Electronic Commerce Developing the Infrastructure and Services Charles Mok HKNet Co Ltd [email_address]

Electronic Commerce Not just about Internet shopping The case of Singapore Situation in Hong Kong The road ahead and some conclusions

Not just about Internet shopping

The case of Singapore

Situation in Hong Kong

The road ahead and some conclusions

Not just Internet shopping Retail commerce activities Content and services Trading and transactions Business to business commerce Government to public transactions Micropayments Smart cards, cash cards Devices: TV, mobile, PDA, etc.

Retail commerce activities

Content and services

Trading and transactions

Business to business commerce

Government to public transactions

Micropayments

Smart cards, cash cards

Devices: TV, mobile, PDA, etc.

Development in Singapore Electronic Commerce Hotbed -- Set up in August 1996 Aim -- To jumpstart pervasive use of e-commerce and to position Singapore as an EC hub EC Policy Committee set up in January 1997 EC Policy Recommendation -- Public consultation: April 1998 (http://www.ec.gov.sg/policy.html)

Electronic Commerce Hotbed -- Set up in August 1996

Aim -- To jumpstart pervasive use of e-commerce and to position Singapore as an EC hub

EC Policy Committee set up in January 1997

EC Policy Recommendation -- Public consultation: April 1998 (http://www.ec.gov.sg/policy.html)

Singapore: Guiding Principles Private sector should take the lead Government should: Put in place a legal framework to provide certainty and predictability Secure and safe environment Expedite EC growth and development with industry Pursue innovative, liberal and transparent policy Consistency with international regimes and interoperability

Private sector should take the lead

Government should:

Put in place a legal framework to provide certainty and predictability

Secure and safe environment

Expedite EC growth and development with industry

Pursue innovative, liberal and transparent policy

Consistency with international regimes and interoperability

Singapore: Recommendations Include these areas: Legal, regulatory and enforcement Infrastructure services Programs to jumpstart, promote and globalize EC

Include these areas:

Legal, regulatory and enforcement

Infrastructure services

Programs to jumpstart, promote and globalize EC

Singapore: Legislations Electronic Transactions Bill, 1998: Certificate authentication Electronic signatures Retention and integrity of electronic records Legal liability of service providers Electronic contracts Electronic filing by Government Enforcement and investigative powers

Electronic Transactions Bill, 1998:

Certificate authentication

Electronic signatures

Retention and integrity of electronic records

Legal liability of service providers

Electronic contracts

Electronic filing by Government

Enforcement and investigative powers

Development in Hong Kong Merchant, ISP, vendor initiated Policy Address -- “Connecting to the Information Age”: No substantive initiative IIAC (Formed March 1997) -- Lack in authority, substance Government has not adopted electronic filing, except the proprietary, monopolistic Tradelink Yet, the number of users keep growing….

Merchant, ISP, vendor initiated

Policy Address -- “Connecting to the Information Age”: No substantive initiative

IIAC (Formed March 1997) -- Lack in authority, substance

Government has not adopted electronic filing, except the proprietary, monopolistic Tradelink

Yet, the number of users keep growing….

Statistics of Customers No. of dialup accounts: 417,782 No. of dedicated access accounts: 2,048 No. of email addresses through corporate leased lines: 67,914 ( OFTA statistics, 12/97)

No. of dialup accounts: 417,782

No. of dedicated access accounts: 2,048

No. of email addresses through corporate leased lines: 67,914 ( OFTA statistics, 12/97)

Internet Traffic Volume Source: Office of Telecommunications Authority, Hong Kong, 1998

Source: Office of Telecommunications Authority, Hong Kong, 1998

Users lack confidence 45% of Internet users who have not transacted on the net: “It is insecure.”* Over 50% of users who have transacted on the net: “Information have been compromised.”* A matter of education, legal safeguard and official support. *Democratic Party survey, April, 1998.

45% of Internet users who have not transacted on the net: “It is insecure.”*

Over 50% of users who have transacted on the net: “Information have been compromised.”*

A matter of education, legal safeguard and official support. *Democratic Party survey, April, 1998.

Road ahead for Hong Kong Information Technology and Broadcasting Bureau Chief Executive’s Commission on Innovation and Technology Still too focused on manufacturing? What is it that HKPC, HKITC were not supposed it be? Need to focus on government initiatives and deliverables

Information Technology and Broadcasting Bureau

Chief Executive’s Commission on Innovation and Technology

Still too focused on manufacturing?

What is it that HKPC, HKITC were not supposed it be?

Need to focus on government initiatives and deliverables

In the meantime…. The private sector is not waiting despite lack of government support and fostering of an environment But this does not favor small and medium businesses Internet companies should: Use the Hong Kong advantages Look beyond Hong Kong and beyond just the “Internet”

The private sector is not waiting despite lack of government support and fostering of an environment

But this does not favor small and medium businesses

Internet companies should:

Use the Hong Kong advantages

Look beyond Hong Kong and beyond just the “Internet”

A New Horizon International Internet partners Advertising, content, technology telecommunications and other service providers, search engines, etc. More than just the Internet, or even “VOD”: Mobile, PDA, NC, Web TV, etc.

International Internet partners

Advertising, content, technology telecommunications and other service providers, search engines, etc.

More than just the Internet, or even “VOD”: Mobile, PDA, NC, Web TV, etc.

Beyond Hong Kong Cooperation with regional partners Asia Internet Service Alliance A consortium of ISPs to harness international strategic partnerships (http://www.aisa.org) Dream Train Internet/Mitsubishi FICNet/First Int’l Computer HKNet OzEmail Shinbiro/Hyundai Info. Tech.

Cooperation with regional partners

Asia Internet Service Alliance

A consortium of ISPs to harness international strategic partnerships (http://www.aisa.org)

Dream Train Internet/Mitsubishi

FICNet/First Int’l Computer

HKNet

OzEmail

Shinbiro/Hyundai Info. Tech.

Conclusions Government developing the infrastructure and industry developing the services Hong Kong is behind and must catch up. Innovations must be enhanced with support for SME. Partnership to expand boundaries in geography and technology.

Government developing the infrastructure and industry developing the services

Hong Kong is behind and must catch up.

Innovations must be enhanced with support for SME.

Partnership to expand boundaries in geography and technology.