & PACKS. * JUTE BAGS : ...
• TEL.: 880-02-7319185 FAX.:880-02-9565717
• [Bangladesh]DHAKA

• Singular Inc.
• Singular Inc. is a world wide trading company.Our company also done import and export. 1. Milk Powder (SMP, FCMP, WMP, LACTOSE, ETC.) 2. CDSO, Palm Oil, Coconut Oil, Refined Oil, other Edible Oil, Etc., 3. Cement Clinker, Gypsum, Etc., 4. Waste Paper, 5.Computer and Accessories, 6.Vehicles and Parts, 7.Food and beverages, Etc.
• TEL.: 880-031-620694 FAX.:880-031-624071
• [Bangladesh]80/2,Chandanpura

• Trimac Group
• ... cement & clinker
• TEL.: 880-2-9666614 FAX.:880-2-8611190
• [Bangladesh]49, 4th Floor, Zigatola, Dhaka

• Amitaz Trading Corporation
• Products Offered as a Supplier: Our products are charcoal made from hardwood sawdust. It is categorised into Verities grade. Each grade has different prices. We also provide Jute Bags, Handy-crafts, Carpets, Fresh Vegetables for Middle-East, Vegetable Oil, Fish(Sea-Foods) & Meat, Garments, different types of Sharies, Addible Oil Etc. Products Imp ort: We are imported Any Food & Food Grain, Textile & Machinery Oil, Chemicals, Offset Papers, Cement Clinkers, Vehicle & Automobiles, Cosmetics.
• TEL.: 880 - 031 - 623256 FAX.:880 - 031 - 610056
• [Bangladesh]235,Shahid Nagar, Lalkhan Bazar. Chittagong Chittagong 4000 Bangladesh

• Trade Point
• We are both importer and exporter company in Bangladesh. We mainly deal for import purpose of MBM, DCP, Milk Powder, Cement Clinker, Iron Scrafs, Raw Cotton, Textile Chemicals, Textiles Yarns, Agro based products etc. On the other hand we export herbal products i. e. Aloe Vera in raw condition. So intrested suppliers / manufacturers of MBM, DCP and importers of herbs products are requested to contact us without hesitation. Thanks and regards, M. Armanul Hoqu e. CEO
• TEL.: 880 - 189 - 647320 FAX.:880 - 02 - 8115845
• [Bangladesh]70, Tejkunipara, Tejgaon Dhaka 1215 Bangladesh

• Optimum Trading & Engineering Ltd.
• ... Bangladesh Product Information: [Exports], Jute Goods, Apparels, Sea Food, Cosmetics, Tea, Tobacco Products, Jewellery, Handicrafts, Leather Products, Crockery, Fine Rice, Fresh or Canned Fruits and Vegetables, Etc. [Imports]: Pulp, Cigarette Paper, Cement, Cement Clinker, Leather Chemicals, Chemicals for Fertilizers, Line Pipes, UPVC Pipes, Silicon Steel, Electrical Meters, Electrical Switchgears, Farm Machinery, Insulated Conductors, Wood Poles, High Tensile Wires, Ropes & Steel Sections, Indu ...
• TEL.: 880-2-9558815/6 FAX.:880-2-9567366
• [Bangladesh]12-13, Motijheel Commercial Area

• City Biz International
• City biz international is an indenting firm thought by Mr. Ripon Sarker in the year 1999. It commence its journey professionally in the year 2003. We mainly deal with soda ash, clinker for cement , textile machinery spare parts. Now we want to expand our business in different sector, like, toys, cosmetics, tooth brush, etc. Cement clinker, soda ash, toys, cosmetics, hair band , hair clip, tooth brush, textile machinery spare parts, tailor's accessories.
• TEL.: 880-02-0171 678727 FAX.:880-02-8157363
• [Bangladesh]66/A/1, Monipuripara, Tejgaon, Dhaka.

• Excelsior Trading Corp. Ltd.
• We are looking for a ordinary port land cement for our Indian clients. Ordinary Portland Cement : Grade:42.5,52.5 1st consignment 10,000 MT Total Requirement: 200,000 MT Details drscription are avilable. Please quote your best priceon C&F JNPT Mumbai India. Note: I am Mr. Shameem from Excelsior Trading corp. Ltd, Dhaka Bangl adesh, eputed to Shanghai to look aftr the company business.cell no.15821761607 Best Regards Shameem
• TEL.: 880 - 02 - 8316805 FAX.:880 - 02 - 8313687
• [Bangladesh]345, Segun Bagicha Dhaka Bangladesh 1000 Bangladesh

• Vee-Net International Trs
• We are mainly Exporter,Importer and Indenting Agent. We exports Pet Flakes,Used News Paper,Waste Cotton Yarn/fabrics and Cement. We import Industrial Chemicals,Pharmaceutical Raw materials and Fabrics. We are Travel Related Service provider and Tour Operator. Pet flakes,Cement,Used news paper,Phramaceutical machinaries and raw materials,Fabrics,Chemicals
• TEL.: 880-02-8916941 FAX.:880-02-8014353
• [Bangladesh]House#8,Road#2C,Sector#4,Uttara Model Town,Dhaka

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Alliance plays host to corporate consultants

COLUMBIA – The Central South Carolina Alliance recently hosted 10 corporate site consultants from around the United States.

The third annual Palmetto Familiarization Tour was held Sept. 23-25 in Columbia. Representatives from the following companies were in attendance: Arledge Partners, Binswanger, Grant Thornton, CRESA Partners, Advantous Consulting, KPMG, Cornerstone International, Fluor, McCallum Sweeney, and Hart Corp.

Central SC Alliance Chairman Jim Apple said, “This is a great opportunity to bring in folks who may not know about the location advantages we have to offer companies searching for a new industrial site. Also, an equally powerful message that we wanted to convey is an attitude of cooperation and partnership that exists among our public and private sectors here in Central South Carolina.”

The S.C. Department of Commerce was instrumental in supporting the Central SC Alliance with the tour. The group of site consultants met with South Carolina Secretary of Commerce Joe Taylor along with several key staffers. Further, Dr. Barry Russell, president of the S.C. State Technical College System, briefed the consultants on Ready SC, South Carolina’s premier work force training program.

Some of the other highlights from the tour included a reception at the home of Dr. Harris Pastides, president of the University of South Carolina; a plant tour of the new Starbucks Coffee Roasting Plant in Calhoun County; a luncheon and cooking demonstration on how to prepare shrimp and grits, followed by a tour of the Palmetto Center on Main Street Columbia, and a USC Gamecock football tailgate and game.

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ICT as a function of national economic situation

ICT start and growing

Information and Communication Technology integrated and expanded the traditional Telecommunication Sector as it includes a set of traditional commodities (fixed and mobile Telephone), and a number of new services based on digital technology. In particular:

• Telecom equipment: public network equipment, private systems, software services.
• Computer software/services, data processing, computer hardware, PC and pripherals.
• Media services: TV, video, cinema, consumer electronics, audio and video equipment.

• Telecommunication services: fixed and mobile telephony, data and image transmission.

It is commonly accepted to fix the start of ICT evolution at the year 1991, when fixed telephony
commodity was used at 78% followed by PC connections (19%), mobile telephone (2%)
and Internet access (1%). Over time, as pointed out by table below (figures in million), market
preference (Source itu.int/ITU-D/ict/statistics) and technical expansion of network produced
a slow down of fixed telephone demand (6,43% per year), a reasonable increase of Personal
Computers (14,18% per year) and significant increases of mobile telephone (38,96% per year)
and Internet access demand (40,67% per year).

ICT commodities 1995 2000 2004

Fixed telephony 689 983 1207
Mobile telephony 91 740 1758
Personal Computer 235 500 775
Internet access 40 399 863

The introduction of broadband (from 5/10 Mb/sec over) got, as well, its role in changing not
only the communication systems but also in shaping the whole productive sectors and transforming social and economic activity through the way individuals, businesses and other part
of the society work, communicate and interact. Different Firm-level studies seem confirming
high potential of ICT to raise productivity but, in the same time, emphasise that the benefit of
ICT depends on a number of other factors worthy to be explored.

Objectives
The main objective of ICT would be to provide telecommunication and high-speed access to
Internet for all population, possibly over the whole territory where they live: the supporters of
this concept believe that this could take a country in the Internet era and help national economic
systems to recover competitiveness by improving the efficiency of its working processes.
So far the implementation of network and the offer of services was carried out in profitable
areas (Cities and great Centres) with high concentration of people and consequent great de-mand.

If the trend is to move towards the coverage of the whole territory in a country Providers
would expect to satisfy greater demand under the condition of getting back adequate economic
return. But the fact that great part of population may potentially access ICT commodities
does not exclude little utilisation of new services. The strategy, then, might involve significant
costs (about 800/900 Euro/capita according to available estimate in Europe) to produce
inadequate economic return: the process, in fact, is more complex than perceived as it
depends, in general, by national economic activity and, in particular, by the behaviour of demand.

America’s global approach. The US seek to provide all US citizens the access to the information society, through a series of federal network and computer supply programmes. On
practical ground, in 2004, were implemented application programmes among which, one in
the area of healthcare and, another, in the area of innovation and economic security.
South Korea’s co-operative model. ICT development policy is the result of a planned economy,
combining government incentives and industry involvement. Vast infrastructure programs
were launched in the 1990s allowing expansion of fixed and mobile broadband access.

Europe. In Europe even those countries which have had success in terms of ICT industry development(Ireland and Finland) have themselves taken a variety of paths. It can be said that
only some countries are working to co-ordinate their initiatives with European mechanism
(Programmefor Research and Technological Development).

The network
Despite having lost a significant share in the telephone market, dominant carriers still enjoy
massive control over local loop access. Although broadband internet access is still based essentially on fixed lines and cable networks, the low level of main line equipment has proven a
major obstacle to the web’s take-up in developing countries. Broadband wireless access solutions, such as WiMax could provide these countries with a real alternative, and save them
from having to deploy fixed infrastructures.

In view of growing demand for bandwidth applications, operators are, now, turning to fixed
very high-speed (VHS) technologies deploying optical fibres in access networks either directly
to subscribers or concentrating in nodes or cabinets close to last mile connection. Satellite
is the most highly digitised network while the situation on cable networks varies a great
deal, and terrestrial TV is still largely analogue.

Technologies envisaged for the introduction of ICT include DSL, Wi-Fi, Wi-Max, optical fibre
and satellite. Each of these technologies will have its own role as a function of services
demanded. Most of services used to day seem sufficient to meet demand, nevertheless market
is evolving and new services are requested. The use of copper wire might offer services such
as videoconference and television on IP. But the problem created by this evolution will raise

the difficulty of being able of providing band when aconnection is accessed simultaneously

by several uses.

The copper wire will allow speed like 20 or 30 Mb/sec but because of multiple users optical

fibre would be introduced to assure TV high definition, video-surveillance, professional training,
education. A possible choice, in the attempt to reduce costs, may be that of using many
existing supports (gas, water, electricity).

Expansion of ICT over time.

Region of World	2002	2003	2004	2005	2009
Western Europe	13	24	39	56	107
North America	22	31	42	54	92
Asia/Pacific	27	44	66	90	204
Rest of the world	2	5	8	12	40
Total	64	104	155	212	443

Providers operating in the market found interesting enter into alliances to reduce competition
both at the infrastructure level and for mobile handset production. Such agreements range
from the simple purchase of non-exclusive content for programme distribution to far more
ambitious strategies of exclusive rights of acquisitions. Alliances are also being formed between
complementary operators seeking to offer complete quadruple play bundles (TV, Internet
access, fixed and mobile telephony) to their customers.

ICT as a function of national economic situation
As a general approach the ICT contribution to total GDP, on a world basis, has been of about
7,5% per year during 2003-2006 as it is shown in the following table:

commodity	2003	2004	2005	2006
Telecom equipment	0,50%	0,60%	0,60%	0,60%
Telecom services	3,00%	2,90%	2,90%	2,90%
IT equipment	0,90%	0,90%	0,80%	0,90%
IT services & software	1,90%	1,70%	1,70%	1,80%
TV service	0,70%	0,70%	0,70%	0,70%
Consumers electronic	0,60%	0,70%	0,70%	0,70%
Total	7,60%	7,50%	7,40%	7,60%

ICT empowerment Network
At the ITU Telecom World Opening Ceremony (3.12.2006), the International Telecommunication Union and the Grameen Bank got an agreement for a collective global effort to combine the power of ICTs with micro-credit financing to help the poor to earn sustainable incomes. The ICT empowerment project consists of numerous independent self-financed groups
of partners that collaborate either in physical centres or virtually.

The objective is to implement devices, connectivity and access solutions at low cost. It has the

aim of expanding the existing GSM networks into some of the poorest, most remote, rural areas
using very low cost VHF radio. That will support “low-band” data services such as SMS
and e-mail and short range voice capability to non-served villages: local users would be enabled
to access micro-finance programmes for small business purposes. This will speed rollout
world wide, ensure interoperability and allow companies to explore demand in new markets
without great expenses or risk.

Overall benefits
Firms that have been focusing for several years on cost-cutting and short term profitability,
have been investing in ICT. Great part of projects implemented are aimed at reducing telephone
expenses by pooling traffic on broadband networks, concentrating phone traffic onto
several major sites and by eliminating a portion of telephone accesses.
Firms with a large proportion of mobile employees, and whose business is structured around
large-scale projects (aeronautics, automobile, engineering, etc) or based on call centres, invested
in VoIP projects to increase both services for employees and their productivity level.
In 2005 employee’s mobile telephone equipment was comparable to that of previous year, but
laptop PC equipment levels rose substantially. Remote access to e-mail and the company intranet also grew significantly, and the majority of contracts signed by business were for this
type of service.

Ref : OECD, UNCTAD, UNESCO institute for Statistics, UN Regional Commissions, the UN ICT Task Force, the World Bank, the World Summit on the Information Society WSIS.

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