Gates' "gifts": is microsoft's offer too good to be true? (Tech Talk).

U.S. software giant Microsoft's April announcement that it will provide software and tech support to 250 digital community centers in rural Mexico filled a key slot in President Vicente Fox's ambitious e-Mexico initiative to bring the majority of the country online by 2006. But it also sparked a debate over just how much access to Mexico Microsoft should be allowed, with some industry experts and lawmakers warning the deal could bring heavy costs down the road for Mexican consumers and the nation's burgeoning software industry. Under the agreement, Microsoft will outfit 250 digital community centers with 2,500 free licenses of its Windows operating system, and train 4,500 tech operators to run them. Later, Mexico will have the option to obtain up to 50,000 more licenses at a 90% discount, the same deal Microsoft offers to U.S. universities and public schools. Especially puzzling to some industry insiders, however, was just why Fox would award exclusive rights to Microsoft's proprietary Windows operating syste m instead of opting for free and widely available open-source platforms like Linux.

The Linux operating system, which can be used on older, less powerful machines, has been widely touted as an affordable option for developing nations trying to bridge the technology divide with wealthier nations, as well as keeping domestic markets competitive.

"Basically what you have is that people who have never even seen a computer before are now going to be trained using the Microsoft platform," says Miguel de Icaza, chief technology officer of Ximian, an open-source software developer. another captive market for Microsoft in the future."

THE FINE PRINT

The plan also would seemingly deal a blow to Mexico's young software industry since all new programs will have to be written to be compatible with a Windows dominated market. Officials at e-Mexico were unavailable to be interviewed for this story. However, a Microsoft Mexico spokesman said the company was unaware of any criticism surrounding the deal, and denied the government was contractually obligated to use the Window's operating system. "But if they use another platform, obviously we won't be providing training' says Microsoft Communications Director Leonardo Ortiz. The deal is just the latest flirtation between Fox and Microsoft Chairman Bill Gates since their July meeting at a technology conference in Sun Valley, Idaho. Shortly after that meeting, Microsoft CEO Steve Balmer met with Fox officials in Mexico and left promising over US$50 million in software and tech support to boost Mexico's fledgling software market.

Microsoft stands to win big with the pairing. As over half of the United States is now online, U.S. software companies are taking aim at foreign markets, paying close attention to developing countries, where tastes and consumer habits are still ripe for the influencing, Mexico is an especially attractive market; though just a little over 4 million Mexicans are online today, the number is expected to jump to nearly 14 million users by 2005, according to Jupiter Media Metrix. Online spending, too, is expected to increase by 80%, from US$75 million to US$1.54 billion over the same period.

OPEN SOURCE SUPPORT

Various groups are already gearing up to thwart Microsoft's push into Mexico. In Congress, lawmakers are poised to introduce new legislation that would restrict the use of Windows and other proprietary systems in public projects, giving preference to open source platforms. The move is a somewhat late response compared to other Latin American nations like Peru, which has been considering similar legislation for months, and just last April sent Microsoft a letter saying thanks but no thanks on a deal to install Windows on government machines.

"The big problem is that these systems are hindering the development of open source systems in Mexico," says Congressman Idelfonso Guajardo, of the Institutional Revolutionary Party (PRI). "We need laws to restrict the use of proprietary platforms."

Those in Mexico's nascent Linux community have also taken notice and are stepping up efforts to promote open source as a viable alternative for cash-strapped governments. It will be no small feat given the lack of advertising dollars, which is why Icaza and open source supporters are hoping Mexico's growing Linux community will speak up about its advantages, namely low cost and superior performance with servers. "It has to be a grass roots movement," says Icaza. "It's a huge opportunity the government is missing in terms of saving money."

Stevenson Jacobs is a freelance writer and a reporter for a Mexico City daily.