November 2000

Mediterranean Area Synthesis of Update Memos

I. Introduction

Developing the " Information Society " is becoming a major challenge for the economic and social development of Mediterranean countries. For several years, public and private players have become increasing interested in enabling the development of infrastructures networks, technologies and information society applications. New information and communication technologies are seen as key components of growth.

Most of the Mediterranean countries have launched Internet and telecom infrastructures development programmes, as well as sector-specific projects (such as computerising government departments, introducing IT into schools and universities and setting up e-commerce pilot projects). Certain countries are also putting major legislative reforms into place (to privatise key sectors of the economy or attract foreign investments).

However, the rhythm of reforms and priorities of Information Society strategies are quite different:

• Cyprus, Malta and Turkey are official candidates to join the European Union. With this in mind, these countries are in the process of bringing their national legislative frameworks in line with European directives. An integral part of this process is the incorporation of the principle of ‘Acquis communautaire’ (adherence to the body of EU law) in information society-related developments. Cyprus, Malta and Turkey have undertaken significant developments over the past months, in particular, they have been preparing a new legislation dealing with Internet and the use of new technologies. Malta has released a White Paper entitled "Information Practices Legislative Framework" in May 2000 on e-commerce, data and consumer protection legislation. Cyprus is preparing a legislation concerning data protection (see more details below). During the last quarter, Turkey has issued a draft law on e-commerce. Turkey has also issued a draft law for establishing a separate ministry for information society issues.
   
• Morocco, Egypt, Tunisia, Jordan have also undertaken several major reforms, they mainly concern the elaboration of IS strategies focussed on infrastructure improvement, IT and e-commerce promotion, privatisation programs, education and research : Morocco has enacted a law on telecommunications in 1997 preparing the liberalisation (see previous reports and synthesis), during the last quarter, a working group has been established by the government to elaborate proposals concerning e-commerce. During the last quarter, Tunisia has made a significant development in the e-commerce field by adopting a bill regulating this field (see more details below). Egypt is also implementing reforms : liberalisation of several telecoms sectors (Internet access, mobile services with 2 competitors, pre-paid international calling card services, pay-phones services, …), announce of the intention to privatise the incumbent operator in the short term, other main axes of IS strategy are the training of a qualified manpower, the development of telecommunications infrastructure. Jordan has undertaken several programs : the privatisation of 40 % of the incumbent operator on January 2000, the launch of a second mobile operator, investments in education and research fields.
   
• In Lebanon and Palestine, efforts are in particular oriented towards the up grade of infrastructures, human resources and training.
   
• In Algeria and Syria, main recent developments have taken place in the Internet field : development of an Internet backbone in Syria and, during the last quarter, creation by the Prime minister of an e-commerce consultative committee. In Algeria, Internet service provision has been opened to competition since August 1998, today 28 ISPs are authorised in the country.

The purpose of this document is to summarise regulatory developments related to the information society which have taken place between July and September 2000.

This document is based on the contributions of the national contractors to the ESIS II project.

 
II - Summary of new developments

Basically the readings of countries reports indicate that a large set of events changes happened over the last three months in some countries. These events happened in the within the countries below, in the listed fields.

1. Executive summary

1.1 Information Society Policies

Concerning national IS strategy a few main incentives and priorities are recurrent. The main ones are listed below :

• Increasing the amount of investments and updating networks infrastructures,
• Invest on training and Human resources.
• Largely promote the Information Society to reach an overall conscious of people and authorities and be sure to fully take advantage of financial and employment opportunities generated by the development of new technologies.

Countries having dealt with this point over the last three months are listed below : There are ranked by order of interest from the less committing to the more committing act.

• Lebanon, where the Minister of Economy reiterated previous declarations concerning an IS strategy for Lebanon, main fields tackled being infrastructure, IS promotion and Human Resources.
• Turkey, where the 8^th 5-year plan recognising the importance of Information Society was prepared by State Planning Organisation and approved by the parliament over this last period.
• Egypt, where a three-year expansion plan has been announced by the minister of Communications and Information Technology.

Government and administration: Projects regarding these fields consists of developing computerisation, set e-government projects enabling populations to access administrative information through administrations and institutions web sites. Several countries are leading important projects. Countries below can be considered :

• Syria where computerisation of the main governmental institutions and making the internet available for them is the first priority.
• In Cyprus the first phase of the Government’s Information Systems Strategy has now been completed and the second phase is expected to be completed by the end of 2000.

Telecommunications and internet were considered over the past three months by countries listed below :

• Egypt with its announced intention to sell a part of its incumbent very soon,
• Maroc is continuing its incumbent operator privatisation,
• by Palestine of which its incumbent operator signed an agreement with an US integration company named Startec.
• at last Syria of which its incumbent telecom operator has agreed to form a consortium with private companies to implement and manage its internet backbone.

Electronic Commerce is one of the core IS issue of the latest IS development. Different levels of development still appear despite significant changes during the last period.

A "consultative" level :

• An E-commerce Consultative Committee was thus formed in Syria, gathering several ministries, which shows the increasing interest in Internet in this country.
• Morocco where SEPTI created a National Commission on Electronic Commerce in charge of preparing laws and decrees to regulate e-commerce.

A "pre-regulatory" level : the following countries are concerned :

• Malta of which Minister for Justice Local Government released a white paper in may 2000 concerning e-commerce, and having to be discussed and approved by the end of this year by the parliament.
• Syria which introduced a draft law in order to regulate digital signature.

A "law adoption" level : Tunisia has made significant developments, a bill regulating electronic commerce and electronic signature has been adopted.

Education and research is one of the main issue relative to the building up of the Information Society (see recurrent "Umbrella Policies" issues above). Thus Egypt has agreed to make available 100 000 computers to 250 000 students, then has decided to offer a wide set of scholarships and at last has joined the global net of Tele-education (a world bank affiliate). In Jordan, a large university project, led by the ministry of Planning, is on going in order to provide students with a good knowledge of new technologies.

Health care: Turkey introduced a by-law over the last period regarding mobile telephony to regulate the installation of base stations and its safety issues.

Labour is a real concern for all the Mediterranean countries, countries reports indicating a shortage of qualified manpower in the IT field. Egypt, Israel and Jordan particularly acted to manage this problem, either by dealing with training or with getting Human Resources from outside (see below) :

• Egypt has signed major contracts with large networks providers companies first to update its current existing networks and then to train IT engineers.
• Israel’s Director of the Human Resources Planning Authority has said that 30 000 additional workers are needed presently. He’s also suggested that 10 000 licenses for foreign workers be delivered immediately.
• Jordan has seen an initiative to collect information about Jordan’s most important IT resources by implementing an accurate database on internet.

Privacy, data protection and consumer protection is also a concern for countries willing to legislate internet and use of new technologies. Cyprus, has prepared a new legislation about it, having to be submitted in October 2000. Malta has also considered this issue within its overall white paper.

Opening to competition is also being considered in such countries like Algeria and Cyprus, respectively expected to issue a new telecommunication law and licenses for radio and TV stations.

Audio-visual deregulation was tackled over the last period in Algeria and Cyprus, both of them preparing law to be implemented respectively concerning TV and digital TV. Note that Cyprus also intends to issue a permanent licenses to radio and public stations by 2001 (see opening to competition)
 

1.2 Institutions and organisations in charge of IS regulation

New ministries dedicated to telecom and IT are under the way or are established :

• A draft law was introduced in Turkey to establish a separate ministry,
• Egypt has a national project for technological development of which a first step was the establishment of the Ministry for Telecommunications,

Then Lebanon counts five ministries dealing with IS issues depending on the type of issue. 2 of them are expected to merge very soon and the government is aware of the necessity of a true IS strategy.

National regulatory authorities are being created in such countries like :

• Lebanon, where basically five ministries have to deal with Information Society issues, several of them being due to merge very soon.
• and Malta with the setting up of an Information Society and Economy Commission acting in turning Malta into an information society.

Consultative council has been set in Syria, concerning e-commerce.

An organization in charge of the promotion of the IS technologies has been created in Lebanon
 

1.3 International relationships and agreements

International relationships and agreements was the object of close discussions between Egyptian authorities and India and USA, the objectives being first to benefit with Indian Human resources expertise, and then to develop close to market relationships with USA.
 

2. Summary description of Information Society Policies in each country

2.1 Information society policies

2.1.1 Umbrella Policies and national IS strategy

Egypt

Three broad goals of umbrella policies are defined under the National Plan for Telecommunication and Information Technology. These are as follows :

• Promotion of the national demand for information and its application.
• Acquisition of international global market share.
• Development of human resources.

The policies include establishment of information industry pools which focus on

• selection of locations that are close to densely inhabited and service conglomerates in the New cities.
• a gradual process of starting with limited areas and expanding gradually
• implementation being carried out by the private sector through companies that are charged with the establishment of the infrastructure, construction, operation and management.

Additionally, the plan aims at the establishment of alliances with the international industry, modernization of the communication infrastructure and establishment of the legislative environment for industry growth.

In a latest development over the past quarter, the Chairman of the General Authority for Investment and Free Zones (GAFI) has announced the approval of 2 IT companies in the Nasr City Free Zone. The decision to launch the two IT companies comes in response to the incentives and facilities offered by the GAFI which will provide land with infrastructure and lifetime exemptions.

A further development has been the announcement of a three-year expansion plan for the telecom sector, by Ahmed Nazif, Minister of Communications and Information Technology. The Minister announced plans to expand the fixed line penetration rate among residential users to 90% from the current 40%. Meanwhile, there is a five-year plan for the sector aiming to increase fixed line penetration from the current 10% of the population to around 20% by the end of fiscal year 2005.

Lebanon

In a recent assessment of the situation concerning the Information Society in Lebanon the Minister of Economy, Dr Nasser SAIDI, reiterated previous declarations concerning an IS strategy for Lebanon. The six main ideas put forward were:

• Developing a national information and communication infrastructure,
• Updating and extending the institutional and legal framework,
• Developing and promoting a managerial culture for the new technologies of information and communication,
• Speeding up and promoting the networking throughout the whole public Administration,
• Supporting and promoting a favorable climate to enhance technological innovation,
• Coordinating more efficiently national plans to get better advantages from international cooperation and assistance.

As earlier stated, no official plans have been presented as formal proposals reflecting the Government views, objectives and priorities. However, a number of international experts have been assisting the Government through OMSAR on the best ways to undertake a vast rehabilitation program for the public Administration that could have favorable repercussions on the socio-economic sphere.

According to Dr R. KHOURY, senior adviser to OMSAR three levels of action are considered to promote the Information Society in the country: the institutional infrastructure level, the hard infrastructure level and the soft infrastructure level.

• On the institutional level, the need for a national ICT plan and policy was clearly stated. Financial innovations and special incentives have to be adopted to facilitate the starting-up of new companies dealing with information and communication technologies.
• On the hard infrastructure level, there is a need to extend the modern telecommunication infrastructure to cover the whole Lebanese territory and to provide for more powerful communication facilities through broad bandwidth.
• On the soft infrastructure level, the presentation noted that many important courses of action are underway, concerning the training and the professional insertion field.

Malta

The White Paper entitled "Information Practices Legislative Framework" published in May 2000, should be discussed and approved by Parliament before the end of the year, according to the Minister for Justice Local Government. The Bills in the framework are: Electronic Commerce Bill, Data Protection Bill and Computer Misuse Bill. The bills aim to establish functional equivalence between electronic and conventional transactions and communication, set parameters for determining authentication and non-repudiation of transactions and communications, introduce rules to govern privacy and related issues, and establish a regime for regulating crime arising from misuse and abuse of information technology.

Syria

Computerization of all government institutions and making the Internet available for these institutions and businesses in the first place and for the public at large in the second place are still the main pillars of IS in Syria. The newly formed government has again stressed this policy in its first report.

Turkey

The 8^th 5-year plan prepared by State Planning Organization was approved by the parliament this period. The plan recognizes information society and information technologies as very important areas. Another area identified as a strategic area is software production.

2.1.2 Government and administration

Cyprus

In terms of new developments in the area of government and administration, the first phase of the Government’s Information Systems Strategy has now been completed, and the second phase is now expected to be completed by the end of the year 2000, This will allow the operation of the Data Network and interconnection of all Government Information Systems. Additionally, all offices will be equipped with an Automation System. The aims of the new phase include the improvement of services to the public, the successful implementation of legislation, and better planning, control and assessment of government activities. The new phase also aims at minimizing government sector operational costs, raising government revenue and alignment with European Union standards.

2.1.3 Telecommunications and internet

Egypt :

Minister of Communication and Information Technology (CIT) announced offering of up to 20 percent of Telecom Egypt during the fourth quarter of this year (2000). The offering, valued at around LE 19 billion, will be offered as IPO (Initial Public Offering) and as private placement on international markets.

Morocco

Privatisation of Maroc Telecom is continuing with the help of the consortium led by J.P. MORGAN and the BCP. Among the operators that will be bidding for the 25 to 35 percent of the capital of Maroc Telecom next June are SBC Communications, Telecom Italia Mobile, France telecom, and Vivendi. Experts can expect that the winning bid will be in the range of four to five billion dollars.

Palestine

Startec Global Communications Corporation, an integrated communications provider for VoIP (Voice over Internet Protocol), data and Internet services to emerging economies, signed an agreement with the Palestinian Telecommunications Company (Paltel) to deliver inbound and outbound VoIP services to the Palestinian Market. This agreement is the first of its kind between Paltel and any U.S. company.

Syria

STE is making a major shift in its policy as a telecommunication monopoly regarding the national Internet backbone. A consortium is going to be formed of STE with private companies, both local and foreign, to implement and manage this backbone. The share of STE will be 25% through investments made in the telecommunications network.

The Syrian Computer Society obtained a special license to start an ISP for its membership and university professors. The number of subscribers is currently about 1500. It is expected that this number will reach 5000 by the end of this year. This is the first private ISP to operate in the country.

2.1.4 Electronic Commerce

Egypt

In the context of the National Plan for Telecommunication and Information the promotion of electronic commerce is targeted through the following key objectives :

• preparation and development of the necessary Egyptian legislation.
• enhancement of the work flow in financial institutions and the securing of financial deals conducted via the electronic networks.
• enhancement of the work flow in some governmental institutions such as Customs and Exports and Imports supervisory institutions.
• raising awareness as to the importance of electronic commerce and carrying out training programs for the business sector.
• increasing the capability of the communication network for information transfer to accommodate the growing demand of electronic commerce applications.

In a new development which is ultimately expected to boost e-commerce in Egypt, Lucent Technologies has signed a US $51 million contract with the Egyptian Company for Networks (EgyNet) to expand its national asynchronous transfer mode (ATM) backbone data services network. The network will provide Internet access and video broadcast capability for EgyNet's business customers

Malta

Malta intends to pass a law concerning the e-commerce of which the White Paper deals with in order to determine the significant points to tackle in this law. This white paper is due to be discussed for approval before the end of 2000.

Morocco

The SEPTI created this fall a National Commission on Electronic Commerce. The commission is charged with preparing the laws and decrees that will provide the legal framework for electronic commerce in Morocco. The commission will publish a precise calendar for this framework no later than next June.

Tunisia

A bill regulating electronic commerce was adopted on the 27th of July. This law regulates the use of the electronic commerce as well as electronic signature. This legislation comes to enclose three years of studies on electronic commerce carried out by a national Commission since its creation in November 1997.

Syria

Syria has introduced a draft law in order to regulate digital signature.

2.1.5 Education and research

Egypt

The Information and Decision Support Center (IDSC) of the Egyptian Cabinet has represented Egypt in a symposium organized by the International Bank for Reconstruction and Development (IBRD) as part of its first program for implementation of remote-education international centers.

The Minister of Communication and Information Technology (CIT), Ahmed Nazif, announced an agreement made with Egyptian computer manufacturing companies to import 100,000 machines for local universities. The computers will be offered to enrolled university students on a minimal installment basis. It is expected that there are currently 250,000 university students who could benefit from agreement.

In another development, the Egyptian government has announced an ambitious plan to raise the IT knowledge through miscellaneous partnerships and scholarships attributions :

• with Microsoft which will offer training courses to become engineer.
• With the Information Technology Institute (ITI) and Mentor Graphics Egypt (MGEG) (through 25 scholarships fully covered tuition fees for nine months).

Finally, Egypt has joined the global net of Tele-education, the World Bank affiliate, which will help in increasing the co-operation between Egypt and the World Bank in the fields of training and education.

Jordan

A $30 million project to enhance IT at Jordan's state-run universities and community colleges is in the works. The project is part of the higher education development project currently being carried out by the Ministry of Planning. The ultimate aim of the project is to supply students, pursuing higher education, with skills and know-how in state-of-the-art technology.

Installation of computer networks in public schools

The Ministry of Education is allocating JD 28 million to install computer networks in public schools around the Kingdom starting September. The project encompasses more than 1600 schools.

2.1.6 Transport

Lebanon

The transport sector is undergoing a fundamental transformation as special programs to enhance the productivity in this sector are being implemented with the assistance of international bodies and especially the World Bank.

The Beirut airport has also undergone a thorough rehabilitation program. The technical side of the rehabilitation has been done under contract with the French Société des Aéroports de Paris. The most up to date installation is now close to completion using advanced information technology devices and applications. The transport services through the Beirut International Airport are, consequently, becoming comparable to international standards.

Morocco

Several radio communications licences are up for sale from the ANRT destined for companies whose employees are always on the move (haulage, ambulance, courier). A questionnaire is also being given out to understand what companies think of these licences.

2.1.7 Labour

Egypt

Contracts have been stricken between the Minister of CIT and Cisco, then Lucent Technologies aimed at establishing a high-speed telecommunications network and then to train IT engineers in the fields of networks and software. The objective is to update networks technologies and then to end up the lack of human resources. Egypt intends to become the Cisco African hub for IT Human resources.

Israel

The director of the Human Resources Planning Authority, Beny Feferman, said that 30,000 additional workers are needed for the hi-tech industry in Israel in addition to the present 105 thousand employees. He suggested that 10,000 licenses for foreign workers be issued immediately. This would enhance the competitiveness of the Israeli hi-tech industry and will contain wages. Haaretz, 22.8.2000, C3.

Jordan

Database of Jordanian workforce in the IT field

An initiative that aims to collect information about Jordan's most important IT resources was launched on the 22 of July by the government and the Economic Consultative Council.

2.1.8 Opening to competition

Algeria

The most overwhelming event is undoubtedly the ongoing regulatory changes in the telecommunications sector (vote of a new law preparing the opening to competition of the sector).

Issue of 10 agreements to 10 new ISPs by the "Internet Commission", thus increasing their number to 28.

Cyprus

Several developments in the audiovisual sector, governed by the "Plan for Radio and Television Coverage" : the Authority of Radio and Television is expected to issue permanent licenses to radio and TV station early in the year 2001.

2.1.9 Privacy, data protection and consumer protection

Cyprus

New legislation is being prepared to be submitted in October 2000 to Parliament concerning privacy and private data protection, as announced by the Deputy Attorney General, Mr. Petros Clerides

The aim is to secure private personal data protection, not only of "sensitive data" (e.g. religion) which are already protected by law, but also of "non-sensitive" data on which the keeping of archives is allowed, but not their publicizing.

Malta

See the white paper content ("umbrella policies" part)

2.1.10 Audio-visual deregulation

Algeria

The Algerian National Assembly has set up a preparatory regulation for the liberalisation of the audio-visual sector : television and radio

Cyprus

Amongst priorities : a specific legislation set up dedicated to digital TV developments conditions.

Turkey

One by-law for digital TV broadcasting was introduced over the last period : The purpose of this by-law to regulate this area.

2.2 Institutions and organisations in charge of IS regulation

2.2.1 Ministries

Lebanon

Five ministries have to deal with various aspects of the Information Society:

• The Ministry of State for Administrative Reform
• The Ministry of Post and Telecommunication
• The Ministry of Transport
• The Ministry of Industry
• The Ministry of Economy and trade

It is worth mentioning that the Industry and Commerce and Trade ministries are destined to merge according to a draft law reducing the number of ministries from twenty-six to eighteen. Moreover this law mandates the creation of Higher Council for Planning and Development by merging the Council of Development and Reconstruction (CDR), the Council of Greater Beirut Projects and the Council for Reconstruction Projects.

Turkey

A draft for the establishment of a separate ministry for information society issues was prepared by the IT Group of parliamentarians in the Grand National Assembly and was submitted to the prime minister by the Group.

2.2.2 National regulatory authorities

Egypt

The national project for technological development involves the set-up and use of the telecommunication and information industry to serve development objectives in Egypt. The establishment of the Ministry for Telecommunications and Information was the first practical step towards the implementation of this national project.

Malta

The Minister for Justice and Local Government announced that the Cabinet of Ministers is considering the setting up of an "Information Society and Economy Commission", which would be empowered to act as the catalyst to transform the island into an information society and economy.

2.2.3 Consultative councils

Syria

An E-Commerce Consultative Committee has been formed by the Prime Minister that includes in its membership: The Minister of Transport, the Deputy Minister of Economy & External Commerce, the Deputy Minister of Finance, the Deputy Minister of Justice, the director general of STE, and Dr. Maher Mujtahed (representative of SCS).

2.2.4 Organizations in charge of the promotion of the IS

Lebanon

The government has issued no formal designation for such a charge. The Ministry of Economy and Commerce is however appearing as the principal public actor in this respect under the leadership of Minister Dr Nasser SAÏDI. A National ICT Committee has been recently designated to advise the Government over IT matters (See kpco report). A recent agreement signed with the European Union provides for the creation of a focal point for Lebanon to promote inter-alia the Lebanese participation into the EUMEDIS initiative.

2.3. International relationships and agreements

Egypt

A plan was announced, by the Minister of Communication and Information, with India to benefit with the IT Indian expertise. Close discussions occurred with the Indian Minister of Science and Technology to boost cooperation between both sides.

An agreement has been also signed for the development of programs and applications between Egypt and United States. The objective is to develop programs and applications domestically and then market them in the American Market.