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Ireland Battles Access Issues And Deregulation
The Emerald Isle is fast on its way to becoming the silicon glen of Europe. Irish President Mary McAleese signed the Electronic Commerce Act 2000 in a ceremony Monday. The bill, not unlike its American counter part, will legalize electronic signatures to enable businesses to process and function more efficiently through the Internet.
Such legislation has been a direct result of the government’s key focus on making Ireland more technology friendly, a move that has made them one of the fastest growing economies in the World, and a leader within Europe.
Vivienne Jupp, chairman of Ireland's Information Society Commission pinpoints several key initiatives that have fostered the burgeoning tech industry. "Government has a dual role in the e-economy. One is to enable the new economy. It also has a role to use the new technology to deliver services," Jupp said.
Under a specific framework of policy initiatives, Ireland has become a home base for U.S.-based companies’ foray into the European market. It also has created a five-pillar strategy to enabling the economic turnaround fueled primarily by the technology industry: awareness, infrastructure, education, enterprise and government.
Initiatives aimed at raising awareness of the Internet, focusing on the issues of access namely through deregulation played major roles. Ireland’s lower tax base and relatively hands-off approach to regulating the Internet and surrounding industries made it a natural choice for industries getting into the global market.
Jupp notes that a critical issue facing Ireland’s tech market as well as many other countries is the shortage of skilled workers. Like the United States, Ireland suffers from critical shortages in math- and science-focused students and employees. The ISC is encouraging educators to focus on the curriculum and find other means to meet the shortage such as offering vocational programs.
The Massachusetts Institute of Technology is set to open a multimedia lab in Dublin at the end of the month. Such a resource, Jupp said, will keep students in Europe and attract new skilled and talented workers to the region.
Now that it has passed the e-commerce bill, Irish parliament plans to turn its attention to other issues, including "e-revenue," a broad initiative designed to create a comprehensive system of tax payments and filing via the Internet. Minister for Public Enterprise Mary O'Rourke also recently announced telecommunications-related legislation that lawmakers hope will enable further competition and price reductions in Internet access for consumers.
All About Access
While Americans have the luxury of debating content issues on the Web, many other countries are still struggling with just how to gain access to the Internet.
Deputy U.S. Trade Representative Richard Fisher and Assistant U.S. Trade Representative Wendy Cutler arrived in Japan Monday for further talks to resolve a dispute over Internet access fees controlled by the former Japanese state monopoly Nippon Telegraph and Telephone (NTT). Negotiations are expected to end Wednesday, but as of Tuesday no agreement had been reached. Kyodo News reported last Thursday that the United States had proposed a 41 percent fee reduction. Japanese officials have not accepted that proposal, and news sources say that Japan will only offer a 22.5 percent reduction over four years.
During the annual meeting of the U.S.-Japan Business Council, representatives from the U.S. and Japanese business communities urged regulators to seek an agreement on rate cuts in access fees. AT&T Chairman Michael Armstrong recently urged both sides to come to an agreement. "Japan is a powerful economic nation and indeed has a very powerful and technology-leading company in NTT," Armstrong said. "I believe that those charges need to be addressed both in a joint statement from the U.S.-Japan business council, and hopefully by the two governments in an immediate and appropriate fashion."
Indian Telecom Talks Reduction and Deregulation
In a mid term review of its nine-year plan to deregulate the telecom sector, India's State Planning Commission recommended opening Internet telephony to private sector competition. In its draft review, the commission said that it would be in the best interest of the overall sector to open up long distance because it would "lead to optimum utilization of resources and provision of least cost services." Analysts say that long-distance telephone calls via Internet will force down the price of all long distance calls in the region.
After Indian Videsh Sanchar Nigam (VSN) announced a 50 percent reduction in Internet tariffs, a slew of ISPs is racing to offer free access. Jain Studios, which runs Jain TV, recently announced it will offer free Internet access and likewise, Bharat Connect will invest heavily over the next year to provide Internet services across 22 cities in India. The announcement follows moves by a number of ISPs that have drastically reduced pricing, including Satyam Online, Mantra Online, and Dishnet DSL.
One of the biggest factors in the explosive growth is India’s deregulation in the telecom and information communications sector. The IT market is India is swelling at an astounding rate according to a new study by the Gartner Group, an international research agency. The IT market is estimated to grow annually at 45 percent over the next four years, to account for more than $25 billion by 2004. That’s up from the current level of $5 billion. Garter’s India operation will organize "Strategy 2000," a summit set for August 2-3 in Mamba, aimed at discussing a realistic picture of e-business with hundreds of top level management staff, dealers, vendors, venture capitalists, consumers and others who form the basis of the new economy.
China Pushes for More Enterprise, Signals Desire to Compete Globally
The Chinese State Council is authorizing steep tax rebates and preferential access to key markets as it drafts new financial incentives aimed at encouraging competition in the computer software industry. Though details have yet to be worked out, the draft proposals would encourage tax rebates and cuts in import duties and boost incentives to attract skilled workers, according to the South China Morning Post.
Xu Guanhua, deputy minister of Science and Technology, said Wednesday during a conference on industry and new technologies in the Wuhan province. "Along with economic globalization and China's accession into the World Trade Organization, the country is facing both opportunities and challenges in developing its high-tech industry," said Xu. "Huge input is needed to develop the high-tech industry." Xu said he hoped that industries would rely on the market for expansion and investment.
The push toward enterprise on the part of Chinese officials signals a growing desire to become more competitive in the global economy before its accession to WTO. AP reports that Chinese Defense Minster Chi Haotian privately told U.S. Defense Secretary William Cohen—during the first day of a three-day talk—that China has no intention of attacking Taiwan, U.S. officials said. Reuters reports that Taiwanese lawmaker Fung Fu quoted Chinese Vice Premier Qian Qichen as saying Beijing had eased its stance on its uncompromising ''one China'' principle. Softening its stance on the issue would reduce major opposition to allowing China in to the WTO.
But the White House is growing increasingly worried over the status of Congress granting China permanent normal trade relations status. Senate Majority Leader Trent Lott, R-MS, has yet to schedule a vote on PNTR for China, after postponing action until after the July 4 recess. The White House reportedly is pushing Lott to schedule a vote, but the issue may be put off until the fall, during the height of elections.
- by Maureen Sirhal
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