The Way Forward: a Perspective of a Developing Economy



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APEC/E-Commerce Convention Powering APEC Economies into the New Millennium 16th May, Akasaka Prince Hotel, Tokyo. The Way Forward: a Perspective of a Developing Economy Thaweesak Koanantakool htk@nectec.or.th Director National Electronics and Computer Technology Center (NECTEC), Ministry of Science, Technology and Environment, Thailand. 1

Agenda About Thailand Perceived Barrier to E-Commerce Actions of Government and the Private Sector Narrowing the Digital Divide Desired APEC Actions 2

Issues raised in this convention, plus... Jurisdiction Policy Framework and Planning Building trust and confidence censorship Knowledge-based economy Computer crime computer misuse Cyber Laws Consumer protection Cross-border CA Security Currency conversion Privacy Affordable network Intellectual Property protection 3

Feb 2000: Great DDoS Attacks May 2000: ILOVEYOU When is the next chaos? Trust and Confidence? Why Internet access everywhere is more expensive than USA? Will developing countries be able to catch up with the HRD and telecommunication infrastructure? Digital Divide 4

Telecommunications Infrastructure of Thailand Population: 62 million Size of France FIXED LINES (Jan, 2000) 7.5 million telephone lines 12.1 per 100 population MOBILE PHONES 2.4 million lines 3.8 per 100 population INTERNET USERS (Feb, 2000) 1.0 milion users 1.6 per 100 population 5

www.nectec.or.th/internet/ 6

7

Key Statistics of Thailand (As of May, 2000) 17 Commercial Internet Service Providers 450 Mbps total bandwidth at Public Internet Exchange 203 MHz total International Bandwidth 72,000 hosts (11.6 hosts per 10,000 population) 4,000 second-level domains under.th 1,500 Schools are online (50% of all secondary schools) 230 GBytes/day domestic data exchange volume HRef: www.nectec.or.th/internet/ 8

Perceived Barriers of E- Commerce Lack of Awareness Unsecured Product Ordering Process Unsecured Payment System Lack of Laws Poor Telecommunication Infrastructure No Certification Authority Internal Impromptu Language Problem Technology Obstacles High Cost Business Partners Impromptu Product Delivery Problem N/A High Risk N/A 13.89 No Creative Idea N/A 13.43 No Bank Support 8.33 N/A 31.87 24.18 35.19 29.67 26.39 31.87 23.15 26.37 13.43 21.98 18.06 18.68 21.30 58.24 49.45 55.09 50.55 52.31 50.55 49.54 49.07 68.06 AGRICULTURE TOURISM 79.17 9

Lack of Awareness Privacy of Data Security of Payment Legal Infrastructure Poor Telecommunications 10

Priority issues Human resources Security Legal Physical infrastructure Financial Privacy 11

Government Actions Cabinet Committee on International Economics Policy Electronic Commerce Policy Subcommittee Secretariat Department of Business Economics Ministry of Commerce Electronic Commerce Resource Center NECTEC 12

Electronic Commerce Policy Framework 13

Actions of Government and the Private Sector 14

Action Area 1 Finance and Investment Internet Banking (BOT, Banks) Internet Trading (SET, Banks) Payment Gateway (Internet Thailand, Banks) Market Alternative Investment (SET) Taxation Measures (Revenue Dept) Digital Signature Pilot Service (NECTEC) BOT=Bank of Thailand SET=Stock Exchange of Thailand 15

Action Area 2 Laws Copyright Act, Consumer Protection Act Electronic Transactions Bill (NECTEC) Electronic Signature Bill (NECTEC) Private Data Protection Law (NECTEC) Computer Crime Law (NECTEC) Electronic Funds Transfer Law (NECTEC) Universal Access Law (NECTEC) 16

Action Area 3 Infrastructures (1) Telecommunications Monopoly Ended National EDI Service Provider (TradeSiam, Customs Dept.) Government PKI (GITS, NECTEC) Computer Security Emergency Response Team (NECTEC) Electronic Commerce Resource Center (NECTEC) 17

Action Area 3 (cont d) Infrastructures (2) Smart Card Standard and PKI Guidelines (NECTEC, 60 Companies, TISI) Free Internet to schools nationwide (SchoolNet/NECTEC) Government Information Technology Services (GITS/NECTEC) Public Internet Exchange (NECTEC, ISP) Software Industry Promotion (Software Park, NSTDA) 18

Action Area 3 (cont d) Electronic Commerce Infrastructure Showcases THAI.COM (Internet Thailand, NECTEC, Commercial Banks, Courier services, Insurance, Financing, ASPs, Web Portal Operators, Telecommunications providers, Mobile Phone Operators) THAIECOMMERCE.NET (Ministry of Commerce, over 200 companies) 19

Action Area 4 International Affairs APEC E-Commerce Training Center (ECRC/NECTEC) e-asean (Ministry of Commerce, ECRC) E-Commerce Steering Group (co-chair by Dept.of Business Economics, Ministry of Commerce) 20

SchoolNet Project is available free of charge to schools nationwide. Phone call is USD 0.10 per call everywhere Narrowing the Digital Divide 2 Mbps 5.6 Mbps 5,000 Schools online By the end of 2000 Internet CAT TOT

Government Information Network Electronic Government as a model. GINet is a service of Government IT Service Program (GITS) 22

GINet = Government Intranet Department A Service Infrastructure PKI E-mail Department B Department C Govt. Information Network (GINet) E. Directory GINet Servers DNS Web Server SchoolNet ThaiSarn IIRC Domestic Internet 23

Desired APEC Action (1) Exchange programs focusing on technological expertise international business management/experience. Harmonized legal framework including trade facilitation and consumer protection aspects. cooperation on cross-border electronic authentication. 24

Desired APEC Action (2) Cooperation on information security Mutual agreement on equitable international Internet charging arrangement. 25

Thank you Sawasdee for your attention. For more information: visit www.ecommerce.or.th 26