This chapter includes opinion of people who define today directions and level of development of the Information Technology specifically and information society in general.

On Presidential Decree of August 23, 2001

On August 23, 2001 President of Ukraine issued a Decree intended to make the telecommunication and IT processes more transparent.

Oleh Shevchuk, Director of the Institute of the Information Society: "I would divide the Presidential Decree into two parts - technological and ideological. The main ideological part lies in the necessity of the state to interfere into the information sphere, to correct its processes. I am absolutely sure that the state regulation cannot be associated with strict monitoring, registration of Internet cafe users, strict censorship and so forth. A special advisory body should be created to consider ideological issues of the Information sphere. Such advisory body should include as members representatives of different state agencies, non-profit organizations, scientists, and entrepreneurs. The National Telecommunication Commission, which is to be created according to the draft law "On Telecommunications", could typify such agency. A very important for the information sphere is statistical information. Over two years and a half at the head of the State Communications Committee I witnessed diverse statistical data. Even today nobody can tell the exact number of Internet users in Ukraine because there is no exact statistical data. Thus, to successfully manage this sphere it is necessary to combine efforts of the whole number of state bodies in order to have thorough and accurate information. Only after we accumulate all the necessary data we will be able to speak of the forming of the state policy in the information sphere. Another aspect is technological and technical maintenance of the individual enterprises of the industry. Cooperation of the operators should be regulated by law. Unfortunately, there is no proper regulatory basis in Ukraine to coordinate relations in the telecommunication and IT industry. When I was at the head of the State Communications Committee we were actively lobbying industry's interests. Adoption and observance of the law "On Telecommunications" would clear up a great number of issues, among them are the issue of cooperation of operators, traffic account, mutual settlements of accounts and others. The rest issues should be solved along the way, conflicts should be brought before court. In general, the Presidential Decree can be considered as stimulating. But we have been doing this all before. Symptomatic will be the implementation of the Decree, sizing up, analysis of proposals, and authorities, granted to individual departments according to the results of work. It is obvious that the administrative functions of the State Committee of Ukraine for Communications and Informatization will be increased. It also possible that certain administrative powers will be transferred to the telecom monopolist "Ukrtelekom". The most important thing is to prevent the lop-sided use of these powers, as it used to be up to now. 

On putting into operation of the digital circuit

Oleh Shevchuk, Director of the Institute of the Information Society: It seems that some people believe that digital circuit is a panacea and its implementation will solve all the problems of the city such as installation of telephones, relief of a telephone waiting list, quality of communications. To date 60 per cent of the Kyiv telephone equipment is digital, but the quality of communications could have been higher. This problem is especially critical for dial up Internet users. The most essential issue of the implementation of the so-called "digital circuit" is that the Ukrtelekom's management lacks the so-called "culture of business". Unfortunately, Ukrtelekom failed to fulfill most agreements with MKM-Telekom (Siemens's subsidiary). An expressive proof of the above said are customs problem while importing the equipment.

To date Siemens equipment is already installed and being tested. According to the previous plan the circuit should have been working by this time. Recently the new leaders of the State Communications Committee and Siemens have conducted negotiations. According to the Ukrainian party the negotiations were successful, but we will see the results after the circuit is put into operation. It goes without saying that Siemens Corporation has fulfilled its obligations, now its Ukrtelekom's turn to do so. Revenues of Ukrtelekom and its Kyiv subsidiary allow developing of the network at the expense of domestic resources. Besides, the majority of private operators providing local communication services all over the city are located in Kyiv. They are ready to invest into the development of the transit network. That's why the cooperation of state and private operators should be stimulated and encouraged in every possible way.

There is one more aspect, perhaps the most important one - though previously it was planned to connect private operators to the circuit, circuit configuration is intended to unload only Ukrtelekom's network. It means that in the nearest future the necessity will arise to invest more money to build one more circuit. 

On the Privileged Subscription for Ukrtelekom's Shares

According to the Resolution of the Cabinet of Ministers the privileged subscription for Ukrtelekom's shares was put off from October 1 till the end of the year. It should be reminded that formerly the privileged subscription for Ukrtelekom's shares was to be carried out from August 1 till November 1 of this year. Some 130 thousand people have the opportunity to buy Ukrtelekom's shares at a reduced price to the total amount of UHR 750 each.

Comments by the experts of the Institute of the Information Society: There is a real threat that the Ukrtelekom's privatization might end on the stage of privileged subscription. There are a number of examples when profitable and attractive for investors enterprises got a new and quite unexpected owner after "subscription for shares process" came to its end. It goes without saying that 13 per cent of shares is not a crucial share packet, but after certain manipulations with the help of administrative resource it is quite possible to concentrate these shares in one and the same hands. Thus even if 25 per cent of shares are sold and another 25 per cent are transferred to management, there will appear a third party apart from the state and the owner, which would have power enough to influence the enterprise management. Postponement of subscription draws our attention to the problem. We have serious reasons to suspect certain structures of having the intention to make the subscription process go on as they wish it to. We shouldn't forget that the Parliament is underway to consider the draft law, which envisages a substantial raise of the minimum wage. In this case, if the chapter on the privileged subscription of the Law "On the Peculiarities of Privatization of the OJSC "Ukrtelekom" is based on this index, we'll have 75 per cent of shares, which could be sold at a reduced price. The state should ensure transparent subscription process and prevent all kinds of abuses at this stage of privatization. 

On Privatization of the OJSC "Ukrtelekom"

On August 9 of this year the Cabinet of Ministers of Ukraine issued the Resolution No 344-p "On Specific Issues of the OJSC "Ukrtelekom" according to which the Ukrtelekom's share packet was once again transferred to the State Committee of Ukraine for Communications and Informatization.

Oleh Shevchuk, Director of the Institute of Information Society of Ukraine: "At the end of the last year the State Property Fund of Ukraine received from the State Communications Committee 100 per cent of Ukrtelekom's shares. We did not approve this decision because we believed that an enterprise of this type should be managed by the specialists of the industry. Chief task of the privatization is to attract a strategic (industrial) investor but not a financial speculator. That's why the State Communications Committee had been trying to get back control over shares. At that time the Ukrtelekom's management vehemently opposed to it. But today they seem to have quite a different concept of the development of telecommunications from what it used to be formerly. Such inconsistency in opinion and actions can be justified only by expediency of such actions for the state in general and for the industry specifically". 

On Digital Signature in Ukraine

Consideration of the draft law on the digital signature was postponed because of the discrepancies between this draft law and the norms of the European legislation - said the Deputy Chairman of the State Committee of Ukraine for Communications and Informatization.

Consideration of the draft law on the digital signature was postponed because of the discrepancies between this draft law and the norm of the European legislation - said in his interview the Deputy Chairman of the State Committee of Ukraine for Communications and Informatization Oleksandr Baranov. According to him, Ministry of Justice objects to the consideration of this draft law because the latter doesn't envisage freedom of choice of digital signature and it is not defined in the draft law that "certification process should be voluntary". Oleksandr Baranov said that at present they were underway to finalize the draft law so that to preserve all what is good and rational in it and to introduce provisions, which would correspond with European legislation and would allow "certain freedom of actions for users who have nothing to do with the state". Oleksandr Baranov mentioned also that "the state has the right to dictate its conditions using digital signature in the field of the circulation of the state documents, different transactions of the state and budget money resources and where the state secret is involved. All other spheres have to be democratic and represent freedom of choice".