IHTC
International
High-Technologies
Consulting
E-mail:ihtc@att.net
GENERAL ASIA
INTERNET
12/16/99
Investors are pouring money into Asia's Internet start-ups,
pushing their valuations sky-high. But what will happen if the Internet
ardour cools? http://www.feer.com/9912_23/p44tech.html
11/6/99
Number of Internet Users in China should reach 6 Million
by end of 1999, Foreign Investors still Prohibited
http://www.technologypost.com/internet/DAILY/19991104104813109.asp?Section=Main
11/5/99
Large U.S. Technology Firms are setting up Large Internet
Services Facilities all across Asia
http://www.feer.com/9911_11/p46tech.html
11/4/99
Asia-Pacific Internet User Base to Grow 422% by 2005
With China Almost 40% of Users in Region
http://www.virtualpressoffice.com/cgi-vpo/vUser/subscriptionAccess.veos?code=ffb0e232cc2b5ecc443777dbf11d23b4701af98dbda7ff068d14fbacf3
TELECOM
12/7/99
Clarent Corporation Expands Presence in Asia Pacific
with Opening of Offices in Hong Kong and Singapore;
Clarent Also Adds New Country Manager for Taiwan
Clarent(R) Corporation (Nasdaq:CLRN), a worldwide leader
in providing carrier-grade, phone-to-phone Internet
Protocol (IP), announced today the opening of two additional
offices in Asia Pacific; the hiring of management teams in those new offices;
and the hiring of a country manager in Taiwan.
The new country offices will be in Hong Kong and Singapore.
These new offices will expand Clarent's existing presence in the Asia Pacific region. Clarent already has offices in Taipei, Tokyo, Seoul and Beijing. Clarent's localized offices provide sales, service and regional marketing in their respective countries.
Clarent's Hong Kong office is being headed by T. K. Leung.
Leung will start with Clarent on 14 December 1999. Prior to joining Clarent,
Leung worked for Hongkong Telecom for 10 years, where he was Manager of
International Business and Manager for International Switching Service.
Before joining Hongkong Telecom, Leung was a sales engineer with Hewlett
Packard. Leung received his undergraduate degree with Honors in
Electrical Engineering and also received his Master of
Business Administration, both from The City University of New York (CUNY).
The General Manager for Clarent Singapore is Thomas C.
K. Chu. Prior to joining Clarent, Chu was Deputy Country Manager for Global
One Communications in Singapore. Before Global One, Chu was Regional Sales
Director with Lucent Technologies. Chu holds a Masters of Science in Electronics
from the Queen's
University of Belfast, Northern Ireland, U.K. He will
be responsible for covering existing Asian countries for Clarent as well
as for covering the new markets of India, Pakistan, Sri Lanka and Bangladesh.
Clarent has also hired a country manager for Taiwan. This
new country manager is Kevin Chang, who came to Clarent from Ericsson Taiwan,
where he was Senior Manager and Department Manager, Enterprise Network.
Before Ericsson, Chang was a Sales Manager for Bay Networks in Taiwan,
and prior to that, was Account Manager and Sales Executive for Hewlett
Packard Taiwan. Chang holds a B.Sc. in Chemical Engineering from
National Taiwan University and also holds an MBA from
National Cheng-Chih University, Taiwan.
All three of these new country managers will report to Mahan Wu, Senior Vice President and General Manager, Clarent Asia Pacific.
Wu spoke of the new appointments: "Clarent is extremely pleased to be increasing its local presence in Hong Kong and Singapore. We are very fortunate to be bringing such experienced talent to these new offices and to our Taiwan headquarters. This increased presence and these appointments reflect Clarent's current success as well as promising growth potential for carrier and enterprise IP telephony business in each of these markets."
The addresses for the new Clarent offices in these countries
are as follows:
Clarent Hong Kong Limited Room 1407, 14/F China Merchants
Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong Tel:
+852-2587-8843 Fax: +852-2587-8880
Clarent Singapore Pte. Ltd. 67B Kim Yam Road Singapore
239367 Tel: +65-733-9119 Fax: +65-733-6116
Source: Press Release
11/12/99
Singapore Telecommunications and Japan's KDD Corporation
have decided to grow their Asian Operations together by investing
42.5 billion yen ($404.7 million) in each other. SingaporeTel
will get a 4.99% stake in the Japanese international carrier which in return
will buy a 1.43% stake in Singapore's former monopoly.Together the companies
will spend $350 million building a backbone that will support ATM, frame
relay, international leased circuit services and IP services. According
to CommunicationsWeek International, SingTel will bring its "Connect
Plus" corporate services to the venture, while KDD will incorporate its
Global Network brand of products for business customers.
The new company will be set up by next April, with annula targeted sales of between $350 - $400 Million within the next 5 years. The initial target martket will be South-East Asia, Korea and Japan. Partners in Europe and the USA may come into play.
Both companies are facing increased competition in their respective home markets. SingaporeTel lost its fixed line monopoly in April with the launch of StarHub, which has just been granted exclusive distribution rights in Singapore by NTT Worldwide Telecommunications.
KDD is concerned that AT&T has bought a 30% stake
in its rival, Japan Telecom, which will give the Concert (AT&T and
BT venture) a route in to the Japanese market.
10/21/99
A new generation of mobile phones in Asia with built-in
modems and the ability to connect to networks in the United States as well
as Europe. (FEER) http://www.feer.com/9910_28/p72tech.html
SOFTWARE
12/3/99
Asia thinks it has Y2K under control, but cross your
fingers just in case. Asia has gone a long way toward addressing
the millennium-bug problem, but there are some areas that remain worrying.
China, for instance, has been slow to make its utilities and banks Y2K
compliant, while there's a general lack of preparedness in Indonesia and
India. http://www.feer.com/9912_09/p43year2kb.html
Source: Charles Bickers, FEER
10/21/99
Can giving away free Software on the Internet in Asia
be a sustainable business? (FEER) http://www.feer.com/9910_14/p61tech.html
CHINA
INTERNET
11/26/99
Mediaring.Com Ties Up With China Firms
MediaRing.com Ltd, a provider of Internet voice communication
services, said on Friday it had entered into a partnership with China Netcom
Corp Ltd (CNC) and CE-INFOCOM Network Technology Company Ltd.
It said in a statement the three firms would cooperate to deploy MediaRing's web-based voice mail, personal computer (PC) to PC and PC to phone services or ValueFone, to China users.
The company said CNC, one of three licenced telecommunication
carriers in China, and CNT, engaged in
marketing of CNC products and services, would promote
its ValueFone service at 5,800 point of sales in China.
"The partnership will allow us to tap on their established infrastructure to develop our registered user base substantially in the growing China market," said Ng Ede Phang, chief executive officer of MediaRing.
Source: Reuters
11/24/99
New Tel And Xinhua Agree Internet Service
New Tel (Perth, Australia), telecoms company, and Xinhua
(China), official news agency, have signed an agreement for the launch
of an Internet portal and service provider in China. Under the agreement,
NewCo is the name of a new Internet company which would be formed by Xinhua
and which would include Chinese state Internet-related companies.
The new firm would then be sold to New Tel for 200 mil New Tel shares priced at ADlr2/share. The partnership would work together with state-owned Chinese companies, including Beijing Goldway Network Technology. New Tel has agreed to provide ADlr1 mil to Xinhua via a convertible note issue, and to raise a further ADlr20 mil to complete the deal.
Analysts in Australia have expressed doubts that the company will be able to raise the funds. The new Internet company aims to have 2 mil Chinese customers within 18 months of launch, according to Peter Malone, chief executive of New Tel. The Chinese Internet market is expected to be worth more than USDlr12 billion by 2002, according to Malone.
Source: RDSL
11/24/99
China.com goes on Spending Spree
Hong Kong-based Internet company China.com Corp said
on Wednesday it had acquired majority stake in three Internet-related firms
and formed a joint venture to develop proprietary computer technologies.
The company said in a statement Beijing Digital Ark, the joint venture with Jay Tian, one of China's Internet pioneer, would develop proprietary computer technologies in managing data and conducting electronic commerce.
China.com also said it had purchased a majority shareholding in three Internet-related firms in Hong Kong and Malaysia. They were iConcept.net, Information@ge Ltd and e-Asia Sdn. Bhd.
Both iConcept.net, a business-to-business Internet content developer, and Information@ge, a technology news provider, were Hong Kong-based, it said.
e-Asia is a Kuala Lumpur -based Internet advertising specialist, it added.
China.com gave no financial disclosure for the joint venture and new acquisitions.
"These four investments strengthen our ability to serve the Greater China market and the entire Asian region with industry-leading Internet solutions and to ensure that we are associated with world-class Internet technology," said Peter Hamilton, chief operating officer of China.com.
Source: Reuters
11/22/99
Chinese Governement Guarantees Inexpensive Access to
the Internet
The government will guarantee Internet access to the
1.3 billion inhabitants of China at half the rate of local telephone calls.
Deputy-director general of the Telecommunications Administration Bureau
at the Ministry of Information Industry (MII), Chang Xiaobing, earmarked
price as a key factor in Internet adoption in China.
The government is also backing a prominent role for application service providers providing Web hosted services based on the IP infrastructure in China. China is forecast to see 16 mil new mobile phone users and 5 mil new Internet users during 1999, according to the government. There are currently 30 million mobile phone users in China.
Source: RDSL
11/16/99
U.S. Internet and Telecom companies were some of
the biggest winners from a WTO agreement with China
http://210.173.162.123/cgi-bin/asabt_merc?www.mercurycenter.com/svtech/news/breaking/reuters/docs/1083317l.htm
11/15/99
Hutchison, Global Crossing in Joint Venture
http://210.173.162.123/cgi-bin/asabt_merc?www.mercurycenter.com/svtech/news/breaking/reuters/docs/1083792l.htm
11/15/99
Hong Kong Tycoon teams up with Global Crossing
http://210.173.162.123/cgi-bin/asabt_merc?www.mercurycenter.com/svtech/news/breaking/ap/docs/1083905l.htm
11/12/99
The Internet is subtly changing China and the Chinese
http://www.feer.com/9911_18/p54internet.html
11/6/99
Number of Internet Users in China should reach 6 Million
by end of 1999, Foreign Investors still Prohibited
http://www.technologypost.com/internet/DAILY/19991104104813109.asp?Section=Main
11/5/99
Chinese Government still disallowing Foreign Investment
in China's Internet Market
http://210.173.162.123/cgi-bin/asabt_merc?www.mercurycenter.com/svtech/news/breaking/ap/docs/1038159l.htm
TELECOM
11/22/99
China Netcom (CNC) (China), state-owned telecoms carrier,
is set to offer broadband services to the Chinese ex-pat community, comprising
50 mil people, in the US and Japan.
CNC will offer pre-paid voice-over-IP telephony services. No launch date has been given for the service. The service will be available via local resellers. On-demand content services will also be offered.
Source: RDSL
11/16/99
Telecom firms get green light for China trade
http://news.cnet.com/news/0-1004-200-1439353.html?tag=st.ne.1004.tgifa.1004-200-1439353
11/16/99
Parts of China's Telecom Industry Growth Slowing Slightly
(BEIJING) -- Some sectors of China's fast-growing telecom
industry have shown signs of slowing in the January-September period, according
to the nation's National Bureau of Statistics.
The output of program-controlled switchboards surged 17.7 percent year-on-year to 32.12 million lines between January and September, the bureau said.
However, production of optical communications equipment fell 35.6 percent on an annual basis to 11,295 units, and output of carrier communications equipment dropped 4.4 percent to 5,523 units.
China produced 21.25 million mobile phone handsets during the period, for an increase of 62.3 percent.
Production of computers during the nine-month period rose 259 percent to a total of 4,419 units, while that of personal computers soared 71.3 percent to 3.17 million.
Computer makers in China are growing rapidly, and recent surveys showed that more Chinese people are planning to buy their own personal computers.
Source: Xinhua News Agency
11/5/99
Venture Capitalists are flocking to China, especially
for the Telecom Business
http://www.nikkeibp.asiabiztech.com/wcs/frm/leaf?CID=onair/asabt/news/84210
SOFTWARE
12/7/99
China's Leading Hardware Manufacturers Bundling TurboLinux
TurboLinux, the high performance Linux company, today
announced Linux bundling agreements with GreatWall Computer Corporation,
TCL, and LangChao, three of China's leading hardware manufacturers.
And in a November Internet poll of China Linux users, TurboLinux Chinese was rated the "best Chinese distribution" by more than 46 percent of those surveyed, according to linux.softhouse.com.cn, a leading software retail web site in China.
"TurboLinux paved the way for Linux in Asia with our Open Source technology for double byte character support of Asian languages," said Cliff Miller, CEO of TurboLinux. "Our strong user support in China and our success in bundling TurboLinux with China's top original equipment manufacturers are a reflection of our pioneering success in this vast and emerging market."
GreatWall, TCL and LangChao did not release details on sales, but the companies described the unit volumes as running in the tens of thousands a month.
GreatWall is shipping TurboLinux bundled with its JUFENG 699 workstation systems.
"GreatWall decided to install TurboLinux on its PCs to offer customers more application choices," said Ma Li, general manager of marketing for GreatWall. "With the expanding PC market in China, JUFENG 699 and TurboLinux will push the growth of Linux."
Linux offers Chinese customers value for price, according to TCL. The company is shipping TurboLinux bundled with its TCL-PC desktop systems designed for home users.
"The most important issue in expanding PC sales in China is price," said Rong Qin, vice president of TCL. "We chose TurboLinux to offer our customers choice but also to make low-priced computers available to the average family with the benefits of Linux. Our cooperation with TurboLinux will greatly promote the progress of Linux in China."
LangChao is shipping TurboLinux bundled with its NetPoint and NetLine series of corporate servers.
"We selected TurboLinux for its local service and local support in China," said Wang EngDong, general manager of LangChao's server division. "We wanted TurboLinux as our partner to provide customers an OS choice and a robust server platform."
Complete results of the Linux Internet poll conducted
in China by linux softhouse can be found, in Chinese, at
http://linux.softhouse.com.cn.
About TurboLinux
TurboLinux, formerly Pacific HiTech, is backed by investment from Intel Corp., August Capital and Broadview International LLC. Founded in 1992, it has emerged as the world's fastest growing Linux company. Since 1998, TurboLinux has shipped more than three million units of Linux globally and is the Pacific Rim's leading vendor with a market share of more than 50 percent.
TurboLinux offers the only version of Linux designed for the "double byte" character sets of the Japanese and Chinese alphabet as well as European languages.
The company's high-performance consumer and business Linux products are designed for Intel workstation and server platforms and supported globally by IBM and Hewlett-Packard. Headquartered in San Francisco, TurboLinux has offices in Tokyo, Beijing and Sydney.
Source: Press Release
JAPAN
INTERNET
10/27/99
Listing of ISPs in Japan (A through I) http://www.cjmag.co.jp/resources/providers/isptbla.html
Listing of ISPs in Japan (J through Z) http://www.cjmag.co.jp/resources/providers/isptbli.html
11.1.99
Nearly 16 Million Japanese age 16 or older use the Internet.
About 15.9 million people age 16 or older use online services in Japan,
which is up 14 percent from a year earlier.
Source: Internet Audience Rating Center of Nikkei
Business Publications Inc.
10.29.99
Nippon Telegraph and Telephone Corp. (NTT) is seeking
an Equity Partner for its Internet Global Expansion
http://www.totaltele.com/secure/view.asp?ArticleID=24369&pub=CWI
TELECOM
Japanese Ministry of Telecommunications http://www.mpt.go.jp/index-e.html
11/16/99
REGIONAL TELECOM CARRIERS TO ESTABLISH IP SERVICE FIRM
Ten of Japan's regional new common carriers (NCCs) plan
to jointly establish a company to launch various communications services
in the Spring of 2000.
Those NCCs are funded by regional electric power companies.
The new company will build nationwide coverage by offering services that integrate each investing company's network. Those networks were formerly used only in respective regions. Initially, the services are likely to be provided in the Kanto, Kansai and Chubu regions (East/West Japan and central Japan), where demand is high.
The actual services are yet to be decided upon. However, the new company is likely to provide various IP services after configuring an IP network, including IP-based leased line services as well as virtual private network (VPN) services.
Also yet to be made is the decision on whether to configure the new company as a Type I communications carrier (common carrier) or a Type II carrier (reseller) that leases lines from regional NCCs.
In November, Tokyo Telecommunications Network Co., Inc. (TTNet), a regional NCC that covers the Kanto area; Osaka Media Port Corp. in Kansai; and Chubu Telecommunications Co., Inc. in Chubu will jointly form a new company.
Next, the other seven companies are expected to invest in the new company by the spring of 2000.
In February 1999, the ten regional NCCs formed "Power Nets Japan," a group focusing on business strategies. This decision-making group is the origin of the new entity that is to be built.
Source: Nikkei Communications
11.1.99
NTT President Says Telephone Services Won't be Free
http://www.nikkeibp.asiabiztech.com/wcs/frm/leaf?CID=onair/asabt/moren/84795
SOFTWARE
11.1.99
30% of Japanese Industry will use LINUX
http://www.nikkeibp.asiabiztech.com/wcs/frm/leaf?CID=onair/asabt/resch/84957
INDIA
TELECOM
11/29/99
India will miss the January 1, 2000 deadline set for
opening up its domestic long-distance telecom services to competition,
a senior government official said on Monday.
"There will be some delay. As soon as we get the inputs from TRAI (Telecom Regulatory Authority of India), we will finalise the licence details," Dhanendra Kumar, additional secretary in the government's department of telecommunications (DoT), told reporters at a business seminar. He did not say how long the delay would be.
In its New Telecom Policy, unveiled in March, the government said it would open up the domestic long-distance telecoms business to competition. The sector, worth about 70 billion rupees ($1.6 billion) in annual revenues, is a monopoly of the DoT.
The government has yet to finalise the model for deregulation of the business. The TRAI is considering several models - a national model, under which several licences are issued; a regional model, where the business is split up into regions; and one in which state-level telecom firms carry the long-distance traffic.
State-run Videsh Sanchar Nigam Ltd , Mahanagar Telephone Nigam Ltd , the Indian Railways, Power Grid Corporation of India, and private entrants like BPL Telecom and Bharti Telecom have said they want to invest in the sector.
Source: Reuters
INDONESIA
MALAYSIA
INTERNET
11/24/99
e-Asia Sdn. Bhd., a Kuala Lumpur -based Internet advertising,
was bought by China.com
TELECOM
10/20/99
Celcom (M) Sdn. Bhd. and Siemens signed an agreement
for the Integrated Customer Care and Billing System on October 7, 1999.
This system will allow Celcom's customers to do online payment and new
subscriber registration over the web. Celcom has allocated RM50 million
(approximately US$13.158 million,
US$1.00=RM3.80) for this project for the next two years.
The new system will allow Celcom to provide new forms of promotion and pricing plans for its customers. It will enable increased product marketing efficiency and operational and administrative cost reduction. The first phase, migration of Celcom GSM to the new billing system, was initiated in April 1999 and is schedule to be completed in April 2000. The analogue and fixed-line billing system migration will be completed end of 2000.
Siemens (Siemens Electric Enginnering Sdn. Bhd./ Siemens
Nixdorf Sdn. Bhd.) will system integration such as project management,
integration point analysis, product configuration and customization, training,
data migration, integration of external interface and processes, and software
maintenance.
Source: Yeoh/Alley
DIGI Telecommunications Sdn. Bhd. has placed a RM60 million
(US$15.79 million, US$1.00=RM3.80) order with Ericsson Telecommunications
Sdn. Bhd. to upgrade and expand its GSM 1800 network. The bulk of the upgrade
will be focused on enhancing Digi's existing switch infrastructure to cater
for the tremendous
increase in customer base and traffic volume. Digi more
than doubled its customer base in the last 12 months, with 500,000 customers
currently. Digi is also the leading GSM 1800 service provider in Malaysia.
The upgrade of the switches was to complement with the
recent implementation of Ericsson's new Maxine base stations integration.
This base station will offer up to a 300% increase in coverage with the
second generation of RF technology.
Source: Yeoh/Czajkowski
Three companies submitted bids for TIME Telecommunications:
Maxis Communications Bhd., Kejora Harta Bhd. and Singapore Technologies
Group. Maxis offered a bid of RM1.2 billion (US$316 million, US$1.00=RM3.80),
while Singapore Technologies offered RM1.48 billion (US$389 million). While
Maxis and Singapore Technologies' offers are only for TIME Telecommunications,
Kejora Harta's bid was for the
entire TIME Engineering. Although Kejora Harta Bhd.'s
offering price was not disclosed, its package does come with a debt settlement
of RM4.5 billion (US$1.184 billion) for TIME Engineering.
TIME Engineering had obtained court protection under Section
176 (10) of the Companies Act 1965 from its creditors on July 14, 1998.
The group has received three extensions from the court since then, the
latest extension ends on October 28, 1999. The Corporate Debt Restructuring
Committee (CDRC) had taken over
TIME's debt restructuring. TIME Engineering recorded
a net loss of RM2.32 billion (US$611 million) for the year ended December
31, 1998, as high interest rates and the depreciation of the ringgit raised
the cost of equipment as well as its debt service burden.
TIME Telecommunications has a comprehensive fiber-optic
network in Malaysia and 1,600km of submarine festoon fiber-optic line along
the coast of Peninsular Malaysia.
Source: Yeoh/Czajkowski
PHILIPPINES
TELECOM
10/20/99
In what is seen as a landmark case in the Philippines
involving trademark rights and the Internet domain names, PLDT, the country's
largest telecommunications firm, is suing the founder of an interest group,
the Philippine League for Domestic Telecommunications Inc. (PLDTI), for
registering and using domain name pldt.com. PLDTI's founder registered
the site in 1998 with Network Solutions. PLDT, which has registered pldt.com.ph,
contends PLDTI's registration of pldt.com represents "unauthorized appropriation"
of the telecom firm's trade
name, with an intent to mislead the public. PLDT
also contends that the web-site included content damaging to the its interest.
The case was filed in September. At the first hearing, PLDT withdrew
a request for a temporary restraining order against PLDTI. If pursued,
it could take months before there is a ruling.
SINGAPORE
TELECOM
10/20/99
Singapore Cable Vision (SCV), the sole provider of cable
TV in Singapore, has completed the construction of a nation-wide broadband
network three months ahead of schedule. It plans to commercially
launch its cable modem services by the end of the year and will also launch
other high-speed online services. SCV recently awarded Cisco and
Compaq Computer a contract to supply technology for its two-way, interactive
network. It has adopted an open standard for cable modems and expects
consumers would be able to purchase cable modems in retail outlets within
a year or two.
Singapore Telecom, the current monopoly of basic telephone
services in Singapore, has submitted a bid for an external telecommunication
facilities license in Hong Kong. If Singapore Telecom is awarded
the license it is
expected to invest at least S$100 million in network
infrastructure.
SOUTH KOREA
2/28/00
Special Edition:
Second Round of Financial, Corporate, Labor, and Public
Sector Reforms
Contents
I. Outline of Second Round of Reforms
II. Policy Directives for the Second Round of Four Sector
Reforms
1) Financial Sector
2) Corporate Sector
3) Labor Sector
4) Public Sector
III. Four Sector Reforms of the Past Two Years
(On February 9, the government announced its policy directives fort the second round of financial, corporate, labor, and public sector reforms, as follows)
I. Outline of Second Round of Reforms
The second round of financial, corporate, labor, and public sector reforms is intended to promote transparency and efficiency, as well as support the public interests of our society. The restructuring will be completed by the end of this year and implemented with the following three objectives:
To pursue software reforms by expanding market infrastructure and revamping old-fashioned management styles;
To enhance competitiveness by promoting profitability and technical innovation; and,
To make the market mechanism work more efficiently, with
market participants, i.e., financial institutions, more actively involved.
1. Financial Sector
Financial sector restructuring aims to establish a competitive and sound financial system capable of supporting the development of the real economy.
Bond markets are being nurtured so that more funds can be injected into rapidly growing, high value-added sectors. In tandem with this, stock markets are being developed and diversified.
2. Corporate Sector
A new economic atmosphere is being promoted whereby a company will be able to raise its profitability through pursuing technical innovation.
Small-and mid-sized companies, along with venture companies, are being fostered to the extent that they become a focal point to the development of our economy.
3. Labor Sector
A new labor-management relationship is being established that emphasizes mutual respect and cooperation. In line with this, a more productive and comprehensive welfare system is being developed.
4. Public Sector
In the new era, an open and knowledge-based government
will be established. The government will transform itself into an e-government
suitable for the digital economy.
II. Policy Directives for the Second Round of Four Sector Reforms
1.Financial Sector
Basic Directives
The nation's financial landscape has seen great changes. On-line financial transactions have become part of everyday life; financial markets have become more liberalized; and banks have become more competitive through undergoing mergers and acquisitions.
Taking this changed landscape into account, the second round of financial sector reforms will be implemented focusing on the following three objectives:
To develop a market-based financial structure;
To transform the financial industry into a high value-added knowledge-based one; and,
To complete the ongoing financial sector reforms.
Detailed Measures
(1) Reform of the Financial Market Infrastructure
The bond market is being further developed in order to help domestic companies raise their funds more easily. For this purpose, both primary and secondary markets will be activated. The system of government bond issuance will be improved, the institutions related with government bonds will be streamlined, and intermediary firms between bond dealers will be established. The demand for bonds will also be broadened by diversifying types of bonds and by encouraging foreigners to invest in the nation's bonds.
The government will help domestic companies strengthen their capital structures by developing the stock market. To this end, strategic alliances with stock markets in the Northeast Asian countries will be promoted. Concurrently, the KOSDAQ will be nurtured to become a sound market for small-and mid-sized venture companies.
The capital market will become more diversified and the infrastructure of the financial market will be improved. In this vein, the stock market will be diversified through, for example, the introduction of a 3rd stock market. Measures to activate futures transaction will be devised. Pusan, the second largest city in Korea, will be nurtured as a futures trading market hub. Additionally, corporate accounting and external auditing systems are being developed in accordance with international standards.
New types of electronic financial transactions will be devised. At the same time, ways to enhance electronic transaction security will be implemented.
(2) Improvement of Financial Industry Competitiveness and Establishment of Autonomous and Accountable Management
Transparency and accountability of corporate management will be enhanced by improving the corporate governance structure of the financial institutions. To this end, more than one half of financial institution board member seats will be filled with outside directors. In addition, financial institutions, including life insurance companies, will be encouraged to list in the stock market and to separate their management from ownership.
Management of financial institutions will be innovated and financial experts will be nurtured. For this purpose, the government will encourage domestic financial institutions to adopt credit evaluation and combined risk management systems that adhere to internationally acceptable standards.
Competition between financial institutions will be encouraged by incrementally allowing universal banking system. Financial holding companies will be established in an effort to nurture larger financial institutions. Corresponding to this, fire-walls between financial and industrial affiliates will be strengthened.
New prudential regulations that are in line with global standards are being pursued. In this vein, establishment of new supervisory standards is a primary concern to ensure that banks are acting in accordance with the global principles. New capital adequacy ratios will be introduced as well. A system that monitors total credit to the companies will be established to reduce financial institutions' exposure to potential risks.
(3) Completion of Financial Restructuring
The ongoing financial reforms will be completed as scheduled; management of investment trust firms will be normalized as soon as possible; troubled life insurance companies will be sold off; and the Seoul Guarantee Insurance Company will have its capital structure improved. A new CEO for the Seoul Bank will be appointed soon. Banks undergoing management normalization programs will have their management improvement plans strictly monitored. Troubled credit unions will be reorganized, while sound ones will be transformed into specialized financial institutions for retail financing.
The voluntary restructuring of the financial institutions
will be facilitated. The government will encourage domestic financial institutions
to restructure themselves in order to become more competitive in the international
market. Privatization of those financial institutions that the government
helped recapitalize will also be completed as soon as possible. Public
funds injected to resolve non-performing loans (NPLs) and recapitalize
banks will be recouped as soon as possible.
2. Corporate Sector
Basic Directives
In the corporate sector, relevant laws and institutions have been reorganized. However, corporate management coinciding with market economic principles has not been fully established. With the advent of the digital economy, however, domestic companies are being required to raise their competitiveness, through either technical renovation or strategic alliances with other advanced companies.
Based on these situations, the second phase of corporate restructuring will be implemented as follows:
Capital structures of the companies will be improved by establishing advanced financial markets. In addition, the nation's chaebols will be encouraged to raise their profitability by focusing on their core competencies.
Unviable companies will be immediately ousted from the
market, while viable ones will be revitalized.
Corporate governance will be further developed
in conformity with international standards.
A virtuous circle of technology renovation among large corporations, small-and mid-sized companies, and venture firms will be nurtured, leading to the enhancement of their competitive edges.
Acceleration of Corporate Sector Reforms
(1) Stabilization of the Corporate Financial Structure
Companies that fail to satisfy the basic principles of the first round of restructuring will be required to strictly implement Capital Structure Improvement Pacts.
Creditor banks will more strictly monitor respective company management. The new forward-looking criteria will also be applied to the non-banking financial institutions. Chaebol affiliates will be required to increase their capital soundness by adopting combined financial statements.
During the first half of the year, a comprehensive credit risk monitoring system will be established to evaluate the credit risk exposure of large corporations.
(2) Improvement of the Regulations and Laws in Relation to Troubled Corporations' Exit from the Market
Debt-workout programs will be more effectively implemented. During this year, a pre-packaged bankruptcy program will be introduced to reinforce the legal basis of the workout programs. To prevent moral hazard, the management practices of the companies under workout programs will be more strictly monitored. Corporate Restructuring Vehicles (CRV) will be established to ensure a smooth operation of the workout programs. The government will encourage creditor banks to set up CRVs in the form of either asset management companies or specialized corporate restructuring companies.
To ensure the swift exit of unviable companies, bankruptcy-related laws will be rearranged.
The first round of restructuring will be completely finalized. When a consolidated company is set up as a result of industrial restructuring, the company will undergo virtual restructuring and sell off overlapping or excessive assets. A special task force will be organized to specialize in the restructuring the dismantled Daewoo Group's affiliates. Moreover, subsequent measures regarding foreign creditors of the Daewoo Group will be swiftly completed.
(3) Reinforcement of Market Disciplines
Listed companies will be obligated to publicly announce whether or not they are abiding by "Codes of Best Practices." Additional measures to improve corporate governance, if necessary, will be considered.
Accounting systems will be further upgraded to the level of international standards. To this end, companies are now being required to use combined financial statements.
Intra-group loan guarantees of the 30 largest companies
will be completely eliminated by the end of this March. And complementary
measures for the limitations on stock investment into other companies,
which will take effect in April 2001, will be prepared.
Reinforcement of Industrial Competitiveness
(1) Technology-oriented Renovation
Domestic companies are being encouraged to invest in research and development (R&D). This will pave the way for their rebirth as companies that are internationally competitive. A core infrastructure necessary to develop capital markets and nurture technocrats will be expanded so as to maintain the recent fever on venture capital. A company named Dasan Venture will be established in April. Dasan will raise one trillion won of venture investment funds from both the government and the private companies and assist venture companies. Large corporations are being encouraged to accelerate their internal renovation by focusing on core competencies and expanding R&D investment. In addition, large corporations will strengthen their cooperation with small-and mid-sized venture companies through strategic alliances.
In conjunction with the information technology (IT) industries, manufacturing companies will be nurtured to become another important pillar for the sound industrial structure through connecting themselves to IT revolution.
(2) Establishment of Effective National Innovation System (NIS)
In an attempt to boost corporate innovation centering on R&D, an effective NIS will be constructed. For this purpose, the government will expand its R&D-related budget and will nurture future strategic technologies, such as bioengineering and new materials. A technology Exchange Market will be launched in April to promote technology transfer.
(3) Developing the Foundation for Globalization
E-commerce will renovate overall business activities
and become a major part of both business-to-business transactions and cyber-trade.
As an effort to reduce expenses and to lay the foundation
for companies to enhance their competitive abilities, the nation's logistics
systems are being streamlined.
3. Labor Sector
Basic Directives
With a view to the development of a market-based economy, a new labor-management culture suitable for the 21st century is being nourished. The second round of labor sector reforms will be implemented based on the following principles:
Six policies will be implemented to promote the new labor culture that emphasizes cooperation and mutual trust.
A more productive and comprehensive welfare system will be constructed to enhance job security and to develop abilities.
Quality of living standards will be improved by narrowing the widened income gap between the rich and the poor.
Labor market flexibility will be continuously pursued.
Detailed Measures
(1) Establishment of New Labor-Management Culture
Establishment of the new labor-management culture is a key strategy to survive in the competitive 21st century. This strategy seeks to maximize the interests of both parties.
The new labor-management culture will be nourished based on the following principles:
The results of corporate management decisions will be made more transparent to workers.
Workers will be encouraged to develop their unique, special expertise.
A gain-sharing system will be adopted to raise the morale of workers.
An infrastructure for the cooperation of labor and management will be established.
Institutional reforms will be continuously implemented through the Tripartite Commission.
(2) Expansion of a More Productive and Comprehensive Welfare System
To establish a more productive and comprehensive welfare system, policies aimed at stabilizing employment and expanding vocational training will be implemented, and the social safety net will be expanded.
Employment services tailored to the diverse needs of each individual will be provided to job seekers. In addition, employment stabilization will be consistently sought after.
Vocational training will be elastically implemented in consideration of job market demand. Vocational training associated with knowledge-based industries will be strengthened.
The coverage of unemployment insurance will be extended. Consequently, the number of those who are eligible for unemployment insurance will increase. From July 2000, industrial accident compensation insurance will be applied to all businesses regardless of workplace size.
(3) Living qualities of middle-and low-income earners will be improved. For this purpose, the income gap between the rich and the poor, which has widened since the onset of the economic crisis in 1997, will be narrowed. This year, bills prepared to improve the welfare of workers will be passed in the parliament.
Efforts to help workers increase their incomes will be made. In this vein, employee stock ownership will be introduced even to the employees of unlisted companies. Tax credits will be given to those who keep unlisted company employee stocks for a long period. Companies will be advised to share their profits with their employees. A gain-sharing system is being introduced. Companies will also be encouraged to compensate their employees' good suggestions or ideas.
Employees with low incomes will be supported in various ways. Laws that guarantee minimum wages will be applied to companies with four or less workers in 2000. At present, companies with more than five employees are required to keep minimum wage laws.
Tax incentives will be given to mid-and low-income earners to increase their incomes. In addition, three trillion won has been allocated in 2000 to resolve the housing-related problems, compared with 900 billion won in 1999.
(4) Improvement of Flexibility of Labor Market
The labor market will become more flexible reflecting the transformation into the knowledge-based era.
Manpower-leasing systems are being encouraged. Measures to protect the status of leased workers will also be devised.
The rights of daily workers will be strengthened. From
2002, daily workers will be eligible for unemployment insurance. Various
types of vocational training suitable for daily workers will also be designed.
4. Public Sector
Basic Directives
To date, public sector reforms have been implemented focusing on hardware reforms.
The second round of public sector reforms will be implemented as follows:
Public sector reforms will be completed as scheduled. In particular, the reforms will put priorities on the agendas that focus on improving the lives.
The government will transform itself into an e-government and pave the way for a more customer-oriented and transparent government.
A system will be constructed whereby government organizations make reforms continuously and voluntarily.
Detailed Measures
(1) Cooperation between government ministries will be strengthened.
The positions of ministers of Finance and Economy, and Education will be raised to the deputy prime minister level. A Ministry of Women's Affairs will be newly organized.
A Development Committee for Human Resources and a Ministers' Meeting on Welfare Policies will become actively operational.
Voluntary reengineering will be pursued in each of the ministries.
(2) E-government will be accomplished at the earliest time.
A Knowledge Management System will be established so that all the information circulating inside government organizations may be systematically managed and accumulated. Swift and accurate administration will be achieved by introducing e-administration, i.e., e-mail reports, electronic approval systems, and electronic data interchange. Public officials will be educated to sharpen their IT-related skills.
The government's information system will be reconstructed so that people may gain access to the necessary information with ease. In this sense, a nationwide one-stop service will be operated to handle civil affairs. The civil affairs service will be provided for 24 hours through Internet.
The government will reach a wider audience by communicating via the Internet homepages. E-mail IDs will be provided to 37,000 public officials this year.
(3) Improvement of Budget Management Institutions
To achieve a balanced budget, the government will try to reduce the budget deficit. For this purpose, various ways to increase the efficiency of public spending will be devised. The management of government's external liabilities and assets will be more strictly monitored.
The fiscal management system will become more transparent. Double entry bookkeeping will be implemented by the local governments. Various types of funds will be more systematically managed.
The fiscal management of local governments will become more efficient and effective. Local governments are being required to check their capital soundness and make their fiscal status public. The central government will diversify its fiscal assistance to the local governments corresponding to their management accomplishments. In addition, the central government will evaluate the credibility of local governments when they issue local bonds.
(4) Reforms should be implemented in such a way that people really feel the differences before and after implementation.
A movement to reduce the number of civil appeals by half will be launched across all the government organizations. Every organization is being required to set up a Homepage Civil Appeal Database.
Deregulatory reforms will be continuously implemented.
A clean and transparent administration will be pursued to improve public services and eliminate corruption. An Online System for Management of Civil Appeals will be introduced to all government organizations.
Reform agendas will be set up in cooperation with Non-Government Organizations.
(5) State-owned companies and their affiliates will undergo continuous reforms.
Privatization of state-owned companies will be implemented as scheduled.
Various ways to raise the efficiency and transparency of management will be introduced.
The government will set this year as the first year of an "open and transparent government." To this end, the government will make its utmost efforts to ensure that public sector reforms are embedded in the daily lives of people.
The main objectives of the public sector reforms are:
To achieve a small, but efficient government;
To develop corruption-free and customer-oriented public
officials;
To foster a convenient and efficient system of public
service; and,
To establish a system that best supports the private
sector.
These reforms will lay the foundation for a reliable and
trustworthy government.
III. Four Sector Reforms of the Past Two Years
1. Financial Sector
The restructuring of the financial sector has been implemented
based on international standards and procedures. As a result, the financial
system has been normalized and its external credibility raised, laying
the foundation for the recovery of real economy.
(1) Exit of the Unviable Financial Institutions
A total of 347 financial institutions, which were regarded as unviable or thought to cost too much to resuscitate, were exited out of the market through mergers, debt-equity swaps and liquidations.
Exit Trends of Unviable Financial Institutions (97.12-99.12)
End-97 (A)End-99 (B)Difference (A-B)Banks332310Brokerage
Firms36306Insurance Firms50446Others*1,9731,648325Total2,1021,755347 *
Merchant banks, Leasing companies, Investment trust companies, Credit unions
Public funds have been injected to viable financial institutions in order to normalize their management persuant to their self-rescue efforts. By the end of 1999, 64 trillion won in public funds was injected either to settle NPLs of financial institutions or to recapitalize them.
Outline of Financial Sector Restructuring
(Unit: trillion won)
Purchase of NPLs (A)Recapital
-ization (B)Deposit Payment (C)Total
(A+B+C)Banks17.2814.5913.3345.2Non-Banks 3.223.9611.6118.8Total20.518.5624.9464.0
In a bid to set up market disciplines, shareholders,
managers, and employees have been required to take responsibility for unviable
financial institutions. The financial institutions that received public
funds have undergone a special inspection. Not only have the unviable financial
institutions had their managers reshuffled, but they have had the number
of their employees and local branches reduced.
Number of Employees of Domestic Financial Institutions
End-97 (A)End-June, 99 (B)Difference (B-A)# of Employees113,99474,85139,143#
of Local Branches5,9874,8521,135
Measures have been prepared to prevent financial institutions from becoming unsound. Forward looking criteria on par with global standards has been introduced to financial institutions. In addition, an early warning system that detects signals of financial instability has been established.
Management of financial institutions has become more transparent by adopting an international accounting system. Management governance has been improved by strengthening the functions of the board directors. A total risk management system has been set up, while advanced loan classification provisions have been prepared.
As the financial reforms pay off, the nation's sovereign credit ratings rose to investment grade and the spread on foreign depositary receipts greatly fell.
Standard & Poors, an international credit rating agency, raised Korea's sovereign credit rating to BBB- in February 1999, almost the same level before the outbreak of the crisis. Korea's real economy is rapidly expanding, as is shown by the fall in the number of bankrupt companies and the increase in the number of the new business start-ups.
* GDP (%): (98) -5.8 ( (1Q, 99) 4.5 ( (2Q, 99) 9.9 ( (3Q,
99) 12.3
* Dishonored Bill Ratio (%): (Dec, 97) 1.49 ( (Dec, 98)
0.12 ( (Dec, 99) 0.14
* # of Start-ups / # of Bankrupt Firms: (97) 3.4 ( (98)
2.6 ( (99) 12.3
* # of Venture Firms: (May, 98) 304 ( (Dec, 98)
( 2,042 ( (Dec, 99) 4,934
2. Corporate Sector
Based on the five plus three principle of corporate reform, mutually agreed upon by large corporations and their creditor banks, the corporate sector reforms have been successfully implemented.
The five basic principles of corporate sector reforms:
( enhancing transparency;
( eliminating cross-debt guarantees;
( improving capital structures; ( focusing on core competencies;
( strengthening accountability of major shareholders and management.
Three additional measures: ( improving management governance of the non-bank financial institutions; ( regulating internal assistance to subsidiaries; ( preventing unfair intra-group transactions.
As the corporate reforms have been implemented as scheduled,
the financial structure of the top four chaebols - Hyundai, Samsung, LG,
and SK - has been greatly improved. Excluding the dismantled Daewoo Group,
the average debt-to-equity ratio of the four chaebols fell to below 200
percent at the end of 1999 from 352 percent a year earlier, down 152 percentage
points.
Debt-to-Equity Ratio of the Top Four Chaebols
(Unit: trillion won)
End-97End-98First Half of 99Hyundai572449341Samsung366276192LG508341246SK466355227Average469352255
Of the companies ranked below 6th, those who were put
under the debt-workout programs have seen considerable improvement. As
of the end of January 2000, 78 companies are under workout programs. Of
these companies, 75 companies signed memoranda of understanding with creditor
banks.
Workout plans of the twelve Daewoo Group affiliates have all been settled. In particular, on January 22, 2000, foreign creditors of the Daewoo Group reached an agreement with the government to sell the loans owed by the ailing conglomerate to the nation's banks, paving the way for the smooth restructuring of Daewoo.
The nation's chaebols have virtually completed industrial restructuring of the nine core sectors as of the end of December 1999. These sectors include petrochemicals, semiconductors, aircraft, automobiles, electronics, oil refining, power generation facilities, vessel engines, and rolling stock.
Oil refining: Hyundai Oil Refinery completed a takeover
of Hanwha Energy's oil refining unit (June 30, 1999)
Semiconductor: Hyundai Electronics completed a takeover
of LG Semicon (July 7, 1999)
Rolling stock: A consortium of Hyundai, Daewoo, and Hanjin
established a consolidated company (July 1, 1999)
Aircraft: A consortium of Hyundai, Samsung, and Daewoo
established a consolidated company (October 1, 1999)
Power generation facilities and vessel engines:
Hanjung took over the units of Hyundai and Samsung Heavy Industries (December
30, 1999)
In an effort to reinforce management transparency and accountability of domestic companies, relevant laws and institutions are being reorganized compliant with international standards. The following efforts have been made:
Management transparency has been improved through the revision of the accounting system. Since FY' 99, listed firms have been required to adopt more comprehensive accounting standards and to make combined financial statements.
The financial structure of domestic companies has been strengthened. For example, large corporations have been required to make capital structure improvement agreements with their creditor banks. In addition, limits on the equity investments or credits to their affiliates by the thirty largest conglomerates have been introduced. New loan guarantees between chaebol affiliates have been strictly banned and large corporations are required to wipe out the existing debt guarantees by the end of March 2000.
Tax incentives have been provided to companies that swap
their businesses with other companies. The government has given tax incentives
on the parts of corporate income tax, capital gain tax, and special value-added
tax arising from such business swaps. These measures have aimed to facilitate
business M&As.
3. Labor Sector
By reforming the labor sector, the rights of workers have been strengthened, coverage of social welfare has been widened, and labor market flexibility has been improved.
The basic rights of workers have been strengthened. Teachers have been allowed to organize labor unions. In order to protect women workers, a new regulation titled Prevention of Sexual Harassment in the Workplace has been effective since February 1999. Various ways to provide more job opportunities to the disabled have also been developed, and a law to this effect was enacted in December 1999.
The coverage of Labor Standard Law has been widened from a company with five or more workers to one with four or less workers. Additionally, minimum wage law coverage has been widened from a company with ten or more workers to one with five or more workers.
A new labor-management culture is being nurtured. PR activities and education aimed at fostering the new labor-management culture have been strengthened. Tripartite Commission was legislated in May 1998, and the third round of the Tripartite Commission was launched in September 1999.
Labor market flexibility has been improved. Since February 1998, companies have been allowed to lay off their workers for managerial reasons and a manpower-leasing system has been introduced.
Protection of both the unemployed and the less fortunate
has been strengthened. The coverage of both unemployment insurance and
industrial accident compensation insurance has been widened. And since
April 1999, unemployment insurance has been provided to all the jobless.
4. Public Sector
Public sector reform has been implemented with a view to improving its productivity. This has also laid the cornerstone for the reform of other sectors.
(1) Government
As a result of the second restructuring, the government has become smaller, but more efficient.
Civil Service Employee Reduction Plan
ActualTargetYear End-1997Year End-1999Year End-2001Total
Number of Employees162,00026,000136,000Number of Reductions17,00026,000
(2) State-owned Enterprises (SOEs)
SOEs have also been a target for thorough restructuring. Thirteen state-owned companies, including The National Textbook Co. Ltd and Korea Technology Banking Corp, have been privatized thus far. Among them, Korea Telecom, POSCO, and Korea Electric Power Corporation have been sold to foreign investors through the issues of depositary receipts (DR). Korea Ginseng and Tobacco Co. and Korea Gas Corp. have been privatized through domestic public offerings.
By privatizing the SOEs, the government secured 9.3 trillion won in proceeds. The privatization of the SOEs also contributed to the rise in Korea's international credibility and helped overcome its economic crisis.
If you have any questions, suggestions, and/or comments, please feel free to call the Foreign Press and Public Relations Division at (82-2) 503-9245, fax (82-2) 503-8653, or e-mail us at HYPERLINK mailto:fpprd@hotmail.com fppr@mofe.go.kr .
Ministry of Finance and Economy
http://www.mofe.go.kr
Government of the Republic of Korea
Source: Korea Economic Update
INTERNET
11/6/99
DACOM'S CHOLLIAN NET SERVICE TOP 2 MILLION, BECOMES 5TH
MOST POPULAR ONLINE INTERNET SERVICE. (#1 AOL 20 Million, #2 Niftyserve
3.5 Million Japan, #3 T-Online 3.3. Million Germany,
#4 PC Van 2.7 Million Japan)
http://www.nikkeibp.asiabiztech.com/wcs/frm/leaf?CID=onair/asabt/news/84991
TELECOM
11/24/99
Korea Telecom Powertel (S Korea), trunked radio system
(TRS) division of Korea Telecom, will be 20% acquired for Won13 billion
by Motorola. This will enable Powertel to move from analogue to digital
services from June 2000.
The firm will also have additional mobile phone function from June 2000 by providing connection services with general phones via TRS. Powertel had 58k subscribers at end-October 1999, controlling 87% of the TRS market. The deal with Motorola is expected to activate the TRS sector.
Source: RDSL
11/16/99
Dacom to sell part of stake in Hanaro Telecom
http://www.koreaherald.co.kr/news/1999/11/__10/19991116_1022.htm
TAIWAN
TELECOM
12/7/99
Clarent Corporation Selected to Build Nationwide IP
Telephony Network Connecting Universities in
Taiwan for National Broadband Experimental Network
Project
Clarent(R) Corporation (Nasdaq:CLRN), a worldwide leader
in providing carrier-grade, phone-to-phone Internet
Protocol (IP) telephony solutions, has been selected
by the Taiwan National Telecommunication Programme Office (NTPO) to build
a nationwide IP telephony network connecting the universities in Taiwan
through the National Broadband Experimental Network (NBEN) programme in
that country.
This IP telephony network is intended to provide a number
of benefits to Taiwan. It is planned to be a test bed for Internet phone
associated with the testing programme in universities. Also, it is planned
to provide the foundation for new communications features that could be
made available to the students, faculty and
administration at these universities.
Most importantly, it places a significant application of next generation network technology into the research infrastructure of one of the world's leading countries involved in manufacturing high technology products. The converged voice, fax and data traffic in this university-based network will run across the NBEN -- the high speed network used for research activities in Taiwan.
"Clarent is very honoured to have this opportunity to provide our products to the universities in Taiwan," said Jerry Chang, CEO and president, Clarent Corporation.
"We have focused on providing our technology to carriers around the world, with a particular initial focus on the Asia Pacific region. We are very pleased to extend the benefits of Clarent products to the universities in Taiwan and see this as the potential foundation for implementation of our products with other national university networks around the world. Universities play a key role in the development and advancement of new technologies, particularly technologies related to the Internet. This is a very exciting application for Clarent products."
"We are looking forward to bringing this next generation network technology to our universities and research centers in Taiwan," said Dr. Chi Fu Den, the Principal Investigator of the National Telecommunication Development Program.
"Taiwan, through its public, private and university sectors, is committed to implementing state of the art products in our communications infrastructure. We consider Clarent products to be among the best products in this industry."
The implementation of Clarent products in this network is being managed through a next generation telecommunications program established by the Taiwan NTPO. The initial phases of this network are planned to turn up in the first quarter of 2000.
Source: Press Release
11/16/99
Private Telecom Firms in Taiwan Set Up SDH Optical-Fiber
Networks
http://www.nikkeibp.asiabiztech.com/wcs/frm/leaf?CID=onair/asabt/news/85369
THAILAND
AUSTRALIA
INTERNET
12/7/99
ONE TOUCH Systems, the world's leading provider of interactive
distance learning (IDL) solutions, today announced that Australia's federal
government service delivery agency, Centrelink, has chosen the ONE TOUCH
solution for its nationwide training initiative.
Centrelink is adding ONE TOUCH's Response Keypad technology to its existing satellite Business Television Network, adding a high level of real-time two-way interactivity.
Hank Jongen, Centrelink National Manager, said "the adoption of IDL equipment will remove the `tyranny of distance' often prevalent in organizations of this size and diversity. IDL will also increase the accuracy, timeliness, and consistency of the information messages being delivered to all 370 Centrelink sites. Using ONE TOUCH technologies will embrace cutting-edge training tools and packages, making it easier for staff to ask questions and receive immediate responses on policy matters which are often highly complex."
ONE TOUCH's partner, AAPT Sat-Tel, will supply and integrate the ONE TOUCH Classroom solution for Centrelink.
Broadcasting from its business television unit in Tuggeranong
in the ACT, Centrelink's instructors will be able to reach and train employees
simultaneously at 370 sites across the Australian continent. Students who
see and hear their instructor on a classroom TV monitor, can now interact
by pressing a button on the ONE TOUCH Response Keypad. By pressing the
"call" key, for example, students can engage the instructor in an interactive
conversation, while everyone on the network hears both
questions and responses. Student results are then compiled and available
for immediate display to all participants, while post-class tabulation
allows the instructor to determine his effectiveness in reaching participants.
The results are measurable and certifiable, and class
records can be logged into an organization's database.
The high level of real-time interaction and collaboration between students
and instructor creates a shared learning experience and an engaging class
environment that is essential to effective distance learning.
Commenting on Centrelink's IDL initiatives, AAPT Sat-Tel's
National Marketing Manager, Alan Marsden, said "Centrelink's choice of
the Sat-Tel/ONE TOUCH solution is both significant and highly encouraging
of our belief in the potential of satellite-delivered distance learning
in Australia. Similarly, it underscores Sat-Tel's mission in providing
only best-of-breed solutions for our clients. The addition of the Sat-Tel/ONE
TOUCH Systems network will propel Centrelink to the forefront of IDL technology
and enable it to realize significant gains, both in the quality and outcomes
of its training programs and in the minimization of ongoing training related
costs."
"Centrelink's innovative thinking and use of advanced learning technology shows their commitment to providing better services to customers and staff at every level," said Katherine Leary, ONE TOUCH President and CEO. "IDL via satellite communications will overcome the barriers of vast distances to remote populations and inadequate communication infrastructures."
About Centrelink
Centrelink employs 22,000 people and serves 6.1 million
customers. They are part of the Australian Federal Government's public
sector reform, designed to produce more efficient and streamlined services.
Officially launched in September 1997, Centrelink is bringing a higher
level of service to people who obtain information or assistance from a
range of Commonwealth Government programs covering retirement, disabilities,
employment, and family and youth services.
About AAPT Sat-Tel
Satellite services provider AAPT Sat-Tel Pty Ltd, a wholly
owned subsidiary of AAPT Limited, provides data, video, telephony, on-line
services, and high-speed Internet services via satellite to support such
applications as virtual private voice and data networks, wide area networking,
file delivery, Internet trunking for ISPs, distance learning, and business
television. AAPT Sat-Tel also provides communications services to large
numbers of
dispersed rural and remote sites using shared-hub VSAT
(Very Small Aperture Terminal) technology.
About ONE TOUCH Systems
Headquartered in San Jose, Calif., ONE TOUCH Systems is the world's leading provider of IDL solutions that are fully integrated, enterprise-wide and scalable, capable of reaching networked classrooms and personal computers. ONE TOUCH IDL enjoys an installed base of 28,000 sites in 55 countries. Customers rely on the ONE TOUCH solution, with more than 150,000 IDL seats installed worldwide, to train an estimated 2 million employees annually. ONE TOUCH's patented, interactive technology enables individual experts to communicate in real time with participants at multiple locations anywhere in the world. With the addition of content to its end-to-end IDL offering, ONE TOUCH is poised to exploit a distance learning and education market that is expected to exceed $5 billion within five years. ONE TOUCH was recently recognized by Arthur Andersen, the world's leading professional services organization, for best practices in exceeding customer expectations.
Source: Press Release
12/1/99
Why are Australians Paying More Than They Should for
Internet Access to the USA?
This question was answered by John Hibbard, Telstra's
Managing Director Global Wholesale, at an industry seminar in Sydney on
Tuesday, November 30.
Hibbard explained how the cost of internet services in Australia is being held up by the high-cost international links that Australian Internet Service Providers (ISPs) use to the United States (U.S.), and the access charges they pay to the major U.S. ISPs.
"Telstra has estimated that in the 1999/2000 financial year, it will cost Australian ISPs between $400 million (US$231 million) and $500 million (US$288 million) for these links and the charges to access the Internet networks in the U.S."
Australian ISPs must pay this massive sum to U.S. ISPs for their access to internet services in the U.S.; however, U.S. operators will not pay one cent towards the Australian ISPs' costs.
"Telstra has estimated that, in 1999/2000, Australian ISPs will incur costs of around $175 million (US$101 million) to support provision of internet services by U.S. ISPs to their U.S. customers, but will get zero reimbursement.
"This additional cost to Australian ISPs is being passed onto all Australians using the Internet. We believe that, if the U.S. ISPs paid their way, Australian ISPs would be able to consider reducing the prices for internet access here by around 20%," says Hibbard.
"The fact that Australians are paying too much for their
Internet services is having an impact on the development of the Australian
information economy. On the supply side, it is hindering the development
of e-commerce services and imposing higher costs on all Australian businesses
that use the Internet. On the demand side,
it is limiting the take up and use of Internet services
by consumers throughout Australia.
"This issue is affecting Australia's international competitiveness, especially in the vitally important e-business sector. Not only are Australian Internet users paying too much, but also they are subsidizing U.S. Internet users to the tune of $175 million p.a. (US$101 million).
"The problem stems from the market position of major U.S. ISPs and their taking advantage of internet technology which doesn't allow Australian ISPs to separately identify traffic generated by Australian versus U.S. internet users.
"Telstra and other Asia-Pacific communications companies have been trying to get the U.S. ISPs to pay their way for two years now, but the Americans are reluctant to engage serious discussion on the issue. We are not asking for special treatment -- just that U.S. ISPs pay Australian ISPs for the use they make of our network facilities to carry traffic that their customers have generated."
Australian government authorities, including the Communications and Trade Departments and the Productivity Commission have taken an interest in the issue.
In a recent submission to the Australian Government's National Bandwidth Inquiry, Telstra suggested a number of actions that the Australian Government could take to assist Australian ISPs to get lower prices for Australian Internet users.
Telstra Corporation Limited is the leading full service carrier in Australia and a major telecommunications player in the Asia Pacific region. Drawing on its 50-year involvement in the global telecommunications industry, Telstra provides expert advice on worldwide networking to international and multinational companies.
Telstra owns and operates one of the most technologically
advanced networks, offering end-to-end solutions ranging from broadband,
IP, mobile and intelligent network services to voice and data network hubs,
call centers, and advanced multimedia and e-commerce applications. A top
tier global carrier with annual revenue of A$18.2 billion (US$11 billion),
Telstra placed 62nd in Business Week's 1999 Global 1000 ranking of the
world's most
valuable companies by market value.
Source: Business Editors/High-Tech Writers
NEW ZEALAND