(CERN) in Switzerland. In 1991, the National Science Foundation lifted the restrictionson the commercial use of the Internet. That same year, the World Wide Web (WWW)was released by CERN. In 1993, the alpha version of Mosaic, the graphical user interfaceto the WWW, was released, giving non-technical users the ability to navigate the Internet.This report uses 1993 as the date when the Internet became truly open to the public. See:Cerf, Vint. “The Internet Phenomenon.” National Science Foundation Web page.Http://www.cise.nsf.gov/general/compsci/net/cerf.htmlNo exact figures exist on Internet usage worldwide, but different sources point to 1997 asthe year when Internet usage approaches/crosses the 50 million mark. For instance, NUA,an Internet consultancy and developer, compiles figures from different research analystsand finds the following ranges of Internet usage: 1995: 8-30 million, 1996: 28-40 million,1997: >100 million. (Note: some research groups report U.S. figures only. Global figuresfor 1995 and 1996 were derived from NUA estimates on U.S. Internet usage as a percentof global Internet usage.) http://www.nua.com/surveys/how_many_online/index.html19. Intel. “Moore’s Law: Changing the PC Platform for another 20 years.”http://developer.intel.com/solutions/archive/issue2/focus.htm20. Making adjustments for price and performance, the IT sector contributed 28 percent ofreal GDP growth between 1996 and 1997. Measured in nominal terms, the IT sectorcontributes 15.7 percent of GDP growth over the same time period. (See IT chapter formore detailed explanation and charts.)21. Parekh, Michael et al. Goldman Sachs U.S. Research: Cyber <strong>Commerce</strong>: InternetTsunami. Goldman Sachs. August 4, 1997.22. Meeker, Mary and Pearson, Sharon. Morgan Stanley U.S. Investment Research: InternetRetail. Morgan Stanley. May 28, 1997.23. Ibid.24. Nicholas Negroponte, founder and director of the MIT Media Lab, estimates that 1 billionpeople will use the Internet as early as 2000. See: “The Third Shall Be First: The Netleverages latecomers in the developing world.” Wired. January 1998. In his book, DigitalEconomy, Don Tapscott cites the New Paradigm Learning Corporation when he estimatesthat there should be well over 1 billion Internet users by 2000. Others feel that 2000 maybe too optimistic, as much of the developing world does not even have a basictelecommunications infrastructure. As new investments in fiber, satellite, wireless andcable are made, more of the world will be connected to the Internet. One billion people onthe Internet by 2005 could therefore be possible.25. Forrester Research, numerous business executives.54
26. Morgan Stanley estimates 46 million U.S. Internet users in 1997. See: Meeker, Mary andPearson, Sharon. Morgan Stanley U.S. Investment Research: Internet Retail. MorganStanley, May 1997.<strong>Commerce</strong>Net Nielsen estimates 62.8 million Web users in the United States and Canadafor the six months ending September 1997. Statistics provided by <strong>Commerce</strong>Net/Nielsenrepresentatives.IntelliQuest estimates 62 million online in the United States in the 4 th quarter 1997. See:IntelliQuest. “Latest IntelliQuest Survey Reports 62 Million American Adults Access theInternet/Online Services.” IntelliQuest <strong>Press</strong> Release. February 4, 1998.http://www.intelliquest.com/about/release41.htm27. Inktomi Corporation White Paper. 1997.http://www.inktomi.com/Tech/EconOfLargeScaleCache.html28. Network Wizards. “Internet Domain Survey.” http://www.nw.com/29. Price Waterhouse LLP. “Price Waterhouse National Venture Capital Survey: NationalEdition Top Line Results.” Full Years 1995, 1996, Quarterly Results 1997. For purposesof this report, “IT startups” include communications, computers and peripherals,electronics and instrumentation, semiconductors, and software and information firms.http://www.pw.com/vc30. Consumer Electronics Manufacturers Association (CEMA). “U.S. Consumer ElectronicsIndustry Today.” June 1997. pp. 50-52. CEMA reports that 40 percent of U.S.households own PCs. A more recent analysis by IDC/Link estimates that the penetrationrate has now reached 43 percent.31. While high-speed optical fiber lines are used for long-distance communications, most U.S.homes connect to these lines via lower-bandwidth copper wire. Integrated ServicesDigital Network (ISDN) connections have become widely available to households andbusinesses, but a very small percentage of Internet subscribers use them.32. Federal Communications <strong>Commission</strong> (FCC). “Annual Assessment of the Status ofCompetition in the Market for the Delivery of Video Programming.” CS Docket No. 96-496. January 2, 1997. pp.58-59.Http://www.fcc.gov/Bureaus/Cable/Reports/fcc97423.html33. From January 1997 to January 1998, the average selling price of a home PC dropped 30percent, to $1,169. By Christmas 1998, analysts expect top PC makers to offer $600machines. At this price, analysts predict that PCs could find their way into 60 percent ofU.S. homes by 2002. Source: Burrows, Peter et al. “Cheap PC’s.” Business Week, March23, 1998.55
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Frequently Asked QuestionsHow was t
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Commissioner BiographiesDean Andal,
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Paul Harris, Sr., Delegate, Virgini
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Robert Novick, General Counsel,Offi
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Stanley Sokul, Independent Consulta
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(d) Definition of Generally Imposed
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(D) Internet access service.--The t
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(b) Membership.--(1) In general.--T
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(B) an examination of the collectio
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(iii) imposes an obligation to coll
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(B) Exception.--Such term does not
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(2) to accelerate the growth of ele
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Traditional business and sales tax
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THE EMERGING DIGITAL ECONOMYIntrodu
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INTRODUCTIONDuring the past few yea
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