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Telecommunications for Ebusiness Telecommunications for e-Business A USER’S GUIDE Department of Public Enterprise Telecommunications for e-Business A USER’ S GUIDE Editorial Committee Terry Ralph (Chairman) Informix Software (Ireland) Ltd/IBEC Telecommunications and Internet Federation Dr George Young Commergy/Vice Chairman, IBEC Telecommunications and Internet Federation William Poole Confederation of British Industry, Northern Ireland Aidan Ryan Department of Public Enterprise, Republic of Ireland Tom O'Dwyer Forfás Declan Hughes Forfás Tommy McCabe IBEC Telecommunications and Internet Federation Noel Kelly IDA (Industrial Development Authority) Ireland Dr Trevor Forsythe Industrial Research and Technology Unit, Northern Ireland Authors Harry McDermott Mason Communications Ireland Mary Willoughby Mason Communications Ireland Page ii Introduction In recent years the information and communications sector has changed dramatically. The developments in information and communications technologies are defining new ways of doing things for businesses, customers, governments and society in general and are changing the ways in which they all interact. Indeed, we are now living in truly global Information Age, and people, whether individually or collectively, can transact Mary O’Rourke, T.D. Sir Reg Empey, MLA Minister for Public Enterprise Minister for Enterprise, and communicate at the touch of a button. The impact of these technological Trade and Investment developments is hardly surprising, as communication has always been the lynchpin of co-operative human endeavour. Both Governments have a facilitating role in all of these developments. In 1998, the telecommunications market was liberalised in Ireland and new legislation will be brought forward to enhance the regulatory framework in order to enable increased competition. In addition, the recent enactment of the e-Commerce Acts, 2000 in Ireland and the UK ensures that electronic agreements are undertaken in an environment of trust and certainty. We have seen the Global Crossing international connectivity deal, which places Ireland as a leader on the international broadband map. In Northern Ireland initiatives such as the Information Age Initiative have shown there are opportunities to be grasped by all in the Information, Communications and Technology sector. We are living in exciting times on the island of Ireland in light of the Belfast Agreement, the Peace Process and the increase in North-South co-operation that stems from these. We are delighted and welcome the initiative of industry to develop this guide in a co- operative manner through their representative organisations North and South and with the assistance of the industrial development agencies. We are certain that businesses will benefit greatly from this guide. It is fitting that this joint North-South initiative comes from our business people and focuses on communication. We firmly believe that through greater communication results are achieved. This guide shows businesses how to make greater use of information and communications technologies and will contribute to the objective of making Ireland, North and South, a global centre for e-business. We must ensure that all people can participate in the Information Society and avail fully of its benefits. It is for this reason that the Governments and EU have provided assistance for investment in e-commerce and communications infrastructure and services. The focus of these investments will be to ensure that all regions can participate in the Information Society in a fully inclusive way. Mary O’Rourke, T.D. Sir Reg Empey, MLA Minister for Public Enterprise Minister for Enterprise, Trade and Investment Page iii Preface Forfás and the IRTU are pleased to present Telecommunications for Business: A User’s Guide. This is the second edition of the Guide which was initiated in 1999 by Forfás and IBEC to provide a comprehensive mapping of Ireland’s telecommunication infrastructures and to describe the strategic and operational opportunities which this advanced infrastructure presents for business. John Travers Chief Executive The success of the first Guide in achieving its objectives is evidenced by the publication of this Forfás second edition, and the welcome inclusion of our new partners, North and South, to guide its development. Through the inclusion of the telecommunication infrastructures in Northern Ireland this year, the Guide presents, for the first time, detailed all-island maps of the telecommunications infrastructures that are central to future economic development. The information and communications technologies that underpin e-Business are now significant drivers of economic and business growth. The development of the digital economy is well advanced and the pace of change is set to accelerate as we move into the new Millennium. For those businesses that are prepared to be pro-active, information and communication technologies offer a competitive advantage but its exploitation will require the adoption of new skills and technologies and a more flexible approach to work. Jim Wolstencraft Chief Executive This guide will help those who wish to understand the technology and jargon used in the IRTU information and communications technology arena. It highlights sources of further advice and information to help small businesses exploit the business benefits and incorporate these technologies into their business. The guide also demonstrates that our communications networks and infrastructures on the island of Ireland and the onward connections to the rest of the world are excellent. This demonstrates to companies around the world that we on this island are well positioned to harness the full potential of the opportunities presented in the move to a knowledge based economy . John Travers Jim Wolstencraft Chief Executive, Forfás Chief Executive, IRTU Page iv Foreword The telecommunications landscape is developing at a rapid pace. Telecommunications operators in Ireland and Northern Ireland have continued to invest significant sums in developing world- class broadband infrastructure. At the time of writing, there are over 200,000 fibre kilometers on the island of Ireland, the availability of co-location space is forecast to grow by 700% in the next Turlough O’Sullivan 18 months, and international connectivity into and out of the island is now described in terms of IBEC Terabit and Petabit capacity. As a result of this rapid rate of change in the market, IBEC and CBI have teamed up to produce an updated report (the initial user guide in 1999 was developed by IBEC and Forfás) on the state of the Irish telecommunications marketplace. The report has been produced with the full involvement and co-operation of Forfás, the Industrial Research and Technology Unit (IRTU), which is affiliated to Department of Enterprise, Trade and Industry (Northern Ireland), IDA Ireland and the Department of Public Enterprise (Republic of Ireland). Mason Communications were commissioned to carry out the research and author the report on behalf of the project participants. This new report extends its coverage to the entire island of Ireland. As such, it represents the first combined effort to produce a definitive guide to broadband infrastructure on the island of Ireland. All parties are to be congratulated on the extent of their collaborative efforts. Nigel Smyth CBI Northern Ireland In addition to providing a definitive guide to broadband infrastructure in Ireland, the report also addresses the inter-relationship between broadband infrastructure and e-business. Hence the new title: ‘Telecommunications for e-Business - A User’s Guide’. A user-friendly summary is provided on how broadband technology and the Internet are impacting on day-to-day business and government activities. Some case studies of real businesses are given. Likewise, we are seeing the emergence of a whole new range of e-support services (web hosting, ASPs, etc.) that were not in existence a few years back. The report gives an introductory overview to these e-support services and explains how they are helping to create entirely new forms of web- enabled infrastructure in Ireland, North and South. It has been stated repeatedly by many leading influencers that the availability of world-class broadband infrastructure is a critical success factor for the future of “Ireland Inc”. This User Guide serves to paint the most up-to-date picture of our recent progress. Turlough O’Sullivan Nigel Smyth IBEC CBI Northern Ireland Page v 1 Table of Contents 1 Digital Revolution and e-Business 1 1.1 The Impact of the Digital Revolution 1 1.2 Telecommunications for e-Business 1 1.3 What is the meaning of the phrase ‘Digital Revolution’? 2 1.4 What does your business have to do? 2 1.5 e-Business and the Opportunities 3 2 e-Business and e-Commerce 5 2.1 What is e-Business? 5 2.2 e-Commerce is One Component of the e-Business Concept 5 2.3 How is Business Changing? 5 2.4 The Internet – a new dimension to market access 6 2.5 Developing a European Centre for e-Business 7 2.6 Opportunities for Business 8 2.7 e-Business and the Challenges 8 2.8 What is e-Commerce? 9 2.9 Changing Commerce 10 2.10 How your Business can Benefit from e-Commerce 10 2.11 Business-to-Business e-Commerce 12 2.12 Business-to-Consumer e-Commerce 14 2.13 Web Portals 14 2.14 Training and Education 15 2.15 m-Commerce and t-Commerce 15 2.16 Government Initiatives 15 2.17 Electronic Commerce Bills, Security and Privacy 17 2.18 An incremental approach to e-Business 17 2.19 Summary 20 3 e-Government 23 3.1 The Vision 23
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