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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.
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Patricia Hewitt
e-Minister
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Andrew Pinder
Acting e-Envoy
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11 December 2000
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