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PRIME MINISTER

Report from the e-Minister and acting e-Envoy - 11 December 2000

Introduction

This is our second monthly report on progress against the UK Online strategy, as set out in the UK Online annual report published on 11 September. The strategy details how we are driving forward the programme of change to get individuals, businesses and Government online. As usual, this report is structured around the five key priorities identified in the UK online strategy: modern markets, confident people, successful businesses, getting government online, and world class supply. A more detailed progress report on every one of the commitments in the UK Online annual report is being published on our website at www.e-envoy.gov.uk. This report shows that of the 94 commitments announced, 90 are on track, three completed and only one is behind schedule.

Modern Markets

On 13 November, Oftel published measures to promote new unmetered Internet access services for consumers. Oftel intends to require BT to provide other operators with a new wholesale flat rate Internet access product from 1 February 2001. The new product is a major enhancement of the current wholesale product, known as FRIACO, that takes unmetered Internet traffic from the customer as far as BT's local exchange. With FRIACO, operators have faced additional costs to convey the calls onto their own network. The new product will carry Internet traffic on an unmetered basis from the consumer's home to the network of a competing operator. Oftel has also proposed a number of measures to enable BT's network to cope with the anticipated large amounts of Internet traffic generated by increasing availability and use of unmetered Internet tariffs.

Patricia announced on 20 November the successful bidders in the Broadband Fixed Wireless Access (BFWA) 28GHz auction for licences to deliver internet and multimedia services over the airwaves. Broadband Fixed Wireless Access will deliver fast, always-on access to these services using the airwaves, rather than down a telephone line or cable. 16 provisional licences have been awarded to six bidders, with £38M having been raised. As a result of this auction 60% of the UK's population will potentially have access to a new source of high speed internet. The Government intends to make licences for Fixed Wireless Access (FWA) services at 3.4GHz and 10GHz available next year.

On 23 October, Patricia laid new legislation in Parliament that will allow companies to communicate information electronically with shareholders. The proposals contained in a draft Order will make changes to the Companies Act 1985, removing some of the legal obstacles to communicating electronically. Companies will be able to fulfil their obligation to send shareholders their Annual Report and Accounts, subject to their agreement, by electronic means. This is the first order to be laid before Parliament under section 8 of the Electronic Communications Act 2000. A further order (S.I. 2000 No. 3056), laid before Parliament on 17 November, has been made by Chris Mullin to enable DETR to communicate electronically with local authorities on the annual Housing Revenue Account subsidy.

Confident People

Home access to the Internet and take up of digital TV services continues to grow at a rapid rate, according to research published by Oftel on 11 October. Seven million UK homes (28 per cent) are now connected to the Internet, with almost one million homes going on line in the three months to August.

The Chancellor’s pre-Budget Report included an announcement that £5 million will be provided for the new national e-Learning Foundation. Through working with local e-Learning Foundations, this scheme will provide children from low income families with portable computers and internet access to learning materials and transform learning opportunities, helping the Government's drive to bridge the digital divide.

The Home Secretary announced on 13 November that he is making £25 million available to the police in England and Wales over the next three years to implement a National High-Tech Crime Strategy to ensure that investigators are better trained and equipped to undertake investigation and examination of computer systems. The funding will be used to establish a National Hi-Tech Crime Unit, that will begin work in April 2001, and to enhance the technical capabilities of local police to effectively investigate computer related crime. This cash injection follows directly from your commitment in the UK Online Annual Report to ensure a safe and secure environment for e-commerce and to help people trust the Internet.

On 5 November, a new Memorandum of Understanding to promote co-operation between UK enforcement bodies - DTI, the Office of Fair Trading and local trading standards departments - and the Federal Trade Commission (FTC) in the US was signed by the Secretary of State for Trade and Industry. UK and US authorities will help each other to tackle bogus schemes, such as get-rich-quick ploys and fraudulent prize draws, thereby promoting confidence in e-commerce.

Successful Businesses

The Chancellor’s pre-Budget report also included a series of measures to stimulate UK e-commerce. Proposed changes include tax relief on intellectual property and goodwill, the extension of tax relief on share options and the extension of the ten pence rate of capital gains tax to venture capital companies.

Oftel research published on 29 October revealed that small and medium sized businesses are increasing their use of the internet. Research of 700 small and medium sized businesses shows that: 93 % of medium businesses and 69 % of small businesses are now connected or in the process of connecting to the Internet; a fifth of businesses are now using a form of unmetered Internet package; and, over 70 % of those connected said that they were using the Internet more now than when they were first connected.

Getting Government online

UK Online Citizen Portal

The UK Online Citizen portal (www.ukonline.gov.uk), which connects all government departments and agencies available online, went live on 4 December. The portal is unique, providing a single point of entry to all online official government information and services. The site has been designed with the needs of the citizen in mind; one aim is to make it as simple and accessible as possible in order to encourage and attract those that may be nervous about trying new technology.

The Citizen Portal provides general information about the UK Online programme and brings together information and advisory services from over 1000 central and local government websites (and beyond) to help users through four life episodes. The first four life episodes cover Having a Baby, Dealing with Crime, Moving House and Going Away.

The Portal also provides extensive search and query facilities called Quick Find, which guides users quickly and directly to the right information they require from across Government. The Citizen Space makes it easier for people to find out about government’s plans, enabling users to take part in public consultations and find out about their outcomes. It also provides information about elected representatives and registering to vote.

The Portal is very much work in progress, and has been released as a test site. The range of life episodes will be progressively increased, existing services will continue to be developed and other government services will be included. In particular, the full launch version of the site will include two further life episodes, enhanced search facilities and greater local authority involvement. As we reported last month, we intend to launch the site formally in February. The full Vision and Strategy for the Portal is currently under development and will be available early next year.

E-Business Strategies

All government departments have now produced their initial e-business strategies, which are now being evaluated. Many of the strategies have already been published on departments’ web sites, and the remainder will follow shortly – links to all of the strategies are available from the e-Envoy website.

These strategies provide the foundation for ensuring that the government will meet its target that all key services should be available online by 2005. To ensure that they remain current in a rapidly changing environment, they will be updated at least every six months, with the next versions due to be produced by the end of April 2001.

Other recent Government developments include the following:

  • A pilot Government change of address service went live on 6 November. Two commercial change of address service providers - ihavemoved.com, Simply Move - have added Government departments to their existing services, and the Post Office has launched a new service.. These allow members of the public to pass their new address details to a range of organisations. Users need only enter their details once and the service providers will contact the organisations on their behalf. Government departments involved in the project include DSS, Inland Revenue, DVLA and the Passport Agency. The pilot will be formally launched as part of the UK online Citizen Portal, and will be available as part of the Moving House life episode.

  • On 13 November, Tessa Jowell agreed to extend the contract with the Employment Service's IT partner, EDS, in a deal worth over £500 million. As well as providing all 1,000 Jobcentres with new computers and supporting software, during 2001 the modernisation programme will deliver: touch screen kiosks in all Jobcentres to search the Employment Service Internet job bank; a national vacancy taking and handling service for employers provided through a single national telephone number; and a redesigned Employment Service website with fresh content and easy navigation.

  • On 18 October, Gisela Stuart announced the launch of new NHS Direct information points designed to give patients instant free access to key health information. Each information point will allow people who are not connected to the internet to gain immediate access to the information contained on the NHS Direct On-line website. The information kiosks will be located in easily accessible public places including supermarkets, pharmacies, walk-in centres and A&E departments.

  • On 27 November, the joint DfEE/Employment Service portal for jobseekers – the Learning and Work Bank – went live, on schedule. The web service, which will link to and from UK Online, is undergoing controlled trials with users prior to launch. The launch is provisionally planned for early in 2001.

A new section has been added to the website of the Office of the e-Envoy which provides a regularly updated report on Government services that are available online.

World Class Supply

On 24 October, Lord Sainsbury announced a new £4m LINK programme to help companies design computing and communication systems that are better suited to people’s needs and capabilities. This programme, 'People at the Centre of Communications and Information Technologies', will fund a number of joint academic/industry research projects to improve product design. Computing specialists and social scientists will explore how access to knowledge and information and the way we interact with computer systems can be made more intuitive.

Measuring Success

The next in the series of National Statistics first releases on Internet access will be published on 19 December. This will track progress in increasing access to the Internet, both on a household basis and by individuals, whether at home, at work or elsewhere.

The Office for National Statistics has undertaken a pilot survey of business to measure the value of sales and purchases ordered on line. The results of the pilot are due later this month and should form the basis for rolling out a regular standalone survey next year.

Patricia Hewitt signature

Patricia Hewitt 
e-Minister 

Andrew Pinder signature

Andrew Pinder
Acting e-Envoy

11 December 2000

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