2013-Chapter 1 E-commerce Infrastructures Abstract

The Internet, which can be used for almost anything, has become an essential part of everyday lives. Therefore the development of the Internet is considered an important element in the infrastructures of many countries. Countries around the world have developed plans to make greater accessibility to broadband Internet a reality. In addition to broadband availability, the following are also important parts of Taiwan's e-commerce infrastructure: Internet connectivity, wireless communications development, an environment of information security and trust, and education and training in e-commerce. In particular, there has been rapid growth of high-speed Internet in Taiwan. The number of fiber optic access accounts in Taiwan has been increasing and, as of the end of May 2013, exceeded two million doors. In addition, there are 4,479,500 households with xDSL (including ADSL and VDSL) subscriptions, and the total number of broadband Internet subscribers, both wired and wireless, has reached 24,109,811.

With respect to wireless broadband access, the number of cellphone service subscribers in Taiwan reached 29.5 million in 2012, a penetration rate of 127.6% (3G and 2G subscribers make up 77.2% and 20.4% respectively of the mobile phone population). In this saturated mobile phone service market, the growth in the number of subscribers in 2013 will be the modest, and it is estimated that the total number will increase only slightly to 3,030,000. With the plans of the National Communications Commission (NCC) to conclude the auction of 4G licenses by the end of 2013, it is expected that 2G users will be upgraded to 3G services at a faster pace, and as a result 2G users will account for only an estimated 10% of all users at the end of 2014. On the other hand, mobile phone sales reached 7,791,000 units in 2012. In particular, the sales of smartphones rose each quarter and accounted for 67.2% of all mobile phones sold for the entire year. It can be said that smartphones have become the main force behind all cellphone sales in Taiwan and have also contributed to the growth of mobile Internet users. As of the first half of 2013, the number of mobile broadband subscribers in Taiwan exceeded 10,720,000, meaning that one-third of all mobile phone users access the Internet via mobile broadband service.

There are two main types of obstacles to the growth of Taiwan's e-commerce market: domestic e-commerce obstacles and cross-border e-commerce obstacles. Domestic e-commerce obstacles include the following: 1. Websites are prohibited from selling liquor or common medical products; 2. No regulations governing third-party payments exist in Taiwan; 3. Problems associated with cross-border exchange settlement agencies; 4. Issues related to the use of online gift tokens; 5. Electronic invoicing for merchandise return processing; and 6. Barrier to the sale of travel-related products in online stores. Cross-border e-commerce obstacles include: 1. ICP licensing applications in China; 2. Problems with Taiwanese websites being censored; 3. Applying for relevant licenses in China; 4. Efficiency problems with merchandise inspection and customs clearance. These problems are currently being addressed.

With respect to developing an environment of information security and trust, the Department of Commerce has launched the "E-commerce Information Security Evaluation and Guidance Program" and "E-commerce Website Identity Authentication Mechanism Promotion Program," the purpose of which are to provide guidance to e-commerce proprietors in conducting information security evaluations within their organizations and to help them improve their security environments. The programs also aim to encourage online identity authentication emblem certification in order to establish consumer recognition of the emblem and a benchmark for confidence in online shopping. Since 2010, over 240 online merchants have received training and begun to improve their external security protection through the strengthening of their internal security implementations and personnel training in security concepts. A large segment of society uses e-commerce on a regular basis, and as a result any information security issue should be addressed properly. Online merchants who require assistance may take advantage of available government programs and resources.

With various industries increase their investments in e-commerce, the necessary talents are being sought after. There are a number of aspects associated with education and training in e-commerce. Manpower resources and professional expertise that are required include at least those in the following areas: information management and information technology, business and management, Internet marketing activities, and innovation and entrepreneurship. Apart from formal academic education, it is also possible to develop expertise and cultivate talent in e-commerce through vocational training and self-paced courses. It is hoped that there will be an infusion of new blood to enter into this arena.