back

Report of the Austrian Federal Government Working Group

Vienna, April 1997

Table of contents

 1 Executive Summary 

1.1.1 The economic and social developments of recent years have been very closely bound up with the utilisation of (new) information and communications technologies. Our continued progression from an industrial to an information society that attaches ever greater importance to the existing scope for obtaining, storing, processing, transmitting and using information will require us to perceive the opportunities and the hazards and to play an active part in fashioning developments by seizing the appropriate political initiative. By setting up the Information Society Working Group, composed of more than 350 experts in the fields of state administration, business and science, the Austrian Federal Government has acquired valuable insights that will help it to formulate an Austrian approach to the information society. The present Report outlines fundamental objectives and terms of reference and elucidates steps to which priority has been accorded. The next stages of the process must include deepening the social dialogue at every level and supplementing the planned measures drawn up by the individual ministries in an overall Action Plan. 

1.2.1 The term "information society" denotes a process by which information and communications in changing guises are permeating every area of working and private life. The acceleration of technical developments in the telecommunications field necessitates several fundamental decisions for the future, notably in such fields as telework. Access to information and the dependable provision of basic telecommunications services as a means of safeguarding regional development and addressing the vital communications needs of every social group are gaining in importance. This poses the question: "What does Universal Service mean?" Telecommunications policy itself emerges as a key policy area within which certain reforms are called for. Every member state of the European Union (EU) is thus amending its telecommunications laws. This becomes all the more understandable when we consider a selection of EU directives on telecommunications. 

1.2.2 Scientific research makes a pioneering contribution to social developments. This is evident in the use of new services and applications made possible by information and communications technologies - one instance would be the generic link between Internet and Aconet. However, the technological aspect also comes to the fore in the diffusion of new technologies as exemplified by the simplifications in business communications brought about by electronic data interchange (EDI). That different areas are affected by endeavours in the field of innovation and technology policy is demonstrated in the context of information and mobility and more specifically the related implications for transport and environment policy. It is in education that the key decisions are being made on how sustainable and socially equitable the coming social developments will prove; so that networks for schools and education will have a specially significant part to play. The public sector administration - in the narrow sense - is another key area for new technological applications. This is apparent in the already implemented applications such as the IT systems in the judicial field, and in the initial steps towards "Electronically Assisted Democracy". That the public sector - in the broader sense - has a key role to play is evident in the services and applications that i.e. new forms of communications in the medical field make possible. Several facets of the issue of security through encryption illustrate the extent to which access to information and the provision of the requisite conditions for this access determine social and economic developments. 

1.3.1 Austria's business environment underwent radical changes in the wake of the opening of Eastern Europe and this country's accession to the European Union. These changes harbour both opportunities and risks. An increase in international competition on the product markets and new forms of the division of labour and of partnership are making it necessary to adapt - in many cases even to reformulate - economic policy strategies if we are to safeguard longterm jobs and enhance Austria's attractiveness as a business location. Telecommunications and the use of information and communications technologies will assume ever more decisive importance in social and economic developments. This means, however, that telecommunications as the key infrastructural aspect of the information society are increasingly becoming the focus of the location issue. The principal targets here are: (i) to realise the growth potential of the telecommunications sector (in the narrower sense) and of upstream and downstream sectors; (ii) to boost the role of the telecommunications sector as a factor in the attractiveness of an industrial and service location; and (iii) to detect the opportunities and risks of the wider use of information and communications technologies in terms of social development. The primary objectives of the Federal Government therefore include: 

1.4.1 Telecommunications are emerging more and more as a key technology in economic and social development. Telecommunications networks and services provide the fundamental infrastructure for information and communications, for the provision of commodities and services, and for the performance of transactions and the consumption of information. A modernday telecommunications policy will focus on enlarging the availability, lowering the prices and enhancing the quality of this fundamental infrastructure. At the international level, it has become apparent that there are national economic advantages to be gained from the transition from a largely monopolistic structure to a competitive situation on the telecommunications markets. It is only logical, then, that the liberalisation of market access (deregulation) constitutes an important element in telecommunications policy. Moreover, liberalisation also caters to the enormous advances that technology is making in this field. Conversely, however, regulatory measures are necessary to counteract various areas in which market forces fail to work efficiently in the process of deregulation. The Federal Government's primary objectives in the formulation of its telecommunications policy are therefore: 

1.5.1 In the field of research and university education, the complexity of the development and application of new, multimedia forms of information and communications is apparent in a number of challenges. Scientific research, defined as an attempt to obtain knowledge through systematic and methodical approaches, has notably dynamic ties with social and economic developments. The acquisition of new knowledge depends on these dynamic ties and becomes apparent not least in the selection and intensity of the treatment of research topics. However, scientists in a wide variety of disciplines also assume the role of pioneers where the development of new knowledge and technologies and their immediate utilisation - often in "laboratory conditions" - are concerned. Moreover, the research sector as a repository of technological expertise and as a transmitter of scientific knowledge and skills fulfils important social functions by providing intersectoral problemsolving capacities and university education. It is therefore necessary to bring the Federal Government's scientific and university policy into line with the implications posed by the emergence of the information society as they relate to the (public) research sector. In terms of the Federal Government's objectives, the following conclusions may be drawn: 

1.6.1 Safeguarding the innovative capacity of enterprises operating in Austria and utilising innovative products and services are the pillars of an economic policy that, in seeking to maintain its options for the future, sets its sights on enhancing the performance of the country's economy, improving the outlook for employment, and strengthening the country's competitive standing as a business location. Innovation and technology policy with its various avenues thus needs to be implemented as a means of improving the prevailing conditions for adequate  companybased research and development, paying due regard to the specifics of the Austrian economy. Information and communications technologies and the related services and applications are notable for their aboveaverage innovation rates and growth potentials on the one hand, and on the other hand for the fact that their utilisation by commercial users in every industrial and service sector is becoming an increasingly important competitive  factor. Furthermore, the use of information and communications technologies in the public administration sector (in the context of sustainable budgetary consolidation) assumes a double function in affording greater efficiency in the handling of administrative tasks and in providing improved "customeroriented" public-sector services gauged to the real needs of the general public. The Federal Government's objectives within the context of its innovation and technology policy will include: 

1.7.1 Where the education system is concerned, the ever wider utilisation of information and communications technologies in every area of working and private life poses a substantial challenge in several respects. The definition and the implementation of the general syllabus must be modified to take account of the need to convey new knowledge and skills. The technical rudiments of handling information and communications technologies are increasingly emerging as a fourth aspect of "cultural literacy" alongside reading, writing and arithmetic. Dealing with the new media on an emancipated basis presupposes a comprehensive understanding of the media. The public education system will, however, also have to cater to the new background conditions for education and further education by providing life-long learning. Moreover, the future use of information and communications technologies and new media in the educational field is a special challenge in itself. Most particularly, the targeted utilisation of new teaching aids like learning programmes or specific telematics applications will necessitate the modification of the existing principles governing the transmission of knowledge and will alter the role of the teacher and the applicable qualification requirements. At the same time, the use of the new media and technologies in the classroom will substantially depend on the availability of the appropriate basic equipment (hardware and software, local network systems and network access). In the context of libraries and archives, educational considerations are supplemented by considerations of democratic and cultural policy (for instance: libraries as facilities providing access to the cultural heritage; the longterm archiving of traditional published material and electronic publications). With a view to ensuring a sustainable and socially equitable development, the Federal Government sees the most urgent objectives as: 

1.8.1 Characteristic features of several functions of the state administration are: informationintensive procedures, growing quantities of information needing to be processed, and a high degree of division of labour. In view of the above, it is evident that the use of information and communications technologies is a key factor in the supply of efficient and effective services on the part of the state administration. Ever greater importance also attaches to the wider use of information and communications technologies to assist administrative tasks as a means of achieving sustainable consolidation of the federal budget. New telecommunications services and applications afford wider scope for greater efficiency and productivity in complex organisational procedures and must therefore be viewed as key factors in an administrative reform programme. Electronic communications within the state administration are steadily advancing from being an exception to being the rule. Moreover, modern telecommunications can also facilitate communications and access to information and hence interaction between the administration (public authorities) on the one hand and the public sector (enterprises and private individuals) on the other hand. Information and communications technologies, then, help to improve the service aspects of public-sector functions. The Federal Government's primary objectives therefore include: 

1.9.1 Apart from the public administration in the strict sense of the term, public social services constitute an appropriate area for employing information and communications technologies. For reasons of social and economic considerations, special priority attaches here to improving standards with regard to (i) customer orientation, (ii) transparency of performance, and (iii) the effective utilisation of the available resources. The complexity of task allocation amongst the various bodies involved and the steadily growing volume of information needing to be processed have in recent years necessitated wider use of information and communications technologies in such areas as public health, the employment service, and the social insurance schemes. As this process continues, it raises a number of issues with regard to the transition to the information society. The most notable of these is as follows: the wider use of technology must be justifiable as an approach to increasing cost-effectiveness within a given public authority and as a means of enhancing the availability and quality of the services and commodities provided (from the customer's point of view). The fundamental political decisions must take account first and foremost of staff (re)training needs, the exploitation of rationalisation benefits, and specific data protection requirements. In view of this, the Federal Government's primary objectives include: 

1.10.1 Precisely because information and communications technologies and new multimedia networks and applications are spreading ever more rapidly, the issue of the relationship between technology and law needs to be examined from at least two viewpoints. On the one hand, technological advances pose the question of the need to amend or enlarge the pertinent legal provisions. On the other hand, new information and communications technologies often serve as an aid to (improving) the enforcement of the law. If the vision of the information society is to encompass the development of society towards greater openness and democratic strength, then we must take advantage of the scope for improvement that exists in both the technological and the judicial fields. Information and communications technologies that are being utilised ever more frequently at present or will be utilised in the foreseeable future will probably necessitate legal amendments in the medium term, especially in judicial fields in which information plays a key role. We will thus have to rethink not only the provisions relating to access to information (via new media) and to the use of information (data protection and protection of privacy, exploitation of copyright material, prosecution for offences under the media law etc.) but also to (commercial) transactions carried out via multimedia networks (in terms of, for instance, consumer protection). The Federal Government will pursue the following principal objectives: 

2.1.1 Information and communications technologies have made it possible for new forms of information and communication progressively to permeate every area of working and private life. This has marked the onset of social and economic changes that have been the subject of debate in political, scientific and public circles since the fifties under such headings as the information age, postindustrial society and the information society. This repertoire of designations reflects the current transition from the industrial to the information society. Depending on the time frame and the perceived impact, this transition tends to be viewed as being either evolutionary or revolutionary. In the light of the rapid increase in the use of information and communications technologies as a means of obtaining, storing, processing, transmitting, disseminating and utilising information, this development will tend to appear more revolutionary than evolutionary - particularly if we confine our selves to the technological advances of the last decade. It is, therefore, all the more important that we perceive the opportunities and the hazards that the information society entails, but also that we take full advantage of the scope for fashioning the future by implementing the appropriate political decisions. 

2.1.2 There are numerous programmes for establishing comprehensive information structures and developing new applications whose goal is to make an active contribution to the transition to the information society. Such programmes have been drawn up by individual countries but also under the auspices of joint international initiatives. In Austria too various parties have seized the initiative and accepted the challenge of the information society, not least because the new technologies and media are conducive to a decentralised approach. By establishing a working group on the information society, the Federal Government set out to confront the pressing issues of the opportunities and risks intrinsic to the information society, the scope for channelling developments, and the modification of the prevailing background conditions. Composed of more than 350 experts from the fields of business, science and administration, the working group compiled key perceptions for an Austrian strategy on the information society. 

2.1.3 The present report of the Austrian Federal Government's Working Group on the Information Society pursues two fundamental objectives: 

First, the report brings together in a single publication the results of the ten consultative groups which were convened in the summer of 1995; and on the basis of the expert meetings it draws conclusions on an Austrian strategy for entering the information society. It focuses here on formulating fundamental objectives and terms of reference for strategic (longterm) decisionmaking on the part of the Federal Government. However, it also lists urgent measures that have been or are about to be implemented. To supplement the lists of measures that have already been drawn up by individual ministries, the Federal Government will issue a detailed action plan.    

Second, this report sets out to convey the complexity of the topic "information society" within the specifically Austrian context. The individual expert meetings repeatedly stressed that both the opportunities and the hazards inherent in the increasing use of information and communications technologies necessitate a dialogue at every level of society. This dialogue should not simply point to the chances and possibilities but should also quite frankly discuss the intrinsic problems. It is only on the strength of the transparency of a candid public debate going beyond the scope of an expert meeting that we can ensure that the available options and scope for action are actually utilised as Austria enters the information society. 

2.2.1 The report has been structured as follows: 

Chapter 3 ("Business Location and Social Security") deals with changes in the economic background conditions, the progressive spread of information and communications technologies, and the increasing significance of a modern telecommunications infrastructure as a factor in economic and social development. The chapter also focuses on the topics Teleworking [Special Topic: The Future of (Tele)Work] and Universal Service [Special Topic: The Meaning of Universal Service]. Finally, some general conclusions for economic and social policy are drawn.  

Chapter 4 ("Telecommunications: Linchpin of the Information Society") examines the changing requirements for telecommunications policy in an environment determined by increasing competition. International developments necessitate reforms [Special Topic: Selected EU Directives on Telecommunications]. The deregulation of market access calls for new forms of regulation which will ultimately require amendments to the applicable legislation. 

Chapter 5 ("Scientific Research and Universities") is devoted to the (public) research sector. The information society itself constitutes an interdisciplinary research topic, and public research institutes have a pioneering role to play in the utilisation of new technologies, for instance with regard to research networks [Special Topic: Internet and Aconet]. Universities and specialised colleges as repositories of technical expertise and as training facilities have a key role to play in the future development of society. 

Chapter 6 ("Innovation and Technology") points to the need for the Federal Government's technology policy to take action with regard both to the development (innovation) and to the diffusion of information and communications technologies. This chapter also elucidates the spread of modern communications services [Special Topic: EDI Simplifies Business Communications] in the context of greater competition and new applications in transport [Special Topic: Information and Mobility] in terms of transport and environment policy. 

Chapter 7 ("Education") examines the enlargement of educational targets with a view to conveying new knowledge and skills as the prerequisite for the information society. It goes beyond this, however, by explaining the requirements for using the new media and technologies in the educational sector [Special Topic: Networks for Schools and Education] and the adjustment of the entire education system to accommodate the needs of lifelong learning. 

Chapter 8 ("State Administration") enumerates the opportunities for using information and communications technologies to enhance standards of efficiency in the way complex administrative procedures are organised and carried out. Modern telecommunications are one component in an administrative reform programme designed to assist the consolidation of the federal budget. At the same time, standards of "customer orientation" can be improved by facilitating access to information and devising new forms of interaction between the private sector and the administration [Special Topic IT Applications in the Judicial Field]. The new electronic media also have a certain role to play in the development of democratic procedures [Special Topic: Democracy and Electronics]. 

Chapter 9 ("Health and Public Social Services") goes beyond the scope of information and communications technologies utilisation and administrative functions in the strict sense. The public health system is an important area for the utilisation of information and communications technologies because its work is communication-intensive and because social and economic policy considerations attach priority to innovation [Special Topic: Communications in the Health Sector]. For public social services in general it is true to say that the use of information and communications technologies helps to achieve rationalisation targets and at the same time improves consulting services and provides customers with wider access to information, thus raising standards of customer orientation. 

Finally, Chapter 10 ("The Law and (Multimedia) Networks") is devoted to legal topics directly related to the provisions governing the use of information and new forms of communication (media, protection of privacy, protection of intellectual property, consumer protection, diffusion of material liable to prosecution). In the context of international developments and technological changes, jurisdiction and jurisprudence are faced with special challenges [Special Topic: Encryption for Security].  

A Lists of the established working groups and of basic written contributions and reports can be found in Annexes 1 and 2.

3.1.1 In recent years it has become apparent that Austria's business environment has undergone radical changes in the wake of the opening of Eastern Europe and this country's accession to the European Union. These changes entail both opportunities and risks. An increase in international competition on the product markets, new forms of the division of labour and of partnership, and to some extent the transfer of some economic policy decisions to EU bodies are making it necessary to adapt - in many cases even to reformulate - economic policy strategies if we are to safeguard long-term jobs and enhance Austria's attractiveness as a business location. Telecommunications and the use of information and communications technologies will assume ever more decisive importance as factors in social and economic developments. This means, however, that telecommunications as the key infrastructural aspect of the information society is increasingly becoming the focus of the location issue. The principal targets here are:

3.1.2 The importance of the information and communication sector in Austria is reflected in its market volume. Information processing reports sales in excess of 60 billion Schillings, telecommunications has a turnover in the same order. The telecommunications sector alone directly employs between 33,000 and 42,000 persons - depending on how it is delineated. The principal employers here are traditionally the Post Administration (PTA) as a telecommunications supplier (with approximately 19,000 employees) and the telecommunications industry (approximately 12,000 to 14,000 employees). New suppliers have hitherto gained a share of no more than about 6% (in terms of both sales and employees) but dependably record above-average growth figures. If we apply a broad definition of the term "information service" to include various media like radio and television, then this sector employed approximately 122,000 persons in 1991 (3.9% of the national workforce). Given the above-average growth rates in this sector, the information services (as defined above) are likely to be employing 158,000 persons by the year 2001 (4.8% of the workforce). Source: Austrian Academy of Sciences, Institute for the Assessment of the Impact of Technology. 

3.1.3 In attempting to estimate the impact of the wider use of information and communications technologies in the creation (and/or supply) of commodities and services, we are dealing with a large number of uncertain factors. These can result in divergent assessments. Broadly speaking, we can assume that the use of information and communications technologies triggers process innovations which in turn lead to higher productivity. Substitution effects between old and new products can also arise. This can lead to a short term drop in the employment level. In the medium term a new product range can open up new areas of employment. Most notably in the wake of new information-related services (business and legal services, travel agencies, training facilities, and multimedia production, marketing, maintenance and consulting), employment can be expected to rise by 3% per annum in this sector. It is not possible reliably to assess whether this growth in employment will in the medium term offset the jobs lost through rationalisation measures in other sectors of the economy. Another factor which must be considered is that telecommunications make it easier to move both tasks and results across national borders. The wide divergences in wage levels and statutory working conditions are creating ever greater incentives for enterprises to farm out work in this way. 

3.1.4 Given international developments in individual market segments and the specific conditions pertaining to Austria, it will take concerted endeavours in the coming years to make good the existing structural backlog in the telecommunications field if the available growth potential is to be exploited. The most important generator of momentum, not only in this sector, is currently the PTA (public telephone company), which invests some 18 billion Schillings annually. A new competitive context is already perceptible internationally, and with new suppliers and operators gaining access to the market, the situation is also likely to change in Austria (see also Chapter 4 in particular). The main thrust of the reform concerns the reorganisation and/or restructuring of the public network operators and the liberalisation of market access, from terminal units, systems and equipment to services and networks. Simultaneously with the advent of competitive conditions, the supply side is undergoing a process of internationalisation, and we are seeing partnerships and alliances between public network operators and enterprises which have hitherto not been involved in the telecommunications sector (media, energy supply companies, banks etc.). Safeguarding the country's future as a business location therefore also means ensuring dependable conditions for planning new investments and seizing the available development opportunities in such growth segments as mobile communications, telematic services, telecommunications software and hardware, and information content for multimedia applications. 

3.1.5 The more widely telecommunications services and products are used in the production of commodities and services, the more important the quality of the telecommunications infrastructure becomes as a business location factor. Telecommunications serve as a management tool in the organisation of procurement systems and production, in the monitoring of markets, in the acquisition and processing of information, and in marketing and distribution. Thus, the utilisation of modern telecommunications services ranks as a production factor that triggers product and process innovations and distinguishes one company's goods and services from those of the competition. If telecommunications services are widely available at low prices - to name but the two most important features - they could help to offset the structural backlog with which Austria's business sector has to contend; this is all the more the case because the utilisation of telecommunications is one way to make good technological arrears faster, to improve the range of product-related services, partially to counteract the drawbacks of the Austrian industrial sector's medium-size enterprise structure, and to facilitate Vienna's emergence as a pivotal base for Austrian and multinational enterprises. 

3.1.6 Large areas of the range of telecommunications services in Austria are currently being provided by the PTA. With the advent of competitive conditions - and this trend is becoming apparent at the international level - it is probable that innovative telecommunications services will become more widely available. Provided that the appropriate regulatory measures are implemented, competitive conditions can result in a drop in price levels and the modification of the pricing structure (variable and fixed price components) to meet certain cost and demand conditions. The quality of the services supplied becomes a competitive factor not least because the suppliers are seeking, by enhancing the quality of their services, to encourage consumer loyalty. This implies a further requirement of a modern business location policy: restraint in the transition from monopoly to competition. The background conditions should leave a certain amount of scope for determining individual factors, and this should be used to provide the requisite diversity and quality of traditional and innovative telecommunications services and their low cost. 

3.1.7 The availability of a wider range of innovative telecommunications infrastructures and services is the prerequisite for new applications whose great importance extends beyond purely business considerations. For example, whole new forms of work become possible (cf. Special Topic: The Future of (Tele)Work). Just one of the implications is that companies need to adjust their organisational structures accordingly (e.g. organisational decentralisation and transition to flatter hierarchies). Over and above this, there is a large number of social and labour issues to be considered and dealt with to prevent a deterioration of the situation of employees - the erosion of employee rights in conjunction with telework. This does not necessarily mean that a whole body of new regulations needs to be drawn up specifically to cover telework. It would suffice to modify individual legal provisions and add these to company contracts or collective agreements. Certainly, a number of fundamental issues relating to the legal provisions governing telework needs to be clarified - for instance, the implications of transforming employment in the main company site into telework, right of retirement, coverage of costs, expenditure in connection with telework, required equipment for telework locations etc. 

3.1.8 The structural changes triggered by the wider utilisation of information and communications technologies in business also affect the area of professional qualifications and will thus necessitate the appropriate political decisions on training and further training (cf. Chapter 7). On the one hand it appears likely that the use of information and communications technologies and (indirectly) the impact of rationalisation will make several routine and auxiliary jobs redundant. Those affected must be given the appropriate opportunities for retraining with the goal of acquiring higher qualifications. On the other hand, new professional profiles are created for information and consulting staff in connection with the generating, structuring and management of information. Certain technical business qualifications and information and media-related qualifications will be in greater demand both as specialist qualifications in their own right and in conjunction with existing job profiles. This too will require fundamental decisions in the field of education policy. Where more sweeping changes occur in required qualifications, knowledge and skills, it will be necessary to supplement the available facilities by providing scope for permanent retraining and further training on the lines of life-long learning (cf. particularly Chapter 7.1.3). 

3.1.9 The technological changes triggered by the new information and communications technologies are closely linked with social developments. As access to information and the opportunity to make use of the new technologies become increasingly important factors, politicians are called upon to take account of the needs of a wide range of social groups and groupings. Several issues related specifically to women arise here, for instance. Broadly speaking, women are underrepresented in innovative technological fields as in scientific areas as a whole, and there are palpable gender-specific discrepancies in choice of profession and training. It will be necessary to make a closer study of the correlations between the individual contributory factors and to examine possible strategies for reducing these disparities. Especially for women, new forms of work (such as home-based telework) entail both special opportunities and special hazards. Here as elsewhere, technology is far from gender-unspecific, and those implications of telework which relate specially to women must be taken into account. The field of qualification, training and further training as a whole constitutes one of the key avenues to development towards the information society. Long-term social strategies will have to take this as their starting-point if they are to promote trends which address the needs of all social groups. 

3.1.10 The utilisation of information and communications technologies and the availability of the requisite infrastructures and services as elements of a business location policy also raise issues relating to regional development. Making a relatively advanced telecommunications infrastructure available in urban agglomerations but at the same time neglecting less populous peripheral regions would exacerbate the disparity between town and country and would therefore also accelerate the rural depopulation process. Moreover, the proximity of educational and research centres and good travel connections are not the sole considerations in the choice of investment locations. The availability of telecommunications and communications costs are becoming increasingly important criteria. The concept of the universal service (cf. Special Topic: The Meaning of Universal Service) takes account not only of the social but also of the regional implications of a basic telecommunications infrastructure. On the supply side, after all, regional disparities are reflected in divergences in the cost-effectiveness of the services provided principally in terms of purchasing power and utilisation rate, population density or the existence of major consumers. In the light of the above, we cannot assume that management decisions on supply and price structure for infrastructure and communications services take adequate account of regional and social considerations. Political action is thus called for here. 

3.2.1 In the next few years Austria's transition to the information society will require fundamental decisions that, in formulating a modern, socially equitable location policy, unequivocally attach priority to the maintenance of existing jobs and the creation of new jobs. In this sense, then, the term information society can come to mean seizing the opportunities (and avoiding the hazards) that will help us to meet the challenges of the opening of Eastern Europe and Austria's accession to the European Union. The transition to the information society also entails structural changes that are not confined to economic and technological aspects. Political decision-making in this field must take account of the impact of technology on employment levels and qualification requirements in order to safeguard social security. 

3.2.2 The Federal Government is aware of the most important areas for action within the scope of social and economic policy and intends to pursue the following objectives in the measures which it adopts: 

 Even in the competitive conditions which will prevail in the future, Austrian suppliers of telecommunications services and networks should generate momentum for upstream and downstream sectors. Specially favourable background conditions will pertain in high-growth segments of the information and communications market, so that it is still possible to achieve increases both in the number of enterprises active in Austria and in the employment level (as a ratio of the national workforce). 

Where the availability and quality of traditional and innovative telecommunications service are concerned, Austria should boast an above-average level by comparison with the other European Union member states. A substantially low price level would enable information and communication services to permeate all areas of the economy.  

Despite wider utilisation of information and communications technologies and the market-oriented supply of telecommunications services, social security needs to be safeguarded. In particular, the scope for determining the manner in which the new technologies are made available should be used to maintain and/or improve working conditions. The spread of telework should also not be permitted to have a detrimental impact on specific working situations. Modifications to the existing facilities for training and further training and the supply of modern telecommunications services not only in urban agglomerations but also in rural and peripheral regions should have a beneficial effect on economic and social developments. 

3.2.3 Telecommunications have a specially significant role to play in the context of the information society and business location development. It is therefore logical that an effective and efficient location development strategy will be closely bound up with telecommunications policy (cf. Chapter 4). Formulating, monitoring and fine-tuning the background conditions on the markets will create the necessary prerequisites for investments and employment in this sector and will serve to improve the conditions for utilising new technologies and services. The effectiveness of the selected strategies and measures will depend on the degree to which they have been dovetailed with other policy areas, most notably research policy, technology policy and education policy in a broad sense (cf. Chapters 5, 6 and 7). The Federal Government's strategy takes account of the dynamic growth on the telecommunications markets and the social and economic opportunities and hazards inherent in the (consequent) utilisation of information and communications technologies. Under the auspices of a partnership arrangement between the public administration and private enterprise, the former will concentrate on creating market-oriented background conditions and the application of the requisite regulatory measures to the competitive situation, while private investments - as an adjunct to the investments by the publicly-owned PTA - should have the benefit of predictable planning conditions. 

3.2.4 Safeguarding social security will mean that the growth prospects for enterprises active on the Austrian market in high-growth segments like mobile communications, innovative telematics services, telecommunications hardware and software, information content for multimedia applications etc. must also imply growth on the employment front. At the same time it will be important to take advantage of the political scope for avoiding the social hazards entailed in the use of new technologies. The creation of the appropriate facilities for training and further training will be just as important as ensuring the availability of a basic communications infrastructure and service range on a regionally and socially equitable footing. 

3.3.1 Growth prospects within the Austrian information and communications sector, and hence the outlook for employment in this sector, depend to a substantial degree on investments in a modern telecommunications infrastructure and the range of related telecommunications services. In recent years the PTA has played a leading role as an infrastructure supplier, and its investment decisions have generated valuable momentum for Austrian industry. However, it has also become apparent that an enterprise which is organisationally part and parcel of the state administration is not wholly susceptible to being run on modern management lines. The new Postal Structure Act has split the old OPTV off from the federal budget and reorganised it as the PTA, which has given its management greater scope to make strategic decisions in such areas as partnerships, the refinancing of investments, improved earnings and new fields of business. Under the auspices of the Federal Government's telecommunications policy, major decisions will be made concerning (i) the liberalisation of market access, (ii) regulatory measures governing the creation of a competitive market, and (iii) regulatory measures to avoid the undesirable social and economic consequences of existing market structures and of foreseeable competitive conditions (cf. Chapter 4.3). 

3.3.2 The enlargement and expansion of the telecommunications infrastructure will and should in future be supplemented by private investments. The existing legislative provisions governing the supply of telecommunications networks and services leave too little scope for wider private involvement, although the tenders for a second GSM network have shown that Austrian and foreign companies are interested in supplying new services and products. For reasons of location policy, priority must be attached to drawing up new legislative provisions for the telecommunications sector (cf. Chapter 4.3.2). Ensuring fair competition between several suppliers will be one of the principal functions of a regulatory authority which is to be established (cf. Chapter 4.3.3). The exploitation of employment potential in the information and communications sector will be facilitated by the licensing and encouragement of new investments in the telecommunications infrastructure - for example, by the forthcoming granting of further licences in the field of mobile communications - and also by actions as provided for in the Federal Government's research and technology policies (cf. Chapters 5.3 and 6.3).  

3.3.3 Given the great and increasing importance of the availability, quality and cost of communications services as a location factor for industrial production and services, priority must be attached to steps to improve the range and utilisation conditions of telecommunications services and applications. Besides the appropriate adjustments and measures aimed at the (general) improvement of the background conditions for the establishing (or location) of innovative enterprises, telecommunications policy again constitutes the most important approach to widening the range and enlarging the utilisation of information and communications technologies. Over and above this, technological changes will necessitate modifications to the applicable legal provisions governing the utilisation of information (cf. Chapter 10). Thus, developments on the information services and multimedia markets depend on the copyright situation; while the legal provisions governing data protection and data security have an impact on the utilisation of new communications media for business transactions and the public response thereto. 

3.3.4 In the context of the Federal Government's business location policy, action in the fields of telecommunications and market regulation are major factors in maintaining and improving the prospects for regional  and social development. Proceeding from the concept of a universal service, a geographically and socially balanced basic telecommunications infrastructure and telecommunications services need to be made available. To this end and to ensure the sustained development of the universal service, the necessary prerequisites in social and other terms need to be ensured in the light of the increasing demand for information and communication in the information society (cf. Chapter 4). Money from the innovation and technology promotion scheme should be provided for research & development and for pilot projects likely to lower the costs of basic communications supplies where these are not profitable. Special account needs to be taken here of the implications for the user, notably in the course of technology impact assessment. 

3.3.5 In the case of new information and communication technology applications as they relate to the working world - most notably telework - it will be necessary to make a close study of developments and examine the spread of new forms of work and any shift in the balance of interests of the parties concerned. Where necessary, steps will have to be taken to safeguard the legitimate protective needs of teleworkers and to avoid a distortion of the competitive situation (resulting from the deprival of teleworkers' rights as enshrined in social and labour legislation) by amending the applicable legal basis. At present telework - where it does not exclusively relate to home telework - appears to have distinct advantages for both employers and employees. As far as it is possible to judge at the moment, telework also appears to bring distinct benefits in the fields of social, transport and environment policy. Pilot projects and more extensive studies will make it possible to reach a more reliable assessment. Solutions for general sociopolitical problems arising in connection with quasi-employment status (problems not peculiar to telework) have been devised.

4.1.1 Telecommunications - in the purely technical sense as the relaying of information over distances by means of transmission technologies - is playing an ever more important role as a key technological factor in economic and social development (cf. Chapter 3). Telecommunications networks and services are assuming increasing significance as  the underlying infrastructure for information and communication; all the more so in view of the growing importance of numerous   telecommunications services and applications in the provision of commodities and services, the performance of transactions and the utilisation of information resources. The thrust of a modern telecommunications policy will focus on enlarging the scope of availability, lowering prices and enhancing the quality of this infrastructure. Inevitably, this process will imply key steps in the transition to the information society. 

4.1.2 Since the eighties there has been a growing awareness that the transition from a preponderantly monopoly-based situation to a competitive situation in the telecommunications sector offers benefits in national economic terms (enhanced efficiency standards, location assets etc.). The liberalisation of market access (deregulation) is thus an important component in telecommunications policy, taking into account as it does the rapid technological advances which have contributed to necessitating adjustments in the level and structure of telecommunications costs and facilitating market access for other suppliers. For instance: the advent of digital technology has simplified network management; new transmission media and technologies (glass fibre, satellite links, ATM etc.) make transmission costs less directly dependent on distance and transmission capacity; mobile radio access technologies and wireless local loops and the technical upgrading of wide-band cable networks (cable TV) give new suppliers improved cost and competitive conditions even where subscriber connections are concerned. These technological developments mean that it is in principle possible for new telecommunications suppliers to break into the market, which relativises arguments in favour of a "natural monopoly" in the field of telecommunications networks and services. 

4.1.3 The abolition of the monopoly situation (for reasons of economic policy) and the deregulation of market access (for an interim period at least, until true competitive conditions have started to make themselves felt) will require the enlargement of regulatory measures gauged to the specific conditions pertaining to this sector. Analogous situations abroad have shown, for instance, that a substantial period of time elapses between the formal introduction of market competition and the emergence of truly competitive conditions. During this interim period, the drop in price levels and the enlargement of the available product range are confined to partial aspects of the telecommunications sector and do not necessarily correspond to the objectives pursued by the declared telecommunications policy. Most notably in the infrastructure field, enterprises which formerly held a monopoly position tend to hang on to their dominance of the market to the extent that, irrespective of the advent of other suppliers, they can more or less unilaterally dictate both prices and the product range. At the same time, equitable competitive conditions can be seriously impaired if, for instance, the conditions established for network interconnection are discriminatory. In many cases it will be necessary to introduce regulatory checks through prices and applicable conditions in order to prevent this market domination being exercised at the expense of the consumer and new competitors. 

4.1.4 Some degree of sector-specific regulation will, however, have to be retained even in advanced competitive conditions. This regulation will also assume new functions. For example, an increase in the number of suppliers on the market will account for a number of new regulatory functions. The allocation and definition and the monitoring of utilisation rights of scarce resources like frequencies are increasingly complex tasks requiring regulation. In the allocation of frequencies, for instance, it is important to take account of the fact that some forms of utilisation (wireless local loop, cordless telephones, mass communication services, certain forms of mobile communication like telephone, data services, paging systems etc.) may be in competition, while a large number of potential service suppliers calls for transparent and non-discriminatory allocation. In the same way, the foreseeable enlargement of the number of telephone service suppliers will necessitate drawing up national number plans, the non-discriminatory allocation of subscriber numbers, and steps to ensure simple access to the relevant directories. 

4.1.5 At all events, whether one supplier (or more) dominates the market or whether completely free competition prevails, a certain degree of sector-specific regulation is called for. The purpose of such regulatory measures will be: on the one hand to fulfil the above-mentioned functions in terms of managing frequencies and numbers, and defining, licensing and monitoring compliance with technical standards (e.g. permits and model licences for telecommunications systems and terminal units); and on the other hand to prevent individual suppliers from distorting the competitive balance but over and above this to implement such measures as will ensure the availability of at least those telecommunications services and networks as are deemed desirable by regional and social policy decisions (cf. Chapter 3.1.6f.). A forward-looking telecommunications policy will go beyond the scope of a fundamental definition of "universal service" in taking into account the related financing problems, most notably where the provision of a universal service is not profitable. For instance, (dominant) suppliers could be required to fulfil special obligations, while compensation could be provided for the performance of unprofitable services in a manner that does not impair the competitive balance (for example from a fund maintained by payments within the sector). 

4.1.6 International developments have a substantial impact on a country's national telecommunications policy. This is especially true of the member states of the European Union. The realisation of the European single market for commodities and services is the premise and the primary objective of an active European telecommunications policy, which envisages the gradual opening of the individual market segments (for instance through regulation and technical standards). Since the publication of a Green Paper on telecommunications in 1987, first telecommunications terminal units and then the other segments have been opened to competition. The privileged rights enjoyed by public network operators in the services sector are confined to voice telephony via fixed networks (to January 1, 1998). Where (physical) networks are concerned, the new deadline of July 1, 1998 has been set for alternative network operators (first and foremost energy supply companies and railways) to be granted access to the market. The key steps towards harmonisation and deregulation are enshrined in a number of directives and recommendations (cf. Special Topic: Selected EU Directives on Telecommunications). At the same time the individual member  states of the EU will have to carry out (in part sweeping) amendments to the applicable legislation. 

4.1.7 Substantial changes to the prevailing legislative conditions will also be necessary in Austria, although the 1993 Telecommunications Act (Fernmeldegesetz 1993, FG 93) implemented a number of important initial reforms (the organisational separation of the network operator and the telecommunications authority). Nevertheless, the FG 93 enshrined several privileges for the PTA as the public network operator in connection with the provisions governing the erection and operation of transmission lines / networks. Certain exceptions - broadly speaking, internal networks operated by federal and provincial authorities, by the railways, by energy supply enterprises, and networks within the bounds of private property - and the imposition of permit requirements limit the number of network operators. The cable radio and television networks constitute a further exception. However, these are purely distribution networks for radio and television transmission and are governed by the regulations applicable to broadcasting. Moreover, public speech transmission for third parties in real time (voice telephony) is a reserved service, and the FG 93 again allows suppliers other than the PTA only in exceptions (mobile telephone systems). 

4.1.8 As a consequence of the applicable legislative provisions, the telecommunications infrastructure in Austria is to all intents and purposes confined to the PTA. However, several enterprises meet some of the key criteria for gaining rapid access to the market in that they have at their disposal their own telecommunications networks for internal use and/or have acquired the property or rights for erecting and operating telecommunications networks. These enterprises are mainly railway systems (Austrian Federal Railways, private railway companies, municipal transport companies), road management systems, energy supply enterprises (National Grid and special energy generation companies, provincial and municipal energy utilities), operators of cable television networks, and enterprises operating other forms of network infrastructure (district heating networks, gas and water supply systems, pipelines etc.). The constraints applicable to any widening of the range of suppliers are in part technical. For example, the operators of cable television networks have access to the consumers, but their networks are not interactive (which is a pre-requisite for voice telephony systems and data transmission services), and their local networks are not linked. Conversely, energy supply enterprises and the Austrian Federal Railways, for instance, have extensive interconnected networks which would in principle meet the requirements for rental transmission lines, but these networks are not linked up with individual households and companies. The most important constraints for the above-mentioned (potential) suppliers of telecommunications infrastructures are enshrined in the existing telecommunications regulations, and these need deregulating. At the same time the whole sector should be newly regulated, particularly to prevent cross-subsidisation (between company divisions), which distorts competitive conditions. 

4.1.9 The planned enlargement of the range of available services and the introduction of a competitive market are not the only factors that necessitate a reform of the legal provisions governing the telecommunications sector. But they are factors that illustrate the problem particularly clearly - in such issues as, for instance, allocating property rights in a non-discriminatory manner, merging networks on an equitable basis, or ensuring comprehensive basic services. It will moreover be necessary to bring such regulations into line with other policy areas and legal fields (cf. Chapter 10). For example, the advent of multimedia services via Internet, cable television networks or other channels blurs the distinctions between individual communications (telecommunications) and mass communications (media). If radio frequencies are required for broadcasting purposes, the assignment of these frequencies has implications not only for telecommunications policy but also for media policy. To encourage competition in telecommunications market segments that have hitherto been dominated by monopoly structures, the sector's technical specifics mean that it will no longer be enough merely to apply the general competitive regulations. The conditions of use and of access as applicable to telecommunications infrastructure need to be regulated in such a way as to enable (multimedia) information and communications services to be enlarged and their range to be extended. Furthermore, given the ever increasing degree of interactivity between the parties concerned, more and more importance attaches to the regulations protecting individual privacy (data protection). These regulations must be incorporated in the legal provisions for the telecommunications sector. 

4.2.1 Telecommunications policy makes a significant contribution to paving the way for the information society. Technological and international developments have necessitated amendments to the legislation pertaining to the telecommunications field. The focus here is on facilitating and encouraging the transition from a monopoly to competitive conditions where the fundamental infrastructure is concerned and on safeguarding a broad and diverse range of services and applications based on this infrastructure. Nevertheless, deregulation of the market means that - especially during the transitional stage - new forms and channels of sector-specific regulation will be needed. In principle, though, this regulation should be kept to a practicable minimum.  

4.2.2 The Federal Government, perceiving the principal challenges to its telecommunications policy, is gauging its activities to the following objectives:  

The construction and enlargement of the network infrastructure and the services based on it should in future be carried out in conditions of equitable competition among existing and new tendering companies. Statutory licensing procedures and special regulations should comply with the principle of confinement to the bare minimum required for effective and efficient regulation of the market, and they should not be discriminatory. In particular, the allocation of limited resources (e.g. frequencies) must be carried out in such a way that it is transparent and competitively neutral. 

Sector-specific regulation is required to prevent dominant suppliers from controlling the market and to prevent companies from cross-subsidising at the expense of competitors, upstream or downstream service suppliers, and consumers. Regulation will primarily relate to the prices, terms and quality of the products and services supplied and will seek to bring about low price levels and a wide range of telecommunications services and applications. 

It is important to ensure a geographically and socially balanced supply, with a minimum telecommunications infrastructure and services available throughout the country (universal service). A competitively neutral solution needs to be found for issues relating to the special obligations devolving upon suppliers of universal services and the financing of universal services. 

4.2.3 Generally speaking, the Federal Government's telecommunications policy pursues a strategy of encouraging competition in the various segments of the telecommunications market. Lower prices and a widening of the available infrastructures (notably network related services like telephone and line rental services) will come about in the long term as a result of increasing competition, in the short term through the appropriate regulatory measures. This will stimulate a wider range of services in upstream areas (multimedia information and communication services) and enhance the practical benefit for private and commercial final users. 

4.3.1 In recent years technological advances and the internationalisation of telecommunications policy have placed substantially higher demands on this policy area. To achieve a large degree of liberalisation of access to all segments of the telecommunications market, it will be necessary to go beyond the scope of the initial reforms (1993 telecommunications legislation, granting of a second GSM licence in 1995, structural reform of the Post Office in 1996) and to implement farreaching changes in the legal and institutional background conditions. 

4.3.2 Top priority has been attached to a revision of telecommunications regulations in a Telecommunications Act ("Telekommunikationsgesetz"), which is currently being drafted. The most important objectives of the Federal Government's telecommunications policy covered in this Act include the following: 

4.3.3 Given that the field covered by telecommunications policy and the channels for its implementation are likely to widen, an efficient and effective regulation of the market will necessitate first and foremost: (i) access to such information as regulatory procedures require (e.g. for the prevention of cross-subsidisation etc.); (ii) greater independence in a number of decision-making processes ("arbitration function"); and (iii) the requisite human and financial resources (generated, for instance, by financing channels within the sector concerned as a means of covering regulation costs). At the same time as the background conditions are defined in the new Telecommunications Act, it will be necessary to provide for the institutional and organisational changes needed to institute the regulatory measures on a sector-specific basis. 

5.1.1 In the context of research and university education, the complexity of the development and application of new multimedia forms of information and communication is manifested in a number of challenges. There is a dynamic correlation between scientific research, defined as the quest for knowledge by means of systematic, methodical inquiry, and social and economic developments. This dynamic correlation is the basis for the acquisition of new knowledge, which manifests itself not least in the choice of research topics and the intensity with which they are treated. Scientists from a wide range of disciplines, however, assume the role of pioneers when the objective is to develop new insights and technologies and - often in laboratory conditions - to define their direct application. Moreover, the research sector as the repository of scientific knowledge and skills fulfils important social functions by providing the capacity for intersectoral solutions and skills and by supplying university education. It is therefore necessary to attune science policy to the implications which the advent of the information society has for (publicsector) research. 

5.1.2 The confrontation with the information society and the development and application of information and communication technologies have permeated virtually every scientific and technical discipline, affecting aspects of both basic and applied research. In recent years Austria's university and extramural research centres have stepped up their efforts in this field. Increasing involvement in projects being carried out under the auspices of international programmes is evidence of the successful acquisition and exchange of relevant scientific results. Notably the Federal Ministry of Science and Transport has lent its support - in connection with research contracts or research promotion schemes - to a number of plans and projects exemplifying many different approaches. These include: the use of the WorldWideWeb (WWW) for scientific documentation, the planning of a modern history information system, an online archive for telecommunications art, technology impact assessment on the digital hospital, strategies for EDP applications in museums, and multimedia document processing on CD ROM. 

5.1.3 As a direct research topic, information and communication technologies are a prerogative of faculties and institutes with a scientific and technological thrust (cf. 5.1.6), but the increasing application of these technologies requires a more comprehensive scientific approach. The solution of technical problems often turns out to boil down to "merely" (key) aspects or starting-points for the application of new technologies and media. For instance, the use of multimedia in education requires new substantive and pedagogic approaches which differ from conventional teaching methods (cf. Chapter 7). The transfer of multimedia documents containing (sensitive) personal data - such as x-ray pictures or diagnoses transmitted within a tele-medical context - calls not only for technical solutions for problems of data security and data protection but also raises fundamental legal issues which may even entail the use of encryption techniques (cf. Chapter 10). The increasing use of new media and channels of communication poses a wide range of questions relating to the fields of economics (e.g. technology as a competitive factor at company and at national economic levels), media policy (e.g. changes in the media landscape), psychosociology (e.g. the impact of the media on the consumer), socioeconomics (e.g. social segmentation processes), architecture and regional planning (e.g. the use of telematics and environmental construction) etc. In the face of the demonstrable problems, politicians are increasingly realising the need for action. Now it is up to scientific research to face up to the multidimensional challenges of the information society. 

5.1.4 The information and communication technologies illustrate especially vividly the pioneering role which the research sector is playing in the development and application of new technologies. In the scientific world, the development and pioneering application of information networks and new media often occur long before these advances become commercially available. For example, publicly financed research networks - like the National Science Foundation Network (NSFNET) established in the United States in the late eighties, or the WorldWideWeb (WWW) developed at the European nuclear research centre CERN near Geneva - covered much of the groundwork for public use of the Internet. Applications like email were originated and initially used as a communications channel between research scientists. In Austria too, the scientific network ACOnet (Austrian Academic Computer Network) provides both the technical basis for links between the Austrian and the international research communities and the original core element for the utilisation of the Internet (cf. Special Topic: Internet and ACOnet). This is possible because the parties concerned - notably in the universities - are constantly taking the initiative, and because the Science Ministry provides financial support (by helping when ACOnet switched to the Internet protocol in 1992, for example, or by covering the cost of data lines to neighbouring countries in Eastern Europe). 

5.1.5 The use of information technology in a (university) research context of course entails more than just making powerful networks available. The incipient utilisation of the Internet for publishing current research results in the form of pre-prints - often years ahead of their publication in specialised periodicals - and for gaining online access to "virtual" libraries of research documentation, teaching aids and specialised data bases demonstrates that today's universities not only serve as pioneer users but also constitute a significant factor in the emergence of the information society. The evolutionary development towards the "virtual university" is happening within the experimental environment of the universities themselves. This development depends on the utilisation of the new media in the establishing of a grid linking individual research centres and in the creation of interfaces with students and involved entities outside the sector. 

5.1.6 In some specific areas of information and communication technologies, research and development at Austrian university and extramural research centres has reached an internationally acclaimed level. The few examples below have been selected to illustrate the sheer thematic diversity of these activities (for a detailed list, see "Priority Report 1996 Information Technologies"): 

Generally speaking, the universities and other research centres have an important role to play as project partners and as vehicles of technological expertise. This is reflected in the participation in the EU programme ESPRIT (information technologies), for instance. As of the end of 1995, no less than 21% of the 73 Austrian project partners came from the university sector and another 7% from other research bodies. University research centres keep abreast of international developments, but they are also a key factor in the transfer of scientific knowledge to industry (cf. Chapter 6). It is thus of decisive importance to ensure the availability of specialised knowhow and cooperation within the research sector and between research and industry. 

5.1.7 One of the key functions of the university sector is teaching (cf. Chapter 7). Where the emergence of the information society requires the enlargement of skills in handling new technologies and media, the way can be paved by utilising the appropriate technologies in the day-to-day teaching environment at university and by making the requisite modifications to the university syllabus. Electronic communications between students and university administrations are only just beginning to emerge but could in future contribute to enhancing the level of computer and new media literacy among students in every field of study. The Internet, for example, is a suitable and effective medium for providing information on available courses, scholarships, exchange programmes, nostrification procedures, examination dates and so on. Moreover, a certain degree of communication can help to reduce administrative tasks for both parties concerned - by facilitating electronic inquiries (and answers), registration for study courses or examinations, access to teaching aids, and submission of course papers. Some of the technological prerequisites are already being installed at Austrian universities, like e-mail accounts for each student, the necessary equipment and facilities at campuses, and the processing and updating of information. 

5.1.8 If the utilisation of the Internet helps to secure the basic qualifications for the students' handling of new media, then the specifics of the syllabus will focus on special skills and knowledge which graduates will need in the future. The planned specialised college courses in the multimedia field will effectively supplement the existing range of university courses. The college course "Telecommunications Technology and Systems" has already started in Salzburg. Further courses are planned at Dornbirn (Communications), Salzburg (MultiMediaArt), St. Polten (Telecommunications and Media), and Hagenberg (Media Technology and Design). These courses place the emphasis variously on artistic design, technology and business. They also focus to differing degrees on technology and the media (computer science / software engineering, mass media, multimedia applications). The introduction of specialised college courses provides a special opportunity to enlarge the available range of academic studies, particularly since the new courses can be gauged to demand without having to take account of the dividing lines between the various disciplines involved. 

5.2.1 As Austria progresses along the path to the information society, it will have to take a number of decisive active steps in the fields of research and science policy. The bodies involved in the public research sector (universities and specialised colleges, extramural research bodies) constitute a central component in Austria's innovation system. The information society as a vision and a social learning process will require all the parties involved to take the initiative and embark on institutional learning. It will also take the form of a comprehensive scientific and academic approach to "new" research topics, the development and direct application of technologies and media, the creation of problemsolving capacities, and the provision of the requisite academic educational programmes. Furthermore, it will be important to ensure that the fundamental prerequisites for cooperation between scientific research and industry are available to facilitate the transfer of scientific results to the business sector (cf. Chapter 6). 

5.2.2 The Federal Government is aware of the major challenges in the research field and is continuing its ongoing activities in accordance with the following objectives: 

The issues related to the topics information society, information and communication technologies, and new media need to be dealt with comprehensively both within the individual scientific and technical disciplines and on an interdisciplinary basis. Those involved in the work of the scientific and research sectors should assume the role of pioneer users by developing and applying new technologies and media. The ACOnet needs to be steadily enlarged and improved to turn it into an efficient, inter-sectoral research network, while innovative applications in the university sector should help to widen the range of available knowledge on the opportunities and hazards entailed by the use of the new technologies. 

As a key component in the national innovation system, the public research sector should improve Austria's innovative capacity in the field of information and communication technology by building up specialised knowledge and skills, participating in international programmes, and transferring scientific results to the business sector. 

Future academic requirements should be met not only by implementing innovative applications in teaching (to handle administrative tasks and assist in scientific research) but also by modifying syllabi. Especially specialised college courses can contribute to the adaptation and enlargement of interdisciplinary syllabi. 

5.2.3 The strategic orientation of the measures to be adopted in the research field will generally speaking depend on the pioneering role assumed by the scientific and research sectors in social developments. Specific accentuations in terms of, for instance, the selection and treatment of research topics or in terms of the available range of academic courses take account of the specific strengths and the initiative of the parties involved in the scientific system. In the university sector important insights can be gained with regard to a number of applications like teleeducation or telemedicine. These insights will ultimately serve to help assess the opportunities and hazards entailed in the new technologies and duly to take account of them in formulating the conditions for their wider application. 

5.3.1 Both the Science Ministry and the other bodies concerned in the public research sector will have to adopt measures and take increased action to achieve the declared targets: 

(i) Dealing with specific research topics related to the information society,  (ii) Safeguarding the pioneering role played by the research sector and the universities as users of the new technologies,  (iii) Strengthening the role of the research sector as the provider of expertise for the country's industry,  (iv) Transferring general and specific knowledge and skills through academic education. 

5.3.2 In some areas, implementation measures will not be definable until the social and political learning process on the path to the information society has commenced. Nevertheless, the Federal Government is immediately embarking on a number of measures to which top priority has been accorded: 

Public research subsidisation will have to focus more strongly on the themes information society and development and application of information and communication technologies in addition to the existing priority areas. Special attention should be devoted to interdisciplinary approaches, technology impact assessment and the evaluation of technology application in innovative application projects. 

The public research sector's function as an experimental field needs to be safeguarded and broadened. Supporting measures for planned research and development projects relate to the enlargement of the research  network ACOnet (notably with regard to its national and international transfer capacity). At the same time support for concrete, practical applications within the information and communication technologies and the new media should be made available on the university syllabus. Use of the new media should facilitate direct access to research results, for instance. An initial step has been taken with the provision of online access to the results of projects promoted by the Science Ministry and to scientific publications (especially dissertations and theses) on topics related to the information society and telecommunications. 

The universities are constantly modifying their courses to provide new qualifications and convey new areas of knowledge. Over and above this, the Science Ministry is taking decisive steps in creating new study courses at the specialised colleges. The aim is to ensure an interdisciplinary range of courses embracing artistic, technical and business topics. 

All university graduates regardless of their fields of study should possess greater skills in handling the new media. A study is being made to establish the foundations for wider use of communications applications in administrative contacts between the universities and the students. The scope for using the new media as channels of communication between the Science Ministry and the university sector is being explored. The aim is to cut administrative costs for both parties. 

6.1.1 Safeguarding the innovative potential of companies manufacturing in Austria and utilising innovative products and services are cornerstones of an economic policy which aims to promote a higher economic output and the enhancement of employment opportunities and the international competitiveness of Austria as an industrial location. This will also entail using innovation and technology policy as a means to improve conditions for sufficient company-based research and development activities. This is all the more urgent because several specific factors peculiar to the Austrian economy - such as the predominance of small and medium-size enterprises, or the high proportion of raw materials-intensive and resource-intensive manufacturing processes - will make themselves felt as structural hindrances to Austria's innovative development.  

6.1.2 Information and communication technologies and the related services and applications have a higher-than-average innovation rate and growth potential, while at the same time their utilisation by commercial users in every branch of the industrial and services sectors is becoming an increasingly important competitive factor (cf. Chapter 3). Moreover, in the context of the public administration the use of information and communication technologies (as a means of achieving a sustainable consolidation of the federal budget) has a twin effect: it enhances the efficiency with which administrative tasks can be performed, and it allows the state to gauge its services to the needs and interests of the public (cf. Chapters 8 and 9). Innovation and technology policy will then need to (i) increase the innovative potential of Austrian developers of information and communication technologies, and (ii) allow the faster permeation of all sectors of the economy (including the public sector) with modern information and communications products and services. 

6.1.3 The conditions in which some Austrian companies in the information and communication technologies sector carry out their research and development activities do not substantially differ from the conditions prevailing in other sectors. Given the small and medium-size enterprise structure in the software field, rising development costs and shrinking product life cycles (notably for hardware), Austrian developers have failed to reach a level commensurate with this country's economic standing - although some developers have carved out market niches for themselves and have scored notable international successes. Developers can exploit their strengths primarily when customers' specific requirements are the decisive factors in a product's development and sizeable production quantities, the existence of large manufacturing capacities and international marketing channels, or the availability of product-related services are of secondary importance. Consequently, application-related segments of information and communication technologies have a relatively high growth potential. At the same time, Austria's technology policy must focus on providing for measures that will surmount the drawbacks of the existing small and medium-size enterprise structure (insufficient company-based RESEARCH AND DEVELOPMENT capacities, the absence of specialised expertise etc.). 

6.1.4 That Austrian companies and research centres active in the field of information and communication technologies have both a strong commitment and considerable development potential is indicated by the degree of their involvement in the specific areas of the European Union's 4th Framework Programme for Research and Technological Development. Up to April 1996, in the programme areas Information Technologies (ESPRIT), Communication Technologies (ACTS) and TELEMATIK more than 250 projects with Austrian participation had been submitted and no fewer than 64 had been approved for support. Thus, the level of participation of Austrian companies and research centres in the EU's information and communication technologies programmes came to 10.88%, only marginally lower than the average participation level for all areas, and it could well reach a higher level - as in the case of transport technology (20.72%). This would, however, require technology policy measures encouraging specialised  expertise in view of the EU's 5th Framework Programme.     

6.1.5 The success of innovation activities ultimately depends on the prospects for dissemination of products and services that have been or will be developed. In view of the exceptionally high growth potential in the information and communication technologies field and the strategic importance of the related services and applications in the business sector, special attention must be paid to the obstacles to dissemination. One group of such obstacles to dissemination applies equally to traditional and to new applications in communications, information acquisition and business transactions (cf. Special Topic: EDI Simplifies Business Communications). While the amount and the structure of pure communications costs and the availability of basic services (telephone, ISDN, narrow and wideband rental lines, ATM links) point to the need for telecommunications policy to take the necessary steps, innovation and technology policy should concentrate on specific aspects of the technologies and of economic structure. An important factor in the limited dissemination rate is the shortage of information on the part of users (scope for applications, standards and interoperability, cost effectiveness, reorganisation and training needs in connection with  the use of new technologies etc.), which is then reflected in the lack of response to such technologies and the low level of their utilisation. Then again, communication services often make sense only when there is a "critical mass" of users. In many cases the prevailing economic structure weighted towards small and medium-size enterprises means that there are too few pioneer users for specific communications services to be viable. 

6.1.6 There are other obstacles to innovation and dissemination that occur only when new services and applications have been developed. These will have to be taken into account in the formulation of technology policy. For instance, the development and use of (multimedia) telematics systems opens up a wide range of possible applications which extends to virtually every aspect of working and private life. The quantitative and qualitative enhancement of Austria's RESEARCH AND DEVELOPMENT activities and the related pilot and demonstration projects will necessitate the acquisition of specialised expertise, the transfer of expertise and cooperation among a variety of participants in the process (hardware and software developers, users, universities and research centres), and parallel socio-economic research. Special importance attaches to improving the availability of interesting information contents and their digital processing both because this will promote the dissemination of existing information and communication technologies and because it could improve the competitive standing of (new) Austrian suppliers of multimedia products and (on and offline) information services.  

6.1.7 Stimulation in this field benefits especially small and medium-size enterprises. On the one hand, the relevant action can improve the general background conditions  - for instance by enlarging the range of available educational and training programmes (e.g. specialised college courses [cf. Chapter 5] or by facilitating the procedures for setting up companies. On the other hand, highly specific measures are also called for. These would aim, for example, to (i) improve the scope for utilising public content for commercial processing (museum, archive and library collections etc.), (ii) clarify legal and institutional implications (e.g. copyright restrictions on utilisation), and (iii) increase the public sector's demand for innovative products and services (e.g. wider use of telematic services, learning software etc.).  

6.1.8 In specific areas the state has already assumed the role of an innovative consumer by using information and communication technologies and related services. In this way the state stimulates the RESEARCH AND DEVELOPMENT activities of Austrian companies and research centres. Thus, the Austrian research sector - linked by means of the ACOnet (cf. Chapter 5) - is an experienced user of powerful data networks. Innovative applications like customs data exchange, electronic company registers and the federal legal information system have been acclaimed internationally. In the public health sector, administrative information systems and medico-technical computer systems (e.g. electronic image management systems with communication, diagnosis and archive functions) are in use (cf. Chapter 9). The labour market (employment) service makes use of client-operated terminals offering job availability and information functions. Nevertheless, the above examples represent only the beginning of computerised information applications in the public administration. 

6.1.9 By making use of information and communication technologies as well as new media and services, the public sector pioneer users play a highly effective role in technology policy. Over and above this, though, the application of technology and the instigation of related projects involving private and public participants also contribute to the achievement of other political objectives. For example, technology can help to main and improve the service character of public facilities and at the same time enhance the standard of their efficiency as a contribution to sustained budgetary consolidation. The focus does not have to be on economic or socio-political objectives. Applications in the transport sector (cf. Special Topic: Information and Mobility), for instance, are obviously primarily gauged to achieving goals defined by transport and environment policy, while technology used in the field of training and further training tends to pursue primarily educational and cultural objectives (cf. Chapter 7). 

6.1.10 The examples cited above illustrate the way in which the state creates a demand for innovative products in specific segments of the information and communication technologies field. On the other hand, though, there is ground to be made up in various areas, partly because of a reluctance to make investments, partly because of the sheer complexity of the organisation and coordination involved (cf. especially Chapters 8 and 9). For instance, state bodies tend to make use of only very simple telecommunications services (public telephone network, rental lines) although many of the administrative areas concerned have a high demand for telecommunications, and solutions available on the open market - of the kind used in comparable circumstances by the private sector (e.g. corporate networks, virtual private networks) - would lower costs and offer greater convenience. In such cases, the Federal Chancellery should make wider use of its channels for coordinating information technology policy to strengthen demand for communication services and promote the development of new applications (cf. especially Chapter 8). 

6.2.1 Formulating Austria's path to the information society will place high demands on this country's innovation and technology policy. Improving the background conditions for adequate company-based research and development activities in every economic sector will prove a prerequisite for safeguarding employment opportunities and competitiveness. Information and communication technologies and the services and applications they generate are notable for their higher-than-average innovation levels and growth potentials, and they afford opportunities for small and medium-size enterprises (including newly established companies), so that they need to be given special priority. At the same time, the utilisation of these new technologies and services is a competitive factor of great strategic importance for commercial users in every area of the industrial and services sectors. There is, then, a need for measures that will promote the dissemination of these technologies (cf. Chapter 3). Moreover, it will be important to improve the conditions for utilising these technologies in the public sector with a view to enhancing standards of efficiency in carrying out administrative tasks and creating public services more closely gauged to public needs - this as a contribution to a sustained consolidation of the budget. 

6.2.2 The Federal Government is mindful of the principal challenges intrinsic to its technology policy and of the scope for action in this field and is continuing to adopt targeted measures gauged to the following objectives: 

Against the background of increasing international competition, the raising of the level of innovation among companies based in Austria is a necessary step towards safeguarding employment. Austrian companies and research centres should become more involved as sought-after partners in major areas of the information and communication technologies. 

The prevailing conditions for the utilisation of services and applications related to the information and communication technologies should facilitate a level of utilisation that is higher than the European average. (Private) Austrian suppliers of information services should provide business users with a strategic edge in the context of international competition. 

The strategic utilisation of information and communication technologies in the public sector should contribute to the enhancement of the efficiency and effectiveness of the public administration. There should be a palpable improvement in services relating to information access and communications. 

6.2.3 Where information and communication technologies are concerned, the strategic thrust of the Federal Government's innovation and technology policy focuses on ways of increasing the level of company-based RESEARCH AND DEVELOPMENT activities but also on ways of improving the dissemination of innovative applications and services. The predominance of small and medium-size enterprises in Austria's economic structure requires special attention because small and medium-size enterprises pose specific problems here (in terms of, for instance, sufficient RESEARCH AND DEVELOPMENT capacity and access to external resources of expertise at universities etc.). It is part of the Federal Government's strategy to offer special incentives as a means of encouraging partnerships among individual companies or between companies and universities and thereby to promote the creation of specialised RESEARCH AND DEVELOPMENT resources within companies and the exchange of information and expertise. With a view to making wider use of the available European subsidisation, this strategy will enhance the attractiveness of Austrian partners. 

6.2.4 The Federal Government's strategy of improving the dissemination of innovative applications and services contains elements that go beyond the scope of a conventional innovation and technology policy. Those measures envisaged by the country's telecommunications policy which help to lower communications costs (cf. Chapter 4) increase use of information and communication technologies, as do research policy measures related to technological and socio-economic issues posed by the information society (cf. Chapters 8 and 9), the coordination of specific fields of application, and measures that serve to disseminate the results of pilot and demonstration projects. 

6.3.1 The approach to the subject of the information society as adopted by this country's innovation and technology policy emerges as a challenge to be met by continuing the thrust of the measures adopted to date. The challenge consists in the fact that, especially from the point of view of economic policy, an increase in company-based research and development activities is a significant factor in the improvement of the employment situation and of Austria's competitiveness as an industrial location. The Ministry of Economic Affairs and the Science Ministry in particular have in recent years adopted a number of measures as part of their technology policy which are aimed at stimulating company-based research and promoting the dissemination of innovative services and applications. 

The following initiatives merit special mention: 

The Innovation and Technology Fund (ITF) as a channel of direct innovation promotion contributes to raising the technological innovation level of Austria's industrial and commercial sector, intensifying applied research and disseminating and optimising the results of research and development. Launched in the years 1991, 1993 and 1994, the priority areas Flexible computer-integrated production for small and medium-size enterprises (FlexCIM) and Software technology and transport technology screen logistics in Austria are closely related to the information and communication technologies priority areas identified in the EU's 4th Framework Programme.  

Another priority area is the coordination and creation of the organisational prerequisites for the Austrian National Host (ANH). The ANH is an open platform for network operators, hardware and software suppliers, service suppliers, research centres etc. Its purpose is to act as a nationwide laboratory for application-oriented research and development projects, pilot applications and field tests. It is designed to encourage, support and explore the scope of potential uses for modern wide-band communications and multimedia services for Austrian companies and research centres. 

The new ITF priority area Technologies for the Information Society (January 1, 1996 - December 31, 2000) is planned to allow scope for promoting momentum for such aspects as the dissemination of innovative services and applications and the development and testing of (wideband) applications in the field of multimedia telematics. Support for innovative plans and projects is provided under the auspices of specific promotion headings (tourism, "Cultural Heritage Austria", "Virtual Companies", telecooperation etc.). Subsidised projects set out to encourage cooperation between companies and universities, the active, socially compatible moulding of development, and the use of information and communication technologies. 

6.3.2 The expert meetings held under the auspices of the Working Group have shown that the Federal Government should adopt further measures within its technology and innovation policy. These measures should be based on the existing initiatives and comply with the objectives listed. The following initiatives and measures are regarded as priority steps or represent initial stages in implementation: 

In the field of the federal administrative authorities, innovative information technology projects are being promoted and the platform for the requisite inter-ministerial exchange of information is being created as part of the Federal Chancellery's IT coordination programme. Special attention is being devoted to the use of advanced network services. 

The Ministry of Economic Affairs is stepping up its EDI-related activities launched in the summer of 1995. An action programme based on two working groups (UAK-EDI and KIT-FA-EDI) covers such topics as information and PR activities (public awareness of EDI, compilation of information material etc.) and support for cooperation between the bodies concerned. This latter topic includes most notably measures to promote target-group-oriented technology transfer for small and mediumsize enterprises and public administrative authorities, the creation of and support for working groups, user groups, project consortia and pilot projects. The action programme also provides for measures relating to education and further education (further training for users, train-the-trainer courses) and direct support for pilot projects. 

The development and application of information and communication technologies in the fields of transport, traffic and logistics has already been included in the Federal Government's priority programme. The targeted utilisation of technology creates new openings for the environmentally compatible planning of the transport network, for the avoidance of unnecessary traffic, the raising of transport safety standards, and the gauging of charges to real costs.  On the basis of the findings of the subsidiary working group on Mobility, Traffic and Transport, the Ministry of Science and Transport is pursuing new approaches in the planning and installation of integrated transport information systems. A project office has been assigned the task of drawing up the requisite specifications. In the field of freight transport, the Logistics Austria programme is being enlarged to include pilot installations that will study new loading technologies and the extensive use of telematics throughout the (intermodal) transport chain. An interministerial group on road tolls, headed by the Ministry of Economic Affairs, is adopting measures related to the development and application of automated road pricing systems for road traffic. 

Measures are being prepared to set up resources of specialised expertise in various telematics fields (tele-work, tele-assisted education programmes, tele-medicine, tele-services for small and medium-size enterprises etc.). The objective is on the one hand to improve Austrian partners' chances of being able to participate in EU programmes and on the other hand to take account of the fact that the information society is a vision of urban and rural development. One of the priority goals is thus to involve existing regional and local initiatives to a wider extent. This will be carried out in cooperation with organisations like the Austrian Platform for Telematics Applications (APTA). The emphasis here will be on regional pilot projects (for instance, the application of telematics in small and medium-size enterprises, tele-work etc.) and on information (e.g. by means of joint events and multimedia information material). 

If the development of telecommunications in Austria is to be stimulated, it will be necessary to implement a number of coordination steps and to improve the flow of information between all the (public and privatesector) bodies involved. Support is being provided for measures to promote the participation of Austrian companies and research centres in EU programmes (e.g. financial support for the Office for International Research and Technology Cooperation, BIT). Individual working groups have suggested setting up a project office on the lines of the European Union's Information Society Project Office, and this proposal is currently being studied. The primary goals of an office of this kind could include public relations work but also and most notably the initiation and acceleration of implementation activities, the formulation of supplementary measures, and the systematic evaluation and preparation of experience gained from international and national studies and projects. 

In the field of Multimedia / Content, supply-stimulating measures are being prepared on the basis of the findings of the subsidiary working group on Content. Improvements (effected by private service enterprises) in the utilisation of available content in the public sector and the enlargement of the supply of information content should highlight the strengths and opportunities of Austrian information suppliers. At the same time, the utilisation of the electronic media should tap the existing creative potential in Austria and pave the way for cultural development and new employment avenues. The action approach INFO2000-Austria, launched under the auspices of the ITF, will adopt measures parallel to the European INFO2000 programme. 

The Ministries of Economic Affairs and of Science and Transport have proposed and are preparing several other initiatives and projects. They include the planning of public access points for communications between members of the public and state authorities, as one aspect of the development of the information society's universal service. The Ministry of Economic Affairs is making a study of the problems entailed by switching computer date fields from two to four digits with the advent of the year 2000. 

7.1.1 The ever wider use of information and communication technologies in every area of working and private life poses several challenges to the education system. The definition and modernisation of the general educational objectives need to be modified to include the teaching of new knowledge and skills. The technical basics of information and communication technologies are increasingly acquiring the status of a "fourth cultural skill" (alongside reading, writing and arithmetic). Media literacy presupposes the individual's ability to use and evaluate media. The public education system will also have to provide the requisite conditions for life-long learning. Moreover, the future use of information and communication technologies and new media in education itself poses a special challenge. The pedagogically productive utilisation of new teaching aids (learning software, specific telematic applications) will require a new approach to conveying knowledge and will alter the role and the job profile of teachers. At the same time, the use of the new media and technologies in education will depend very much on the availability of the necessary basic technical equipment (hardware and software, local networks and network access). 

7.1.2 In future the ability to handle the new technologies and media will have an important bearing on the individual's capacity to make the most out of the opportunities to lead a fulfilled life, to participate in cultural and social life and to take part in the processes by which political opinions are moulded. More than this, though, the ability to handle the new media and technologies will become an essential component of general education, vocational training and further training, and adult education. The introduction of computer science as a school subject in the mid-eighties was a first, important step towards providing a basic education in information and communication technologies in compulsory schooling. Comprehensive media skills, however, go beyond the basic technical requirements of computer literacy, comprising a considered, responsible approach to handling the new media. The enlargement of the education system in the context of the information society, then, will seek to ensure that all young people are in a position to use electronic information and communication tools and competently handle, understand and evaluate data. It follows that the acquisition of media skills cannot be achieved merely by enlarging the computer science syllabus. The revision of the outline curriculum and the integration of the new learning tools (use of the Internet, multimedia learning software etc.) throughout the school syllabus will help to realise a new "educational culture". 

7.1.3 Where the education system is concerned, the advent of the information society will place higher demands on pupils in terms of the individual's ability critically to assess information, select and memorise it. But over and above this, as the borderlines between the different stages of life - education, working life and retirement - begin to disappear, so the institutional organisation of the education system will have to take account of opportunities for life-long learning for all vocational groups. For the individual, the information society will mean the necessity to embark upon a permanent process of training and further training. If the principle of life-long learning is to be realised, it will be essential to ensure that the education system is flexible and adaptable enough to provide access to education  facilities. It will be important to bring school education, adult education and vocational further training closer together by, for instance, widening the scope of cooperation between the institutions concerned. One of the key objectives of further training programmes is to enlarge the scope of educational opportunities for working people, and most notably for those with the poorest employment prospects, so as to enhance their vocational potential.