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Electronic Commerce by Dr. K.K. Bajaj Deputy Director General National Informatics Centre Electronic Commerce Using electronic methods and procedures to conduct all forms of business activity. EC Volume Estimates US$ 600 billion in the year 2000 (about 10% of all trade)
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Electronic Commerce by Dr. K.K. Bajaj Deputy Director General National Informatics Centre
Electronic Commerce Using electronic methods and procedures to conduct all forms of business activity.
EC Volume Estimates • US$ 600 billion in the year 2000 (about 10% of all trade) • One third ($ 200 billion) of business conducted electronically will be on the Internet
Growth in ICT Sector By the year 2001 • 40% of US population will be online • only 13% in Europe Estimated that The EC Market will be three times more significant to the economy in the US than in Europe
EC opportunities as we see them • A pool of talented software professionals and a mature IT industry • Government is taking the lead in establishing EC Community Systems • Stock Exchanges have been EC-enabled • Banks are in the process of acquiring EC capability • The private sector is taking the lead • The government has embarked upon a major program for electronic governance
Employment opportunities created by EC and the Internet • US President’s Council of Economic Advisers estimated 500,000 new jobs in the economy by 1996 • France : Breton Report estimated the French market for teleservices to be worth 90 - 190 billion Francs by the year 2005 • Japan’s Ministry of Posts and Telecommunication estimated 2.4 million new jobs by the year 2010 and 56 trillion yens in revenue for new applications • India : National IT Task Force estimated that 3 million software professionals required by the year 2008 to achieve software exports of US $ 50 billion • Content creation • 2.6 million employed in the US • 1.8 million employed in Europe
Net Connectivity • 300 million PCs today • 1 billion PCs by the year 2005 connected to the Internet
Global EC Framework : Issues of concern • The Internet Corporation for Assigned Names and Numbers (ICANN) was incorporated in USA in November, 1998 as a non-profit company to take over responsibility for Internet managment under direct supervision of the US government • Governments have no participation in the control of the structure • The security of electronic transactions is of vital importance to all • The standards are established by the selected few countries at a pace which means rapid obsolescence, and hence cost for the developing countries
Present indicators of IT penetration • In India • PC penetration is 1.53 per 1000 • Telephone penetration is 1.52 per 100 • In developed countries • PC penetration is 200 per 1000 • Telephone penetration is 55 per 100
Number of Internet connections • Worldwide population of Internet users is 147 million • US has 73 million users • Europe has 34 million users • Japan has 14 million of users • Asia, excluding Japan has some 11 million Internet users • India, 0.5 million (China 1 million)
Number of Internet Hosts • Worldwide 43.23 million • gTLDs 28.27 million (Largely in the US) • ccTLDs 12 million (US, Canada, Europe, Japan, Australia) • Asia less than 1% • India 13,000
IT Penetration Target • Telephone 7 per 100 by 2005 15 per 100 by 2010 • Telephone in rural areas • Increase from the current 0.4 to 4 by 2010 • PC 14 per 1000 by 2001 • PC to Telephone Ratio From current 1:10 To 1:8 by the year 2000 1:6 by the year 2002 • Advanced countries Ratio is 1:3 to 1:5 • Internet connections • 2 million by the year 2000 • 8 million by the year 2002
Barriers to EC • Lack of Payment Facilities • Partners' Technology • Security • Infrastructure Cost • Availability of skills • Inadequate volumes • Availability of Technology • Mistrust among partners
IT Policy Regime of GOI • Internet connectivity on demand • Private ISPs • Private Gateways for International Connectivity • Telecom Sector Deregulation • Corporatisation of DOT • Separation of Policy Wing from Services • Strong Regulatory Authority • Legal Framework for EC • Electronic Governance through Citizen-IT Interface • Focus on Content creation in Indian languages • HRD for IT Penetration