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Electronic commerce in Asia: 

Electronic commerce in Asia Laura Männistö mannisto@itu.int International Telecommunication Union Asia and the Future of the World Economic System London, 18 March 1999 Note: The views expressed are those of the author and may not necessarily reflect the opinion of the ITU or its Members.

Agenda: 

Agenda Electronic commerce in Asia Why is it important? Major challenges Examples

What is e-commerce?: 

What is e-commerce? “Electronic commerce may be simply defined as the production, advertising, sale and distribution of products via telecommunication networks” (WTO, 1998) Categories Business-to-business Business-to-consumer Business-to-government

Some projected e-commerce revenues in emerging Asia By year 2001/02 (In US$ millions): 

Some projected e-commerce revenues in emerging Asia By year 2001/02 (In US$ millions) $450 $800 $1'000 $1'870 $2'000 < $200 < $200 Philippines Indonesia India Singapore Malaysia China Korea (Rep.) Source: IDC, NASSCOM.

E-commerce initiatives in Asia: 

E-commerce initiatives in Asia China - Golden Projects Malaysia - Multimedia Super Corridor (MSC), Digital Signatures Act 1997 South Korea - E-commerce system using post offices Thailand - E-commerce pilot project Singapore - Electronic Transactions Act 1998 and Electronic Regulations 1999 Philippines - National Information Technology Plan ‘97 Most of them want to become the Asian “hub” for e-commerce

Why is it important?: 

Why is it important? For firms Lowers transaction, production and distribution costs Facilitates market entry (especially for SMEs) Improves customer service Extends geographical reach Improves information access New sources of revenue

Why is it important?: 

Why is it important? Catalyst for economic growth increased competition lower prices, improved quality and innovative new products and services new trade opportunities investment growth

What are some of the major challenges to e-trade ?: 

What are some of the major challenges to e-trade ? Customs and taxation Privacy / data protection Security IPR / Copyrights / Trademarks / domain names Technical standards Telecom and IT Infrastructure Model law Content E-payments Trade logistics

Challenges: 

Challenges In the developed world the major concerns are related to privacy, taxation, etc. These are being dealt with by private sector initiatives, governments and int’l organizations (e.g. UNCITRAL, WTO, WIPO, OECD, etc.) In the developing world the primary concerns are related to telecom and IT infrastructrure pricing content awareness.

Obstacles to e-commerce in the USA and Europe: 

Obstacles to e-commerce in the USA and Europe 31% 24% 17% 9% 8% Privacy concerns Censorship Navigation difficulties Taxes Other Source: ITU 1999 “Challenges to the Network: Internet for Development”, <www.gvu.gatech.edu/user_surveys>.

Obstacles to e-commerce in a developing/emerging economy: 

Obstacles to e-commerce in a developing/emerging economy 29% 29% 19% 10% 10% Slow speed PSTN prices ISP prices Lack of content in own Lack of local content Source: ITU 1999 “Challenges to the Network: Internet for Development” language

Challenge: Unequal Access to Infrastructure Distribution of Internet hosts, January 1999: 

Challenge: Unequal Access to Infrastructure Distribution of Internet hosts, January 1999 Canada & US 64. 0% Europe 24. 3% LAC* 1.6% Africa 0.4% Developing Asia- Pacific 3.4% Other 5.4% Australia, Japan & New Zealand 6.3% Note: LAC = Latin America and the Caribbean Source: ITU 1999 “Challenges to the Network: Internet for Development”, Network Wizards, RIPE.

iDS Finance http://www.idatasystems.com/ : 

iDS Finance http://www.idatasystems.com/

Asia Travel http://www.asiatravel.com/: 

Asia Travel http://www.asiatravel.com/

Agenda: 

Agenda Electronic commerce in Asia Why is it important? Major challenges Examples

Slide16: 

International Telecommunication Union Challenges to the Network: INTERNET FOR DEVELOPMENT http://www.itu.int/ti