David A. Olive Public Policy Chairman, World Information Technology and Services Alliance

1. Chairman’s Public Policy Report 2002 WITSA Public Policy Working Group Adelaide, Australia February 26, 2002 David A. Olive Public Policy Chairman, World Information Technology and Services Alliance

2. WITSA Core Policy Objectives • increasing competition through open markets and regulatory reform • safeguarding the viability and continued growth of the Internet and electronic commerce • protecting intellectual property • encouraging cross-industry and government cooperation to enhance information security • bridging the education and skills gap and • reducing tariff and non-tariff trade barriers to IT goods and services

3. Facilitating the Digital Economy • Industry leadership • Consistent legal and policy environment • Private sector participation and involvement in policymaking • Technical standards (voluntary, internationally coordinated and compatible) • Fair and equitable tax treatment • Telecommunications competition & liberalization • Open and competitive market Continued

4. Facilitating the Digital Economy (Continued) • Information Security • Effective intellectual property protection • Consumer protection (choice, individual empowerment, industry-led solutions) • Self-regulation • Building trust (education, technological innovations, dispute resolution mechanisms, private sector self-regulation) • Cultural issues (promoting cultural identity, not regulating content)

5. Public Policy Value Proposition • Advocating international policies that advance the IT industry’s growth and development • Strengthening WITSA’s national IT industry associations’ own policy agenda • Promoting a competition & a level playing field • Voicing Concerns of International IT Community in Multilateral Organizations (WTO, OECD, G-8 & Int’l Fora)

6. Public Policy Value Increases with Market Growth & Technology Convergence • Over 522 million users online world-wide. • ICT Spending Continues to Grow from US$1.3 trillion in 1993 to over US$2.4 trillion (Digital Planet2002). • Increases in E-commerce Market Share (Especially B2B): Internet Purchases in 2001 Amounted to over US$600 billion -- US$ 516 Billion (B2B); and US$117 billion (B2C) (Digital Planet2002). • Growth of IT Increases Threat of Regulation. • Convergence of technologies blurs lines between modes of commerce, increasing need for proactive industry policy coordination and involvement

7. Objectives of 2002 Report • Assessment & Analysis of WITSA Policy Platform to Optimize Use of Existing Work (reference paper for WITSA members) • Publish on Web site as educational tool • Assessment Needed to Better Identify Future Policy Projects

8. Information Security • Statement on Information Security (February 2002) • Global Infosec Summit • Statement on COE Draft Cyber-Crime Convention • Global Information Security Survey (WITSA - 2/2000) • Global Security Law Project (w/ McConnell International) • Information Security Framework Statement (June 1999)

9. Priorities for a New Round of Multilateral Trade Negotiations • Information Technology Services • Implementation and Expansion of Existing Commitments: • - Agreement on Basic Telecommunications • -   TRIPs Agreement • - Information Technology Agreement (ITA) • - Transparency Agreement • - Movement of Key Personnel

10. E-Government • Statement on the Use of ICT to Enable E-Government (February 2002) • WITSA intends to focus attention on the complex issues surrounding the implementation of e-government • Suggest that the public and private sectors work together to deliver appropriate information and communications technology solutions needed to change the way government is organized • Create new value in the government’s relationship with its citizens

11. Taxation and Tariffs in E-Commerce Principles • Tax & tariff policy instrumental in determining success of global e-commerce • No discriminatory government taxes, charges or fees on e-commerce transactions • Neutral tax treatment for digital transactions and paper-based transactions • Need for extensive industry and government dialogue • Consistency with established, internationally accepted practices • Administered in the least burdensome manner

12. Seizing Digital Opportunities • ”Digital Divide” – The gap between nations that can and cannot afford technology investments • Top Ten Economies Represent 80% of Global ICT Market • Bottom Ten Economies Represent Less than 1% • 23 of 42 Emerging Countries Unprepared for Digital Economy (75% of World Population (E-Readiness Report, Aug. 2000) • Global E-Society at Turning Point: - Without the rapid participation of increasing numbers of people around the world, the global economy will stagnate & the potential of the networked world will be unrealized • ”Current economic pessimism notwithstanding, the Internet and information technology will continue to pwer world growth.” (November 2001 – UNCTAD Report)

13. Internet Governance • Strong Private sector leadership • Effective arbitration against “bad faith” domain name registrations • Effective Competition among Registrars • Broad Participation in Policy Formulation and Procedures • Transparency • Effective Review Process • Membership Mechanisms, Accountability and Representation • Introduction of New gTLDs • Enhancing the security and operation of the root-server system • Sound Financial Footing

14. Future WITSA Policy Agenda • Information Security • Update WITSA Statement • WTO Trade Negotiations • Issue WITSA Statement • Visit to the WTO in 2002 • E-Government • Issue Statement of Principles • Broadband Initiative • Issue WITSA Statement

15. Future WITSA Policy Agenda • E-Commerce • TAXATION - OECD Process • Promoting Digital Opportunities • Conduct Survey • WITSA/World Bank Study in Africa • Dotforce Projects/UN Task Force – Use of ICT • Internet Development & Governance • Update on ICANN Activities • IT Workforce Inventory • Update WITSA Report • Final Report at ITAA Workforce Convocation May 2002

16. All WITSA statements and reports available at the WITSA Site: http://www.witsa.org/papers/

17. Chairman’s Public Policy Report 2002 WITSA Public Policy Working Group Adelaide, Australia February 26, 2002 David A. Olive Public Policy Chairman, World Information Technology and Services Alliance