Cisco Government Affairs E-Update

Volume 1, Issue 10
20 April 2001
Brought to you by Cisco Government Affairs Online: www.cisco.com/gov

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This Week@Cisco in Government Affairs

CISCO@INTERNATIONAL

As reported in National Journal’s TechDaily: “Dan Scheinman, Cisco System's senior vice president for corporate affairs, has one word for the leaders of the Western hemisphere: broadband. "This is the meta-issue for technology," Scheinman said in an interview Wednesday. "This really is the broadband decade."  Scheinman will get his chance to convey that message directly on Sunday, when he delivers the keynote speech to the 34 leaders gathered at the Third Summit of the Americas in Quebec City, Quebec.  Scheinman plans to give the leaders a basic lesson in economics. The difference in the economic health of countries in the long run is increasing productivity, he said, and high-speed Internet access is the key to increasing productivity.”

EU council reaches political agreement for directives on framework, authorisation, access and interconnection; EU revised framework for e-communications network and services: The Council reached political agreement on its common positions with a view to adopting three Directives included in the revised telecommunications regulation package. http://europa.eu.int/ISPO/infosoc/telecompolicy/review99/Welcome.html

ECTA HAS PUBLISHED ITS LOCAL LOOP SCORECARD - an analysis of the relative success of different EU Member States in opening up the local loop of their incumbent telecoms operators to competition. http://www.ectaweb.org/new_ecta/ecta_home/geneva_release.htm

TAIWAN -- A LAND APART - Despite its small population, Taiwan is expected to increase its internet use substantially in the coming years. http://www.emarketer.com/analysis/easia/20010413_asia.html?ref=wn

ONLINE IN THE ANDES - eLatin America analyst Noah Elkin explains that political turmoil and economic upheaval in both Ecuador and Peru have stunted the growth of the internet market in the region. http://www.emarketer.com/analysis/elatin_america/20010412_latam.html?ref=wn

BROADBAND IN THE UK - Through first-hand experience, broadband analyst Ben Macklin explains that while the demand for broadband in the UK is apparent, availability is still limited.

http://www.emarketer.com/analysis/broadband/20010410_bband.html?ref=wn

3G IN ASIA - Japan and South Korea are leading the way with granting 3G licenses, but four other countries in Asia will follow suit this year. http://www.emarketer.com/analysis/wireless/20010410_wireless.html?ref=wn

WORLDCOM TAKES ON ASIA - Asia's potential need for Internet connection is driving the creation of another regional network to carry the anticipated load of Web traffic in coming years.

http://special.scmp.com/NLet/NLet.asp?Sec=technology&SSec=internet&Id=ZZZ1FQEVKLC

(free registration required)

INTERNET NAMES GO INTERNATIONAL - http://www.nytimes.com/aponline/business/AP-Non-English-Internet.html (free registration required)

CISCO@WASHINGTON, DC

FCC RESOLVES CARRIER COMPENSATION RULES FOR INTERNET TRAFFIC - http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0114.html

 

U.S. VICE PRESIDENT CHENEY BACKS PERMANENT R&D TAX CREDIT AND INTERNET TAX MORATORIUM - http://dailynews.yahoo.com/h/nm/20010418/wr/tech_cheney_dc_1.html

National Journal’s TechDaily reported this week that the Republican Main Street Partnership, a group of 53 House and Senate GOP members, will introduce the set of seven policy proposals, mostly related to temporary tax credits or deductions, during its tour of Silicon Valley companies this week.  The proposals include a temporary tax credit aimed at providing a stimulus for businesses to make investments in plants and equipment that they might otherwise postpone. In the past, the credit was 10 percent of the purchase price.  Another idea is a five-year tax credit to spur companies to roll out broadband services in rural areas. The partnership noted that the United States is lagging behind other countries in bringing high-speed Internet access to homes, schools and businesses. The cost estimate is $2.2 billion over five years.

Cisco’s Julie Williams, Customer Solutions Manager (Federal), presented Cisco’s Internet Business Solutions Group (www.cisco.com/ibsg) message this week to the Staff Director and Chief Counsel of the House subcommittee on Technology and Procurement Policy.  The subcommittee is Chaired by Rep. Tom Davis (R-VA) a strong proponent of information technology in government.  Michael Timmeny, Cisco’s Washington Representative, and Michael Garcia, Business Development Manager (Civilian Agencies) participated in the briefing. 

National Journal’s CongressDaily reported this week that House Energy and Commerce Committee Chairman W.J. (Billy) Tauzin, R-La., and ranking Democrat John Dingell, Mich., "probably" will introduce their long-awaited broadband Internet bill next week.  The bill would remove Federal Communications Commission regulations on the regional Bell operating companies that, the Bells say, reduce their incentive to build expensive high-speed Internet networks.

The House Energy and Commerce Committee has scheduled a hearing on the

much-anticipated bill on high-speed Internet access for April 25.  The hearing will be before the full committee rather than the Telecommunications and the Internet Subcommittee.

SENATORS URGE FCC TO FORGE BROADBAND PLAN BY JULY

http://www.newsbytes.com/news/01/164511.html

FCC PHASES OUT CONTROVERSIAL TELECOM FEES - http://www.zdnet.com/intweek/stories/news/0,4164,2709887,00.html

FCC INITIATES A BROAD-RANGING PROCEEDING TO EXPLORE WAYS OF
REFORMING INTERCARRIER COMPENSATION RULES - http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0113.html

CISCO@US STATES

This week State Gov't Affairs Manager Michelle Mallory Peacock and Internet Business Solutions Group Consultant Michele Grisham met with state officials in Sacramento to discuss e-Government strategies for the state of California, with a goal of continuing the strong momentum that leaders kicked off in January with the launch of the state's portal.

Georgia Governor signs bill for state to use touch screen voting - http://www.accessatlanta.com/partners/ajc/epaper/editions/thursday/local_news_a3edc87d60a852190047.html

IT JOBS INCREASING IN US - http://www.wired.com/news/ebiz/0,1272,43101,00.html

SCHOOLS SLOWLY TURNING TO E-BOOKS - http://www.civic.com/civic/articles/2001/0416/web-ebooks-04-19-01.asp

SITE OF THE WEEK –  Summit of Americas

The Summit of the Americas, occurring this weekend in Quebec, Canada, is a gathering of the democratically elected leaders of 34 nations from North America, Latin America and the Caribbean island states.

The Summits main purpose is to reinvigorate the drive to create a vast trading bloc from Canada in the north to Chile in the south, encompassing 800 million people and with a combined output of $11 trillion in goods and services.

www.americascanada.org

GOVERNMENT AFFAIRS HIGH TECH COMMUNITY

Issue of the week: Broadband Deployment - Add your thoughts at Cisco’s High Tech Community - http://forums.cisco.com/cgi-bin/Community/HtCom?page=main.

FACTS AND STATS OF THE WEEK:

SURF’S UP - A 13 April 2001 Jupiter Media Metrix report shows a rise in web usage in the United States. Americans now spend more than 20 hours per month online, an increase of 57% in the past two years. The average time spent per online session increased from 12.8 hours to 20.2 hours between March 1999 and March 2001, though the number of days of web usage per month went up just 5.6% during that span.

MORE LEARNING, MORE EARNING - International Data Corp. (IDC) reports that worldwide

revenue derived from corporate e-learning will reach more than $23 billion by 2004. Revenues are projected to grow at a 69% compound annual growth rate, with Western Europe becoming the fastest growing market with a 97% rate. North America will remain the largest market for corporate e-learning, representing 2/3 of total worldwide revenues.

SOUTH KOREAN INTERNET USE INCREASING - Internet use among South Koreans is on the rise, according to the country’s Ministry of Information and Communication.  48.6% of the population over the age of seven, or 20.9 million people, access the web at least once a month as of March 2001 – an increase of 3.9% from December 2000.  19.56 million people over age seven are frequent users, logging on more than once a week.

For more Facts and Stats on the New Economy, visit our Facts and Stats page.  Also, see our special State of the Internet report on this page.

For daily, topical Facts and Stats visit our Hot In Tech page.

TECH NEWS STORIES OF THE WEEK

THE WIRED WEST: INTERNET PENETRATION LEVELS IN THE US - In March 2001, the top three cities in the US with the highest internet penetration levels (roughly 70%) were all in the Pacific Northwest. http://www.emarketer.com/estatnews/estats/edemographics/20010411_us_households_online.html?ref=wn

INTEL CO-FOUNDER GORDON MOORE, 72, reached the mandatory retirement age of Intel directors and is stepping down. His successor will be Reed Hundt, 53, who chaired the Federal Communications Commission from 1993 to 1997 and more recently served as a venture partner with Menlo Park, CA's Benchmark Capital. Moore is perhaps best known for "Moore's Law," his realization that semiconductor manufacturers double the performance of chips about every 18 months.

ASIA-PACIFIC B2B BOOM FORECAST - Despite a worldwide bearish attitude toward technology stocks and firms, Asia-Pacific companies are forecast to buy and sell US$516 billion worth of goods over the Internet by 2005, a "phenomenal increase" from the US$12.8 billion spent last year, research firm International Data Corp (IDC) said in a recent report.

http://special.scmp.com/NLet/NLet.asp?Sec=technology&SSec=internet&Id=ZZZDJHCVKLC

(free registration required)

THE METROPOLITAN NEW ECONOMY INDEX FROM THE PROGRESSIVE POLICY INSTITUTE examined 16 economic indicators in categories such as knowledge jobs and technological innovation to determine its rankings of top metropolitan areas in the U.S. http://www.neweconomyindex.org/metro/index.html

WIRELESS LAN EQUIPMENT MARKET BOOMING - Worldwide revenue from wireless local area network (WLAN) equipment surpassed $1 billion in 2000, an increase of 80% for the year, according to IDC. With demand continuing to grow in markets such as Western Europe and Japan, IDC projects annual WLAN revenues to reach $3.2 billion by 2005.

SOFTBANK TO FOCUS ON BROADBAND BUSINESS - Softbank Corp president Masayoshi Son has dismissed concerns about his company's Internet investment strategy and said his focus will be on expanding broadband and business-to-business services. http://special.scmp.com/NLet/NLet.asp?Sec=technology&SSec=techbiz&Id=ZZZMY0DVKLC

(free registration required)

ADSL SETS COURSE FOR CABLE ONSLAUGHT - Taiwan's broadband Internet penetration rate will probably hit 50 per cent within three years, according to French telecommunications-equipment maker Alcatel. http://special.scmp.com/NLet/NLet.asp?Sec=technology&SSec=internet&Id=ZZZFSXCVKLC

BBC: WORKERS LOSE THREE HOURS A WEEK TO THE NET - http://news.bbc.co.uk/hi/english/sci/tech/newsid_1284000/1284823.stm

eCOMMERCE CONTRIBUTION TO COMMERCIAL SALES IN LATIN AMERICA - The Chilean Chamber of Commerce (CCC) reports that in 2000, Brazil led e-commerce sales in Latin America with 27% of the region's total e-sales. Mexico and Argentina followed with 21% each, Chile came in third with 15.4%, Venezuela claimed 9.3% and Colombia represented 6.2% of online sales. The CCC found that the six countries' total e-sales grew by 117% in 2000 to a total of USD $1.1 billion -- 7.8% of total commercial sales in the region.

NOT SO FAST - While broadband access has grown considerably, most U.S. households will still use dial-up internet services through 2005, according to Cahners In-Stat Group. By that year, there will be as many homes without internet access as those with cable or digital subscriber line (DSL) service. Cahners research also reveals that 30% of American households claim to have no need or desire for internet access.

CISCO GOVERNMENT AFFAIRS@2001

Cisco’s top policy focuses for 2001 are the areas of Education, Broadband Deployment and eGovernment.  To read or listen to our thoughts on these issues, please visit our Government Affairs home page or our visit our multimedia section . http://www.cisco.com/gov/multimedia/index.html

E-UPDATE ARCHIVE

To view past issues of Cisco’s Government Affairs E-Update, visit our E-Update Archive page . http://www.cisco.com/gov/archive/eupdates/index.html

DISCLAIMER

Positions in articles and papers from outside sources are in no way endorsed by Cisco Systems' Office of Government Affairs.  We offer articles on topics of interest to our audience to further the debate on the issues that are important to high-tech.  To view our positions on the policy matters that we care about, please visit our Government Affairs homepage. – http://www.cisco.com/gov

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