21 OECD Growth Project, OECD 2001
39
9.2 Electronic infrastructure
Electronic infrastructure includes, amongst other things, broadband, electronic signatures, and payment solutions. Efforts to improve electronic infrastructure require facilitation within all of the said areas.
Increased Internet use is attended by a need for security solutions that prevent misuse, for example in connection with the exchange of sensitive information or in connection with payment transactions. Individuals, businesses, and government bodies all have a need for secure exchange of data and dependable identification of communications partners. Development of a societal infrastructure for electronic ID and electronic signature, based on PKI (Public Key Infrastructure), will contribute to paving the ground for legally binding and extensive interaction over the Internet, thus opening up new opportunities for innovation and industrial development.
There is a need for cooperation between market players to enable interconnection between different electronic ID and signature solutions. In this regard it is important for the public sector to coordinate its electronic ID and signature requirements, in order to improve the scope for such infrastructure to be coordinated on the part of users. It is an important objective of eNorway 2005 for conditions to be prepared, within yearend 2005, for the general use of standard-based electronic signatures.
Development of electronic payment solutions will also offer scope for new electronic products.
Traditional credit cards and direct transfers from bank accounts are currently costly due to onerous requirements in the form of safety procedures, user identification, and money laundering checks. A number of suppliers of, amongst other things, electronic content will depend on more modern payment solutions being capable of handling smaller amounts, through the creation of routines for the transfer of smaller amounts that are less elaborate than those applicable to other electronic transactions. Public sector coordination may contribute to creating the necessary critical mass for such simple solutions.
Broadband is a collective term for fixed and
wireless telecommunication networks characterised by high transmission capacity, and represents the core of a future-oriented electronic infrastructure.
The definition of what constitutes broadband depends on the needs in question. The
Government’s vision for broadband development is for the electronic infrastructure to cover all parts of the country, for it to constitute a competitive advantage on the part of Norwegian industry, for it to create growth opportunities for knowledge-based industries, and for it to contribute to the
modernisation of the public sector. Private and public sector entities need good access to
electronic infrastructure, and to be able to exploit the opportunities accorded by broadband. Content and services must be developed in line with market developments, and organisations and individuals must have the competency needed to realise the benefits available thereby.
Broadband enables simplification of communication with customers and suppliers, and makes it easier to automate processes. The use of broadband may also give rise to new and more efficient working methods within the public sector, as well as improved public services. Consequently, the capacity of the electronic communications infrastructure will play an ever-increasing role in terms of innovation, efficiency, wealth creation and environmentally effective solutions in society in general, as well as in trade and industry.
As per September 2002, 65% of businesses had the opportunity of opting for broadband.22Coverage in the private market is expected to increase to about 85-90% towards 2005. Additional growth in the rate of coverage is uncertain, and is likely to take time.
It depends, in particular, on technological developments, on the demand for broadband amongst those who have already been offered it, and on the development of attractive services and content. There is a close correlation between population density and broadband coverage.
Coverage is the highest in areas inside, or in the proximity of, Oslo, Bergen and Stavanger, where competition is most intense and prices are lowest.
The overall situation in terms of broadband
22 ECON/Teleplan 2002, Report 92/02, Broadband Survey.
coverage (availability) at present, and the expansion expected towards 2005, seems reasonably good, although lack of coverage in some municipalities may result in less innovation activity in rural areas. The percentage of
broadband users is still relatively low, but is growing rapidly. As per August 2003, about 16 percent of households and 15 percent of businesses were broadband users (see Chart 9.1).23
The OECD has stated that Norwegian enterprises does not make sufficient use of technology to realise productivity gains.24It has also been questioned whether Norwegian businesses make sufficient use of solutions for electronic trade and commerce. Investments in a broadband network are not sufficient in themselves, as one must also create servicesto make use of the increased transmission capacity. The extent and quality of technology-related education in Norway may be a barrier to maximum exploitation of existing technology and infrastructure. Sufficient competency with regard to the opportunities offered by the new technologies, and the development of electronic content, is of decisive importance to the utility derived from broadband investments.
The Government has recently submitted Report No 49 (2002-2003) to the Storting, Broadband for Knowledge and Growth, in which one has opted for a market-based strategy for broadband expansion.
Market players shall be responsible for the choice of technology and the construction of
infrastructure for electronic communication, as well as appurtenant services. The authorities shall facilitate increased competition in the marketplace.
One shall increase public sector demand for broadband, and facilitate services and content development, competency development, and the dissemination of experience. Moreover, the Government will consider measures targeted at areas where there is no commercial basis for expansion.
The HØYKOM Programme contributes to the realisation of broadband development targets, by supporting selected broadband projects within the public sector. The Programme has a considerable trigger effect and a good geographical spread, and has given rise to extensive cooperation both within the public sector and with private players. The Government has in the 2004 Fiscal Budget proposed an expansion, HØYKOM-district, aimed at broadband development in rural areas.
40
0 20 40 60 80 100
Norway
Denmark Icela
nd
Swede n
Finland Coverage Connection
Chart 9.1 Expected percentage of broadband coverage and connection in the consumer market.
23 Norsk Telecom AS, August 2003.
24 OECD (2003), “Seizing the benefits of ICT in a Digital Economy”.
41
To stimulate the continued development of an efficient, safe and environmentally friendly national transportation network, the Government will:
• present, in the spring of 2004, the overall transportation policy in the form of the National Transportation Plan.
To promote simpler access to electronic signatures and good electronic payment solutions, the Government will:
• facilitate cooperation between market players for purposes of ensuring interconnectivity between different solutions for electronic ID and signatures
• coordinate public sector requirements with regard to electronic ID and signatures
• promote the assessment of new electronic payment solutions as alternatives for public administration.
To facilitate effective competition in the construction of electronic communication networks, and in the development of services and content, the Government has:
• recently submitted a report on broadband to the Storting
• proposed an expansion of the HØYKOM Programme – labelled HØYKOM-district.