Communications-Related Headlines for May 7, 2002

INTERNET
EU To Tax Sales On Internet
Survey: Opt-Out Is A Cop-Out
Chinese Authorities Shut Down 200 Internet Bars
Net Ban Sparks Protests in Bahrain
U.S. Still 3rd In Int'l E-gov Rankings

INTELLECTUAL PROPERTY
Music Industry Is Online, But There Aren't Many Listeners

DIGITAL DIVIDE
Zimbabwe Bridges Digital Divide

INTERNET

EU TO TAX SALES ON INTERNET
European Union ministers plan to approve a controversial tax today
requiring Internet companies to pay taxes on EU-based sales of digitally
downloadable goods. Under the current system, European e-commerce
companies must pay a sales tax on every Internet-based sale.
Non-European countries are not levied the same tax, causing complaints
from European businesses. The new system would require non-EU Internet
companies to register in one of the 15 EU countries. The country of
registration would collect sales taxes from the seller and then
distribute taxes to the buyer's country. Mark Nebergall, a Washington
lobbyist, said the rule contains a"an element of discrimination" because
non-EU companies will pay taxes based on where the buyer lives, but EU
companies will pay based on where the seller is based. The legislation
exempts business-to-business transactions, which account for 90 percent
of Europe's e-commerce market. The EU's decision is expected to spark a
trade dispute with the United States.
[SOURCE: Globetechnology; AUTHORS: Paul Hofheinz and Glenn R. Simpson]
(http://www.globetechnology.com/servlet/GAMArticleHTMLTemplate?tf=globe
technology/TGAM/NewsFullStory.html&cf=globetechnology/tech-config-neutra
l&slug=WJSIXX&date=20020507)

SURVEY: OPT-OUT IS A COP-OUT
Public feedback on the Financial Modernization Act of 1999 has revealed
many grievances concerning the way the law has been implemented. The
law allows banks, securities firms and insurance companies to share data
with each other, and customers must opt-out if they wish to keep their
information private. Many of the respondents to the survey felt that the
opt-out notices are hidden or look like junk mail, the language is
confusing and sales tactics can be invasive. A group of 37 state
attorneys went on record as saying that "current law does not adequately
protect consumers' privacy". The U.S. Treasury has gathered about 50
responses to the survey and Susan Hart, a financial economist in the
department said "there's quite a bit of awareness that greater clarity
is necessary for the consumer." It will be up to the financial services
firms and the regulators to respond to the concerns.
[SOURCE: Wired News. AUTHOR: Joanna Glasner]
(http://www.wired.com/news/privacy/0,1848,52328,00.html)

CHINESE AUTHORITITES SHUT DOWN 200 INTERNET BARS
The number of online users in China has risen from 4 million three years
ago to about 30 million today. While the Chinese government does want to
encourage use of the Internet as a commercial medium, they are
continuing to take steps to control what people can access on the
Internet. Shanghai police shut down around 200 Internet bars that had
not installed software to block restricted Web sites. In this latest
sweep the police have also confiscated 965 computers. Last year about
17,000 Internet bars were closed down for not complying with Internet
filtering rules.
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/life/cyber/tech/2002/05/06/china-net-crackdown.
htm)

NET BAN SPARKS PROTESTS IN BAHRAIN
A small group of protesters gathered outside the offices of Bahrain's
sole Internet provider, demanding an end to blocks placed on websites
deemed objectionable by the authorities. The protesters said the
restrictions went against the democratic reforms launched by Sheikh
Hamad bin Isa al-Khalifa, Bahrain's ruler. Ali Abdelimam, a protestor
who runs one of the blocked websites said that "The information minister
is responsible and we want him to resign for his inability to cope with
the democratic era in Bahrain." On the flip side, the information
minister, Nabeel Yacoub al-Hamer, said that only sites found insulting
to citizens were being blocked. He said he was prepared to authorize any
site willing to play by the "rules of dialogue". Rifts between Bahrain's
Sunni Muslim ruling family and the Shia Muslim majority have driven the
democratic reforms. The ban, imposed last month against sites that
"create tension between people and provoke resentful sectarianism," was
likely in an effort to minimize further rifts.
[SOURCE: BBC News]
(http://news.bbc.co.uk/hi/english/world/middle_east/newsid_1968000/1968
446.stm)

U.S. STILL 3RD IN INTERNATIONAL E-GOV RATINGS
According to Accenture LLP's third annual global ranking of e-government
initiatives, the top three nations remain unchanged. Canada remains in
the forefront for the second year in a row, followed by Singapore and
the United States. The study reviewed 23 countries' eGovernment services
in the areas of defense, education, human services, justice and public
safety, postal services, procurement, regulation, revenue and
transportation. Maturity of the services and sites were rated at three
levels: informational, interactive and transactional. Among the
findings, the report showed that the online services gap between
countries categorized as Innovative Leaders (Canada, Singapore and the
United States) and those that are Visionary Challengers, the second tier
of ranked countries, is narrowing. Several new trends are highlighted
which suggest how governments could better deliver e-government to
businesses and citizens.Vivienne Jupp managing partner for Accenture's
Global eGovernment Services said that "One of the most serious
challenges governments now face in realizing their eGovernment visions
is building electronic bridges between government tiers - for example,
not only between agencies at the federal level but also with their
counterparts at the regional, state or provincial and local levels."
[SOURCE: Newsbytes]
(http://www.newsbytes.com/news/02/176396.html)

INTELLECTUAL PROPERTY

MUSIC INDUSTRY IS FINALLY ONLINE, BUT THERE AREN'T MANY LISTENERS
In an effort to stem digital piracy of music, AOL Time Warner, EMI Group
PLC, Bertelsmann and Real Networks opened up MusicNet as a legal
alternative to free music-sharing Web sites, such as Napster.
Unfortunately, the Web site has attracted only 40,000 subscribers since
December and MusicNet Chief Executive Alan McGlade has stated, "The
current version of the service is not viable." Free Web sites continue
to attract about 92% of the Americans who go online to get their music.
Some of the hurdles MusicNet will need to overcome include allowing
consumers to keep downloaded songs permanently, and transfer songs to
portable devices. There are large gaps in the MusicNet music library
because of tensions with Sony Corp. and Vivendi Universal SA who have
built their own online venture, pressplay. The large record labels also
face ongoing antitrust investigations of their online ventures by the
Department of Justice. Despite these issues, the backers of MusicNet
remained optimistic with incoming AOL Time Warner CEO Richard Parsons
stating," ...we are going to go back, and we will come out with a 2.0
product which will be more consumer friendly, easy-to-use...This is a
business of trial and error."
[SOURCE: The Wall Street Journal, AUTHOR: Anna Wilde Matthews, Martin
Peers and Nick Wingfield]
(http://online.wsj.com/article/0,,SB1020718334251265480,00.html?mod=toda
ys%5Fus%5Fpageone%5Fhs)

DIGITAL DIVIDE

ZIMBABWE BRIDGES DIGITAL DIVIDE
Telcommunications industry experts estimate that telephone penetration
in Zimbabwe rose from 1.6 per 100 people to between 2.5 and three lines
per 100 people during the 1990s. A driving factor in this rise is the
increase in commercial activity. "Since independence in 1980, the
(majority) black population has been taking part more in commercial
activity in this country and this has increased telephone usage," says
Moncris Consultancy's managing director Christopher Mutsvangwa. But the
primary telecoms boom in Zimbabwe comes from mobile phone services. The
three mobile phone networks are said to have a far larger subscriber
base than the country's fixed phone network. Aside from fulfilling the
demand for voice services, mobile networks have also (to a limited
extent) allowed Zimbabweans access to the Internet. Despite the decade
of boom, high infrastructure costs and regulation constraints have
concentrated both Internet and phone services in urban and higher income
areas. Recent telecoms restructurings and the creation of a regulatory
authority are expected to increase private investment in Zimbabwe's
communications infrastructures.
[SOURCE: Financial Gaaette; Nqobile Nyathi]
(http://www.fingaz.co.zw/fingaz/2002/May/May3/1234.shtml)

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