where there is active cooperation between government and industry have accelerated the availability of high speed Internet connections at a low cost. With enough volume, prices for broadband connections should reach those of regular dialup connections. In South Korea over 60% of all households have broadband Internet access, at prices as low as $ 25 per month. There the government invested $1,000 million in fiber optic connections and granted loans and incentives totaling over $1,000 million to private enterprises in the industry. With vision and a clear strategy, the South Korean government has achieved a high degree of confidence with the private sector. Although it is difficult to quantify the impact of the government's actions, it is unlikely that without them South Korea would be a world leader in broadband connections.

In Singapore the government joined industry in a initiative called "Singapore ONE" to extend the fiber optic infrastructure and to offer high speed access to practically every home in the country. The result is that over 33 % of the population has access to broadband connections and freedom of choice among 12 different providers. In 2 years access costs have dropped by a factor of five while the user base has quadrupled. These broadband connections have made telecommuting more common allowing employees to work from their homes, improving efficiency and quality of life. Government agencies have also successfully promoted various e-learning projects such as the well-known Singapore-MIT Alliance between the University of Singapore and MIT.

Similar successes have been seen in New Zealand and other countries that have made high speed internet access a priority within their economic infrastructure. In contrast, Japan is an example of how having sole broadband access provider is detrimental to the marketplace. Before 2001 only the telephone company (NTT) offered broadband access in the country. After much pressure from the Ministry of Telecommunications (MPT), the NTT began to offer its lines to competitors at a cost four times lower. In only 9 months, competitors had captured 40% of the market and started the rapid growth of broadband connections in the country.

Active government participation greatly accelerates the development of an infrastructure that is at the forefront in Internet connections. The progress achieved in these countries (not only now, but also in the coming years) is overwhelming proof that these investments pay significant dividends.

Rev: Oct-24-02