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EC'S LIIKANEN STRESSES NETWORK SECURITY, INTERNET ACCESS

European Commission (EC) member Erkki Liikanen, who heads enterprise & information society programs, told European-American Business Council Mon. that network security had taken on “new dimensions” since Sept. 11. “Users need to feel safe,” he said in luncheon speech that was part of 2-day visit to Washington. “A growing number of users experience security and privacy problems.” As example, he said that between Oct. 2000 and last June, spamming incidents had nearly tripled and virus incidents had doubled in European Union (EU). This summer, EC published communication on network & information society proposing creation of European warning and information system to strengthen activities of computer emergency response teams in member states and improve coordination. By year-end, EC plans to publish a “major communication” that would provide road map to areas such as public-private partnerships on network security and address issues such as integrity of Internet and private networks, Liikanen spokesman said. Liikanen said: “We need to develop forward-looking responses to existing emergency security threats and we need to take careful inventory of the measures taken at the national level to guarantee that our preparedness corresponds to global characteristics.”

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As part of broad strategy on security of electronic networks, Liikanen cited EU-wide criminal sanctions against cybercriminals. Next week, EC plans to publish paper providing for minimum standards for use in member states on sanctions for cybercrime, spokesman said. Previous convention in EU already has dealt with standardized definitions of what constitutes cybercrime, he said. Paper will go to Council for Justice & Home Affairs. As for network security in general, Liikanen cited need to raise awareness through public information and best practices. For legal framework in that area, he said communication on network security last summer proposed creation of inventory of national measures that would coordinate EC law. Legislative proposal now pending in EU also addresses prior consent, or opt-in, program for receiving unsolicited commercial e-mails, which legislators are considering.

In coming year, providing Internet access to all Europeans will be top priority, Liikanen said. “What Europe needs now is a forward-looking strategy to ensure that growth in the Internet comes quickly and to all Europeans,” he said. In what he described as positive step in that direction, he said competition in flat-rate access was growing in Europe, particularly with increased popularity of ADSL. Average Internet penetration in Europe, as of this summer, was 39%, up from 28% in previous 6-month period, he said. European- wide average Internet penetration still lags 12-18 months behind U.S., but gap is expected to narrow as cable and DSL access continues to grow, he said.

One of EU priorities is to continue to increase access to new telecom services by “further liberalization” of telecom sector, Liikanen said. Unbundling local loop is particularly important to increase last-mile access to spur incumbent operators on to greater innovation, he said. “It seems like it’s coming a little later, but there are new entrants coming,” said Liikanen during question & answer period after speech, in which he stressed critical role that opening up local loop plays to boosting competition. “The share of new entrants may not be dramatic, but even a smaller share is a guarantee that competition is there.” He said he believed that discussions on Internet policy had concentrated too closely on technology, rather than on content, services and applications. “Government is a major player in this context,” he said. “It owns a considerable amount of high- quality content linked to Europe’s formidable cultural heritage. We are planning to liberalize the use of public information for Internet content in Europe.”

Liikanen said during speech: “The hype may be over [on Internet] but the integration of the old and new economy goes on and that’s essential,” he said. Visit to Washington is first for Liikanen in Bush Administration, and spokesman said he planned to meet with FCC Chmn. Powell later Mon. and with FTC Chmn. Timothy Muris, U.S. Trade Representative Robert Zoellick and Commerce Secy. Donald Evans today (Tues.). With Powell, spokesman said Liikanen planned to discuss issues such as broadband rollout and local loop access.

Asked in press briefing after his speech about foreign ownership limitations that Senate Commerce Committee Chmn. Hollings (D-S.C.) is backing again, Liikanen said EU position hadn’t changed. When Hollings supported such legislation during pending merger of wireless carrier VoiceStream and Germany’s Deutsche Telekom, EU had expressed concerns about how such ownership restrictions would square with U.S. market-opening commitments with World Trade Organization. Last week, Hollings and House Commerce Committee Chmn. Tauzin (R-La.) introduced companion bills that would bolster limitations on foreign ownership of U.S. communications companies. Legislation would bar outright transfer or issuance of telecom licenses to carriers more than 25% owned by foreign govt. (CD Nov 13 p4). Separately, Liikanen also said he planned to issue a broadband policy proposal in Jan.