Building The Policy of ICT Development Dr Zsehong

Building The Policy of ICT Development Dr. Zsehong Tsai, Deputy Executive Secretary q National Information & Communications Initiative Committee & q Science and Technology Advisory Group(STAG) q Jan. 24, 2005

Outline National Information & Communications Initiative Committee ü The e-Taiwan Program ü The M-Taiwan Program ü The New Broadband Service. Convergence Network ü Conclusion 1

Background Information National Information & Communications Initiative Committee ICT strength has become an essential factor in determining a country’s competitiveness. same Location different Information Society In 1850, jobs in the fields of Management, Professional, Technical & Services accounted for 4% of all jobs. In 1900, it became 13%. In 2000, it grew to over 50%. industry accounted Industrial In 1940, Manufacturing for 50% of GDP, 40% of work force. Society In 2000, it is decreased to 15% only. Agricultural In 1820, 70% of all jobs were related to Agriculture, Society In 2000, the percentage fell to 1. 9% only. same Time different 2

Current Status of Chinese Taipei ICT Industry. Initiative Committee National Information & Communications v World’s 4 th largest IT hardware producer (Ranked 3 rd as including production in China) v Ranked first in worldwide market share for more than 10 ICT products v A major procurement center for global IT companies v Dominates IT production in China v 2 nd largest LCD industry and 4 th largest semiconductor industry in the world v 111% mobile phone penetration rate 3

Milestones of ICT Infrastructure in Major Countries National Information & Communications Initiative Committee 92 ▲ 96 IT 2000 IT in Education Singapore One Singapore ▲ 93 USA ★97 ▲ 97 ★95 EC Working Group NII Global EC Framework ▲ 96 Information Society UK ▲ 00 Infocomm 21 ★98 Electronic Transactions Act ▲ 99 ★98 1 st 2 nd Report e. Governmente Society Report ★01 3 rd Report ▲ 99 ▲ 00 Building the▲ 98 e-commerce@its. best. uk UK Online Knowledge Driven ★ Modern★ Economy e. Gov Services for the 21 st Century Government ▲ 95 The S&T Basic Law Japan ▲ 93 Korea Chinese Taipei 1992 ▲ 99 KII ★94 MIC Millennium Project ▲ 95 ▲ 99 Cyber Korea 21 BAPI ▲ 96 1993 1994 1995 3 Year 3 Million Internet Users 1996 ▲ 97 ▲ 98 ▲ 99 NII e-Government e-Industry 1998 1999 1997 Ø 1992：Major IT Countries engaged various ICT projects (NII) Ø 1999：Japan, Korea, Singapore launched major e-projects e-Japan / Cyber Korea 21 / Infocomm 21 ▲ 01 e-Japan ▲ 01 e-Korea ▲ 01 NICI 2000 4

Chinese Taipei ICT Infrastructure National Information Development & Communications Initiative Committee § 1993：Initiated NII (National Information infrastructure) Guidelines § 1996 : Initiated 3 -Million Internet users in 3 years § 1998：Initiated e-Government Program § 1999：Initiated e-Business Program § 2001：Consolidated various agencies, Initiated NICI Guidelines § 2002：Initiated e-Taiwan Program § 2004 : Initiated m-Taiwan Program 5

Deregulation and Telecom. Industry Chinese Taipei National Information & in Communications Initiative Committee 1989 -92 Value Added Services De-regulation Process 1996 The New Telecom Act 1997 GSM 1998 SAT Cellular License 2000 Fixed Net. 2001 ISR & VOIP & 2002 3 G, e. Signatu re New Services: Streaming Messaging ISP Chinese Taipei’s ICT Industry Direction PC Content Delivery TFT Display Notebook Optical drive Source: ITIS I-Phone DVD Drive GSM Handset OEM, ODM ADSL & Cable modem WLAN & Hot Spot WLAN & Cellular Convergence

ICT Vision & Milestone 1982/02 1994/08 1999/07 2001/04 National Information & Communications Initiative Committee • To promote information industry Information Development Office NII Task Force i. Ae. B Task Force 2728 th Cabinet meeting and computerized inter-government process。 • Responding to Major IT Countries engaged various ICT projects ， establish NII to be In charge of infrastructure of the information and communication • Due to Fast booming of e-commerce, i. Ae. B task force is to promote industry automation and keep business competitive 。 • Integrate NII and i. Ae. B to become 「National Information and Communication Initiative Committee (NICI) 」，and NICI is in charge of national ICT issues。 NICI (National Information and Communications Initiative Committee) 7

ICT Vision & Milestone National Information & Communications Initiative Committee 2001/12 The Cabinet Approved NICI Guidelines STAG / CEPD / RDEC Proposed 「e-Government Flagship Project」 2002/03 Challenge 2008 2002/07 e-Taiwan Program Draft 2002/09 6 -Year National Development Plan To foster the creativity and talent that Chinese Taipei needs to transform itself into a “green silicon island” e-Taiwan Program Submission e-Government, e-Industry e-Opportunity, e-Society and Infrastructure 8

e-Taiwan & Challenge 2008 National Information & Communications Initiative Committee National Backbone Overhaul Water & Green Land Revitalization e-Taiwan e-Opportunity International High-Tech R&D Base e-Government International Business Operation HQ Infrastructure e-Society e-Generation Talent Cultivation Double Tourist Volume e-Industry Hometown & Community Development Culture Industry Development Industry Production Optimization 9

e-Taiwan Mission National Information & Communications Initiative Committee Venture Capital Manufacturing Knowledge Based Economy R & D Internet Usage WEF/NRI GDP Information Society Trillion Current Economy Challenges e-Infrastructure 5 • Knowledge Based Economy e -Society • Slowing Economy Growth e-Taiwan Project • Changing Industry Structure e-Government 10 Industrial Society 5 Hsinchu Science-based Industrial Park Ten Emerging Industry Custom Protection e -Opportunity e-Industry 13 Export Industrial Park Ten Infrastructure Projects NII Projects Import Control 1950 1960 Import Substitution Policy 1970 1980 Export Expansion/ Heavy Industrialization Policy 1990 1996 2000 2002 High-Tech Policy 2007 e-Taiwan 10

e-Taiwan Vision ow E led Kn High-Tech Service Island e-Taiwan with US$ 11 Billion Investment n ico Silnd een sla Gr I co ge no B m as y ed National Information & Communications Initiative Committee Bridging Digital Divide Best supports to its industry to stay competitive One-stop services to its citizen Equal & Optimum opportunity to its citizen Information-rich Society Best information available to its citizen e-Industry e-Government e -Opportunity e-Society NI I GI Advanced Telecomm technology I GI I Effective Government Competitive Industry Broadband to every family Infrastructure 11

e-Taiwan Scope National Information & Communications Initiative Committee e-Taiwan Reach 6 million broadband users in 6 years. Become the e-Leader in Asia. Government initiates, everybody participates. e. Society • digital learning • digital archive • digital entertainment • web culture development • remote public services • e-learning for small-tomedium enterprise • e-learning for farmers • real estate info center e-Industry • Collaborating e-design • agriculture knowledge management • Small to medium enterprise knowledge management • International e-commerce cooperation program e-Government e-Opportunity • one-shop service • G 2 B 2 C document exchange • video conference network • IP information system • household registration • hazards mitigation infomation center • hazards mitigation communication system • Bridging rural divide • Bridging SME divide • Bridging international divide Infrastructure • 6 million broadband users • wireless LAN • IPv 6 Upgrade • national security system • broadband for small and medium enterprise 12

Infrastructure Broadband to Every Family National Information & Communications Initiative Committee Install Next-G Broadband network demonstration system & applications Next Gen. Wire line Network Internet Wireless Enhance security system Network Security (Hacker detection, , IPSec, SSL, Virus prevention, Firewall Security System security Operation Center Access management, Project management, Process management PSTN T De re co elegu m lat m ion Facilitate government support Su pp meort cha nis m Data security Encryption/Decryption, Watermark, Storage, Redundancy Advance ICT application capability Internet Legislation Internet Target: 6 Million Broadband Households 13

Faster、Cheaper、More Secured Network National Information & Communications Initiative Committee (Establish secured ICT environment Project) Emergency Report NICST Tele-Comm Banking Transportation Public Safety Government Agencies 緊 急 應 變 Mechanism on collaboration Attack Detection & Alert Attack & Threat over Internet Critical Infrastructure International Collaboration Prevention BCP & DRP Infrastructure of Secured ICT Network 14

Action Items National Information & Communications Initiative Committee p Utilize Regulations to provide Faster、Cheaper、 More Secured Network environment： Ø Deregulate Tele-communication and cable TV barriers Ø Negotiate last mile issue, Ø Establish NCC to monitor ‘Information & communication related regulations. p Build solid environment to promote killer application and better digital content Ø Application on Digital Entertainment and Digital Learning Ø Promote Government one-stop services and e-business 15

e-Government National Information & Communications Initiative Committee Government Portal G to C Citizen Portal Citizens Information published • Electronic Document • Video Conference • Information Sharing • Knowledge Management • ISMS in G GSN G to G Government Agencies Information Inquery Electronic voting Business On-line Service Cross Agencies service Enterprise Portal G to B PKI INTERNET School System Medical care 16

Issue to promote e-Government National Information & Communications Initiative Committee ØBroadband to 6 million Family ØIT Literacy Enterprise Citizen ØVision & Policy ØCommitment ØTraining Ø Mutual Understanding Government Øe-Enterprise ØBroadband to SME ØPromotion Mechanism ØOutsourcing ØISMS Implementation Faster、Cheaper、More Secured Network ØBroadband to 6 million Family ØEstablish National Network Security 17

e-Government Projects National Information & & Communications Initiative Committee Service On-line Øprovide e-service Øimprove service quality Øassist IT industry enterprise public Government Service On-line Medicare IP Traffic Household Enterprise Commerce Land One-stop Service Ø 24 -hour service Ø common platform Ø eliminate redundency Government Office Single Entry Service Government Office Tax Øhazard mitigation network Øland protection Ønetwork security system Information publicized Electric Ø inter-office data sharing document/ Ø document flow automation Ø improve meeting efficiency video conference Government Information national archive info system hazard mitigation info system national land info system Inter-office doc. exchange Video conference 18

e-Industry National Information & & Communications Initiative Committee Supply Chain Management Øimplement quick response system Øconsolidate international supplier information Øbuild supplier chain system International Cooperation Øcentralize e-Market portal Ødevelop various e-Standard Øjoin international supplier chain Make Chinese Taipei the center of value-added manufacturing and serviceonline(26 60%) Industry e-Commerce (1. 5 15%) of GDP e-Service(total revenue US$2 10 billion) R&D Øcultivate R&D groups Øcoordinate design effort Ødevelop IP Mall Support & Services Øeffect monetary system Østrengthen customer support Øassist service industry 19

Goal and Strategy National Information & Communications Initiative Committee e-Industry Goal Ø Create an environment for industrial automation and electronic business Ø Build an efficient supply chain management network to optimize the supply and demand mechanism Ø Assist industries to set up global logistics system to boost competitiveness e-Industry Strategy Ø Develop standards and technology to build a sound e-business environment Ø Set up a model system to reinforce industrial demand supply coordination Ø Provide incentives to build an IT talents cultivation mechanism 20

Future Development of e-Industry National Information & Communications Initiative Committee Building Chinese Taipei as Hi-Tech Service Island Building a Full-scope EC Environment Building Developing Highly Logistic Efficient Supply and Marketing Chain Management Channel System Network Assist Enterprises to Apply e-Technologies Developing Operation Model for Industry Knowledge Service Promote Enterprises e-Application Ability Enhance the Competitiveness of Enterprises Strengthening e-Application Infrastructure Promote Information Services Industry 21

e-Opportunity National Information & Communications Initiative Committee Social Justice Industrial Development International Charity Bridging Digital Divide Creating e-Opportunity Every citizen have same opportunity to reach information & knowledge. Improve native group Internet connectivity up to 65%. Improve rural area computer penetration rate up to 70%. Improve SME broadband connectivity & EC-ready up to 70%. Establish 300 Digital Opportunity Center within Chinese Taipei & 6 APEC economies. Governmental Funding US$200 Million Within 4 Years till 2008 Bridging Rural Divide Bridging SME Divide Bridging Int’l Divide 22

Strategies National Information & Communications Initiative Committee Small and Medium Enterprises Low informatization Bridging SME Divide aged people aborigine children Least developed countries woman Bridging Rural Divide Information poor Bridging International Divide 23

Action Plans National Information & Communications Initiative Committee Minorities 1. Provide Digital TV Signals & reception device to Rural Areas. 2. Provide PCs to Student Families in Rural Areas. Rural 3. Connect Broadband Network to All Villages. SME 4. Establish Digital Opportunity Center in All Counties. 5. Support SME Develop EC. Int’l 6. Promote High Value Agriculture Products With EC. 7. Support DOC in 6 APEC Economies. 24

e-Society National Information & Communications Initiative Committee Mu Communities Education ltim ed Individuals ia Ma na g ct nta o C r e ustom C ing Families Companies iv ce s r ge e S rid tion c B a s n Tra k r o Netw e-Society Network Infrastructure Financial Institutions Governments Entertainment Distribution Transportation 25

e-Society Projects National Information & Communications Initiative Committee Culture online e-Learning Øestablish national archive system Øcapitalize social, cultural, industrial & economic development. Øaccomplish personalized Chinese learning network Øuse e-learning to realize information-rich society To realize a society - rich in knowledge, culture, entertainment and learning opportunity to ALL e-Transportation Ø Ø Ø intelligent traffic control ITS platform & system traffic safety system smart bus & IC card transportation service network e-Entertainment Ø build e-Entertainment environment Ø advance digital entertainment quality 26

Moving Forward and Beyond National Information & Communications Initiative Committee High Tech Service Island (Broadband to 6 million family in 6 years, and the most e-Nation in Asia) e-Taiwan & m-Taiwan Second Phase：From the “user” point of view, expand the degree of application (2005) e-Taiwan (2002/5) • 2003/10「Challenge 2008：National Development plan Yearly report」 comments from Prime minister • 2004/12「Challenge 2008：National Development plan Routine meeting」 meeting conclusions First Phase：Build ICT Infrastructure and provide Government service on-line 27

Predicted Benefits National Information & Communications Initiative Committee Ø Ø Economy create 20, 000 jobs total e-Service revenue US$10 Billion industry online 60% e-Commerce is 15% of GDP Public Services IT Application Ø#5 e-Government (WEF/NRI) Ø#5 e-Society (WEF/NRI) Ø#10 e-Industry (WEF/NRI) Øbring 600 services online ØG 2 B 2 C document exchange rate up by 55% in 5 years Øsatisfaction level reaches 75% Infrastructure ØInternet users reach 50% of population Øbroadband users reach 35% of population Øoverall country bandwidth reach 1, 150 Gbps Øundersea cable bandwidth reach 250 Gbps 28

Summary Remark on e-Taiwan National Information & Communications Initiative Committee q Strong governance to form a broad national vision. q The success of e-Taiwan Program relies on a reliable solid broadband Infrastructure q e-Government as a pilot to lead the information society. M-Taiwan and the FTTH Broadband initiative 29

M-Taiwan Vision National Information & Communications Initiative Committee M-life WLAN e-Logistics e-Traffic Wireless access + M- applications e-Zoo Food Guide M-services Cellular e-gov ITS • FTTH • x. DSL Tour Guide M-learning Library Medicine Museum Vision : School Art Any where, any time, any one to enjoy Broadband/Wireless services 30

M-Taiwan Program National Information & Communications Initiative Committee Project Action Items Construction of q. Deploy Telecomm. Pipeline by the Government，providing leasing services to Fixed Network, CATV and Cellular operators。 Broadband q. Broadband access operators can deploy fiber based on user demiand Pipeline Promotion and 1. Mobile service Development of Mobile-Taiwan 2. Mobile Life Applications 3. M-Learning 4. WLANCellular Dual Network Integration q. Mobile service in demo hot spot q. Potential killer applications q. Common service platform q. Integration of training program, provide talent for application development q. Life-long learning q. Promotion to potential users q. Business Model q. Regulation q. Handset and Application q. Service Trial 31

M-Taiwan Broadband Wireless Environment National Information & Communications Initiative Committee 30 Billion NT$ Broadband Pipeline 7 Billion NT$ Mobile Applications and WLAN-Cellular Dual Network • Gov. Service • Surveillance • m-Traffic Service • m-Medicare • … Gov. WLAN/Wi. MAX (Wireless Broadband） AP Broadband AP Pipeline FTTH/Cable Dual Network Taipei Metro Backbone Ba c k b o n 台中都會 骨幹網路 e 高雄都會 骨幹網路 AP 地 區 接 取 網 路 • M-Commerce • Teleconf. Enterprise • … Cellular （ GSM/GPRS/3 G/PH S） Home • Video/TV • Vo. IP • Video Phone • Homecare • ….

Broadband Initiative of Challenge 2008 National Information & Communications Initiative Committee Stages （2004 -2005） Stages （2006 -2007） Stages （2008 -2010） Network High Quality FTTH – main stream FTTH- universal Speed（bps） Fixed 50 M WLAN 4 M Subscribers reached 300 k House Hold 250 k Subscribers (Killer Application Video/TV Cellular/WLAN integrated services WLAN FTTH +Cellular/WLAN 50 M - 100 M 4 M~50 M 2. 06 Million House Hold 1. 7 Million Subscriber High Quality Video services, home-care, etc. WLAN FTTH +Cellular/WLAN 50 M - 100 M 10 M~100 M 4. 2 Million House Hold 4. 7 Million Subscriber Broadband multimedia Chinese Taipei: 7 Million House Hold and 22. 6 Million of Population CHT’s FTTx Target: 0. 3 M subscribers by 2005, 1, 0 M by 2007, 2. 4 M by 2010 33

Integration of Services National Information & Communications Initiative Committee Internet side Cellular Side Request/Order Service Operator A Operator B Cellular Operators §GSM/GPRS/3 G/PHS Roaming Cellular operator Fixed Network operator ISP / WISP Independent clearing house ADSL/Cable WLAN Hotspot Internet Home Office §WLAN based on FTTH/DSL Killer Applications: Vo. IP, Content-ondemand, WLAN TV, on-line game, etc. 34

WLAN Roaming in Campus National Information & Communications Initiative Committee TANET 2 G/3 G Mobile Operator ISP Campus A Network Radius Account Server + Roaming Server Cross Campus Roaming Campus B Network o IP Transport Vo. IP n Streaming TV n Multicast n VOD n Distance Learning n WLAN Gateway Application Server AP AP EAP-SIM Dual Mode Handset AP Student Guest WEB Access Control 35

New Policy for Broadband Services National Information & Communications Initiative Committee q Relax the tech. guideline and requirement for the fixed network operators q Provide encouragement for CATV and power line owners to invest in broadband in future Fixed Network licensing process. q Revise the National Numbering Plan to allow number allocation for fixed/wireless Vo. IP services. q Develop a fair competition environment (in regulation) for telecomm business, including number portability, fair interconnection, co-location, and tariff. Note: The formal policy statements on Nov. 1, 2004 from the Cabinet are in Chinese, the above translation/interpretations are not official. 36

Hybrid Solution for WLAN/Wi. Max National Information & Communications Initiative Committee • Simultaneous/hybrid use of FTTx, DSL, HFC and WLAN/Wi. Max is expected to be most efficient • Distance/Bandwidth Limit expected to be improved. Bridge/repeater • Much less expensive than just FTTH • Better coverage than DSL Central Office Fiber to the Curb VDSL or SHDSL Remote DSLAM HFC 37

WLAN/Cellular/Broadband Integration National Information & Communications Initiative Committee Network Video Interactive Audio/Video/Messaging + Vo. IP WLAN Gateway 3 G/GPRS Terminals PDA Gateway Cellular Core Network Gigabit Ethernet over Fiber Internet Cell phone WLAN Gateway IP Transport Network Content Delivery Network ADSL/Cable. Modem WLAN Gateway Wireless LAN Roaming Center Source: NTPO Notebook or Table PC 38

Summary Remark on m-Taiwan National Information & Communications Initiative Committee q Chinese Taipei’s Program on NICI: Starting from e-Taiwan, moving toward M-Taiwan q WLAN, Wi. Max, WLAN/Cellular Dual Mode Services/handset, are the key technologies chosen for e. Taiwan’s infrastructure q Voice/Video/TV/Multimedia Content over IP will become more and more important; q Fixed/Mobile converged services will become popular q All the operators and the telecomm. vendors are expected to enjoy significant growth q Wireless City like Taichung will benefit from the deployment 39

Goals of Chinese Taipei’s e. Readiness National Information & Communications Initiative Committee ※ WEF/NRI：World Economic Forum / Network Readiness Index 40

National Information & Communications Initiative Committee Thank You for Your Attention http: //www. nici. nat. gov. tw/ 41