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| Session 2 - "Electronic Commerce in the Digital Divide Era
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Digital Divide 4 |
From: Bruno Lanvin
(31) Softbank and IFC |
A related question. Softbank and IFC (part of the World Bank) just announced what could be the most significant venture ever in the area of e-commerce for developing countries (500 million USD is no peanuts): is this a first sign of a new interest of Japan in this segment of development policies ? or part of a new global approach from Japanese business and government circles to Internet and IT matters (then, the recent NTT decision to diminish Internet access cost would be no coincidence) ?
Just a question ..
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From: Jim Johnson
(32) Moderator - Domain Name Registration |
1. Brad raises some important questions. It would be helpful to him and to the Nikkei conference if you all could contribute your own experiences on domain name registrations. What is the practice in your own country?
What role is played by the government, or by the private sector?
What role should ICANN play in something like the situation in Japan?
2. Bruno's point about Softbank and the IFB (World Bank) raises an interesting question about whether there is a Japanese government/ industry policy that is behind this initiative. What do you think? Is Softbank really a part of the Japanese industrial power structure?
You thoughts please,
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From: Jim Johnson
(33) Moderator - Questions? |
We have some open questions for you to address to help the substance of the Nikkei meeting on March 3:
The context is a discussion on digital divide barriers: Some of you have raised the questions of Internet taxation, website security, registration of domain names, the status of developing countries.
What are some of the ways in which domain name registration is being handled in different countries. We have heard about the issues in Japan. What about your country? What is the role of the ICANN?
What are the next steps for developing countries? Can the examples of countries like Japan, or Finland, or France, or Germany, or Mexico help?
Speak up!
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From: Dr. Marja Erola
(34) domain etc |
I've been quite quiet for a while as I got a terrible flu.
1. First, perhaps you have realised that we had presidental elections in Finland and now we will have a new president, Ms Tarja Halonen. This means 5 female presidents in the world.
2. About domain names. There is a new European Commission working document (February 2nd) on The creation of the .EU Internet top level domain The doc is available in the web: http://www.europa.eu.int/comm/information_society/policy/internet/pdf/doteu_en.pdf
The working paper states that the creation of this .eu domain will strengthen the image and infrastructure of the Intenrnet in Europe. The text also refers to European law and policies like competition, data protection, IPR and consumer protection. the common domain name would help
The paper includes six quite interesting questions, replies should be sent to the European Commission and all of them will also be published in the web unless confidentality is requested. - This is a normal European way to have a larger and transparent discussion which will guarantee best solutions and also commitment.
3. Besides the document mentioned above, it's worth of looking the whole Information Society webpage area of the DG INFSO http://www.europa.eu.int/comm/information_society/index_en.htm
There is e.g. a recent study how Europe is going to look like in the year 2010, what are the key driving forces of change. Three issues are especially mentioned: "Skills Mismatch", "Knowledge Paradox" and "Mosaic Society". - I guess no need to explain what these words mean. And these are actually very much global issues, aren't they?
About obstacles Europe still have got, as Commissioner Liikanen said in a recent speech:
But there are still major obstacles in Europe. Communications prices remain too high. Capital market lack dynamism. Venture capital markets remain under-developed compared to the USA in spite of recent positive signs. Too often old players set the rules of the game. Too often old behaviours and reflexes prevail. This impedes the flourishing of new ideas.
http://www.europa.eu.int/comm/information_society/speeches/liikanen/athens01_en.htm
4. I believe in the idea of the Mobile Information Society. Mobile communications is not just for highly educated people who are travelling etc etc but also a solution for developing countries or countries in transition. Hungary made that leap, they established most advanced infrastructure very fast.
And mobile communications works also at a personal level, kids, parents, disabled and elderly who appreciate independent living etc.
When e.g. I think my own personal needs for communications: much more important than a wired home with all kind of fine technologies and fixed connections is my mobile phone. It's not just calls but data communications, e-mails, faxes, to wake me up at a hotel etc etc. - I have a Nokia communicator, I have been using those from the beginning the first model came to the markets a couple of years ago.
Mobile e-commerce is growing very fast. E.g. short message (sms) based turnover - not so far away from the Japanese i-mode - in this country is appr. 1 billion FIM (170 million EURO). That has grown really fast and services are veyr useful.
Now we bwill obviously see the same phenomenon with WAP. http://www.wapforum.org/
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From: Ken Lyon
(35) Questions? |
I have been following the discussions since the conference commenced and I would like to make the point that the issues raised regarding taxation, security etc. are already 'real' practical issues for many organisations and government bodies today.
I work in the area of the internet based international Logistics and as global trade becomes more dynamic these issues are being confronted almost on a daily basis. To give one example; A US based manufacturer of communications equipment moves products into global markets on a 'build to order' basis. The interesting points are that the company doesn't actually manufacture anything itself, it subcontracts to third party contract manufacturing companies in Asia, Europe and South America. It only designs and develops the brand from the US. It also moves the product into various markets based on picking the most favourable mechanisms to reduce its tax and customs duty liability (legally). It is constantly looking to exploit opportunities to do this as it's business and target markets become more dynamic.
Indeed many Customs authorities are actually looking to encourage this to help attract inward investment by these organisations. The Netherlands Customs authorities are very pro-business in this regard where (within EC rules) they interpret very liberally the legislation so that they provide the most flexible import/export regime within the European Union.
This kind of competition will probably increase as the more enlightened governments recognise that trying to globally legislate for maintaining the tax 'status-quo' is a lost cause and seek within sensible rules to get the best deal they can to keep businesses interested in locating in their domains.
This will certainly be an issue that highly developed countries such as Japan will need to address, especially considering the aggressive moves in this direction by their Asian neighbours such as Singapore and Hong Kong.
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From: Jane Smith Patterson
(36) Interesting Privacy Sites for you to visit |
This is an interesting site on privacy that members of the forum might find interesting. The site is http://www.privacychoices.org/resource.htm. If there are those of you who have seen sites like this in other countries, please advise us.
Jim(Jim Johnson), it would be good to have the forum come up also with some sites that all nikkei forum members could have for use during the next year prior to another forum.
Erola Maraja: Thanks for the studies thatyou have noted in your forum contribution.
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From: Takashi Tanemura
(37) Nikkei top story |
In today's edition of the Nihon Keizai Shimbun, the following article was the top story.
MOF Eyes Taxes On Online Music, Game Purchases From Abroad
TOKYO (Nikkei)--The Ministry of Finance is considering imposing a consumption tax on online purchases of software, music software and images by Japanese consumers from overseas marketers, The Nihon Keizai Shimbun has learned.
Does these policies have an effect on the growth of consumer
e-commerce? Will Japan be left behind?
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From: Jim Johnson
(38) Moderator - Themes |
In our wide ranging discussions on many topics we have covered much of cyberspace.
Japan has provided us with some interesting developments relevant to our topics: (1) the announcement by NTT that it was lowering rates for Internet access (only to its own customers, and not for interconnect access); and the (2) Ministry of Finance announcement that they want to tariff or tax purchases of online digital products coming into the country.
We have heard about the severe limits placed on registration of domain names within Japan.
We have heard about the concerns for security and privacy of websites, and the information which potential customers might be giving.
We have learned of the barriers to expansion of broadband capacity in many places, including Japan.
What are some of the other themes that have emerged?
Many of you have contributed significantly on developments in other parts of the world, including the US states on taxation of e-commerce; and the developments in the European Commission, Finland, Germany, etc.
What advice should we give to Nikkei on how they can influence, in the March 3 conference in Tokyo, the future of Internet and e-commerce policies in Japan? What editorial positions should they take? What points should be made clearly at the "face to face" conference?
I have suggested to the Nikkei organizers, that, with the many talents and experiences represented by all of you on this list, that you all might be willing to be interviewed individually for a series of articles to be published in Nikkei over the coming months. Are any of you interested? Let us know.
Keep on speaking out,
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From: Marja Erola
(39) mobility, privacy and trade policy |
1. Mobility: Perhaps you have read a recent article "Down to the Wire" at Time February 28, 2000: http://www.time.com/time/europe/magazine/2000/228/wireless.html
The article is about ultra-fast wireless systems, how they are supplanting fixed-wire connections and speeding up Internet access. As it's said it's not just the question of speed but availability. Installing wire-based solutions can take several weeks but wireless connections can be built within a couple ofdays.
"Fixed wireless connections could change all of that, and not just in Europe. These links could rewrite the telecoms map of the world, propelling telecom basket-case countries into the forefront of the new world order. In Latin America, 10 countries have already licensed systems. In Europe, these so-called wireless local loop services are operational in Finland, Germany, Ireland and Poland, and further licenses have been granted in Finland, Germany, Ireland, Poland and Portugal. Tenders are being made in Spain and Austria. Almost every country in Europe, Latin America, North America and the main Asia Pacific markets will have licensed systems by the end of the year."
For developping countries this can mean a real frogleap to the forefront of technology. And surely something which helps the world with the Digital Divide problem.
Pricing is again one part of mobile communications. Here in Europe we have the simple basic principle that the one who calls will pay. Calls to mobile phones are more expensive but anyway you know when you call to a mobile phone: at least here in Finland you can easily recognise that from prefixes of tel nros. When someone is in his/her own country and receives a call to a phone (mobile or fixed) that means no cost. Only when someone is abroad then answering a call with a mobile phone means both you and the caller will pay. In the US owners of mobile phones have to pay calls they receive. That means they normally switch their phones off and use those just for calling themselves. Also that e.g. kids won't get mobile phones so easily. Here nearly every kid has got a mobile phone at the age of 10-12 or so. Which is very convenient for everyone: kids can communicate with each others and their parents, tell parents where they are in the evening etc etc. And if a kid cannot control the amount of his/her calls and short message communications then it's possible to make a contract with a teleoperator what is the upper limit for monthly bill, after that no more calls.
- Personally, I cannot understand why any country wants to prevent this kind of quite useful ways to communicate by using old-fashioned pricing systems.
About short messages, a little story: Once my little brother was in Asia (a normal work trip). He sent me a sms (a short message, max 160 characters) which I received when having a cup of coffee in Brussels at a European Commission building. In his humorous message he told he had difficulties with his flight ticket, his visa becoming old soon, perhaps he has to start to work on rice fields. I answered him: "do you need a rice cooking receipt?" ;)
Quite seriously, just think what kind of situations there might where a mobile phone really helps. If you car is suddenly broken and leaves you on a lonely dark high way, how to get help. Or you are walking far a way on ice and suddenly you realise ice has been broken, there is a big gap between you and the shore. This has actually happened several times in the real winter life here in the North. E.g. one lady got into that kind of problem, being lost far away from houses, his phone battery became nearly empty and she couldn't any more call but she was still able to use short messages to help to find her.
2. Privacy and data protection: Jane, thanks for giving a nice link. Here a nice European Union link: http://www.europa.eu.int/comm/dg15/en/media/dataprot/links2.htm
3. There has been some discussion about taxation of digital products and trade policy questions. Please look at http://europa.eu.int/comm/trade/services/overview.htm, http://mkaccdb.eu.int/ andhttp://gats-info.eu.int/ The last link is the European Union Info-point on Trade of Services.
One paper at the Info Point is "DIGITAL PRODUCTS: THE CASE FOR SERVICES" which contains a paragraph explaining quite well certain old differences between the EU, Japan and the US:
" The legal nature of 'digitised products' (music, films, software or 'books' material on the internet) is still under discussion in the WTO. We argue that all electronic deliveries, -including 'digitised products'-, are services and therefore the GATS applies. This is also the view of most other WTO Members and the WTO Secretariat. On the contrary, the US and to a certain extent Japan argue that while the transmission of those 'products' is a service, the 'products' themselves are analogue to goods and therefore fall under the GATT."
And a later paragraph explains how the principle of technological neutrality is essential. The rights and obligations under the GATS apply regardless of whether the services are provided by using telecoms means.
I guess we all agree the principle of technological neutrality is really important. Without it we might get into quite confusing situations and also the technological development and opening of new markets might be disturbed.What do you think?
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From: Anthony M. Rutkowski
(40) mobility, privacy and trade policy |
(39) Marja Erola I guess we all agree the principle of technological neutrality is really important. Without it we might get into quite confusing situations and also the technological development and opening of new markets might be disturbed.
I'm not sure we all agree. I have seen this rather abstract principle produce some perverse results.
Perhaps you can explain why all electronic deliveries are services and what is the resulting effect of applying the GATS.
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