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Internet-based technologies are an integral part of the successful development of any business startup. Which sectors are leaders in using Internet technologies? What role does the government play in this area? Is the international community paying sufficient attention to this issue? Mikhail Yakushev, ICANN's Vice President for Stakeholder Engagement for Russia, the CIS countries and Eastern Europe, member of the Coordination Center Council, Deputy Chairman of the Council of Europe Working Group on Cross-border Internet, shares his insights on the situation.

Internet-based technologies are an integral part of the successful development of any business startup. Which sectors are leaders in using Internet technologies? What role does the government play in this area? Is the international community paying sufficient attention to this issue? Mikhail Yakushev, ICANN's Vice President for Stakeholder Engagement for Russia, the CIS countries and Eastern Europe, member of the Coordination Center Council, Deputy Chairman of the Council of Europe Working Group on Cross-border Internet, shares his insights on the situation.

In your opinion, what role does the Internet play in business development?

I believe that since the end of the 20th century, the Internet has become an integral part of any business, that is, if we are talking about making money. Internet-based technologies have proved to be the most convenient way of communicating and exchanging information, and are connected to service provision, money transfers and so on. We have every reason to state that in this century, all businesses will be based primarily on the use of Internet technologies. It’s really hard to imagine a business structure that is not based on this.

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Mikhail Yakushev

How big is the market for Internet technology now? What are the prospects for its expansion or alternately a decline in the development of business?

If I am not mistaken, according to the latest research on the Internet in Russia conducted by the Russian Association of Electronic Communications, the share of GDP directly related to Internet technologies is about 1.5 per cent. All ancillary businesses that are not connected to the Internet directly, but which cannot exist without the Internet (e.g. telecommunications), account for more than 5 per cent of GDP. Accordingly, we can assume that the actual Internet economy is not likely to grow dramatically because coverage is almost one hundred per cent, but the related industries for business will develop.

In your opinion, what companies are the best business partners in the field of Internet technologies? Which companies are the leaders in different segments? Which segments occupy the largest space?

At different times, various components of Internet businesses have excited the public and, therefore, commercial interest. Thus, ten years ago, social networks already existed and were widely used, but no one could imagine that they would develop into such a significant factor of economic development and the consumption of various kinds of services. At the same time, about 10-15 years ago, much tension emerged around the issue of which browser to use. Browsers were created and distributed on a commercial basis. But nobody now really pays much attention to this issue – the main thing is personal ease of use. Therefore, the situation changes often. Over a given time period, a local or an international leader always appears in each of the segments. In Russia, Yandex is a real leader in the search engine segment and competes seriously with the global player Google. As for social networks, there are two or three fairly large networks created in Russia that are quite popular outside the country. When assessing the development of the sector, we should take into consideration dynamics and the geographic area.

What is the role of the state in this matter? Are there any restrictions that the state imposes? Recently, the issue of digital sovereignty has been raised more than once. In your opinion, how does this affect cooperation between the Internet and business?

What is happening with regards to the state is the internal affair of each country. Indeed, every country has the right to regulate Internet business on its territory, and in some cases, the government actively utilizes this right. This practice is not unusual. However, the global processes of the Internet, including Internet governance, are based on the principle of collective management, which is referred to in English as ‘multistakeholders’. All interested parties participate in decision-making to ensure the effective functioning of the Internet. This separates Internet regulation from other types of regulation, for example tax regulation or the regulation of foreign trade, which imply a certain hierarchy. Even foreign trade does not involve such a huge number of participants as the Internet.

To make the role of the government and its measures effective, it is necessary to take into consideration not only the views and interests of all stakeholders, but the technological characteristics of the Internet, as well as its cross-border nature and other aspects related to the peculiarities of its emergence and development. If these features or opinions of other parties are ignored (as we sometimes have witnessed in Russia), no one will pay attention to the regulations and continue to work, since Internet technologies provide many possibilities to do so. This, of course, stirs up certain annoyances and mutual misunderstanding. The conclusion is that to make the role of the state effective and to accommodate its interests, it is necessary to address the problem through joint efforts and a search for solutions that would actually be respected. Then, state measures to protect its citizens would be effective. And we might be able to speak about digital sovereignty, although this combination of words is rather inappropriate.

Leaving aside the issue of Internet technologies, could you say a few words about the summit of the International Telecommunication Union that was held recently?

I did not take part in the work and sessions of the ITU Plenipotentiary Conference, so my judgment is based on the documents adopted and the accounts of my colleagues who attended the Conference. The main success of this event was the absence of any painful surprises. The Conference was carried out in a fairly calm, constructive and working atmosphere. Some new wordings of documents were adopted, including those related to information technologies, but they were not of a revolutionary nature and were not directed against anyone. It was just the usual, normal, regular work of the International Telecommunication Union. There were no surprises, which is already a success in its own right.

Interviewer: Maria Gurova, RIAC Program Manager

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Poll conducted

  1. In your opinion, what are the US long-term goals for Russia?
    U.S. wants to establish partnership relations with Russia on condition that it meets the U.S. requirements  
     33 (31%)
    U.S. wants to deter Russia’s military and political activity  
     30 (28%)
    U.S. wants to dissolve Russia  
     24 (22%)
    U.S. wants to establish alliance relations with Russia under the US conditions to rival China  
     21 (19%)
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