Cisco Government Affairs E-Update

Volume 1, Issue 15
25 May 2001
Brought to you by Cisco Government Affairs Online: www.cisco.com/gov

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This Week@Cisco in Government Affairs

CISCO@WASHINGTON, DC

CISCO REPRESENTATIVE PRESENTS TO CONGRESSIONAL INTERNET CAUCUS – Cisco’s Washington Representative Michael Timmeny this week spoke to the Congressional Internet Caucus.  The group was about 125 Hill staffers, both House and Senate. Chairman of the Caucus, Rep. Bob Goodlatte (R-VA) attended as did Rep. Mike Pence (R-IN), who's on the Gov't Reform committee and a broadband advocate.  Timmeny spoke about the practical need for broadband roll-out and about the Cisco Networking Academy Program as an example of an e-learning and training model.

HOUSE PASSES EDUCATION LEGISLATION - The House of Representatives this week approved the White House’s education reform bill, H.R. 1, “No Child Left Behind” in a 384 to 45 vote.  The Senate is next to consider the legislation.

SENATE COMMERCE COMMITTEE CLEARS NOMINATIONS - http://www.senate.gov/~commerce/press/107-59.html - Former Cisco Employee Bruce Mehlman cleared for Assistant Secretary of Commerce for Technology Policy and FCC Chairman Michael Powell among the nominees cleared - Floor votes expected soon.

REMARKS BY CHAIRMAN ALAN GREENSPAN - Economic developments - Before the Economic Club of New York, New York - May 24, 2001 - http://www.federalreserve.gov/boarddocs/speeches/2001/200105242/default.htm

SENATE SHIFT SHINES ON E-GOVERNMENT - http://www.fcw.com/fcw/articles/2001/0521/web-power-05-25-01.asp

CONGRESS URGED TO INCLUDE RURAL AREAS IN TELECOM REFORM - http://www.newsbytes.com/news/01/166120.html

FCC RELEASES LATEST DATA ON LOCAL TELEPHONE COMPETITION - http://hraunfoss.fcc.gov:8835/edocs_public/attachmatch/DOC-212954A1.pdf (Adobe Reader Required)

The data: http://www.fcc.gov/ccb/stats

The ILECs seized upon the report to promote their efforts to obtain regulatory permissions to provide long distance service. (Section 271 of the Telecom Act provides that the incumbent carriers cannot provide long distance service in a state until it has opened its networks to competition in that state.)

SBC release - http://www.sbc.com/News_Center/1%2C3950%2C31%2C00.html?query=20010521-1

Verizon release - http://newscenter.verizon.com/proactive/newsroom/release.vtml?id=54828

FORMER FCC CHAIRMAN KENNARD STANDS UP FOR SMALL TELCOS - http://www.thestandard.com/article/0,1902,24736,00.html

INTERNET TAX - Creating a fair playing field for both online and off-line businesses will require some level of Internet taxation and the ability by online companies to gather personal user data for advertising purposes, Sen. John F. Kerry (D-Mass.) said recently. http://www.computerworld.com/cwi/story/0,1199,NAV47_STO60710,00.html

WIRELESS CONNECTIONS TO THE HOME - The Federal Communications Commission and a technology standards group are working to speed wireless Internet connections in homes and businesses. http://www.zdnet.com/zdnn/stories/news/0,4586,5083166,00.html

HOUSE JUDICIARY BROADBAND HEARINGS - The House Judiciary Committee held a hearing HR 1698, the "American Broadband Competition Act of 2001," and HR 1697, the "Broadband Competition and Incentives Act of 2001," a pair of bills introduced on May 3, 2001 by Rep. Chris Cannon (R-UT) and Rep. John Conyers (D-MI). The Committee also heard testimony on HR 1542, a bill sponsored by Rep. Billy Tauzin (R-LA) and Rep. John Dingell (D-MI), and reported by the House Commerce Committee on May 9.

Opening Statement of James Sensenbrenner, Chairman of the House Judiciary Committee, on Broadband Bills -

http://www.house.gov/judiciary/sensenbrenner_052201.htm

TESTIFYING AGAINST - Bob Barr, General Counsel of Verizon, testified against HR 1698 and HR 1697, as did John Malone, a telecom industry consultant. Terry Harvill, a Commissioner on the Illinois Commerce Commission, and Jeff Blumenfeld, managing partner of the law firm of Blumenfeld and Cohen, testified in favor of the two bills.

Prepared testimony of:

Barr - http://www.house.gov/judiciary/barr_052201.htm

Malone - http://www.house.gov/judiciary/malone_052201.htm

Harvill - http://www.house.gov/judiciary/harvill_052201.htm

Blumenfeld - http://www.house.gov/judiciary/blumenfeld_052201.htm

TEACH ACT OF 2001 - The Senate Judiciary Committee amended and reported S 487, the Technology, Education and Copyright Harmonization (TEACH) Act of 2001, sponsored by Sen. Orrin Hatch (R-UT) and Sen. Pat Leahy (D-VT). The bill would amend §§ 110(2) and 112 of the Copyright Act to extend the distance learning exemptions enacted in 1976 to digital delivery media. Under current law, there are exemptions for "face-to-face" and "transmission" teaching activities; but, Internet based education is not referenced.

POWELL TESTIMONY ON FCC FUNDING - The House Appropriations Committee's Subcommittee on Commerce, State, Justice and the Judiciary held a hearing on the FY 2002 budget of the FCC. FCC Chairman Michael Powell testified that the FCC seeks $248,545,000, which is $18.5 Million more that the previous year's appropriation, an 8 percent increase.

Powell testimony [PDF] - http://www.fcc.gov/Speeches/Powell/Statements/2001/stmkp125.pdf

BROADBAND EXCERPT FROM POWELL TESTIMONY -

"We are now only beginning to appreciate and deploy the new advanced architectures and technologies of services like broadband. The cost characteristics may differ substantially from those of traditional networks to which we are accustomed. Broadband Internet products are still being developed and we all wait to see what service offerings consumers will and will not embrace. It is a world of dynamic and chaotic experimentation and unpredictable change. I believe government policy needs to migrate steadily toward the digital broadband future, but recognize that we will be unable to anticipate every change before it happens. I submit that this digital broadband migration should be built around incubation, innovation and investment. At the Commission, our policy direction will focus on this migration and will have several directional guideposts:

§ Facilitate the timely and efficient deployment of broadband infrastructure. Endeavor to promote the growth of a wide variety of technologies that can compete with each other for the delivery of content and will strive not to favor—or uniquely burden— any particular one.

§ Pursue the universal service goals of ubiquity and affordability as new networks are deployed, and do so in creative fashion.

§ Redirect our focus onto innovation and investment. The conditions for experimentation and change and the flow of money to support new ventures have often been misunderstood or neglected. If the infrastructure is never invented, is never deployed, or lacks economic viability we will not see even a glimmer of the bright future we envision.

§ Harness competition and market forces. Drive efficient change and resist the temptation, as regulators, to meld markets in our image or the image of any particular industry player.

§ Rationalize and harmonize regulations across industry segments wherever we can and wherever the statute will allow.

§ Validate regulations that constrain market activity that are necessary to protect consumers, or we will eliminate them. Be skeptical of regulatory intervention absent evidence of persistent trends or clear abuse, but we will be vigilant in monitoring the evolution of these nascent markets.

§ Shift from constantly expanding the bevy of permissive regulations to strong and effective enforcement of truly necessary ones. Request Congress' help to put real teeth into our enforcement efforts.

R&D TAX CREDIT  -  The Senate approved the Restoring Earnings to Lift Individuals and Empower Families (RELIEF) Act of 2001, the $1.35 trillion tax cut compromise bill, by a vote of 62 to 38. Several amendments were adopted, including one offered by Sen. Orrin Hatch (R-UT) which makes permanent the research and development tax credit, and increases the increases alternative incremental credit. http://www.newsbytes.com/news/01/166065.html

FCC E-RATE RULES  - this week was the deadline to file comments with the FCC in response to its Notice of Proposed Rulemaking (NPRM) regarding revisions to the method of subsidizing schools and libraries under its e-rate program. The FCC's e-rate program subsidizes schools' and libraries' expenses for telecommunications, Internet access, and internal connections. The FCC has set the total subsidy level at $2.25 Billion per year. The total annual requests for these free subsidies now exceeds $2.25 Billion. The FCC published 13 comments received on May 23 in in web site.

See comments submitted by:

Qwest -  (PDF) - http://svartifoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6512567979

WorldCom – (PDF) http://svartifoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6512567960

NY Public Library -  (PDF) - http://svartifoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6512567956

American Library Association – (PDF) - http://svartifoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6512567942

Information Technology Industry Council (ITI) – (PDF) - http://www.itic.org/policy/fcc_010523.pdf

FINDING ACCESS FOR THOSE WITHOUT - Prodded by high-profile efforts to close the gap between students with access to technology and students without, 98 percent of the country’s public schools have been wired for Internet connections

http://www.nytimes.com/2001/05/23/technology/23EDUCATION.html (Free Registration Required)

MILITARY QUIZZED ON STREAMLINING - After praising the Navy and Marine Corps outsourcing effort, a House subcommittee chairman asked Air Force and Army officials to give him a five-year plan to improve their network interoperability and achieve information dominance while saving money. http://www.fcw.com/fcw/articles/2001/0514/web-nmci-05-18-01.asp

BUSH TECH ADVISOR FLOYD KVAMME SPEAKS - http://dailynews.yahoo.com/h/nm/20010519/tc/kvamme_bush_dc_1.html

http://news.cnet.com/news/0-1014-201-5961732-0.html

CISCO@US STATES

BROADBAND COMES TO THE CORN BELT -  In rural regions of the U.S., fixed wireless is taking hold and going head-to-head with DSL and cable. http://www.msnbc.com/news/575384.asp

GLENDENING VETOES WORKER TAX CREDIT - Maryland Gov. Parris Glendening, D, last week vetoed a bill that would have provided a tax credit of up to $1,500 for people seeking training in areas deemed critical to Maryland's economic future. Bill supporters said the bill's demise harms not only Maryland residents who need critical skills training but also the state's economy, which has grown dependent on a dwindling supply of skilled workers. (TechDaily)

DIALING SOUTH DAKOTA - The South Dakota state government has switched from using a printed phone directory of state offices and staff to one that is available on the Internet.       Republican Gov. Bill Janklow, who assigned the state's Bureau of Information and  Telecommunications to replace the print version with an electronic version, said the move was one of convenience and cost. Last year, the state printed 6,000 copies of the 116-page phone directory at a cost of $1.70 per copy.  The new Internet directory is available on the state's Web site and can be searched by name, phone number or state agency. Having the directory on the Internet allows state agencies to update information on a daily basis. (TechDaily)

UTAH LEADERS STRIKE DEAL ON TECH COLLEGE  - Utah House Republican leaders have struck a deal with Republican Gov. Michael Leavitt to combine applied technology centers in the state into a new college, reports The Deseret News. It would be Utah's 10th state college. The state Senate also backs the deal, which was finalized Wednesday. (TechDaily)

CALIFORNIA FUNDING CREATIVE E-GOVERNMENT - California is launching a technology innovation council to foster new approaches to e-government. The council begins meeting in June and will have a $5 million budget to fund creative government technology projects.

http://www.civic.com/civic/articles/2001/0521/web-calif-05-21-01.asp

FIRSTGOV TO ADD STATE LINKS - FirstGov, the Internet portal that provides access to all federal government Web pages, plans to add links to most state Web pages beginning this week. http://www.fcw.com/fcw/articles/2001/0521/news-first-05-21-01.asp

REASSESSING PROPERTY ASSESSMENTS Doing a property assessment for a whole county at once can give a more accurate snapshot than doing a few assessments at a time. But as Allegheny County, Pennsylvania, has learned, it can also lead to a whole lot of appeals — nearly 50,000, to be exact. To streamline the appeals process, the county’s Common Pleas Court has set up an online appeal process. Without using any paper, residents and lawyers can now instantly file an appeal. The service can only be used for second appeals, however, because initial appeals are conducted through the property assessment office, not the court.  http://prothonotary.county.allegheny.pa.us/allegheny/welcome.htm

CORE OF US BROADBAND USE IN NEW YORK - Over 10 percent of all broadband users in the US are located in the New York metropolitan area, according to Nielsen NetRatings. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356764&rel=true

INTERNET ACCESS GOES MAINSTREAM - Internet access among African-American households, low-income households, and seniors in the US rose steadily last year, according to ComScore Networks. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356775&rel=true

Ethnic and racial minority groups in the US increased their internet usage significantly between 1998 and 2000, according to a survey known as The Media Audit. 44% of African American   households were online, up 45% during the period. Usage among Hispanic households increased to 42% (a 45% gain), while Asian usage grew from 63% in 1998 to 70% in 2000.

TV WATCHING DOWN AS NET USE RISES - According to a new study from Scarborough Research, 23 percent of US Internet users watch less television since they began using the Net. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356757&rel=true

STATE CIO ASSOCIATION NAME CHANGES - “Nothing is constant except change” is a tenet clearly taken to heart by the national association whose members are chief information or  technology officers in state government. For the third time since the association was formed in 1969, it has changed how it identifies itself. The organization formerly known as NASIRE this week officially became NASCIO, the National Association of State Chief Information Officers.

TEXAS SENATE OKS BILL TO DO AWAY WITH PUNCH-CARD VOTING - The punch-card balloting system that plagued Florida during the presidential election would be phased out in Texas under a bill the Senate approved Thursday. http://www.dallasnews.com/texas_southwest/370401_vote_18tex.ART.html

CISCO@INTERNATIONAL

SWEDEN AND CANADA BOAST WORLD'S TOP INTERNET USAGE RATES IN 2000 -

Internet usage levels in Sweden and Canada in 2000 were 65% and 60%, respectively. They have therefore surpassed the US which claimed only 59% last year. http://www.emarketer.com/estatnews/estats/edemographics/20010518_ipsos.html?ref=wn

CHINA - BANDWIDTH LIMITATIONS STIFLE INTERNET GROWTH - China's telecom networks are suffering from narrow bandwidth, which is hampering the pace of Internet development inside the country, according to Vice-Minister of Information Industry Zhang Chunjian.  The information minister revealed that China had 22.5 million Internet users by the end of 2000, roughly one out of every 60 Chinese citizens.  Zhang claimed that bandwidth limitations were responsible for the low numbers, keeping China's Internet from developing fast enough and leaving the majority of people ignorant in the information age. (USITO e-mail)

ONLY 1 PERCENT OF SINGAPORE FIRMS NOT ONLINE - Newsbytes reports that 98.7 percent of all companies in Singapore now have Internet access, and B2B trading is taking off. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356758&rel=true

B2B GROWING FOR CANADIAN SMALL FIRMS - Online transactions by small businesses in Canada have jumped almost CAD540 million in the past year, according to SES Research. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356759&rel=true

SURF’S UP IN BELGIUM AND LUXEMBOURG - The first data on Belgium and Luxembourg from Nielsen NetRatings offers some interesting insights into Internet usage patterns in those countries. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356765&rel=true

SITE OF THE WEEK –  BROADBAND WEEK MAGAZINE

Covering broadband policy and business, BroadbandWeek is all the broadband news fit to print – http://www.broadbandweek.com

 

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:

MORE OF LATIN AMERICA ONLINE THAN EVER - America Online Latin America announced that its membership has topped the 750,000 mark as of May 2001. The company launched its first service in the region, America Online Brazil, just 18 months earlier. The service now reaches 186 cities in the region, with members logging on for an average of nearly 30 minutes per day.

UK: WHAT’S THE USE? - Research from Jupiter MMXI reveals that there are about 14 million home internet users in the United Kingdom as of April 2001. Users spent an average of seven hours online that month, up from four hours in October 1999. Despite representing just 20% of all internet users in the UK, "heavy" users -- those who spend more than 10 hours a month online -- account for 80% of the country’s total time on the web. 68% of the UK’s heavy users are male.

DSL GROWS, THEN SLOWS - Digital subscriber line (DSL) access skyrocketed among North American consumers between the first quarters of 2000 and 2001, according to TeleChoice. The market research firm found that there were 3.5 million DSL subscribers in Q1 2001, a 297% jump from the same period a year earlier. Growth slowed during the course of the year, however, as the number of subscribers in the US at the beginning of 2001 increased just 20% from Q3 2000.

THE REAL INTERNET GENERATION - Dubbed "Generation 2001," in a 2001 Harris Poll, college seniors in the US have gone online in record numbers. 99% use the internet, while 90% send and receive e-mail on a daily or frequent basis. The study also shows that the amount of time Gen2001 students spend online has increased to an average of 11 hours per week from 6 hours when they were college freshmen.

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

CYBER LAW JOURNAL: COOL SITES FOR 2001 - http://www.nytimes.com/2001/05/25/technology/25CYBERLAW.html (free registration required)

HOSPITAL OFFER NEW BABIES THEIR OWN DOMAIN NAME - http://www.siliconvalley.com/docs/news/svfront/baby052401.htm ("Old" babies, of course, are on their own.)

MICROSOFT’S GATES BULLISH ON TECH, BUT SEES BROADBAND WEAK LINK - http://dailynews.yahoo.com/h/nm/20010523/tc/tech_microsoft_gates_dc_3.html

http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT39ZU8U3NC&live=true&tagid=ZZZC00L1B0C&subheading=information%20technology

http://www.thestandard.com/article/0,1902,24723,00.html

OLDER CONSUMERS FLOCK TO NET FASTER THAN ANY AGE GROUP - Marketers take notice as 'silver surfers' send e-mail, shop, track investments

http://www.usatoday.com/usatonline/20010524/3347013s.htm

United Business Media's Mediamark Research's semi-annual "Cyber Stats" report showed about 43% of US adults aged 55 to 64 used the internet as of April 2001, up from 36% six months earlier. Email use among this demographic is up 20% from six months ago and 46% from 18 months ago. Of all 201.7 million US adults, 133 million (66%) have internet access from work or home, and 101 million (50%) went online in the past 30 days. Most adults accessed the internet through major online services. 43 million adults used America Online, 18.7 million used MSN, 3.8 million used CompuServe and 2.3 million used Prodigy.

3G 'SQUEEZED' BY OTHER WIRELESS SYSTEMS - MERRILL LYNCH -

http://www.newsbytes.com/news/01/165960.html

TWO-WAY SATELLITE: CAN IT COMPETE WITH THE MAJORS? - Does your house or business have an unobstructed view of the sky? Then you've got an open path for high-speed internet access via satellite connections. Broadband analyst Ben Macklin reviews the alternative broadband provider. http://www.emarketer.com/analysis/broadband/20010515_bband.html?ref=wn

'PITY THE SCIENCE STUDENTS' - by Kathy Foley - A new survey from the US Department of Education’s National Center for Education Statistics showed that 98 percent of all public schools in the US now have Internet access. This is great - there’s no denying it. I have, however, just read another report relating to US schools and to be honest, I am horrified.

http://www.nua.ie/surveys/analysis/weekly_editorial.html

INSIGHTS RESEARCH: SMES WANT FIXED BROADBAND WIRELESS - A new report from Insight Research says that small and medium-sized businesses will soon be clamoring for fixed broadband wireless services. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356774&rel=true

TELEMEDICINE LINKS HOME WITH THE HOSPITALIZED -

http://digitalmass.boston.com/news/globe_story.html?uri=/dailyglobe2/142/science/Telemedicine_links_home_with_the_hospitalized-.shtml

LIVING WITHOUT BROADBAND, AND HAPPILY SO - http://dailynews.yahoo.com/h/nm/20010523/wr/column_nettrends_dc_12.html

JIANG'S SON, UNSEEN 'PRINCE OF TECH' - He is the son of Chinese President Jiang Zemin and is dubbed the "Prince of Information Technology", but Jiang Mianheng goes out of his way to keep a low profile. http://special.scmp.com/NLet/NLet.asp?Sec=technology&Id=ZZZEKA6UTMC (free registration required)

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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