NOVEMBER 2004
Welcome to the Rockbridge Global
Village, Inc. Newsletter. We have selectively found
information and articles that may be of interest to our
customers. We hope that you find
information and topics within this newsletter interesting
and useful.
Topics in this newsletter:
Post Election Tech Issues Await Congress
Nokia Provides Good Link to Email
Will AOL Become a Has-Been?
Getting Started: Setting Up Shop Online
Post Election Tech Issues Await
Congress
November 3, 2004 By Roy Mark Major
technology policy issues were left on the backburner of
Congress in the run up to Tuesday's hotly contested
general elections.
With the winners in the U.S. House and
Senate races (mostly) decided, including the results for
President Bush, the presumptive re-election winner while
Ohio counts provisional ballots, could their technology
agenda heat up again?
A roundup of some of the top issues that
await the upcoming lame duck session and the next
Congress:
Voice Over IP
Although technology failed to raise a
note in the elections, several critical IT issues are
awaiting immediate attention in Washington and none more
so than the regulatory status of Voice over IP (define).
The Federal Communications Commission
(FCC) plans to rule Nov. 9 on whether Internet telephony
is an interstate service and exempt from state and local
regulation and tariffs.
The FCC is currently reviewing the
regulatory status of VoIP. The agency is anxious to keep
the issue out of the courts, but, in the absence of
congressional action, the FCC is racing against the docket
clock. On Nov. 17, oral arguments are expected to get
under way in Minnesota's appeal of a decision ruling the
Internet telephone service offered by Vonage an interstate
information service and not subject to Minnesota laws
regarding traditional telephone carriers.
In its year-long VoIP review process,
the FCC has already exempted Jeff Pulver's Free World
Dialup (FWP) from state regulations because the free calls
customers make are routed entirely over the Internet and
never interconnect with the public switched telephone
network. With a broadband connection, FWD members talk
with each other computer-to-computer.
In a preliminary ruling issued in
August, the FCC also said Internet telephony should be
subject to traditional wiretap laws. The preliminary
decision will force VoIP providers to comply with the same
law enforcement rules as telephone carriers.
The FCC is also considering VoIP carrier
obligations in regards to emergency 911 calling services
and any contributions the VoIP industry should make to the
Universal Service Fund.
Taxing the Connections?
In the lame duck Congress returning to
Washington on Nov. 16, legislation is still pending on
reviving the expired Internet access tax moratorium and
spyware.
The House and the Senate both agree the
moratorium that expired a year ago exempting Internet
connections from taxes should be extended. They sharply
disagree over the duration of the next moratorium and
grandfather exclusions for states already taxing Internet
access.
In September of 2003, before the
moratorium expired, the House voted
to permanently extend the ban on connection taxes. The
bill also requires nine states that were grandfathered in
the original 1998 legislation to repeal existing Internet
access taxes on dial-up or DSL high-speed connections.
A similar proposal stalled in the
Senate. In April, the Senate voted
93-3 to extend the moratorium for another four years.
The bill also keeps the grandfather provisions of the
original moratorium.
The solidarity of the final Senate vote
masked the deep divisions criss-crossing through party
lines over Internet access taxation. Throughout the
three-day floor debate, more than a third of the Senate
consistently voted to shorten the duration of a new
moratorium and to keep the access definitions much
narrower in scope.
The Congressional Budget Office (CBO)
estimates that repealing the grandfather clause will
result in revenue losses for the states totaling between
$80 million and $120 million annually.
Dueling Anti-Spyware Legislation
The House and the Senate disagree over
the need for national anti-spyware legislation. Last
month, the House passed
two bills in three days aimed at thwarting so-called
driveby downloads.
The Internet Spyware Prevention Act of
2004 (H.R. 4661), which passed on a 415-0 vote, makes it a
crime to intentionally access a computer without
authorization or to intentionally exceed authorized
access. If the unauthorized intrusion is to further
another federal crime such as secretly accessing personal
data, the penalty is up to five years in prison.
Deliberately injuring or defrauding a
person or damaging a computer through the unauthorized
installation of spyware carries prison terms of up to two
years. The legislation also authorizes $10 million for the
Department of Justice to combat spyware and phishing (define)
scams, although the bill does not specifically make
phishing a crime.
Another bill, the Spy Act (H.R. 2929),
prohibits unfair or deceptive practices related to spyware.
The legislation requires an opt-in notice and consent form
for legal software that collects personally identifiable
information from consumers. The penalties in H.R. 2929 are
limited to civil fines of up to $3 million.
Getting Started: Setting Up Shop
Online
October 25, 2004
By Kevin Reichard
Despite all the advances in the e-commerce
industry over the last five or so years, one thing has
remained the same: It's still a challenging task to set up
your own e-commerce site if you're a small business and
don't want to hire someone else to put it together. Plus,
there are very few out-of-the-box solutions for the SMB
looking to implement e-commerce.
So what's a SMB owner to do without
investing a lot (well, thousands, anyway)?
One approach is working with your
Internet service provider on the basics of an e-commerce
site. Virtually every large and medium-sized ISP offers
e-commerce capabilities of some sort, whether it be
selling a special e-commerce package or offering
e-commerce tools as part of a larger package.
The advantage to working with an ISP on
e-commerce issue is convenience: You don't need to totally
overhaul your server setup while adding the capability to
take orders online. There are some additional cost
benefits: Instead of having to invest in e-commerce
software (like Miva Merchant), you can piggyback off the
investment already made by your ISP.
Give Me Three Steps
So exactly what are you looking at with an e-commerce
account at an ISP? You're looking at three separate areas
of functionality: an online catalog for displaying
products, merchant software that allows visitors to order
products and a merchant account for processing credit
cards.
Most ISPs offer merchant software that
allows you to directly sell products, but few go to the
next stage and offer the capability to process credit
cards directly through the ISP. (Many have partners who
they recommend.) You can expect to pay as little as $19.95
per month or as much as $99.95 per month for an e-commerce
account, as well as transaction fees.
An ISP also typically doesn't provide
all the tools needed to perform an e-commerce transaction
from beginning to end. (There are some exceptions; we'll
get to them.) Most mainstream ISPs will offer the merchant
software and perhaps catalog software (and many
merchant-account packages do include catalog
capabilities), but it will be up to you to find a vendor
offering merchant accounts for processing credit cards.
It will be also up to you to acquire an
Secure Sockets Layer (SSL)
certificate, which ensures a secure transaction for your
customers. (Neither of these are a biggie: Chances are
good your bank already offers some sort of merchant
account for online vendors, and an SSL certificate can be
acquired easily from the likes of Verisign.) Merchant
accounts range from PayPal, which simplifies the process
to a single button placed on your Website, to accounts
from larger banks that will probably require a small
amount of coding.
Once you acquire all the pieces, you'll
need to put them together. This isn't as big a deal as it
sounds, but you should expect to tinker with processes to
get everything operating correctly for your business. The
best way to understand the process is to visualize the
online shopping experience:
- A visitor sees that snazzy item on
your Web site catalog and wants to buy it.
- She places the item in a cart; when
she's done shopping, she checks out and orders the
product, with the system estimating any applicable
sales taxes and shipping charges.
- Credit-card information is passed
along to a online bank, which then clears the
transaction.
So your process is the following:
- Setting up a catalog, which can
reside on your existing server or be part of a
separate online catalog.
- Software like Miva Merchant or Yahoo
Merchant tracks a user's cart and prepares the
transaction.
- The merchant banker seals the deal by
processing the credit-card transaction.
Facing the Limitations
There are several disadvantages, however. Unless you're
working with an ISP that specializes in e-commerce, you
probably can't expect a lot of help when it comes to the
specifics of actual implementation — you can expect some
short instructions on where to find the server and some
longer documents on configuration, but that's about it.
Also, most ISPs are not staffed to the point where they
can offer a lot of personalized assistance.
Some do offer more hands-on consulting,
but you'll want to watch your costs as well. Interland,
one of the top ISPs on the market, advertises ECommerceExpress,
a custom $39.95/month e-commerce site (with a $599.95
setup fee) with one limitation: You can have only 25 items
in your online catalog. The next level of account —
$69.95 per month with a $1,499.95 setup fee — features
an online catalog limited to 100 items.
For a less-customized e-commerce site,
the Yahoo's
Merchant Solutions offers catalog capabilities,
transaction processing and less-restrictive limitations on
the number of items in a catalog for $39.95 per month.
However, Yahoo! does charge a 1.5 percent tranactions fee
on all sales.
Setting up an e-commerce Web site is
never as simple as it seems: Just because a process can be
reduced to three steps doesn't mean it's easy to
implement, and making the pieces fit can sometimes be a
frustrating thing. But using the e-commerce tools
available from your ISP can be one way to translate sweat
equity into a profitable venture for your business.
Rockbridge Global Village, Inc.
312 S. Main Street
Lexington, VA 24450
540-463-4451
www.rockbridge.net
|