WITSA ACTIVITIES:

1. 1998 World Congress Board Allocates Grant to WITSA

As announced in a December 7 e-mail to all WITSA members, WITSA Chairman Bob Laurence and WITSA President Harris Miller are very pleased to inform you that the 1998 World Congress on Information Technology Board of Directors has made a very generous grant of US$ 200,000 to the World Information Technology and Services Alliance (WITSA) to support its operations over the next two years. This grant was made available from surplus funds from the 1998 World Congress. WITSA has been able to expand its activities significantly in the past year, in large part thanks to a grant from the Fairfax County Economic Development Authority (FCEDA). The expansion of WITSA's activities, in turn, has given the organization a global leadership role in areas such as electronic commerce and Y2K. The FCEDA funding, which will decrease over the next two years, will be replaced in part, by the World Congress 1998 support. WITSA will also be receiving more revenue from membership dues.

The World Congress Board also contributed substantial IT equipment to George Mason University, the host facility for the World Congress, made a grant to a program which assists doctors who work with children in developing countries, and contributed IT equipment to WITSA.

2. WITSA Spring'99 Meetings to Build Momentum Towards the 2000 World Congress on IT

As agreed at the October 15, 1998, WITSA meetings in London, the WITSA Public Policy Working Group and Steering Committee will next meet in Taipei on March 25-27, 1999. The timing and location of the meeting, which will coincide with the large Taipei Spring Electronics Show (March 25-29), is intended to focus attention on the 2000 World Congress on IT, which will take place in Taipei the following year (June 11-14, 2000. Special events will be arranged around the WITSA meetings, including a press conference about the preparations for the 2000 World Congress, a World Congress event and gala site visit, a government visit, and a golf and site seeing program.

3. Establishment of the Alliance for Global Business (AGB)

The international business coalition that presented the first-of-its-kind "Global Business Plan for Electronic Commerce" at the October 7-9 OECD E-commerce Ministerial in Ottawa has agreed to formalize their continued cooperation to facilitate private sector influence in the development of global electronic commerce policy. The coalition, now known as the Alliance for Global Business (AGB), is comprised of WITSA, the Business and Industry Advisory Committee to the OECD (BIAC), the Global Information Infrastructure Commission (GIIC), the International Chamber of Commerce (ICC), and the International Telecommunication Users Group (INTUG). The AGB is already considering how the various groups within the alliance may leverage their expertise to work with governments, international organizations and developing countries to expand the benefits of electronic commerce.

In a recent move, the AGB wrote a joint letter to World Trade Organization (WTO) Secretary General Renato Ruggiero. The AGB also sent a joint staff level delegation to Geneva on December 10, 1998 to begin a dialogue with the WTO.

AGB will join forces to work with the OECD on the OECD workshop on authentication in the US in May, 1999. The Alliance will approach the OECD to ensure that issues of particular concerns to the industry will be discussed at the workshop and that business is adequately represented at the meeting. For more information about the AGB, please contact Anders Halvorsen at ahalvorsen@itaa.org.

4. WITSA to Support Domain Name Meeting

As announced in the November, 1998, issue of the WITSA Newsletter, ITAA is working with other international organizations to help ensure the functioning of the Internet Corporation for Assigned Names and Numbers (ICANN), the new entity that will oversee the domain name system. On January 22, WITSA will co-organize a meeting in Washington, D.C. to discuss the formation of the Domain Name Supporting Organization (DNSO) in accordance with the ICANN Bylaws. Other organizations involved include the International Chamber of Commerce (ICC), the Commercial Internet Exchange, and the Council of Registrars (CORE), the International Trademark Association (INTA), the Commercial Internet Exchange (CIX), the European ISP Association (EURAISPA), and the Policy Oversight Committee (POC). Among the topics to be discussed are:

• What form of membership structure is appropriate;
• The composition of the "Names Council" and how Name Council members are elected;
• The power of the new DNSO; and
• Funding for the DNSO's operations.

Following the meeting, draft consensus DNSO bylaws will be developed by outside counsel based on the input from the meeting, including a listing of dissenting views. These draft bylaws will then be circulated extensively to the broad Internet community for review. The January 22 meeting will also determine whether there is a need for follow-up meetings. ITAA hopes the DNSO will be able to submit applications to ICANN in March or April next year. For more information on the DNSO meeting, please contact Anders Halvorsen at ahalvorsen@itaa.org. General information on the Supporting Organizations can be found in the ICANN Press Release of December 21: http://www.icann.org/icann-pr21dec98.html.

WITSA MEMBER ACTIVITIES:

5. Australian Information Industry Association (AIIA) Forms Task Force on Workforce

AIIA Chairman Alan Baxter reports (AIIA Bulletin no. 19) that the AIIA and Australian Telecommunications Industry Association (ATIA) Boards of Directors, under the Chairmanship of Telstra's Gerry Moriarty formed a Task Force to take a number of urgent actions to address the growing shortage of IT&T skills within Australia. This shortage reportedly has the potential to significantly impede the growth of the industries, the uptake of Information Technology within the Australian economy and the ability of Australia to get on line and to attract information economy investments.

The first meeting of the Taskforce was held in Parliament House, Canberra, on 9 December 1998. According to Mr. Baxter, the organizers were particularly pleased with an excellent attendance consisting of the Directors of both Associations and other senior industry figures, and the interest shown by several Ministers, and the Federal and State government representatives. The momentum established at the December meeting has encouraged both Associations to continue the Task Force to oversee the suggestions made at the Task Force meeting.

For more information about the Task Force, please go to http://www.aiia.com.au/2newsroom.html or write to AIIA.Bulletin@aiia.com.au.

6. Joint Initiative to Build the Information Society in Poland

On December 2, 1998, participants at the 2nd Congress on IT in Poznan agreed to a very important "Treaty for Building the Information Society in Poland". As announced in the previous issue of the WITSA Newsletter, the Polish Chamber of Information Technology and Telecommunications (PIIiT) organized the Congress. The Treaty, which remains an open initiative to all individuals, institutions and businesses in Poland, establishes important guidelines and launches work on a common strategy for building the Information Society in Poland. In particular, it establishes a Treaty Council, which will identify the most important tasks, schedules and groups needed to facilitate the growth of the Information Society. Participants at the Congress also approved another documents, on the Y2K ("Kodeks Problemu Roku 2000"). For more information about the Congress on IT, the Treaty or the Y2K paper, please contact Dr. Waclaw Iszkowski at wbi@ikp.atm.com.pl.

7. Biggest Computer Exhibition in Poland to Be Held on January 19-23

Computer Expo, the biggest computer exhibition in Poland, will be held in Warsaw on January 19-23, 1999, under the auspices of the Polish Chamber of Information Technology and Telecommunications (PIIiT). Among the features at the Expo is a special guided tour of the exhibition as well as the opportunity to meet some of the most important managers from the Polish IT companies. For more information on this event, please contact PIIiT President Dr. Waclaw Iszkowski at wbi@ikp.atm.com.pl / tel. +48 22 628 2260.

8. Inter-Balkan IT Forum Agrees to Closer Regional Cooperation

As announced in the previous edition of the WITSA Newsletter, the Federation of Hellenic Information Technology Enterprises (SEPE), co-organized the first Inter-Balkan Information Technology Forum in Thessaloniki, Greece, November, 1998. SEPE General Director Fokion Zaimis wrote the following report (excerpt only), detailing an ambitious effort to formalize Inter-Balkan cooperation through an annual IT Forum, the establishment of a Forum Secretariat as well as additional actions and initiatives at the regional level to address Information Society challenges:

Representatives of the private IT sector as well as of the public sector of Albania, Bulgaria, Cyprus, Greece, Romania, FYROM, Turkey and the Federal Republic of Yugoslavia assembled at the 1st Inter-Balkan IT Forum in order to exchange views and to discuss options that promote the development of the Information Society in the Balkan region.

The region of the Balkans is characterized by widely varying levels of development between countries, political and economic instability, and a low level of cross-country business networking that are largely due to the region's fragmentation between different geostrategic blocks in recent times. The region however also shares a common culture and history where trade flourished over long periods of time. The advent of the Information Society presents a major challenge and opportunity for a region that needs to modernize its infrastructures and industrial fabric and make the transition to the new information-based economy at the same time. Coordinated initiatives by the private sector would be key to the success of the overall effort.

The participating countries and companies expressed their full satisfaction with the results of this Inter-Balkan Forum. They agreed that such a Forum should act as a platform for communication and coordination with the following objectives:

• Foster cooperation between companies from the Balkan region and assist them in adopting concepts and practices that will strengthen their competitiveness.
• Assist the coordination of national policies for the Information Society and the modernization of infrastructures.
• Facilitate the integration of the region as a whole into a knowledge-based world economy.

To obtain a copy of the full report, please contact Anders Halvorsen at ahalvorsen@itaa.org. To learn more about the Inter-Balkan IT Forum, please contact Mr. Fokion Zaimis at sepe@compulink.gr (tel. +30-1-9249540).

9. IT Asia '99 to be Organized by NASSCOM-MAIT-CII
12-17 February 1999, Pragati Maidan, New Delhi, India

IT Asia '99 is an event focused on 'solutions' and end users. IT Asia is held with seven other shows focused on industries such as automobile and mining. IT Asia provides visitors with access to decision-makers from over 2000 exhibiting companies from 35 countries covering virtually every segment of IT industry. A series of seminars on topics related to IT will be held in conjunction with the exhibition.

IT Asia is organized by the Manufacturers' Association for Information Technology (MAIT; the association for the hardware, training and services segments of IT in India); CII, which represents both private sector and Government owned corporations and utilities; and NASSCOM, which represents the computer software and services industry in India. NASSCOM is also the Indian member association of WITSA.

For more information, please visit the MAIT website at http://www.mait.com, or contact S.Krishnan, Deputy Director, Manufacturers' Association for Information Technology (MAIT), tel. +91(11) 6866976, fax +91(11) 6851321 or email mait@giasdl01.vsnl.net.in.

10. Bangladesh Seeks to Become a Major Developer of Computer Software

Mr. Muneem Hossain Rana, Immediate Past General Secretary of Bangladesh Computer Samity (BCS), WITSA's member association in Bangladesh, has informed the WITSA Secretariat that the Bangladesh Commerce and Industries Minister Tofael Ahmed will offer duty free imports and cash incentives as part of an undertaking to become a major developer of computer software. Bangladesh also plans to enact intellectual property rights and establish an "information technology village" to boost investment in the computer sector. The government already has cut taxes on computer software and accessories, and in December, 1998, withdrew a 15 percent value added tax on computer trade.

The Bangladeshi government's ambitions plans include increasing its annual IT sector revenue earnings from the current US$ 5.15 million to US$ 3.0 billion in exports within five years.

According to BCS, computer use in Bangladesh has increased substantially and the government aims to educate people in development of computer software and its exports. For more information, please contact Mr. Muneem Hossain Rana at ranamh@dhaka.agni.com or tel. + 880 2 956 9134.

REGIONAL ASSOCIATION ACTIVITIES

11. Organizers Say ASOCIO '98 Turnout Shows IT Industry Optimistic about Asian-Oceanian Region

With the theme "Promoting IT Trade: Forging Ahead Through Challenging Times", the Asian-Oceanian Computing Industry Association (ASOCIO) held its 16th General Assembly and Symposium in Malaysia on November 25-26. In the midst of the financial turmoil, the ASOCIO General Assembly was seen as an important tool for encouraging increased collaborative trade efforts amongst the IT community of the Asia-Oceania region. Organized by ASOCIO and hosted by the Association of the Computer Industry Malaysia (PIKOM), ASOCIO '98 was reportedly attended by 250 CEOs, industry leaders and senior management from 13 countries. Several keynote speakers and industry experts presented their views, hopes and uncovered challenges for the IT industry. Country activity reports covered numerous issues, including IT policies in ASOCIO countries, Asia-Oceania Market Survey, outsourcing in India, electronic commerce issues in Thailand, Y2K in the ASOCIO region, and a look at the difficulties & prospects of IT development in the developing world.

ASOCIO '98 also saw a first when the ASOCIO IT Award 1998 was presented to the Prime Minister of Malaysia, Dato' Seri Dr. Mahathir Mohamad, marking the first time this award was bestowed upon a Prime Minister of any country. Dr. Mahathir was given the award in recognition of his "significant contribution" to the development of the IT industry in Malaysia as well as through the Multimedia Super Corridor initiative.

Given the relatively large turnout at ASOCIO '98 has made the organizers confident that the IT industry still regards the Asian-Oceanian region as one of the most dynamically developing regions in the next millennium. For more information on ASOCIO '98, please contact Ms. Sherine Ong, International Relations / Communications Executive at PIKOM: sherine@pikom.org.my / Tel. + 6-03-2920297 / www.asocio.org.

12. Australia to head ASOCIO in 1999-2000

Mr. Neville Roach, Australian Information Industry Association (AIIA) Board Director and Fujitsu Australia Ltd. CEO, was elected ASOCIO President at the 16th ASOCIO Annual General Assembly (ASOCIO '98). Following Mr. Roach's two-year appointment, the ASOCIO Secretariat will be transferred to the AIIA Canberra headquarters.

In a separate announcement at ASOCIO '98, AIIA was also selected to host the 17th ASOCIO General Assembly in Canberra in the week beginning on November 21, 1999. AIIA reports that the ACT (Australian Capital Territory) and Federal Governments have committed substantial support to enable AIIA to organize "a world-class event" next year. For more information about the ASOCIO Presidency or ASOCIO '99, please contact AIIA Deputy Executive Director Rob Durie at r.durie@aiia.com.au / Tel. +61 26 282 4700.

13. EISA Welcomes 3 Bids for the 2004 World Congress on IT, Agrees to European Workforce Survey

At its December 11-12 meeting in Athens, the European Information Technology and Services Associations (EISA) officially welcomed three bids to host the 2004 World Congress on Information Technology. The bids were received from Bundesverband Informationstechnologien (BVITeV) in Germany, the Federation of Hellenic Information Technology Enterprises (SEPE) in Greece, and Syntec Informatique in France. The EISA meeting characterized all bids as "strong and serious" and agreed to make a joint recommendation for the 2004 site in March 1999. The March 25-27 WITSA Steering Committee meeting in Taipei will then review the bids for the 2004 World Congress.

EISA also decided to launch within two months a survey among its members intended to make possible an agreement on a common vocabulary used to describe job profiles among European IT professionals (including computer manufacturers, telecommunications operators, software publishers, software integrators, e.value-added providers, developers, users, etc.). Reportedly, there was a consensus that the figures used in different countries are not coherent as a result of diverging definitions. In one example used to demonstrate this problem, the Computing Services & Software Association's (CSSA) estimates that there are about 1 million IT professionals in the UK, while Syntec Informatique lists only 360,000 persons in France. The UK clearly does not have three times as many IT professionals as France; hence the need for a more accurate analysis.

Other conclusions from the December 11-12 meeting included the following:

• The induction of the Romanian IT Association ?NIS in EISA.
• A report presented by the Chairman of EISA, Mr. Robert Guillaumot stating that the Software and Services market in Europe is among the fastest growing sectors of the economy in Europe ranging from country to country from 15-35% annual growth (average25%). In Europe it occupies 850.000-1.000.000 employees with total revenues of $70-$75 billion.
• A decision to work more closely with the Association of Hardware companies EUROBIT and the European Commission on policy issues.
• The announcement of the Latin-European FORUM in Madrid on April 18-21, 1999 with the support of the European Commission.

For more information about the December 11-12 EISA meeting, please contact Mr. Jean-Paul Eybert at jpeybert@syntec-informatique.fr (tel. +33 14 430 4968), or Mr. Fokion Zaimis at sepe@compulink.gr (tel. +30-1-9249540).

WORLD CONGRESS ON INFORMATION TECHNOLOGY 2000 (WCIT 2000)

14. WCIT 2000 Leaders Vow to Replicate the Successes of WCIT 98

Aiming to repeat the success of the 1998 World Congress on Information Technology, a highly motivated staff at the Taipei and US offices of the 2000 World Congress on IT is working hard to ensure that the next World Congress will become "the biggest IT event in the first year of the next millennium". Much effort is currently being allocated to developing an eye-catching program as well as attracting renowned speakers and sponsors - all of which, the WITSA Secretariat has been informed, is coming along fine.

The 2000 World Congress on IT will take place at the Taipei International Convention Center (TICC) on June 11-14. The Hyatt Taipei has already been reserved for 1,200 participants and a web site has been set up at http://www.worldcongress2000.org. All members are encouraged to HOT-LINK THE WORLD CONGRESS SITE - a WCIT2000 logo can be obtained by contacting Executive Director Arthur Hwa at arthwa@ms10.hinet.net. Members are also encouraged to contact the WCIT2000 staff directly with particular questions or comments, and to make this information available to their member companies.

SPONSORS:
More than $2 million has already been committed to the 2000 World Congress by a number of private and public sector companies and agencies. A list of the current sponsors, including URL-links is included below.

Members are encouraged to send the WCIT2000 office (Mr. Eric Tao - Eric@mail.cisanet.org.tw) names of potential sponsors.

YEAR 2000 ACTIVITIES

15. ITAA Assumes Pivotal Role at UN Year 2000 Meeting

In the wake of the October 1998 Global Year 2000 Summit, WITSA's visibility and action on the Year 2000 conversion challenge internationally has grown. WITSA's American member association, the Information Technology Association of America (ITAA), was the only non-governmental organization officially invited to attend the December 11 United Nations (UN) meeting on Year 2000. The meeting included more than 200 representatives and national Y2K coordinators from more than120 countries.

ITAA worked closely with John Koskinen, Chairman of the U.S. President's Year 2000 Council in the run-up to the meeting. ITAA strongly encouraged the US, as well as Japan, Canada and several other countries to push a program on contingency planning in addition to remediation and testing. In fact, largely at ITAA's initiative, the several key countries are likely to endorse an international contingency plan that would create a centralized source for Year 2000 information and crisis management assistance.

As part of the conclusions reached on December 11, the assembled Y2K National Coordinators advised that consideration should be given to establishing a coordinating mechanism with support staff funded by voluntary contributions. This coordinating mechanism could also encourage the public sharing and disclosure of important information relating to the year 2000. During their deliberations, the Y2K National Coordinators agreed to advise their countries on this matter and suggested that the Friends of the Chair, an open ad hoc group of National Y2K Coordinators who had helped organize the current meeting, should pursue this matter further and report back to the Y2K National Coordinators and the UN Working Group on Informatics on their decisions and any action taken. The Coordinators also recommended that countries coordinate and develop contingency plans on a national, regional, and global basis.

In addition, ITAA also provided UN members with a global call to action that outlines Year 2000 priority actions. In addition to contingency planning, these include global awareness and action, cross-sectoral dialogue, and more funding for developing countries.

The National Y2K Coordinators encouraged the establishment of regional coordinating mechanisms. In addition, the delegates agreed to continue their communication with each other and to consider meeting again at an appropriate time in the future. A detailed overview of the December 11 meeting, including meeting program, statements, background, press release and more, is available at http://www.un.org/members/yr2000/meeting/.

16. New Date for Philippine Global Y2K Conference

As announced in the November issue of the WITSA newsletter, the Philippine Presidential Commission on Year 2000 Compliance plans to arrange a Y2K Conference early in 1999. However, the Conference has been rescheduled to March 1-3, 1999.

The Summit is designed to provide a forum where delegates can share experiences and best practices and to raise the level of public awareness to the Y2K issue. Topics to be discussed include: Contingency planning, embedded systems, legal issues, as well as a look at different industry sectors. The Summit will open on March 1, with a dinner-address by Philippine President Joseph Estrada.

The Summit was born out of the October 15-16 WITSA London Global Year 2000 Summit, where Philippine Presidential Commission on Year 2000 Compliance Executive Director Mr. Bangcola and Chairman Dr. Amable R. Aguiluz V participated. The WITSA office is assisting with the experience obtained from the London Summit.

For more information about the Conference, please contact Mr. Karim L Bangcola, Executive Director of the Philippine Presidential Commission on Year 2000 Compliance at karim@amanet.net.

17. Sucesu-SP to Set Up Y2K Solutions Program for SMEs in Brazil

The WITSA Secretariat recently learned that Sucesu-SP (Sociedado do Usarios de Informatica e Telecommunicacoes), the Brazilian WITSA member association, is planning to establish a program to provide Year 2000 solutions for medium-size companies in Brazil. Sucesu-SP is currently in search of a partner for such a program, for technical support. Sucesu-SP also has an agreement with ITAA regarding the ITAA*2000 Certification Program.

For more information on this subject, please contact Nilson G. Vasconcellos, member of the Sucesu-SP Advisory Board, at vasco@sucesusp.com.br (Phone/Fax +55.11.531.3899).

PUBLIC POLICY NEWS

INTERNATIONAL

18. Governments Expand Restrictions on Internet

A December 1998 report "Freedom of Expression on the Internet", issued by the Human Rights Watch, concludes that legislative proposals continued to threaten free speech on the Internet. While dissidents in authoritarian countries continued to take risks using the Internet to seek help and information, regulators in these parts of the world were quick to refine screening and other controlling technologies. As a result, in a half-dozen countries, Internet access providers (including public libraries) were implementing filtering technologies and other voluntary measures to make prior censorship of on-line communications a reality. The trend is towards extending these technologies more broadly, with global implications for free expression. According to the report, on-line content providers may soon be forced to start rating their content; those failing to rate their content may find their material blocked from public access. As local rating criteria are used to define ratings, the danger is that these restrictive criteria will limit the diversity of expression on the Internet, where content is as diverse as human thought.

Countries with a history of limiting free expression, such as China and Singapore, are seeking to extend their controls to cyberspace. Meanwhile, other countries, such as the United States and members of the European Union, are considering policies that, in an effort to control problems like racism and pornography, could end up restricting legitimate speech on the global network. In 1998, people were arrested for on-line content in China, Turkey and Malaysia. In Canada, the government is considering extending national restrictions on hate speech to the Internet. And the European Union is examining proposals that would require Internet service providers to block "harmful speech", like sites promoting racism, or hold them accountable by law when they make such information available. In California, a mother is suing a library for giving her 12-year-old son unrestricted Internet access, allowing him to download pornographic material. For more information about the report, please visit http://www.hrw.org/hrw/worldreport99/special/internet.html.

19. Warning: Wassenaar Arrangement Could Weaken the Internet

While the US IT industry long has argued that US restrictions on export of strong encryption software give industry in unregulated countries unfair advantages, the Wassenaar Arrangement - a munitions control agreement recently signed by 33 countries in Vienna - would seek to minimize those differences by promoting 64-bit encryption technology export restrictions in all participating countries. However, Internet groups such as the Internet Society (ISOC), the Internet Architecture Board (IAB), and the Internet Engineering Steering Group (IESG) warn that Wassenaar may make the Internet "weak and vulnerable" because of those export restrictions. One of the inherent problems is that 64-bit encryption can be relatively easily cracked by hackers, often in less than one day. In addition, the Internet groups argue that the Arrangement will have a negative impact on developing countries because many of those countries lack the necessary resources to develop their own cryptographic capabilities, and have to rely on imported software to support the development of their networks for communication and commerce.

20. Negotiations on a WTO IT Agreement (ITA II) to Resume in February; Symposium to Promote IT Industry Development May be held in 1999

As reported in the November issue of the WITSA Newsletter, the WTO Committee of Participants on the Expansion of Trade in Information Technology Products is attempting to reach consensus among the 44 countries participating in the WTO Information Technology Agreement (ITA) on an extended product coverage (ITA II). On December 11, the Committee failed to reach consensus on a compromise package of additional products for tariff elimination, but agreed to resume negotiations the week of February 22, 1999.

At the December 11 meeting, 35 of the 44 participating countries indicated that they would support the list of some 220 ITA II products. Two countries need more time for domestic consultations (El Salvador and the Philippines). Two countries were opposed to the compromise list: Malaysia (because many of its proposed consumer electronics products were not included), and India (because it disagreed that certain security-related products included in the list should be considered IT).

Aside from the ITA II talks, the Committee on December 11 agreed to other aspects of its work program, including continuing its efforts to ensure that non-tariff measures do not impede the free flow of IT products, and consultations regarding divergences in classifying IT products. Several participants also expressed an interest in convening a symposium in 1999 to facilitate further cooperation and encourage technological development of the IT industry on a worldwide basis. While a symposium also would involve members of the IT community, a decision is expected to be made by the Committee at its late-February meeting.

The ITA I was concluded at the December 1996 WTO Ministerial in Singapore, and provides for the staged elimination of tariffs on all products covered - including semiconductors, computers, telecommunications equipment and computer software - by the year 2000 (extended staging of commitments to 2005 allowed in limited circumstances). ITA covers over US$ 600 billion in trade, or 93 percent of the global market for these products. The product coverage under consideration in ITA II represents a modest expansion of the original coverage, and includes 220 products in four major areas of printed circuit board manufacturing equipment, radar/navigation apparatus, certain components for IT equipment, and some consumer electronics. For more information on ITA II, please see USTR press release 98-110 (http://www.ustr.gov/releases/1998/12/index.html) or WTO press release at http://www.wto.org/wto/new/ita2pr.htm.

EUROPE

21. Conversion to the Euro

In light of the introduction of the Euro on January 1, we would like to bid the participating members of the European community much success in this dramatic currency harmonization. As you go to write about this unprecedented event, we encourage you to look at one of the untold stories of the Euro changeover--the tremendous amount of work going on behind the scenes to assure that information systems properly handle this new currency. To this end, we are pleased to announce that an ITAA white paper on the IT-implications of the Euro conversion is available at http://www.itaa.org/euro.htm. Please feel free to use this document in your research. You may also wish to contact ITAA's subject matter expert on this issue, Kevin Roth. Kevin can be reached at kroth@itaa.org / Tel. +1 (703) 284-5324. Also of interest, ITAA has published a guide to Euro conversion solution providers. The guide is available on the web at http://www.itaa.org/eurodir.htm. We encourage you to utilize these resources and to think of both ITAA and WITSA as you seek informed sources on this topic. For further information, you may also want to contact TIPAL Executive Manager Pirkko Valtonen at pirkko.valtonen@tipal.fi (tel. +358 9 6220 1001).

22. EU Rejects US Data Privacy Plan, Vows to Continue Talks

In the previous issue of the WITSA newsletter, we described the on-going negotiations between officials from DG XV of the European Commission and the US Department of Commerce

On November 23, European Union countries rejected the US draft set of safe harbor privacy principles, contending that these were not sufficient to guarantee protection equivalent to EU law. Under proposed arrangement, US companies that adopt the safe harbor principles on notice, choice, data integrity, access, onward transfer, security and enforcement, would be considered to meet the adequacy standards as set out in the EU Data Protection Directive.

However, on December 9, EU countries agreed to continue negotiations with the US to try to resolve remaining differences over privacy protection, in light of the EU Directive implemented on October 25. One of the biggest "stumbling blocks" has been the EU's insistence that individuals be allowed to seek redress from an independent body with effective enforcement powers if they believe their privacy has been violated. The US Commerce Department has proposed that consumers have access to independent entities to resolve disputes, with companies facing unspecified consequences for violating the guidelines. The EU also wants to strengthen language in areas of access to information and certification of companies that have complied with the privacy principles. Both EU and US officials now hope to resolve the outstanding issues in early spring, perhaps as soon as February.

On a related issue, a committee of representatives of the 15 EU countries have been working to identify which third countries would meet the privacy standards prescribed in the Data Protection Directive. The Commission recently estimated that an initial list of countries that meet the criteria would be finalized in February. Switzerland has been mentioned as one country that is expected to receive such early approval. Once the Commission and the EU countries (in a weighted majority vote) have approved a third country, individual EU countries will not be able to block data exports on their own.

23. EU Fails to Agree on Digital Signatures

At a European Council meeting on November 27, EU telecommunications ministers failed to agree on a compromise proposal for a new directive on a European Parliament and Council Directive on a common framework for electronic signatures. After other EU bodies have had a chance to seek out a compromise solution, the telecommunications ministers will make another attempt to reach an agreement on whether to regulate the type of signature technology used when they meet again in April 1999. However, due to the parliamentary elections in the spring, the European Parliament is not likely to vote on the measure until next fall.

At the November 27 Council, the disagreements stemmed mainly from Germany, France Italy and Portugal insisting that full legal recognition be given only to certain smart-card-based signatures, while others feared that a mandatory approach would likely curb technological progress and create obstacles to the development of electronic signatures instead of promoting them. Another worry was that Germany's and France's vested interest in smart-card technologies could be perceived as something with a protectionist effect. Moreover, an exclusion of software-based signatures made by major technology companies could provoke a trade dispute with the US.

With no rules approved and implemented thus far, there was no immediate threat of any such trade dispute. However, with no common approach agreed to, there were worries that EU Member States may choose to adopt incompatible rules on digital signatures, to the detriment of the growth of electronic commerce. The measure is now in the hands of the German government, which will have the EU Presidency from January 1. For more information about the draft EU directive COM(1998) 297 final, please review entire text at http://www.ispo.cec.be/eif/policy/com98297.html or read the press release at http://www.ispo.cec.be/eif/policy/press98297.html.

24. Report says Europe must boost IT skills

In the 10th edition of its annual "Employment in Europe" report, the European Commission on November 27 warned that, if Europe is to benefit from the job-creating capacity of electronic commerce, it must improve the skills and technical literacy of its population.

The 23-page report, "Job Opportunities in the Information Society," points out that currently more than 500,000 job vacancies exist in information technology because of skills shortages and that the problem is getting worse. By 2002, the gap could widen to 1.2 million jobs if measures aren't taken.

To correct the situation, the report calls on European Union member states to improve IT literacy, to rethink education so students learn with technology and to ensure public access to the Internet. The report warns that the labor shortage will only increase and that Europe is at risk of a "brain drain" because the U.S. has increased its visa quota for IT specialists for the next three years.

25. First IT Industry Association to be Established in Albania

Dr. Robert Laperi, President of the Albanian Center for Foreign Investment Promotion (ITAL Ltd.) in conjunction with a group of experts working in the Albanian Information Technology sector, have decided to establish an Information Technology association in Albania. In Dr. Laperi's own words, the decision to set up an IT association was made in light of "the fast advancements of the Information Technology around the world and lately in Albania". Dr. Laperi also participated at the June 21-24 World Congress on IT, where he also voiced the idea to several WITSA members. The Initiator Group is currently in search of suggestions, references, and materials that would help facilitate the establishment of an effective organizational structure. For more information, please contact the Coordinator of the initiator group, Dr. Robert Laperi, at besnik@tips.tirana.al.

AMERICAS

26. ITAA Hosts Electronic Commerce Briefing at World Trade Organization

On December 8-9, ITAA co-hosted a briefing on electronic commerce to foreign delegations to the World Trade Organization (WTO) in Geneva. The briefing was called at the request of the U.S. Trade Representative's Office, who had asked U.S. industry to provide WTO members with a better understanding of electronic commerce technologies.

ITAA took the lead role in a session that addressed the liberalization of telecommunications infrastructure as the key element in facilitating the global growth of electronic commerce. The panelists included W. Kenneth Lindhorst, Vice President of International Public Affairs at AT&T and Ralph Simpson, Director of Professional Services, Cisco U.K. Other companies who participated in the event are: EDS, Bank of America, AOL, Hewlett Packard, NCR, and IBM.

The briefing was co-hosted with the Coalition of Service Industries (CSI) and the Information Technology Industry Council (ITI). The briefings were well received by the over 100 delegates from over 50 countries in attendance, including Ambassador Rita Hayes, the Permanent U.S. Representative to the WTO.

The WTO announced its work program on electronic commerce earlier this year and will provide recommendations to ministers for action in December 1999. E-commerce will also be affected by the next round of international trade negotiations, which will focus on trade in services and is slated to begin in 2000. For more information about the briefing, please contact Sheila O'Neill at soneill@itaa.org.

27. US Government Approves New ICANN Bylaws

On November 25, 1999, the United States government approved a final revision of the draft bylaws from the Internet Corporation for Assigned Names and Numbers (ICANN), allowing ICANN to design, develop and test mechanisms and procedures that need to be in place for transitioning the DNS (Domain Name System) management tasks to the private sector. In attempting to establish more transparent structures, the final edits to the bylaws included requirements that:

• open public meetings be held in conjunction with each regular ICANN Board of Directors meeting;
• all of the Board's votes be roll-call votes;
• extensive minutes be published within 21 days of each meeting; and
• a committee be formed to establish "a mechanism for the reconsideration of decision by independent third parties in cases where it is thought that ICANN or its staff has not followed its own bylaws or rules of procedure".

While each of the three supporting organizations (the Domain Name Supporting Organization, the Address Supporting Organization, and the Protocol Supporting Organization) will still be allowed three appointees each to the 19-member permanent Board of Directors, any policies proposed by a supporting organization must pass by a margin that excludes the votes of the Board members representing that group.

With respect to membership implementation, ICANN will look to a voluntary Membership Advisory Committee to develop proposals for public review and consideration. On December 17, ICANN appointed 13 volunteer members to the Committee in a move designed to make running the Internet more open to the public. The Committee will consist of ICANN directors and others, and will report directly to the ICANN Board. ICANN interim Chair Esther Dyson said the new Committee members will be "the voice of the public", responsible for the future election of at-large directors. The committee's work will begin immediately; it is scheduled to report on its progress at the next ICANN meeting, planned for Singapore on March 2-4. For more information on the composition of the new Committee, please go to the press release at http://www.icann.org/icann-pr17dec98.html.

28. US Industry Issues Letter Against Stricter Export Control Laws

On December 18, ITAA and other US industry associations co-signed a letter to US Congressman Christopher Cox, who is chairing a special committee on export controls. The letter was written in the anticipation of the forthcoming Cox Report, which reliable sources have indicated, will likely recommend a much broader reach of export controls and the possible transfer of the licensing function of dual-use exports from the Commerce Department's Bureau of Export Administration to the Department of State, or some other strategic trade agency. ITAA believes that industry's interests are best served in the Commerce Department, while other departments or agencies may be more likely to enforce stricter export regulations, unfairly or unreasonably impeding the ability of companies to export.

In the US, export controls has been a very prominent issue in the press over the past several weeks, and is likely to continue to be covered widely in the near future. In the letter to Congressman Cox, ITAA stressed that, since the late 1980s, the US Defense Department has become increasingly reliant on commercial off-the-shelf high-tech products for incorporation into weapon systems and other national security purposes. ITAA emphasized that a strong domestic technology sector is essential to the smooth function of the national Defense infrastructure, and that an integral factor in maintaining a strong domestic technology sector is the ability to export products without the needless and unnecessary burdens especially when such burdens also do not enhance the national security.

Other associations that signed the letter include the American Electronics Association (AEA), the Electronic Industries Alliance, the Electronic Messaging Association, the Multimedia Telecommunications Association, Semiconductor Equipment and Materials International, the Semiconductor Industry Association, and the Telecommunications Industry Association. For more information on this issue, please contact Bill Archey, AEA President, at Bill_Archey@aeanet.org.

29. US Relaxes Export Restrictions on Encryption Products

As Announced by Vice President Gore in September, the US government on December 31 relaxed export restrictions on US encryption products. Previously, no export of encryption technology stronger that 40-bit was permitted. With the new rules, 56-bit products may be sold abroad, while even more powerful products can be sold in 46 countries to some specialized industries, such as insurance , health and medical organizations, and restrictions on sales to US subsidiaries overseas will be eliminated. Previously, companies had to apply for licenses for sales of powerful encryption products to businesses worldwide in key sectors after a one-time review by the Commerce Department.

US industry has indicated that the new rules still are too restrictive to ensure adequate privacy protection, needed to boost electronic commerce. Earlier in December, two industry groups - the Internet Architecture Board and the Internet Engineering Steering Group - estimated that after an initial purchase of equipment, hackers could break a 64-bit encrypted message in less than one day for roughly US $2,500 per message.

ASIA

30. Australian Government Coordinating Internet Bandwidth Study

The WITSA Secretariat has learned that Australia's Department of Communications, Information Technology and the Arts will be conducting an inquiry into the issues associated with bandwidth availability and pricing within Australia and to-and-from Australia. The report is to be concluded before 1 October 1999. You may be familiar with the developing Internet bandwidth study by APEC's Telecommunications Working Group (TEL). No doubt the information in the final report of this Australian inquiry will be collected as data for the TEL study.

Submissions to the Department for consideration as a part of its inquiry are encouraged. Further details can be obtained from the web site: http://www.dcita.gov.au/cgi-bin/graphics.pl?path+3423.

31. India to Reform Telecom Policy; ISP Market Opened

As the government of India takes new steps to reform its telecommunications policy, the new Communications Minister Jagmohan announced in late December 1998, that a new framework would emerge in as soon as February. This follows a report from the Prime Minister's advisory council on infrastructure, which has recommended a development of a new integrated policy framework for the telecom sector combining all services, free and unrestricted entry in all services, evolution of a new spectrum policy for all wireless applications, modification of the license regime from a flat fee to service tax-based approach with special care to ensure level playing field, treatment of the license fee already paid as an advance against future dues, and the evolution of uniformed interconnect guidelines.