E-signature law not enough for consumers

By : Robert Wylot

   Parliament passed the long-awaited electronic signature law last month, but industry sources said last week it would take a long time before consumers are comfortable enough with online transactions to begin doing business over the Internet on a large scale.

   “This law is a step forward, but there’s still a long way to go,” said Christopher Jasiak, vice president of MCI Management, an IT venture capital fund.

   The e-signature law formulates legal regulations for securing the identities of those who conduct electronic transactions. The law now awaits President Aleksander Kwasniewski’s signature.

   “This law’s aim is to boost the development of e-commerce and of the so-called ‘electronic democracy’ (communication with the government via the internet and e-mail),” said Piotr Rutkowski, managing partner of telecom consultancy Rotel, Parliament’s adviser on the legislation.

   A key provision of the e-signature law states that all electronic transmissions of statements, transactions or documents be conducted in a secure environment. The passage of the law is welcome news for developers of electronic security solutions, which are betting on the strong growth of e-commerce transactions to bring handsome profits.

   But while the presence of an e-signature law may help boost trade over the Internet, the legislation alone will not be enough to convince consumers the technology is safe, industry sources said.

   This law is a necessary prerequisite (for e-commerce and e-democracy to grow), but it’s not enough,” said Wiesław Paluszyński, director of technology and security at TP Internet, the Internet arm of national telecom giant Telekomunikacja Polska (TPSA).

   Others agree. “Passing legislation that says electronic communication is safe isn’t going to be enough,” Jasiak said. “You’ll need people to get used to the new technology.”

   Janusz Rybnik, president of ECert, a provider of electronic security solutions, said the popularity of e-commerce has been declining since late last year because of the poor state of the economy and the industry’s weak performance in the United States. He’s also skeptical about how quickly e-democracy will emerge in Poland.

   “The state budget will not be sufficient to prepare administrative offices to communicate electronically with the population in just 12 months, as the law envisages,” he said. Instead, the government will need about three years, he added.

   Even so, IT and telecom firms are gearing up to establish themselves in this nascent market, which in their opinion holds great opportunities.

   “The market will be huge,” Jasiak said, adding that MCI Management wants to develop a public-key infrastructure (PKI) system – used to verify the authenticity of signatures – in conjunction with VeriSign, one of the world’s leading providers of security solutions, and have it ready by early next year.

   “Despite the current slump, the market will certainly grow,” Rybnik said. The market for PKI certificates will reach several million złotys in three to four years, he said.

   According to Rutkowski, in five years 20-30% of transactions in Poland will be conducted via computer, and each of them will require security protection.

   “What will convince users is the money and the time they can save,” said Paluszyński of TP Internet.