Asia to Bridge Digital Divide in the Region
Closer Government to Business Partnership Urged to Overcome Digital Divide in OECD-APEC
UN ICT Task Force Asia Regional Network Established
Asia-Pacific IT Market Looking Up
ASEAN to Launch Security Web Site for Tourists
Wireless Local Networks Growing in Asia But Giants Have Edge
Webhelp Partners with Intandem to Expand Asia Pacific Presence
New Survey Unveiled by Cisco Shows Growing Opportunities for Telecom Service Providers in Asia
Knowledge Must Guide Asia-Pacific ICT Revolution, Says Chino
27th APEC Telecommunications and Information Working Group
24 - 28 March 2003, Kuala Lumpur, MALAYSIA
Honimae Leads PINA Team to World Information Society Conference
Pacific Shows Its Stuff at Big Tokyo Internet, ICT Meeting
Asia-- Center of the World's Wireless Explosion
Asia Pacific Cities Summit 2003 to Be Held in Brisbane

Asia to Bridge Digital Divide in the Region

TOKYO, Japan (AP) -- Representatives from Asian governments, businesses and grass-roots groups vowed to wipe out inequalities in Internet growth Wednesday, wrapping up a three-day meeting to hammer out a regional agreement for a U.N.-initiated technology world summit in December. The Tokyo Declaration was adopted at the final session of the Asian Regional Conference, which drew about 500 people representing 48 countries, 21 international organizations, 53 businesses and more than 100 non-government groups. The regional meetings, including previous ones in Europe and Africa, are preparing for the December 10 to 12 World Summit on the Information Society in Geneva, aimed at offering a global vision for the Internet age for fighting cybercrime, protecting copyright and setting standards while protecting freedoms, privacy and human rights. "High-quality access attainable through broadband has great potential to help better deliver essential services required to meet basic human needs," the 11-page Tokyo statement said. Participants said widespread use of Internet technology can reduce poverty, zap information to remote areas, boost the quality of education and help developing nations long left out of technological innovations. While declaring lofty goals, the gathering did not attempt to come up with specifics, leaving the challenge of working out a policy agreement and action plan for the world summit. Some critics are worried an agreement among governments to police cyberspace or regulate information may encourage censorship on the Net and restrict news coverage. Wednesday's agreement said such measures "must respect the sovereignty of nations and maintain respect for the constitutional and other rights of all persons, including freedom of expression." During the sessions at a Tokyo hotel, officials said countries must work together to spread and develop affordable technology to bridge the "digital divide," while maintaining cultural diversity and encouraging poor nations to create network content, not just grow into passive consumers. "When you dream alone, it is still a dream, but when you dream together, it is already a beginning of reality," Adama Samassekou, who heads the preparatory committee for the summit, said in a closing speech. "Let us then dream together." A clear reminder of the deep divisions in the region came on Tuesday, when talks were delayed for several hours after China protested the presence of Taiwan nongovernment groups as an affront to its "one-China policy." China claims Taiwan as its territory and says it has no right to conduct foreign relations, which makes the self-governing island's role in international meetings a sensitive matter. China returned to the sessions after a backroom compromise with Japanese organizers that allowed representatives from Taiwan to stay as part of a Japanese nonprofit organization. It was unclear whether China would make similar protests at the preparatory meeting set for February in Geneva. Representatives of nongovernment groups commended the conference for bringing in grass-roots views but were apprehensive about China's questioning how the groups were being screened. Adam Peake of the Center for Global Communications in Tokyo said he feared nongovernment groups' right to attend was "being negotiated away." "I do have the right to be heard," he said.

From http://asia.cnn.com/ 01/14/2003

Closer Government to Business Partnership Urged to Overcome Digital Divide in OECD-APEC

Singapore -- "Strengthening the partnership between the government and private sector to maximize digital economy access" will be a key message the Executive Director of the APEC Secretariat will deliver the OECD-APEC Global Forum on the Knowledge Economy in Honolulu on January 15.Ambassador Piamsak Milintachinda said access to the knowledge-based economy is a fundamental necessity for growth in all APEC and OECD economies. "Every APEC and OECD economy, regardless of its level of economic development, is home to people who have the potential to be leaders in the digital economy if only they were given the opportunity," said Ambassador Piamsak. "Technology of today such as the Internet means that young people in every corner of the earth should be able to access education and training in ways that were not possible in the past. "Collectively the government and the private sector can work together to broaden access to the digital economy. "Working together, Governments and the private sector from APEC and the OECD already undertake projects designed to increase access to the digital economy. There is always room to strengthen this government and private sector cooperation. "The private sector has a role to play alongside governments in investing in human capacity and raising skill levels. "Current priorities for APEC governments include fostering more dynamic market conditions that will encourage business to invest and trade in areas that have limited access to the digital economy. "The key tool for APEC to open up the digital economy is the reform and liberalization of trade and investment policies in APEC economies. "The leaders of APEC economies have also made a commitment in the ‘APEC Digital Divide Blueprint for Action’ to triple the number of people in the region with direct internet access by 2005. "By 2010 the APEC goal is that all people in the APEC region will have at least community-based access to the Internet. "This forum will provide the opportunity for me to outline APEC's digital economy related programs to the OECD and other interested parties. Ambassador Piamsak said that as governments reduce barriers to trade and investment there is an increasing responsibility on the private sector to invest in human capacity building. "Reducing barriers to trade and investment creates opportunities for business to introduce and develop the skills required for developing areas to participate in the digital economy. "Ultimately private sector investment in training and skills development will not only create jobs, but will provide business with a local pool of skilled workers to draw from. "Ambassador Piamsak said promoting the knowledge-based economy is one of the central themes of the 2003 APEC year hosted by Thailand. "The APEC theme for 2003 is: ‘A World of Differences: Partnership for the Future.’ "The people of all APEC-OECD economies have great entrepreneurial capacity that comes from our diverse cultures and histories. "We must work together to ensure that we share the best of our skills, knowledge and talent to build a stronger global economy that will benefit all people. "Increased trade, more jobs and higher living standards are the end result of people in all APEC economies bringing their natural skills to the global market place. "By sharing and developing our strengths we all benefit. "Ambassador Piamsak will arrive in Honolulu on January 13 at 9:20AM (Hawaii Local Time) on Japan Airlines Flight 74.

From http://www.apecsec.org.sg/ 01/13/2003

UN ICT Task Force Asia Regional Network Established

The United Nations Information and Communication Technologies Task Force (UN ICT TF) was established by the UN Secretary General Kofi Annan in response to the request of the United Nations Economic and Social Council (ECOSOC) and the United Nations Millennium Summit. Since the beginning of 2002, the UN ICT TF Asia regional Network had been jointly prepared by China, India, ESCAP and more than ten Asian countries. As the result, the Inauguration of the UN ICT Task Force Asia Regional Network was held in the Shanghai International Conference Centre on June 14th 2002. More than 50 participants attended the meeting, including Ms. Yan Junqi, Vice Mayor of Shanghai, Mr. Guido Bertucci, Director of Division for Public Economic and Public Administration of UN/DESA, Ms. Kerstin Leitner, UNDP Resident Representative in China, Mr. Fan Xiping, Diector of the Informatization Office of Shanghai Municipal People’s Government and other representatives from ministries and departments. The participants also included senior officials from central and local governments of Asia countries, entrepreneurs, scholars and representatives of international organization from over 10 Asian countries and Pacific Island countries: Japan, Mongolia, Singapore, Indonesia, Malaysia, Philippines, Vietnam, Cambodia, India, Pakistan, Bangladesh, Nepal, Sri Lanka and Fiji. The UN ICT Task Force Asia Regional Network was formally launched in this meeting, the website www.unict-asia.org was also open to the public, and the structure and the main framework of the Asia Regional Network were initially identified.

From http://www.infooffice.sta.net.cn/ 01/03/2002

Asia-Pacific IT Market Looking Up

A mild recovery is on the way for the Asia-Pacific information technology (IT) and telecommunications markets this year, which should provide some solace for technology companies battered by a worldwide industry slump, predicts the latest industry report. The region's IT market, excluding Japan, is predicted to grow 11 per cent in 2003 over the previous year to hit US$81 billion, market researcher IDC said in its outlook report on the year. "IDC expects a cautious gradual IT market recovery to take place in the Asia-Pacific region (excluding Japan) in 2003, driven by infrastructure upgrades," said Piyush Singh, managing director at IDC Asia-Pacific. According to IDC, hardware segments such as personal computers (PCs), low and mid-range servers, and local area network (LAN) hardware are expected to rebound compared to their weak performance in 2002. Wireless LANs will gain significant traction in enterprises and location-specific public "hotspots" in the region, IDC said in the report. The IT service market will continue 2002's downward trend after holding fairly steady in 2001, with the focus shifting onto smaller projects this year. The telecommunications market is predicted to grow 11 per cent this year to US$137 billion, according to the research house. "The telecommunications services industry in the region will continue its growth momentum driven by deregulation and pent-up demand in the developing countries. Voice over Internet protocol (VoIP) services will gain traction and will be seriously evaluated by organizations in 2003," Singh said. "Broadband will continue to proliferate, driven by lower prices, competition and the exploding online gaming phenomenon in the region," he added. Looking beyond 2003, "The industry will enter a new decade of growth driven by personal intelligent gadgets, pervasive connectivity, mobility, seamless information exchange and bio-informatics," the director said. "The average information and communications market growth in the next decade will be lower than the average market growth experienced in the last decade. The industry will have to adapt its expectations to this new reality," Singh said. The network storage market in the region is projected to cross the US$1 billion threshold. Linux will gain acceptance in enterprises and will eat into the space dominated by Unix, IDC predicts. Online gaming will emerge as a wildly popular application that will drive demand for broadband services in the region. The handheld devices market, based on the merger between mobile phones and personal digital assistants (PDAs), will witness mass emergence and adoption in the region and will grow by 88 per cent year-on-year in terms of shipments. By the end of the year, digital images captured per day by scanners, cameras, and other devices will surpass the number of images captured on film, but the industry will still be centred on film. The focus on business continuity and security solutions will sharpen given the threat of terrorism, viruses and cyber-terrorism. Top Indian service companies such as TCS, Infosys, Wipro and Satyam Computer Services will emerge as key players, riding the global wave of "cost cutting," the report said. IDC predicted that by the end of the year, more than 100 million PCs and 400 million cellular phones will be in use in the region while the number of Internet users and mobile Internet users will hit 165 million and 25 million respectively. Telecommunications services revenue and Internet commerce are projected to hit US$135 billion and US$150 billion this year. In stark contrast, the worldwide IT market is projected to grow a slight 5.8 per cent, driven by increased demand for servers, security and network equipment, according to John Gantz, IDC's chief research officer. The global IT industry contracted 2.3 per cent last year, experiencing its worst slump in history. The severe sector drop-off was led by a 10.6 per cent shrinkage in the worldwide storage market, a 9.3 per cent drop in PC, server and workstation sales, and a 7.6 per cent drop in the network equipment market due to the telecommunications industry slump, IDC said. Worldwide IT spending dropped by 0.7 per cent year-on-year in 2001 in the wake of the bursting of the dotcom bubble. IT spending peaked in 1995 at 14 per cent and was nearly matched in the boom year of 2000, which saw a 13 per cent increase. "We expect to see a return to spending growth in 2003 in both the global IT and telecommunications sectors," Gantz said. Worldwide IT spending is predicted to reach US$900 billion by the end of this year, and there will be 1.5 billion cellphones being used worldwide. The number of Internet users and mobile Internet users will reach 700 million and 250 million by the end of this year. "IDC expects overall technology spending growth to remain in the single digits for the foreseeable future. This is a significant departure from the double-digit growth characterizing much of the last decade and will force technology providers to rethink their market strategies," Gantz said. IDC estimates growth in worldwide PC shipments in 2002 was just 1.6 per cent, or 2.6 per cent below the market's peak in 2000. Strong public sector spending should push the growth rate up to 8 per cent this year, IDC said. While IDC is upbeat about a recovery in the technology sector, other industry reports paint dire pictures of 2003. A Goldman Sachs survey of chief information officers found technology buyers expect a decline in tech spending in 2003 instead of growth. In the survey, two-thirds of the respondents expected budget tightening, and 43 per cent of technology managers were not expecting any sort of acceleration in spending until 2004 or later, according to a Reuters report. (Zong He)

From http://www1.chinadaily.com.cn/ 01/07/2003

ASEAN to Launch Security Web Site for Tourists

Cambodian Tourism Minister Veng Sereyvuth said the Web site will provide an accurate picture of the situation in each country in the 10-nation grouping, which comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Thailand, the Philippines, Singapore and Vietnam. After the bombings on the Indonesian resort island of Bali on October 12 last year that killed more than 190 people, most of them foreign tourists, many Western governments issued travel advisories, cautioning their citizens about traveling to many countries in Southeast Asia. Veng Sereyvuth acknowledged that the Bali bombing, coming after the September 11, 2001, terror attacks on the United States, negatively affected tourism, one of the biggest income earners of the region, which is home to 550 million people. "We want to head off embassy advisories," Veng Sereyvuth told a news conference. He said the Web site will allow foreign tourists to "receive accurate information that one spot may be unsafe after an incident, but not the entire ASEAN region." "Otherwise, information dissemination will be anarchical and that can significantly cause tourist numbers to fall. This concerns all of us, not just any one single country," he said. He said the Cambodian-initiated scheme will be discussed and approved by tourism ministers during the ASEAN Tourism Forum scheduled to be held in Phnom Penh January 20 to 27. No date has been set for the launch of the web site. A country in ASEAN will be selected to manage the site, and it will convene meetings with other members in the event of any terrorism or violent incident, the minister said.

From http://asia.cnn.com/ 01/09/2003

Wireless Local Networks Growing in Asia But Giants Have Edge

Wireless local area networks (WLAN) in public places are gaining popularity in Asia but telecom giants could elbow out smaller players who were first in the market, an industry monitor said today. WLAN, which allows Internet access in airports, cafes, shopping malls and other public places without having to plug into fixed lines, is picking up speed in Australia, Hong Kong, Japan, Singapore, South Korea and Taiwan. WLAN will only work in 'hot spots' rigged for the service, and portable computers need speciliased components and software. It allows corporate 'road warriors' to have a virtual office in any place with a hot spot. With big carriers getting into the game, they bring better service coverage and more affordable pricing, especially for the consumer market,' US-based research and advisory firm Gartner Dataquest said in a report. 'The downside is that some start-ups are already falling out of the market or scaling back their operations, leaving the field to carriers,' it added. Gartner Dataquest said Korea Telecom was the most aggressive of the regional operators, with plans to have 16,000 hot spots by the end of this year. It also noted the low usage fees in South Korea. The report said that since the service is still in its early days, subscriber numbers and revenues are still very small, and it is unclear whether WLAN will become a major revenue generator, but some carriers are looking to use it to boost core services such as broadband access.

From http://straitstimes.asia1.com.sg/ 01/13/2002

Webhelp Partners with Intandem to Expand Asia Pacific Presence

Toronto-based Webhelp Inc., an offshore business process outsourcing services provider and developer of customer support technologies, has entered into a joint venture partnership with Hong Kong-based Intandem Asia, a provider of outsourced management services. Under the agreement, Intandem Asia will sell Webhelp's suite of products and services to companies in Hong Kong/China, Japan, Korea, Taiwan, Singapore and Australia.

From Webhelp Inc. Press Release 01/23/2003

New Survey Unveiled by Cisco Shows Growing Opportunities for Telecom Service Providers in Asia

ITU TELECOM ASIA 2002, HONG KONG - Enterprises in Asia Pacific have revealed strong intentions to adopt and out-task Internet Protocol (IP) services over the next 24 months. According to a new survey by AC Nielsen, the out-tasking trend represents a growing opportunity for service providers. The survey, entitled "Enterprise Service Provider Connect" commissioned by Cisco in Asia Pacific, interviewed 276 IT decision makers from enterprises and governments across the region. Sixty percent of those surveyed have plans to adopt managed IP solutions such as workforce optimization and customer care. "The survey results show a growing demand for Internet business solutions among Asia Pacific organizations. Companies need to improve business processes, and increase productivity and revenue," said Andrew Murray, vice president, service provider operations of Cisco Systems Asia Pacific. "Service Providers can take advantage of this trend and reap additional rewards. Focusing on value-added managed IP services is a good way to meet corporate customers' needs, bring additional margin, and reduce customer churn." According to the survey, up to 50 percent of enterprises plan to adopt Internet business solutions. These include IP-Virtual Private Networks (IP-VPNs) and IP Telephony. Key drivers are the desire for increased functionality (55 percent of enterprises surveyed), improved time-to-market (53 percent) and cost-savings (46 percent). The survey also highlights growing opportunities for managed IP services in the region. It expects between 20 to 35 percent of all IP investments will be out-tasked. Worldwide, the managed service market is estimated to grow from US$40 billion in 2002 to between US$100 and US$120 billion in 2006. Of this, about 20 percent will be in Asia Pacific. "The substantial interest shown in adopting managed IP services offers great opportunities for services providers," said Murray. "Those demonstrating infrastructure leadership and service innovation stand to capture a significant and growing market." The high level of interest in out-tasking suggests that many of the traditional barriers to out-tasking are being addressed. Out-tasking is expected to occur in the less-critical areas first and expand to core processes within organizations. Service providers are viewed as potential providers for managing enterprise networks. About 30 percent of enterprises surveyed prefer to use telecom service providers as opposed to IT service providers. "To compete for enterprise networking services, telecom service providers should not only use their traditional competitive advantage in core network but also provide additional value-added services and support internet business solutions. They can develop their own capability or partner with IT providers to provide Layer 4-7 services," explained Lea King, managing director of Internet Business Solutions Group, Service Provider, Cisco Asia Pacific. "For service providers, the key competitive requirement will be to differentiate themselves from other industry players," King said. Based on the survey results, Cisco will help service providers capture the managed service opportunities. It will continue to work with services providers to create differentiated services by offering innovative IP technologies and solutions. Conducted in May to July 2002, the survey is part of a global study covering Europe, the United States and Asia Pacific. The companies surveyed are in multiple industries including manufacturing, retail, finance, government and utilities, as well as transportation and logistic and media. The participating companies are located in Australia, China, Hong Kong, India, Japan, Korea, Malaysia, Singapore and Taiwan.

From http://www.cisco.com/ 12/04/2002

Knowledge Must Guide Asia-Pacific ICT Revolution, Says Chino

Tokyo (PINA Nius): Developing countries need the knowledge to properly process information if they are to benefit from the global information and communications technology (ICT) revolution, a major Asia-Pacific meeting heard. Asian Development Bank President Tadao Chino said that increased access to information alone is not enough to foster progress and reduce poverty in the region. In a keynote speech in Tokyo to the Asia-Pacific Regional Conference for the World Summit on the Information Society (WSIS), he said: "For developing countries to make the best use of information, they need the capacity to interpret and apply information to their own needs and local circumstances. "This process of sifting through and digesting information requires knowledge." The conference will produce a declaration of principles on ICT issues relevant to the Asian and Pacific region. It is a preparatory meeting for the WSIS, to be held in two phases - in Geneva in December and Tunisia in 2005. Mr Chino pointed out that Asian Development Bank is committed to supporting ICT to promote development and close the gap between the "information rich" and the "information poor." He said: "The challenge is to ensure that the region as a whole benefits from the information revolution, that inequalities between countries do not worsen, and that the new technology helps to bridge the gaps between the region and the developed world, and within the countries of the region." The Tokyo conference is organized by the Government of Japan and United Nations Economic and Social Commission for Asia and the Pacific. They are working in collaboration with the Asian Development Bank, Asia-Pacific Telecommunity, the United Nations Development Programme, the United Nations Educational, Scientific and Cultural Organization, and the International Telecommunication Union. - PINA Nius.

From http://www.pacificislands.cc/ 01/15/2003

27th APEC Telecommunications and Information Working Group
24 - 28 March 2003, Kuala Lumpur, MALAYSIA

PROGRAM

 From http://www.apectelwg.org/ 01/2003

Honimae Leads PINA Team to World Information Society Conference

Suva (PINA Nius) - Pacific Islands News Association (PINA) president Johnson Honimae will lead strong PINA representation at a World Summit on Information Society preliminary conference beginning this weekend. The Asian Regional Conference in Tokyo is the main Asia-Pacific preparatory meeting for summit to be held in Geneva in December. The World Summit on the Information Society is focusing on the revolution in information and communications technology (ICT), and its impact worldwide. Amongst those going to Tokyo with Mr Honimae (general manager, Solomon Islands Broadcasting Corporation) as the PINA team are: PINA Vice President Muli'agatele Jean Malifa (publisher, Samoa Observer), Laila Younis (Marianas Variety operations manager), Stephen Smith (EM TV, Papua New Guinea, chief executive); and PINA Administrator Nina Ratulele. The strong PINA representation has been made possible through support from the Sasakawa Pacific Island Nations Fund. The PINA representatives take part in two preliminary events, a PIDO Committee meeting on Saturday and a Pacific Islands preparatory meeting on Sunday, before the main conference Monday to Wednesday. Honimae, Malifa, and Ratulele will all make PINA presentations in the preliminary meetings. PINA is stressing that a true information society cannot be conceived without guaranteeing freedom of expression and information. Issues PINA is promoting also include:? clear directions to help overcome the digital divide, including liberalising the telecommunications sector to improve services and cut costs; ? the importance of both public and private sectors of developing countries participating in decision-making bodies concerning ICTs and the Internet; ? the inclusion of computer literacy in education master plans. The PINA recommendations are drawn from a Declaration on the Development of New Media adopted by members at their last convention, in Madang, Papua New Guinea.This had been drafted by senior members taking part in a workshop sponsored by the United Nations Educational, Scientific and Cultural Organisation (UNESCO).

From http://www.pacificislands.cc/ 01/11/2003

Pacific Shows Its Stuff at Big Tokyo Internet, ICT Meeting

Tokyo (PINA Nius) - Innovative Pacific Islands projects using the Internet and Information Communication Technologies took centre stage in Tokyo today. They ranged from using solar power and HF radio to provide e-mail to remote island communities to satellites to help bring education and health services. Details were given during an all-day Pacific Island States and the World Summit on Information Society (WSIS) program leading into tomorrow's opening of the big WSIS Asian Conference. Recommendations and resolutions from the Pacific program, held at the United Nations University, were being taken to the main conference. The Asian Regional Conference in Tokyo is the Asia-Pacific preparatory meeting for main summit to be held in Geneva in December. The World Summit on the Information Society is focusing on the revolution in information communication technologies (ICT), and their impact worldwide. Sessions and speakers in the Pacific program in Tokyo included:? National Information Communication Technology Applications for Development, moderated by Sam Taufao (Secretariat of the Pacific Community):- Rajesh Chanda (University of the South Pacific) on USPNet Distance Learning; - Abel Caine (Fiji) on e-government; - Stuart Davies (Cook islands) on tele-health; - Fuatai Purcell (Samoa/New Zealand) on e-commerce. ? Connecting Communities, moderated by Nina Bolaitamana Ratulele (Pacific Islands News Association);
- YapSEED (Yap State Education Enterprising Department) on how it is using technology in education to give Yap students a "Door to the World"; - the Solomon Islands People First Network (PFNet), which is connecting remote Solomon Islands communities with e-mail using solar power and high-frequency radio; - Peacesat (the Pan Pacific Education and Communication Experiments by Satellite), which has been using satellites to break down barriers of distance across the Pacific. ? Development Partners Dialogue, moderated by Rinaila Abdul Rahim, executive director of the Global Knowledge Partnership. - Abdul Waheed Khan, UNESCO Assistant Director General for Communication and Information; - Craig Keating, AusAID Virtual Colombo Plan Unit; - Adam Peake, GLOCOM; - Pamela Kruzic, Asian Development Bank; - Kyoko Shibata, World Bank; - Shahid Akhtar, director, Asia Pacific Development Information Program; - Kenji Saga, Japan National Committee for PIDO (Pacific Island Digital Opportunities). ? WSIS and the Pacific, moderated by Robert Guild, Pacific Islands Forum Secretariat: - Fuatai Purcell, Themes for Small Island States; - Abel Caine, WSIS Preparatory Process; - Tarja Virtanen, UNESCO's role in WSIS; Almira Pries (East Timor), Sam Taufao (SPC). The Pacific meeting carried the theme Information Communication Technologies for Development: Resources, Needs and Opportunities. Its sponsors were: Sasakawa Pacific Island Nations Fund, Global Knowledge Partnership, Foundation for Development Cooperation, Peacesat, Glocom, infoDev and the Asian Development Bank.

From http://www.pacificislands.cc/ 01/12/2003

Asia-- Center of the World's Wireless Explosion

Madanmohan Rao reports from the ITU Telecom Asia 2002 summit in Hong Kong. The results are in – and the numbers are impressive. Asia now accounts for 36 per cent of the world’s telecom market (up from 21 per cent in early 1991, and scheduled to hit 50 per cent in 2007), the world’s largest regional user base of cellphones, 33 per cent of the world’s Internet user base, 95 per cent of the world’s 3G mobile users, 47 per cent of the world’s ADSL broadband Internet users, and seven of the world’s Top Ten most profitable telecom operators. According to ITU figures of June 2002, the top market worldwide in terms of broadband Internet penetration is South Korea – followed by Hong Kong, Canada, Taiwan, Belgium, Sweden, Ireland, US, Denmark, Singapore, Austria and Japan. At the end of 2001, the market with the highest penetration of cellphones was Taiwan (a whopping 96 per cent), followed by Hong Kong (84 per cent), Singapore (69 per cent), New Zealand (62 per cent), South Korea (60 per cent), Australia (57 per cent), and Japan (57 per cent). Asia also accounts for four of the Top Ten markets in the world in terms of wireless Internet user base as a percentage of mobile users: Japan and South Korea are in the lead, followed by Finland, Canada, Singapore, US, Germany, Italy, UK, Taiwan and France. Asia is now the largest and most innovative telecom market in the world – but it must demonstrate leadership in this role, said Yoshio Utsumi, secretary general of the International Telecommunications Union, at the recent ITU Telecom Asia 2002 summit in Hong Kong, titled “From Recovery to Prosperity.” Challenges remain, of course, for many operators in terms of figuring out how to migrate to 2.5G or 3G for competitive reasons without losing out on fully recovering costs of GSM networks that have already been rolled out. The entry of new wireless players in some Asian markets has not been a smooth process either, and other markets like China are slowing down. Confusion is also growing as companies like Nokia announce new 3G standards. Uncertainty in liberalization rules has hampered international carriers from investing in markets like China. There is also confusion in some markets as to whether WiFi will compete with 3G, when they are actually complementary services. “Companies need to figure out how to leverage the wireless explosion for creating new fields of applications, new ways of using applications and new ways of developing applications,” said Naoyuki Akikusa, CEO of Fujitsu. A mix of content and transactional services has also been beneficial for Korean mobile operator KTF, which has 11 million users today (SK Telecom leads with 17 million). KTF rolled out 2.5G services in 2001, and MMS in May this year. More foreign investment is also coming into the Korean wireless sector, such as from Microsoft and Qualcomm. In Australia, Telstra and nineMSN have tied up to bring Hotmail and Instant Messenger to mobile users. “The most popular services on our 2.5G network are Internet, adult TV, games, video on demand, and karaoke,” said Joo Young Song, executive vice president at KTF. As a percentage of total ARPU, data services accounted for 10 per cent in October 2002, up from 5 per cent in January 2001. This could cross 15 per cent in 2003 and 30 per cent in 2005, Song predicted, as the market for voice gets saturated.“Content-centric value chain coordination has been key to our success,” said Takeshi Natsuno, managing director of I-Mode strategy for NTT DoCoMo; I-Mode has 35 million users today since launch less than four years ago. Similar content-centric models accounted for the success of AOL in the US and Minitel in France. “Coordination of these layers involving devices, network, server, marketing and user needs should be seamless and continuously evolving. We were advised by consultancies like McKinsey to take as much money as possible from content providers – but we did not listen to them, fortunately,” said Natsuno. I-Mode takes only 9 per cent commission from its content providers. Carriers should also keep an eye on newer devices created by the IT industry, such as PDAs and PCs with GSM and 3G chipsets fully integrated. “Completely new devices will emerge in five years. Handsets will be as powerful as today’s laptops,” said Bosco Fernandes, vice president at Siemens Information and Communication Mobile Networks. Currently, however, NTT DoCoMo has no plans for I-Mode on other handheld devices like PDAs. User growth of the 3G FOMA service has been slow because of fewer devices in the market and smaller coverage area, said Natsuno. i-Mode has not taken off yet in Europe, and many European operators prefer to build on existing successes like SMS and focus on MMS for expansion. The Asia-Pacific will be the world’s test-bed for 3G services for the rest of the decade, said UMTS Forum chairman Bern Eylert. The region will account for $118 billion of global 3G revenues of $320 billion in 2010; the top three 3G markets in the world will be the US, China and Japan. Interesting cultural differences are also emerging among users across the world. For instance, the craze for wireless content is not as high in Hong Kong as it has been in Japan or South Korea, observed Francis Wong, managing director of Trident in Hong Kong. The Hong Kong market will experience more growth in applications like email and not entertainment, Wong said. 80 per cent of business users in Hong Kong access email on the move. The market already has 84 per cent penetration of cellphones, and growth will come not from new users but new and improved services. Many carriers are now expanding their focus from basic telecom and wireless services to value-added services, especially for corporate customers. “Carriers are forming partnerships with us for managed network services, VPNs and other enterprise applications,” said Gordon Astles, president of Asia-Pacific operations for Cisco. There has been too much focus on the gloom of industry dynamics in markets like the US, on issues such as governance -- but the consumer has never had it so good. Other mega-projects to keep an eye on include the Digital Beijing project for 2008, during the Olympic Games, which include city-wide fiber and wireless internetworking called “City Information Infrastructure” (CII), information kiosks, and smart cards. In many developing countries of Asia, the penetration of cellphones has already exceeded the penetration of landlines (Cambodia was the first country in the world to cross this threshold, in 1983). “A whole new development paradigm will be unleashed in the next few years in Asia,” said Utsumi. Telecom players and vendors need to focus on inclusion strategies and not just products, said Noah Samara, CEO of Worldspace; the company beams radio and Internet content via satellite to parts of the world like Asia and Africa, including medical journal archives for healthcare workers. “Content should become a major focus area for telecom players,” advised Samara. A lot of data that is critically needed by the masses is in the public domain, and a number of technologies are emerging that can help bridge the critical “last mile” problem such as WiFi and satellite. But regulatory obstacles are holding back services like WiFi and VoIP in many developing countries of Asia, observed Heather Hudson, telecom professor at San Francisco State University.Universal access goals are also becoming moving targets, evolving from basic landline connectivity and wireless access to Internet and then broadband. Developing nations should prioritize these services and targeted user organizations such as healthcare, libraries, NGOs, schools and governments. Sites like www.UniversalService.org have useful information resources and case studies in this regard. ”Technology is moving in the right direction. Human brokers – for instance, for operating telecentres and providing wireless access on a shared basis – are very important in this regard for developing nations,” advised Hudson.Mobile voice alone will account for huge markets in countries like India and Vietnam. By 2005, half of the world’s population will be using cellphones, according to Amarendra Narayan, executive director of the Asia-Pacific Telecommunity, in Bangkok.

From http://www.inomy.com/ 12/17/2002

Asia Pacific Cities Summit 2003 to Be Held in Brisbane

More than 500 delegates from 60 cities are expected to attend the Asia Pacific Cities Summit 2003 to be held at City Hall in Brisbane from 13-16 April. Themed 'Emerging Futures of the City', the summit is a major forum for idea exchange and business liaison for governments and businesses around the Asia Pacific region. Civic administrators, decision-makers and local and international business leaders will discuss the issues that are driving the future vision of our cities. Major topics include transforming urban sprawl, greening our cities, creating healthy communities, global-local governance and alternative futures.

From http://www.alga.com.au/ 12/20/2002

Government Adopts Active IT Outsourcing Strategy

The Hong Kong Special Administrative Region Government (HKSARG) has been adopting a vigorous information technology (IT) outsourcing strategy to enhance its capacity for IT services delivery, accelerate the delivery of IT solutions, and develop the IT industry locally. Various modes of outsourcing have been employed to tailor to the needs and objectives of different government bureaux and departments. The above remarks were made by the Assistant Director of Information Technology Services, Mr. Dennis Pang Chi-tat, when he shared with his counterparts the HKSARG's IT outsourcing experience at the E-government Projects and Outsourcing Operations Conference in Beijing today (January 15). The Conference was organised by the China Information Industry Association with an aim to explore and formulate the outsourcing strategy of China's E-government projects based on the overseas experience and the current development trend of E-government in China. "Adopting the IT outsourcing strategy has helped to speed up the momentum of our E-government initiative and foster the development of the IT industry locally," Mr. Pang told the participants. "It also enables us to better utilise our in-house human resources, adopt new technology sooner and tap into the talents and expertise outside of the Government," he said. In the 2001/02 financial year, over 80 per cent of government IT projects were contracted out. This involved $1.23 billion and accounted for 84 per cent of the total government expenditure on IT projects. The latter ratio is expected to rise to 87 per cent in 2002/03. The HKSARG's flexibility in carrying out its outsourcing policy can be demonstrated in its various outsourcing models. Examples can be seen in the Intellectual Property Department and the Judiciary which had outsourced non-core services of the department and a full range of its IT services of the entire department respectively. The Electronic Service Delivery (ESD) Scheme used another outsourcing model, in which the private enterprise contractor financed, developed and managed the front-end ESD portal and services. The contractor is also allowed to provide commercial services on the same portal to generate income. The HKedCity project, whose web site provides online resources for the education sector, was the result of the collaboration of the Government, the education and the private sectors. Mr. Pang said that outsourcing through turnkey projects, such as the Electronic Tendering System, the Computerised Social Security System, and the Land Registration System, had also been done by some departments. This practice allows the Government to just "turn a key" to start the system to support its services to the public. Meanwhile, some projects were completely outsourced from the planning, research and development to the provision of maintenance and help desk service. Examples include the Government Office Automation Programme and the School Administration and Management System. Mr. Pang said, "Some government IT projects are outsourced on an assignment basis by using standing offer agreements." Under the IT Professional Services Arrangement (ITPSA), the HKSARG in 2002 awarded 23 standing offer agreements to 12 companies which worked with some 70 sub-contractors. Under the agreements, IT assignments can be open for competition by two to four contractors of the ITPSA and are awarded to the contractors which satisfy the requirements and offer the most competitive price. Ninety projects involving some $70 million have been awarded since the service agreements came into effect in June last year. Outlining the advantages of the ITPSA to the participants, Mr. Pang said, "It simplifies procedures under an established contract and management framework. It also allows healthy competition among contractors and enables us to build up a business-partner relationship with them through a continuous cross-project agreement." Mr. Pang pointed out that the successful implementation of IT outsourcing requires clear objectives, service level agreements, monitoring systems, stringent quality control, sub-contractor management, etc. "The Government will continue its efforts to work with its IT contractors in a mutually beneficial manner and adopt the most appropriate and effective mode of co-operation to cope with the technology advances and ever-changing market conditions," Mr. Pang said.

From http://www.itsd.gov.hk/ 01/15/2003

Bill Would Allow Copying of Music, Movies

If "DVD Jon" Lech Johansen, creator of the DeCSS DVD descrambling program, had been tried in a U.S. court instead of in Norway, he might have been found in violation of the Digital Millennium Copyright Act. But a bill reintroduced in the U.S. Congress would allow consumers to defeat anticopying measures on digital content in some cases. The Digital Media Consumer Rights Acts, reintroduced Tuesday by Representative Rick Boucher, a Virginia Democrat, and three other lawmakers, would trump the Digital Millennium Copyright Act's anticircumvention provisions, allowing consumers to break copy controls in order to do such things as make personal copies of songs or movies from discs they already own. If the consumer's action has a substantial legitimate use, it falls under the fair use rights protected in the Boucher bill, instead of constituting a copyright violation, Boucher said. Legal Backing So in the case of Johansen--who was acquitted by a Norwegian court this week of charges of copyright violation stemming from his creation and use of DeCSS (also known as De-Content Scramble System)--the bill would have protected him if he were a U.S. resident because he was using the program to play DVDs on his Linux computer. The bill would also likely protect a U.S. version of Johansen who posted DeCSS on a Web site, Boucher said, though that case could be subject to some court interpretation. In addition, Boucher's bill would protect companies such as Russian software maker ElcomSoft, which in December was found not guilty of violating the DMCA. ElcomSoft markets a program that disables the security settings on Adobe Systems' e-book files. In both of those instances, Boucher said, the software has a legitimate use; the ElcomSoft software can be used to copy and back up e-books. Another provision of the bill would require copy-protected CDs to be labeled. Strong Support? Boucher and cosponsor John Doolittle, a California Republican, introduced a similar bill at the end of the last congressional session to start debate on the issue. Though there was insufficient time to take action on the bill then, Boucher said he believes that the bill has a good chance to win passage in the House. The sponsors have lined up more than 15 groups to support the bill, including Intel, Verizon Communications, Sun Microsystems, the Electronic Frontier Foundation, and the American Library Association. "I think justice is on our side, and there's a growing number of people in this country who want to use digital media in a way that's convenient," Boucher said. The bill is likely to run into opposition, however. The Business Software Alliance, representing several large software companies, issued a statement Wednesday saying that its members are concerned that "broad exemptions" to the DMCA would make it harder for software companies to counter software piracy. Cautious Optimism Washington privacy and First Amendment lawyer John T. Mitchell welcomed the bill. "It seems clear to me that Congress never intended for the DMCA to be used by major copyright-holding companies to prevent people from making perfectly lawful, noninfringing uses of copyrighted works, nor to empower them to charge people for accessing their own lawful copies," said Mitchell, who has worked with bill supporter Public Knowledge. Mitchell was more cautious than Boucher about the bill's chances of becoming law, however; and though he called the bill "attractive for its simplicity," he said that more action is needed to keep major copyright-holding companies from monopolizing the content marketplace.

From http://www1.chinadaily.com.cn/ 01/09/2003

Ministry Sets Targets for IT Sector Development

China's information-technology industry should account for 5.9 per cent of the nation's total gross domestic product this year, according to a Ministry of Information Industry target announced yesterday. Wu Jichuan, minister of the information industry, told the All-China Information Industry Working Conference in Beijing yesterday that the industry should achieve added value of 632 billion yuan (US$76 billion) this year. The sales volume from the telecommunications sector this year will be 506.7 billion yuan (US$61.2 billion), up 11 per cent over last year, said Wu. The target for new fixed-line telephone subscribers is 33 million people, while that for mobile phones is 52 million. The sales volume of electronic manufactured goods is expected to hit 1.64 trillion yuan (US$198 billion), up 19 per cent over last year. "Exposed to predictions of a prolonged period of sluggish growth worldwide, this year is of vital importance for us," Wu said. The telecommunications industry should be further restructured to enhance its competitiveness, he said. Last year, the telecommunications industry's sales volume stood at 457.6 billion yuan (US$55.3 billion), up 14 per cent from the previous year. "The unabated domestic demand as well as reforms within the industry contributed a lot to the growth," said the minister. "Competition should be increased and monopolies are not acceptable," Wu said. In another development, the minister said the manufacturing of electronic goods should be readjusted more quickly while both domestic and overseas markets should be explored. The sector last year harvested a sales volume of 1.4 trillion yuan (US$169 billion), up 20 per cent from the previous year. "We will continue to encourage more home-grown transnational companies and more flagship products," he said. Last year, there were 11 electronic information industry enterprises whose sales surpassed 10 billion yuan (US$1.2 billion) each. Reorganization, mergers and acquisitions and public flotations are encouraged so that companies grow bigger and more competitive, he said. The manufacture of electronic goods has become China's top industry in terms of foreign investment and exports. The sector has so far attracted more than US$70 billion in foreign investment. Exports were worth US$92.5 billion last year, representing an annual growth of 42 per cent. According to this year's target, China will produce 13 million computers, 120 million mobile phones, 50 million colour monitors and 10 billion integrated circuits. The ministry also pledged yesterday to speed up the construction of a supervisory system for telecommunications. ''The optimization of telecom regulations has become the most crucial issue in the industry," said Wu. "We will accelerate the drafting of telecommunication laws, the revision of postal laws and the wireless management regulation," he said. (by Chen Zhiming)

From http://www1.chinadaily.com.cn/ 01/21/2003

Seven Strategic Approaches and 22 Top Priority Projects Were Decided for Tokyo

On November 15, the Headquarters of the Governor of Tokyo formulated "Important Measures and Top Priority Projects in FY 2003 - The Strategy Guideline for Promoting Structural Change". Tokyo is required to provide an example for the revitalization of all of Japan through its original approach to reform and lead the National government in order to overcome the crisis currently faced by Tokyo. Top priority projects are formulated as "Strategy Guidelines" which promote structural change within TMG. The structural change is designed to overcome the institutional fatigue which includes a single issue working systems that remains in TMG, and to do this using the advanced approaches which TMG has implemented in various other fields including the delivering of diesel vehicle regulation and introducing certified child care centers. Top priority projects will implement "the seven strategic approaches" which show the individual tasks and the direction of the approach for the areas identified. The Seven Strategic Approaches established by TMG are; 1) Revitalizing Tokyo as a living and working area. 2) Achieving the flow of people and products to increase the metropolitan area's potential. 3) Enhancing industrial power taking advantage of Tokyo's characteristics. 4) Total educational reform at school, home and in local areas. 5) Welfare and healthcare reform to suit "big city" Tokyo. 6) Creating a new system to protect the citizens of Tokyo from various dangers. 7) Creating cities that consider the environment and provide an example for other cities. The main approaches towards reform promotion are shown below. "Revitalizing Tokyo as a living and working area" promotes non-governmental projects, which utilize public land arising from the rebuilding of Public Housing complexes. "Achieving the flow of people and products to increase the metropolitan area's potential" which aims at upgrading about 100 traffic jam locations within 5 years. The locations selected are mainly heavy traffic intersections where it takes more than 10 minutes to pass through. "Enhancing industrial power taking advantage of Tokyo's characteristics" by "developing new markets support business for medium and small enterprises" which support market development and new products via utilizing former members of large companies as a strategic support measure to enhance the industrial power in Tokyo. "Total educational reform at school, home and in local areas" promotes TMG-run school reform. The reform includes formulation of "TMG Educational Vision (tentative name)" with schools including public and private schools, home, and local areas also being considered as well as establishing a viable unit promotion budget to extend the principle's authority. "Welfare and healthcare reform to suit "big city" Tokyo" provides approx. 300 facilities for about 3000 mentally-disabled people as a "local life support for mentally-disabled people emergency three year plan" aiming to eliminating a waiting list to enter facilities by 2006. "Creating a new system to protect the citizens of Tokyo from various dangers" introduces the TMG original certification system and establishes the food-safety & security assessment committee staffed by specialists and consumer representatives in order to maintain food-safety & security. "Creating cities that consider the environment and provide an example for other cities" delivers TMG's original diesel vehicle countermeasures including approaches to make CO2 emission-reduction compulsory considering bylaws and establishing a new loan system and promoting the replacement of vehicles as TMG leads the nation in the reduction of global warming. In addition, TMG selected 22 Top Priority projects which should be implemented in 2003 in order to deliver these strategic approaches (refer to the list). Total operating expenses for the Top Priority projects are expected to be 26.5 billion.

From http://www.chijihonbu.metro.tokyo.jp/ 11/15/2002

Ministry Seeks to Increase B2B Commerce with APEC Nations

The Ministry of Information and Communication (MOIC) reported Thursday (Jan. 16) that it would invest a total of 1.8 billion won in projects designed to expand B2B commerce between Korean businesses and firms in APEC nations.

From http://www.mic.go.kr/ 01/17/2003

Korea Streamlines Mobile Access Code

The Ministry of Information and Communication said it will streamline the mobile phone access code in a way that is likely to nullify the brand identify of wireless service providers. While KTF and LG Telecom have not expressed opposition over the new system, top mobile carrier SK Telecom fiercely argued that the government's move is bound to deal a severe blow to its brand image and brand name value. Beginning in January 2004, mobile phone subscribers can get a unified access code of 010 for third-generation (3G) service. Korea is currently offering cdma2000 1x service and is scheduled to offer competing 3G service known as W-CDMA in the second half of this year. Accordingly, mobile phone users signing up for 3G services next year will be given 010 for access code, regardless of service providers. SK Telecom's current access codes are 011 and 017, KTF operates 016 and 018, and LG Telecom uses 019. Existing 2G CDMA cellular phone subscribers will be allowed to change their access code into 010 if they want from next year, something that SK Telecom fears will undermine its brand value, particularly concerning its "Speed 011." In addition, number portability will be applied to SK Telecom subscribers from January next year. Once subscribers purchase new handsets, they can switch to KTF and LG Telecom while keeping their 011 phone number. "If the mobile access codes are merged into 010, people will enjoy better services and disputes about branding access codes will be resolved," a high-ranking official of MIC said. SK Telecom issued a high-pitched statement, claiming that the government's policy will seriously undermine its brand value as it has long poured resources into the 011 brand. "The new access code policy is unheard of in the mobile phone market worldwide, and mobile phone number is what consumers can choose, not a thing that should be regulated by the government," SK Telecom spokesman said. Some critics argued that the sudden move by the ministry coincided with the transition of the government. Information and Communication Minister Lee Sang-chul, who worked as CEO for KT and KTF, is expected to resign once the Roh Moo-hyun government will be inaugurated in late February. The new system is set to benefit KTF at least for the short term, and the government's hasty decision to streamline the access code is suspicious, critics said. Minister Lee yesterday told reporters that the new policy has undergone due procedure and the ministry will hold public forums to gauge and reflect public opinions about the issue. Asked on why SK Telecom will be first forced to adopt number portability, the government has considered SK Telecom's dominant market position in finalizing the policy implementation schedule. (by Yang Sung-jin)

From http://www.koreaherald.co.kr/ 01/18/2003

Ministry to Ban Mobile Signal Jammers

The Ministry of Information and Communication (MIC) said yesterday that it will ban the use of "jammers" - or devices that jam mobile phone signals in public places - signaling that the government is taking the side of mobile phone users with regards to the issue of mobile phone usage in public places. Some libraries and theaters in Korea have installed jammers to prevent people from receiving and making mobile calls while in their facilities. The installation of such jamming devices, however, has sparked some controversy, particularly concerning potential civil liabilities and possible invasion of privacy issues. In fact, such devices are illegal in most countries, including the United States. The information ministry held a public forum about the issue and concluded that the usage of jamming devices should be prohibited as issues have arisen with regard to the technological soundness of the devices, as well as countervailing arguments that using such devices are an infringement upon one's constitutionally protected rights with regards to freedom of communication guaranteed by the constitution. The ministry's position was clarified in a report issued last month. The report, however, has left some leeway to allow for the reduction of public nuisances caused by sending and receiving mobile calls in public places. One of the ways suggested is to encourage people to switch their phones to an inaudible ring mode like a vibration mode, when entering a public place. The ministry adjudged that it is technologically sound and legally justifiable to employ technology that could automatically switch all mobile phones within the radius of a particular public place from an audible mode to an inaudible mode without the users' knowledge or permission. This particular method does not block signals while helping minimizing the disturbances of mobile handsets in such public places as theaters, cinemas and churches. Ministry officials said some of the jamming devices installed in certain libraries and theaters also blocks residents living nearby from receiving calls, a technological problem that has been found to be intolerable for those in such situations. Ministry officials said some local restaurants use jammers imported from overseas markets, but such devices are illegal under Korean law, adding that most advanced countries do not allow jammers that completely block mobile signals. Although the ministry has decided to ban jammers, the issue of mobile phone nuisance in public places has become a thorny issue in Korea. In advanced countries, jamming devices, which can block signals in rooms the size of a movie theater, have been in commercial circulation since 1998. Advanced countries, however, have laws prohibiting the usage of cell-phone signal jammers. The potential for civil liabilities for those who use cell phone signal jammers looms larger than life, and could have unintended social consequences as well. One scenario that is not altogether unlikely is the doctor who cannot respond to a life-threatening emergency via a page or call on his cell phone, because the public place he is in is secretly blocking his phone from receiving or making any calls. The mobile industry and regulators in Korea have also expressed opposition to legislation that would legalize indiscriminate jamming of phone signals. Ministry officials said they would also urge mobile carriers to operate wireless etiquette programs as an alternative way of resolving conflicts arising from widespread mobile phone usage. (by Yang Sung-jin)

From http://www.koreaherald.co.kr/ 01/03/2003

Seoul Selects 10 New Technologies

The Korean Agency for Technology and Standards (ATS) under the Ministry of Commerce, Industry and Energy (MOCIE) has announced this year's 10 new technologies developed by Korean companies. Of the 10, six were developed for the first time in Korea and the other four are world-class technologies. The six include Hyundai Heavy Industries's technology to load huge structures and float them on the high seas; Samsung SDI's organic el display device; LG Electronics' advanced digital TV system on chip; Will'tek's cdma2000 1x multi channel measurement technology; Hyosung's thinnest polyester yarn by direct spinning; CJ's production technology of an industrial amino acid, L-Threonine. Four other technologies include Korea Aerospace Industries' T-50 next generation trainer jet.

From http://www.seoulnow.net/ 12/27/2002

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Trade Ministry Hatches Sweeping Plan to Speed Up the E-Commerce Revolution

The Trade Ministry has completed a plan for the development of the e-commerce sector in Vietnam over the next five years. The plan, which is being submitted to the Prime Minister, would play a key role in the development of the fledgling industry during the 2001-2005 period. Nguyen Huu Anh, the director of the Trade Ministry's E-commerce Department, spoke to Thoi Bao Kin Te Viet Nam (Vietnam Economic Times) about the plan. What are the targets of the e-commerce plan? Primarily, the plan aims to assist the Government in the initial development of the e-commerce industry, both within the country and in the wider world. The Government will draw up proper targets for the industry, and will create favourable conditions for its development. The plan also aims to develop the necessary infrastructure by 2005, in order to encourage the wide-spread application of e-commerce in Vietnam. To be more precise, we hope to upgrade the national information and communications system, reduce Internet charges as much as possible, and increase people's awareness of advanced IT application in business. We will also focus on helping ministries, sectors and enterprises to train their staff in IT skills, e-commerce application, and the inter-bank payment system, utilising credit cards and automatic teller machine. Furthermore, we hope to establish electronic notarising agencies, and to issue sub-law documents on e-commerce and policies to protect intellectual property and consumers' rights when engaging in e-commerce transaction. Our target, is that by the end of 2005, the majority of Vietnamese businesses will be involved in e-commerce, at different levels, and that Government offices will use e-commerce for management and monitoring functions. Is this Vietnam's first scheme since the country signed the e-ASEAN agreement earlier this year? What is your budget for the plan? Yes, this is Vietnam's first step to implementing the e-ASEAN agreement. The ten major points in our plan include: Build IT and communications infrastructure; Increase people's awareness through training programes on e-commerce; Develop electronic payment systems; Establish a legal system to support the e-commerce industry; Ensure information security and e-commerce safety; Build industrial and commercial standard systems; Protect intellectual property and consumers; Develop e-commerce financial and taxation policies; Carry out e-commerce pilot programmes; And form a national e-commerce management agency. We are proposing an annual budget of VND100 billion to undertake these projects. Do you foresee any difficulties? What needs to be done in order to facilitate the industry's development? The most prominent difficulty is that e-commerce is a brand new industry in Vietnam. There will be so many initial problems that it is difficult to know where to start or how to address them. In general, we must start to build the e-commerce industry from nothing, updating poor infrastructure and working out a brand new legal system. We need to form a national e-commerce management agency, which will co-ordinate with the relevant ministries and agencies. P & T sector, for instance, is responsible for infrastructure construction and the reduction of Internet charges. Meanwhile, the Trade and Justice ministries and the State Bank of Vietnam will take care of the legal implications, and the electronic payment systems that will best facilitate the development of the e-commerce industry.

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