Entrust Technologies has won a contract from the Ontario government that the company says could eventually lead to it supplying digital privacy and identification technology for every resident of Canada's most populous province.
The Texas-based company said Monday that the government of Ontario plans in early 1999 to begin issuing 11 million digital certificates -- one to each of Ontario's residents -- that would provide secure electronic communications.
Initial projects covered by the contract will offer secure Internet access and electronic mail on an internal network for Ontario provincial employees and a system for 1,100 social workers to obtain secure access to child abuse records. Eventually, Ontario is looking to use Entrust technology to register businesses online and allow residents to pay taxes or apply for their driver's licenses electronically, Entrust President and Chief Executive John Ryan said.
"This contract will help spur the growth of electronic commerce in Canada," Ryan said.
Entrust is a leading supplier of public-key infrastructure digital encoding software that can be used to identify and authenticate that a computer user is who he or she purports to be, a vital step for conducting secure electronic commerce. Public key software is used to scramble electronic information and render it unreadable without a password of software "key." The technology, which works like an electronic passport, was developed at research labs in Ontario.
"It provides Ontario residents with more efficient delivery of services and enables secure services for public servants, while ensuring the integrity of all electronic communications in a manner that is easy to use," Ryan said.
While declining to quantify the total value of the deal, Ryan said the first year of contract is worth $1.1 million to Entrust.
He said that based on his company's performance during the first year of the deal, Entrust could be awarded a subsequent five-year contract to develop projects that would provide the entire population with access to its technology.
Entrust won the contract in September 1998, but only now has been given the go-ahead to announce the deal. The company will serve as the prime contractor on these projects, while sub-contracting out hardware, software, and computer services.
Ontario's 11 million residents represent more than a third of Canada's 30 million citizens. The province accounts for roughly 40 percent of Canada's gross domestic product.
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