Re: UNDP proposal on taxing Internet

M. A. Hameed (mailto:mah@BRAIN.NET.PK)
Mon, 19 Jul 1999 12:06:43 +0500

Message-ID:  <000801bed1b5$431fdd00$9a0280cb@nadeem>
Date:         Mon, 19 Jul 1999 12:06:43 +0500
From: "M. A. Hameed" <mailto:mah@BRAIN.NET.PK>
Subject:      Re: UNDP proposal on taxing Internet
To: mailto:DEVEL-L@AMERICAN.EDU

Of course, the middle class is very aspiring. According to a recent
nationwide survey of 116 cities, 73% of ALL households in Pakistan's urban
areas own television, while 12% have VCRs. The percentages for other items
are: radio: 17%, telephone: 21%; tape-recorders: 29%, refrigerators: 43%;
washing machines: 71%.
The Government of Pakistan allowed unrestricted and duty-free import of
personal computers over 15 years ago. As a result, it is one of the hottest
items for the middle class. The parents, who know absolutely nothing about
computers, gladly buy it for their children. The lower prices help them. A
complete multimedia computer (with Intel Celeron 333 processor) costs about
US$600 because of duty-free import. There is a tremendous demand for
Internet but the high cost (US$0.50 to 1.00 per hour) makes it beyond the
reach of most middle class parents. If Internet becomes affordable, the
users will rise from about 150,000 at present to a million or more within no
time. That is the reason I am one of the enthusiastic supporters of the UNDP
proposal to subsidize Internet for the developing countries.

Best regards, Muhammad Abd al-Hameed GPO Box 109, Lahore, Pakistan 54000

-----Original Message----- From: Technology Transfer in International Development [mailto:mailto:DEVEL-L@AMERICAN.EDU] On Behalf Of Renewable News Network Sent: Saturday, July 17, 1999 9:10 PM To: mailto:DEVEL-L@AMERICAN.EDU Subject: Re: UNDP proposal on taxing Internet

Is there no aspiring middle class? Would you hazard to guess the growth or share figures on other electronic appliances, devices?

On Sat, 17 Jul 1999, M. A. Hameed wrote:

> Kai,
> When we speak of "one billion people living off one dollar per day," we
may > as well talk of such basic necessities as clean drinking water, which is
not > available to most of them in developing countries. Internet, by
definition, > can be used only with a phone and most developing countries have a phone
> density of just one or two percent.
>
> The people who have phones can also afford to buy personal computers. What
> they need are low-cost connections, when Internet charges are as much as
one > dollar per hour! If the international leased circuits are paid for and the
> charges for domestic circuits are based on actual costs of the telecom
> companies (plus a reasonable margin of profit), the Internet will
certainly > become affordable for most people.
>
> Best regards,
> Muhammad Abd al-Hameed
> GPO Box 109, Lahore, Pakistan 54000
>
>
> -----Original Message-----
> From: Kai Schraml [mailto:mailto:thekaiser@earthlink.net]
> Sent: Friday, July 16, 1999 10:50 PM
> To: 'M. A. Hameed'
> Subject: RE: UNDP proposal on taxing Internet
>
> One billion people live off less than a dollar a day... I highly doubt
they > will be buying a computer anytime soon. What outlet and phone line do you
> expect them to plug into?
>
> Kai Schraml
>
> Kai Schraml
> Target Earth International
> "Serving the Earth, Serving the Poor"
> www.targetearth.org
>
> Work Info:
> PO Box 25
> Colfax, WA 99111
> 509 981 3245 phone
> 509 332 4411 alt phone
> 509 332 5375 fax
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>
> Home info
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> 509 332 7231 phone
> mailto:thekaiser@earthlink.net
>
>
>
> -----Original Message-----
> From: M. A. Hameed [SMTP:mailto:mah@BRAIN.NET.PK]
> Sent: Thursday, July 15, 1999 7:25 AM
> To: mailto:DEVEL-L@AMERICAN.EDU
> Subject: UNDP proposal on taxing Internet
>
> The UNDP suggestion about tax on information via Internet has a parallel
> right in the US. As required by the Federal Telecommunications Commission,
> the phone companies pay money into a fund to meet "the universal service
> obligation." The fund is used for providing telecom services in rural
parts > of the country.
> In the context of Internet, all Internet service providers in the top
> richest countries should pay a small percentage of their total annual
> revenue to the UNDP. The fund should be used to pay for the international
> leased circuits of the Internet service providers in the less developed
> countries. The money will ultimately come back to the rich countries
because > the international circuits are mostly owned by their own multinational
> telecom companies. But it will promote tremendously the use of Internet in
> the less developed countries.
> The payment should, however, be subject to the condition that the national
> telecom companies in the relevant developing countries will charge only
cost > plus rates for the domestic circuits and local connectivity, and not the
> usually exorbitant monopoly prices.
> The result of the plan will be the availability of Internet at a very low
> cost to the users in the developing countries. There will be the one-time
> cost of a basic personal computer but that will not be much of a problem
for > most users.
>
> Best regards,
> Muhammad Abd al-Hameed
> GPO Box 109, Lahore, Pakistan 54000
>