Australia Heralds Internet As a 'Free Trade Zone'
...............internet commerce is a wordwide phenomena
December 29, 1997 (SYDNEY, Australia) -- Perhaps the most significant Internet events for Australia in 1997 came in the closing weeks of the year with the Australian Prime Minister's "Investing for Growth" information technology statement. This was followed later in the month with the Minister for Communication's highlighting the government's new "information economy" initiative.
The IT industry warmly welcomed these official re-affirmations of the importance of the new information technologies to the Australian economy -- especially coming as it did at the end of a year of financial turmoil for many of Australia's neighbors and trading partners.
Although no one in government will say it publicly, many observers believe that Australia's long-established social, political and economic stability will attract even more foreign investors looking for regional IT opportunities -- away from the more volatile "tiger economies."
In specific Internet usage terms in Australia, there were signs that the phenomenal domestic market growth in numbers of users was slowing to strong growth, and that corporate and other business Internet usage was beginning to gain momentum.
IT specialist researcher Marc Phillips said that of all Australians aged 14 years and over, 25 percent have now used the Internet. "That is around 3.6 million people of a population of 17.8 million," he said.
"The figures from September 95 to September 97 show that this number has doubled in two years. Of course, the figures for the under-25 age group are even higher, with four out of 10 now having accessed the Internet," Phillips said.
As the author of the book "Behind Australia's Most Successful Web Sites," Phillips believes that the corporate market was initially slow to embrace Internet technology, but is now starting to catch up.
"For large companies, having a Web site is now the rule, not the exception, with their awareness campaigns permeated through radio and print advertising," he said.
According to Michael Ward, vice president of corporate relations for OzEmail Pty., Ltd., Australia's largest Internet service provider, in the second half of 1997 there was a dramatic increase in the number of organizations putting up Web sites.
"We saw a lot more commercial organizations getting permanent connections and looking towards having an Internet base as part of their ongoing marketing promotion activities," he said.
"Part of the reason for this is the cost of ISDN in Australia dropped in 1997, So I think we are seeing a combination of a broader range of technologies available at cheaper prices -- as well as 'Internet awareness' taking over," Ward said.
"I think that Australian business people are now confident with the notion that the Internet is here to stay, that governments are conducting their own business online and that there are administrative and operational efficiencies to be gained by having an Internet-based communication platform in their business," he added.
Tim Sheedy of IDC Australia said that the amount Australian's spend via the Internet is increasing, although the percentage of people making purchases is not increasing dramatically. He said that, unlike in the United States, there is no strong mail-order purchase tradition in Australia.
"In 1997 we had 12.8 percent of people who use the Web actually buying product in Australia," he said. "In 1998 we should see about 20 percent of people who use the Web buying product. But we believe that the actual spending level of each person will increase quite dramatically."
"I think it is still a matter of confidence, and once people make a transaction, they have the confidence to do it again," Sheedy said.
To actively encourage electronic commerce within Australia, Prime Minister John Howard's "Investing for Growth" statement promised the following:
* no "bit tax" on Internet traffic or transactions.
* no customs duty on goods such as books, music and software purchased over the Internet.
* the establishment of a national system for the authentication of users of electronic commerce to facilitate Australia's participation as a safe and trusted source for transactions over the Internet.
The Internet Industry Association (IIA) welcomed the Prime Minister's statement. IIA Chairman Richard Cousins said in response to the PM's statement: "Mr. Howard has shown common sense in establishing clear parameters for the Internet to operate as a free trade zone. It will be Australia which benefits from the potential of the Internet to enhance our global trading position, and in this statement the Prime Minister has shown his confidence that we can deliver."
Government Senator Richard Alston later announced that under the "information economy" initiative the government will provide strong national leadership by: developing a light-touch regulatory regime which encourages self-regulation, ensuring the Commonwealth is a leading edge user of online technologies, supporting skills development, building awareness of the opportunities arising from the information economy and assuring that all Australians have equitable access to the information economy.
The Australian government will establish an A$3 million national promotional campaign aimed at increasing awareness of the benefits of being online. It will also provide A$11 million towards the cost of re-equipping rural and remote areas of Australia for digital broadcasting, which provides the potential to access the Internet.
(Neil Munro, BizTech Asia Correspondent) |
