The WebTV Network is currently using a 128 bit encryption system that gives our U.S. subscribers the most sophisticated security protection of any online service today. It is our intent to offer our customers the most secure environment for transactions and transmission with their WebTV Network service. Our units, sold by Sony and Philips, include a sticker that states that the product is not to be exported outside of the United States.

However, the government restriction does not prevent us from exporting our product outside of the United States. WebTV Networks has always intended to announce its expansion plans in early 1997, providing global communication using either 40 bits, now authorized by the government, or 56 bits which Bill Clinton recently endorsed. ... This may prove my ignorance, but I thought that the WebTV systems were going to use a propiatory service. I am assuming that this is true in this post. If the WebTV product is using a propietory ISP for its operation, I assume

At 11:56 AM 11/11/96 -0800, Pablo Calamera wrote: ... that WebTV sets sold outside of the United States will not be dialing up the same phone number. As the chip could easily communicate with the ISP, and the ISP communicate, perhaps through standard credit validation systems, with the merchants, why does the international version even need U.S. developed encryption. The international version could most likely be fitted with the locally available strong encryption. Since the WebTV ISP will probably have a virtually private wide area network, the "foreign" encryption could be replaced with a more standard type inside of the U.S., at the main offices. Why give the U.S. government the ability to look at the transaction information of non-U.S. citizens, off of U.S. soil. If, however, the WebTV system does not have the ability to maintain contact with its over-seas offices, this could be unfeasable. Granted, this idea would mean that some computer would have access to all of the relevant data,for the purpose of "trading" crypto, but I would rather put my trust in a company, which I could easily quit dealing with, than the U.S. government, which might easily institute an international sales tax system. Can PGP be compiled to an EEPROM? If so, PGP is well distributed and might easily be accepted for online transactions, also, Mr. Zimmerman might be willing to agree to a bulk liscense sale for the implemention of this idea. Just make sure that the chip is loaded outside of U.S. borders.