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Unclassified DSTI/ICCP(2005)4/FINAL Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development ___________________________________________________________________________________________ English - Or. English DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY Unclassified DSTI/ICCP(2005)4/FINAL OECD INPUT TO THE UNITED NATIONS WORKING GROUP ON INTERNET GOVERNANCE (WGIG) English - Or. English Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format DSTI/ICCP(2005)4/FINAL TABLE OF CONTENTS MAIN POINTS............................................................................................................................................ 4 ICT/INTERNET-INDUCED BENEFITS .................................................................................................... 8 Leveraging ICT/the Internet in OECD countries ...................................................................................... 8 Growth in Internet usage in OECD countries........................................................................................ 8 Productivity impact and contribution to economic growth.................................................................. 10 Benefits of ICT/the Internet in non-OECD countries..............................................................................11 ICTs and development goals............................................................................................................... 12 Necessary enabling policies and regulatory environment.................................................................... 12 Increased international network connectivity...................................................................................... 13 Technological leapfrogging ................................................................................................................ 15 COMMERCIALISATION OF THE INTERNET ...................................................................................... 16 Phase 1: Early developments (until the 1990s) ....................................................................................... 17 The origins of the Internet................................................................................................................... 17 Managing the Internet’s strong growth ............................................................................................... 17 From ARPA to the National Science Foundation, and to a widespread infrastructure with NSFNET . 18 Phase 2: Transition to commercialisation and internationalisation (1990s-98) ....................................... 19 Phase 3: Commercialisation, Globalisation, Convergence (end of 1990s) .............................................. 20 i) Increasingly widespread IP-based supporting infrastructure............................................................ 20 ii) Supporting protocols coordination.................................................................................................. 21 iii) Internet resource management....................................................................................................... 22 FACTORS THE OECD VIEWS AS IMPORTANT TO THE INTERNET’S SUCCESSFUL DEVELOPMENT TO-DATE.................................................................................................................... 26 Private sector competition and innovation enabled by liberalising markets ............................................ 26 Role of governmental and intergovernmental oversight ......................................................................... 26 Decentralised and collaborative process of underlying technological development and core resource management ........................................................................................................................................... 28 Open, non-proprietary nature of the core Internet standards ................................................................... 29 A distributed/decentralised, open architecture ........................................................................................ 29 THE ROLE OF THE OECD IN INTERNET-RELATED PUBLIC POLICY AREAS.............................. 31 Background ............................................................................................................................................ 31 Public policy issues associated with Internet governance ....................................................................... 32 OECD work on WGIG-designated public policy issues ......................................................................... 33 ACRONYMS/ABBREVIATIONS./ORGANISATIONS .......................................................................... 39 NOTES ...................................................................................................................................................... 40 2 DSTI/ICCP(2005)4/FINAL Boxes Box 1. Salient figures of Internet growth in OECD Member countries ........................................................ 9 Box 2. New entrants with regional strategies ............................................................................................. 14 Box 3. Kenya’s Internet eXchange Point, set-up in 2002 ........................................................................... 15 Box 4. Internet Resource Management ...................................................................................................... 18 Box 5. Impacts of the WWW..................................................................................................................... 20 Box 6. Regulatory interventions that were instrumental to effective competition and growth in Internet markets............................................................................................................................................... 27 Box 7. The IETF’s standardisation processes focus on “what works”........................................................ 28 Box 8. Developing TCP/IP ........................................................................................................................ 30 Box 9. Institutions that currently address some Internet Governance issues............................................... 31 Figures Figure 1. Worldwide ICT market*, 2003 ..................................................................................................... 8 Figure 2. The contribution of investment in ICT capital to GDP growth.................................................... 10 Figure 3. Internet Market Size and Growth ................................................................................................ 11 Figure 4. Numbers of Internet users and number of countries connected to the Internet ............................ 11 Figure 5. Number of Internet users, by income and by region, 2003.......................................................... 12 Figure 6. Monthly Price for international bandwidth and bandwidth growth ............................................. 14 Figure 7. Internet Exchange Points (IXPs) around the world .................................................................... 15 Figure 8. Simplified chronology of Internet technical coordination structures ........................................... 16 Figure 9. Language of e-commerce, and language populations on the Internet .......................................... 22 Figure 10. A Market share of gTLDs and OECD ccTLD registries, December 2003................................. 25 Tables Table 1. “Internet governance” public policy areas as identified by the UN Working Group on Internet Governance (WGIG).......................................................................................................................... 33 Table 2. Issues Relating to “Infrastructure and the Management of Critical Internet Resources”............... 34 Table 3. Issues Relating to the Use of the Internet Issues Relating to the Use of the Internet..................... 35 Table 4. Issues with Wider Impact than the Internet .................................................................................. 36 Table 5. Issues Relating to Developmental Aspects of Internet Governance.............................................. 37 3 DSTI/ICCP(2005)4/FINAL FOREWORD This report was prepared as an input by the OECD to the United Nations Working Group on Internet Governance (WGIG), in the context of activities by the WGIG “to investigate and make proposals for action, as appropriate, on the governance of Internet” for consideration and appropriate action at the second phase of the World Summit on the Information Society (WSIS) in Tunis on 16-18 November 2005. This report was presented to the OECD Committee for Information, Computer and Communications Policy (ICCP) in March 2005, which agreed to its declassification through a written procedure in April 2005. It was prepared by Ms. Karine Perset of the OECD's Directorate for Science, Technology and Industry, with the participation of Mr. Dimitri Ypsilanti of the OECD's Directorate for Science, Technology and Industry. This report is published on the responsibility of the Secretary-General of the OECD. As a complement to this report, the OECD has created an online resource, www.oecd.org/internetgovernance, linking to relevant work conducted by the OECD on public policy issues related to Internet