Cisco Government Affairs E-Update

Volume 1, Issue 16
1 Jun 2001
Brought to you by Cisco Government Affairs Online: www.cisco.com/gov

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http://www.cisco.com/gov/factsNStats/index.html


This Week@Cisco in Government Affairs

CISCO@WASHINGTON, DC

BILL WOULD PROVIDE GOV LOANS FOR RURAL BROADBAND DEPLOYMENT - Sen. Byron Dorgan (D-ND), Sen. Tom Daschle (D-SD), Sen. Tim Johnson (D-SD), Sen. Patty Murray (D-WA), and Sen. Paul Wellstone (D-MN) introduced S 966, the Rural Broadband Enhancement Act, a bill to amend the National Telecommunications and Information Administration Organization Act to encourage deployment of broadband service to rural America.  Sen. Dorgan stated that "To remedy the gap between urban and rural America, this legislation gives new authority to the Rural Utilities Service in consultation with NTIA to make low interest loans to companies that are deploying broadband technology to rural America." He added that "When we were faced with electrifying all of the country, we enacted the Rural Electrification Act. When telephone service was only being provided to well-populated communities, we expanded the Rural Electrification Act and created the Rural Utilities Service to oversee rural telephone deployment. The equitable deployment of broadband services is only the next step in keeping America connected, and our legislation would ensure that."  Rep. Bart Stupak (D-MI) and Rep. Earl Pomeroy (D-ND) introduced HR 2038, the House version. 

SENATE MAY SWITCH BROADBAND FOCUS, ANALYSTS SAY - The historic switch of leadership under way in the U.S. Senate could shift the focus on how lawmakers will try to promote the deployment of high-speed Internet service to tax credits, analysts said.

http://newsletter.channelweb.com/cgi-bin4/flo?y=eDnm0BrelR0he0OPA0AE

R&D TAX CREDIT - The Conference Report on HR 1836, the Economic Growth and Tax Relief Reconciliation Act (President Bush’s tax bill), which passed the House on May 25, and the Senate on May 26, does not contain language making the research and development tax credit permanent. An earlier Senate version of the bill did include this provision. There are also stand alone bills pending in the House and Senate that would permanently extend the R&D tax credit. See, S 41 and HR 41, so numbered because they would amend Section 41 of the Internet Revenue Code. See also, S 515 and HR 1137.

BILL WOULD AMEND RULES AFFECTING INTERNET EDUCATION - Rep. Johnny Isakson (R-GA), Rep. John Boehner (R-OH), Rep. Buck McKeon (R-CA), Rep. Michael Castle (R-DE), and Rep. Bob Goodlatte (R-VA) introduced HR 1992, the Internet Equity and Education Act of 2001. The bill would amend the Higher Education Act of 1965 (HEA) to expand the opportunities for higher education via the Internet. Currently, the HEA limits the amount of aid a student enrolled in distance education courses delivered via telecommunications may receive if the institution offers half or more of its courses by correspondence or telecommunications.

COUNCIL OF ECONOMIC ADVISORS ECONOMIC REPORT 2001 - http://w3.access.gpo.gov/eop/

Online School - http://www.washtimes.com/national/default-2001529232811.htm

INTERNET ACCESS RATES ON THE RISE - http://www.nandotimes.com/technology/story/15802p-292617c.html

TAX-FREE EDUCATION ACCOUNTS COULD HELP NARROW DIGITAL DIVIDE -

http://www.siliconvalley.com/docs/news/svfront/tax053001.htm

DOT-GOV GOES RETAIL - The federal government has become one of the biggest online retailers in America. http://www.fcw.com/fcw/articles/2001/0528/cov-main-05-28-01.asp

LAWMAKERS, INDUSTRY SEE COMPROMISE ON FEDERAL CIO - http://www.washingtontechnology.com/news/1_1/daily_news/16586-1.html

FCC CHIEF TOUTS MOVE TO DIGITAL WORLD – Like leaving the comforts of home, Americans will find the shift to new digital technology frustrating and scary at times, says the Federal Communications Commission's new chief. http://www.nandotimes.com/technology/story/18313p-327413c.html

CISCO@US STATES

VIRGINIA ADDS TELECOMMUTING INCENTIVE -

http://www.civic.com/civic/articles/2001/0528/web-tele-05-31-01.asp

NEW YORK CITY CITY ROLLS OUT NEW PORTAL - New York Mayor Rudolph Giuliani introduced the city's expanded Web portal, NYC.gov, employing an "intentions-based design" that allows visitors to find a city service without the need to know which agency provides it. The site

lists services under an "I Want To" directory of 12 frequently accessed service categories. www.nyc.gov

DMV ONLINE - Thirty states were offering at least one online motor vehicle service as of

January 2001, up from 13 in December 1999, according to a survey by the consulting firm Accenture. http://www.accenture.com/xdoc/en/industries/government/dmv.pdf (Adobe Reader required)

WIRELESS WEB HOUSEHOLDS INCREASING IN US - The number of US households with Web-enabled wireless devices increased by 50 percent to 15 percent in the past six months, according to a new report from Statistical Research.  http://www.nua.ie/surveys/?f=VS&art_id=905356787&rel=true

WEB APPLIANCES TO BE HUGELY POPULAR - Consumer demand for Internet-enabled appliances is set to grow by a compound rate of 101 percent annually until 2005, according to Cahners In-Stat. http://www.nua.ie/surveys/?f=VS&art_id=905356799&rel=true

E-GOVERNMENT STANDS FOR EVENTUALLY ONLINE - Internet: Southern California cities have been slow to offer interactive services on their Web sites. But the idea is beginning to click. http://www.latimes.com/news/state/20010528/t000044790.html

BROADBAND USERS MORE LIKELY TO BUY ONLINE - US households with broadband Internet access are 60 percent more likely to buy online than their dial-up counterparts are, according to a new study from Centris. http://www.nua.ie/surveys/?f=VS&art_id=905356780&rel=true

BROADBAND GETS HIT BY A TRAIN - http://www.zdnet.com/zdnn/stories/news/0,4586,2766183,00.html

ALMOST ALL US PUBLIC SCHOOLS ONLINE - New data from the US Department of Education shows that 98 percent of all public schools in the US now have Internet access.

http://www.nua.ie/surveys/?f=VS&art_id=905356783&rel=true

ONLINE AIR TICKET SALES TO SOAR - According to IDC, 31 percent of all US air tickets will be sold over the Internet, up from 10 percent last year. http://www.nua.ie/surveys/?f=VS&art_id=905356782&rel=true

US INTERNET USERS GETTING RELIGION - Cyberatlas reports that 8 percent of US adults and 12 percent of US teens use the Internet for religious or spiritual experiences.

http://www.nua.ie/surveys/?f=VS&art_id=905356797&rel=true

US HOMES WITH HIGH-SPEED CONNECTIONS ON THE RISE - According to Statistical Research Inc. (SRI), the number of households with high-speed connections in the US grew   from 5.2 million in November 2000 to 9.4 million in May 2001. SRI says that in May, 6.5 million connections were via cable modem and 2.8 million were digital subscriber line (DSL). In November, cable modems represented only two-thirds of the broadband connections. SRI also mentions that the percentage of households with telephone lines dropped over the time frame: from 89% to 83%.

NET ACCESS TO COME AT WAL-MART PRICES –

http://news.cnet.com/news/0-1005-200-6154663.html?tag=mn_hd

CISCO@INTERNATIONAL

EU – COMPETITION COMMISSIONER REDEFINES ROLE IN NEW ECONOMY. In a speech that opened with a description of the new economy as “The ally of competition authorities”, EU Competition Commissioner Mario Monti said “These technological developments are...pointing the way towards more competitive markets: costs will be cut; producers will have improved access to customers; customers will have greater information, greater choice of producers, and lower prices”. However, just in case any of the audience mistakenly concluded that this could signify a reduced role for competition authorities, Monti clarified that the ally was “in need of supervision”, and sketched out some of the areas where intervention is still required. He concluded by calling for greater international regulatory co-operation to tackle a global market (European Commission press release, 21/05).

FAST WIRELESS WEB IS HERE, BUT NOT ON A CELLPHONE - While the world's mobile phone companies run trials on costly third-generation mobile phone services, consumers and businesses are discovering that the high-speed, mobile Internet already exists -- and it's free.

http://dailynews.yahoo.com/h/nm/20010601/wr/tech_3g_technologies_dc_1.html

ONLINE ADVERTISING IN WESTERN EUROPE - Revenues from online advertising in Western Europe are set to reach USD4.2 billion by 2006, up from USD1.5 billion this year, according

to a new report from the Yankee Group.  http://www.nua.ie/surveys/?f=VS&art_id=905356781&rel=true

EUROPEAN FIRMS REMAIN OPTIMISTIC - A new survey of senior company executives in Europe has found that 93 percent of large European companies intend to maintain or increase their IT spending in the next year. Sixty percent of those polled said they were confident about the medium term future of the European economy. http://www.nua.ie/surveys/?f=VS&art_id=905356796&rel=true

ECOMMERCE REVENUES TO SOAR IN INDIA - India Express reports that ecommerce in India is expected to be worth INR252 billion (USD5.3 billion) by 2005, up from INR4.5 billion (USD95.8 million) last year. http://www.nua.ie/surveys/?f=VS&art_id=905356794&rel=true

ONLINE EDUCATION PICKING UP IN CHINA  - The Chronicle of Higher Education reports that the Chinese Ministry for Education plans for 5 million college students to use online education services by 2005. http://www.nua.ie/surveys/?f=VS&art_id=905356786&rel=true

YOUNG THAIS DRIVE INTERNET GROWTH - The South China Morning Post reports that the number of Internet users in Thailand is expected to double this year to 4.6 million, up from 2.3 million last year. http://www.nua.ie/surveys/?f=VS&art_id=905356784&rel=true

LOW INCOME HOMES GET ONLINE IN UK - Those on low incomes now constitute the largest group of UK Internet users, according to NetValue. http://www.nua.ie/surveys/?f=VS&art_id=905356800&rel=true

EU PROPOSAL HORRIFIES PRIVACY ADVOCATES - The European Union has initiated plans to make logs of all Internet traffic available to law enforcement agencies for up to seven years.

http://www.nua.ie/surveys/?f=VS&art_id=905356801&rel=true

http://dailynews.yahoo.com/h/nm/20010531/wr/telecoms_internet_dc_1.html

GARTNER TELLS AUSTRALIAN GOVT. TO PULL UP ITS E-SOCKS - If all levels of Australian government and the private sector are to succeed in the next phase of e-business, they need to dig deep or even scrap existing projects and start again from scratch.

http://www.thestandard.com.au/articles/display/0,1449,14354,00.html?ts

FAINT VOICES RISE FROM CUBA - Free speech is not a hallmark of Fidel Castro's regime, yet several independent reporters are finding a way to practice journalism on the Web. The problem is, few Cubans have Web access. http://www.wired.com/news/politics/0,1283,44045,00.html

BRAZIL CANCELS WIRELESS AUCTION - Finding no bidders willing to pay $560 million each for a pair of wireless licenses, Brazil's telecommunications regulators have canceled a planned wireless auction for the second time this year.

http://www.nytimes.com/aponline/business/AP-Brazil-Wireless.html

FRANCE HANDS OUT 3G LICENSES -  France has awarded third-generation (3G) mobile phone licences to France Telecom's Orange and Vivendi Universal's SFR. http://news.bbc.co.uk/hi/english/business/newsid_1362000/1362514.stm

SITE OF THE WEEK –  Government of France Internet Portal

France’s new government portal for discussing ALL internet related matters helps prepare its citizens to live, play and learn with the Internet…

http://www.internet.gouv.fr/

(In French)

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:

US GOVERNMENT SELLS OUT  - The US government sold more than $3.6 billion worth of

goods online in 2000, according to a report from Federal Computer Week and the Pew Internet and American Life Project. Pacing all government agencies was the Treasury Department, which registered $3.3 billion in sales of items like savings bonds and T-bills. For the year, the government even outsold the top private e-retailer, Amazon.com, which reported 2000 sales of $2.8 billion.

ONLINE GOVERNMENT JUST FINE WITH CANADIANS - Canadian internet users favor using the web for government services over in-person interaction, according to the CF Group. Only 12% of those taking part in a 2001 survey -- 40% of whom visit a government website at least once a month -- said they would prefer to talk with an actual person when conducting personal business with the government. 71% said they would like to renew their driver’s license over the internet, while 68% said they would be willing to vote online and 60% would pay taxes online.

BROADBAND USERS MAKE MORE AND SPEND MORE - US households with broadband internet connections are twice as likely as those with dial-up connections to have an annual income of more than $100,000, says a May 2001 report. CENTRIS data reveals that the 5 million

households with broadband access during the last quarter of 2000 and the first quarter of 2001 spent an average of $35.40 per month for their connections, compared with an average of $18.05 for dial-up users. Broadband households are also 60% more likely than their dial-up counterparts to make a purchase over the internet, and spend an average of 38% more on online transactions.

INDIAN eCOMMERCE SET TO EXPLODE - India’s domestic e-commerce market will grow to 252 billion rupees ($5.4 billion) in 2005, according to the Confederation of Indian Industry (CII). The market was worth 4.5 billion rupees ($95.9 million) in 2000. The vast majority of the sum will come from business-to-business (B2B) e-commerce, which is predicted to grow from 4 billion rupees ($85.2 million) in 2000 to 232.8 billion rupees ($5 billion) in 2005. CII forecasts the business-to-consumer (B2C) e-commerce market to increase from 0.5 billion rupees ($10.6 million) to 18.82 billion rupees ($400.8 million) during that period.

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.

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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