Cisco Government Affairs E-Update

Volume 1, Issue 19

22 June 2001

Brought to you by Cisco Government Affairs Online: http://www.cisco.com/gov

NEW UPDATED FACTS AND STATS!!!!

For hundreds of Facts & Stats on the Internet, the Internet Economy and Internet related processes go to Cisco Government Affairs Facts and Stats page. http://www.cisco.com/gov/factsNStats/index.html

This Week@Cisco in Government Affairs

CISCO@WASHINGTON, DC

BOSTROM TESTIFIES ON E-GOVERNMENT BEFORE HOUSE GOVERNMENT REFORM COMMITTEE – Sue Bostrom, Cisco Senior Vice President of Cisco’s Internet Business Solutions Group (IBSG) this week testified before Chairman Dan Burton’s House Government Reform Committee. The purpose of the hearing was to hear how government agencies were doing on their plans of becoming e-agencies. Bostrom testified that if large enterprises could utilize the Internet to become more customer focused and more efficient while saving money then so could the federal government. She offered as an example Cisco’s own use of technology, which saves over $1.4 billion a year.

House Government Reform Committee Hearing: http://www.house.gov/reform/press/_ma.01.06.19.htm

Sue Bostrom homepage: http://www.cisco.com/warp/public/750/suebostrom/

IBSG homepage: http://www.cisco.com/ibsg

JAMES K. GLASSMAN: BROADBAND FAILURE HAS A POLITICAL CAUSE.” "All this year, victims of the 'tech wreck' have been looking furiously for someone to blame," wrote Ethan H. Hugo of David L. Babson & Co. in a recent letter to clients. Who's the scapegoat? Alan Greenspan? Greedy underwriters? Day traders? Instead of the usual suspects, Mr. Hugo offered as culprit "the slow adoption of residential high-speed 'broadband' Internet access. This is the business factor that has been causing so many shattered dreams."

He's right. The agonizingly slow deployment of broadband has stopped the Internet in its tracks. The technology for fast connections is well established, but 19 out of 20 U.S. families are stuck with poky dial-up modems, so it takes them an hour to download a video file that broadband could handle in two minutes.

By now, if broadband were widespread, Web companies would be offering online sports and movies, zippy online banking, video telephone calls, useful education services and health care. With widespread broadband, Americans would be buying faster, better computers, and telecom firms would be making huge investments in infrastructure. http://interactive.wsj.com/articles/SB993082643702598064.htm (paid subscription required)

INTEL CHAIR WANTS RELAXED BROADBAND REGULATIONS

http://dailynews.yahoo.com/h/nm/20010619/tc/tech_intel_policy_dc_1.html

SENATE COMMERCE HEARING ON TAUZIN-DINGELL BROADBAND BILL - The Senate Commerce Committee held a hearing on local phone competition and HR 1542, the Tauzin Dingell bill. Senators and witnesses criticized the Bell companies (Verizon, BellSouth, SBC, and US West) for failing to comply with the network opening requirements of the Telecom Act of 1996. Sen. Ernest Hollings (D-SC), the Chairman of the Committee, said that HR 1542 has no chance of passing in the Senate.

Prepared statements of witnesses (Adobe Reader Required):

AT&T’s Michael Armstrong: http://www.senate.gov/~commerce/hearings/0619armstrong.pdf

BellSouth’s Margaret Green: http://www.senate.gov/~commerce/hearings/0619Greene.pdf

Allegiance Telecom’s Royce Holland:

http://www.senate.gov/~commerce/hearings/0619Holland.pdf

McLeod USA’s Clark McLeod: http://www.senate.gov/~commerce/hearings/0619McLeod.pdf

Rhoads & Sinon’s David Rolka: http://www.senate.gov/~commerce/hearings/0619rol.pdf

Illinois State Senator Dave Sullivan: http://www.senate.gov/~commerce/hearings/0619sul.PDF

Consumers Union’s Gene Kimmelman: http://www.senate.gov/~commerce/hearings/0619kim.PDF

HOUSE JUDICIARY COMMITTEE REPORT ON HR 1542 – “TAUZIN-DINGELL” BROADBAND BILL - ftp://ftp.loc.gov/pub/thomas/cp107/hr083p2.txt

DINGELL-TAUZIN BROADBAND BILL FADING? – Financial Times reports: http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3LOZSV8OC&live=true&useoverridetemplate=ZZZFKOXOA0C&tagid=ZZZPCGI2B0C&subheading=telecoms

E-CONTRACT WITH HIGH TECH AMERICA - House Republicans announced their latest version of their e-Contract with High Tech America. The participants included House Majority Leader Dick Armey (R-TX), Rep. Billy Tauzin (R-LA), Rep. Dan Burton (R-IN), and Rep. James Sensenbrenner. Commerce Secretary Don Evans participated via instant messaging.

http://freedom.house.gov/econtract/econtract2k1.asp - e-Contract.

http://freedom.house.gov/econtract/remarks2k1.asp - - House Majority Leader Dick Armey's Remarks on e-Contract.

TELECOM STILL COMPETITIVE - The telecommunications industry is competitive despite the highly publicized failures of many generally small, or "competitive," telecommunications companies that offer voice and data services, according to a study released this week.

http://www.easternmanagement.com/news/documents/act_works.doc

TEENS ARE LIVING ONLINE - Survey: Teens are living online Poll delves into how instant messaging, e-mail, chat and other tools fit into and affect the lives of youths - http://www.msnbc.com/news/590205.asp?0si=-

E-LEARNING AND ONLINE EDUCATION - Internet-Based Education Bill Provides for Expanded Learning Opportunities in Higher Education

http://edworkforce.house.gov/press/press107/webed62001.htm

SPEECH BY FCC CHAIRMAN MICHAEL POWELL – “CONSUMER POLICY IN COMPETITIVE MARKETS” - http://www.fcc.gov/Speeches/Powell/2001/spmkp106.html

DRAFT BILL TO IMPOSE SALES TAXES ON E-COMMERCE FACES OPPOSITION - The high-technology industry and several business groups have dug in their heels in talks over legislation that would clear the way for state and local governments to collect sales taxes on e-commerce. Negotiations among a bipartisan group of senators stalled this week after business groups loudly objected to the absence of specific requirements that all states simplify their often Byzantine tax rules, congressional aides and lobbyists said. http://interactive.wsj.com/articles/SB993157940781763508.htm (paid subscription only)

TARDY BELLS FOR E-RATE - Since its inception in the late 1990s, the Erate program that supplies rural and poor American schools with funding for Internet access has had its share of successes and setbacks. http://www.business2.com/ebusiness/2001/06/erates.htm

CISCO@INTERNATIONAL

PAKISTAN MINISTER OF SCIENCE AND TECHNOLOGY TO MEET WITH CISCO CEO - Professor Atta ur Rahman, Pakistan’s Minister of Science and Technology is scheduled to meet with Cisco President and CEO John Chambers this weekend. Minister Rahman is on a global tour to promote Pakistan as an up-and-coming technology haven, and to spread the word on various technology initiatives they are implementing.

E-EUROPE ACTION PLAN GETS GREEN LIGHT - Officials from the various member governments within the European Union (EU) have unanimously approved plans for online government services. http://www.govtech.net/news/news.phtml?docid=2001.06.19-2530000000002525

MEXICAN LEGISLATORS BEGIN DISCUSSIONS ON TELECOM LAWS, FOREIGN OWNERSHIP - Mexican lawmakers and the executive branch launched formal discussions Thursday to modernize telecommunication regulations, with foreign ownership of fixed-line companies shaping up as the most contentious issue. While foreigners can control Mexican cellular companies, current legislation limits their stakes in fixed-line carriers at 49%. http://interactive.wsj.com/articles/SB993161453450115322.htm (paid subscription required)

MEXICO NOW SECOND LARGEST MARKET IN REGION - Latest figures from Nielsen NetRatings show that there are now 6.7 million people with home Internet access in Mexico.

http://www.nua.ie/surveys/?f=VS&art_id=905356853&rel=true

CANADA: REPORT OF THE NATIONAL BROADBAND TASKFORCE - "The New National Dream: Networking the Nation for Broadband Access."

http://broadband.gc.ca/Broadband-document/english/table_content.htm

http://interactive.wsj.com/articles/SB992903120113522789.htm (paid subscription required)

BROADBAND BUILDOUT IN EUROPE - European broadband providers will have to adjust their lines of attack to the peculiarities of the countries where they plan to do business.

http://www.emarketer.com/analysis/eeurope/mckq_eur.html?ref=McKEur

BROADBAND JAPAN - Yahoo! Japan and Softbank Corp. will launch ADSL 'net access services in Japan this August. Some say NTT's controlling market share has stifled Japan's broadband growth. http://www.emarketer.com/estatnews/enews/reuters/06_19_2001.rwntz-story-bcnettechjapanyahoodc.html?ref=dn

GROWTH FOR JAPAN IN DIAL-UP, BROADBAND, WIRELESS - At the end of March, there were 17.25 million dial-up Internet users in Japan, up from 10.59 million at the end of 1999. http://www.nua.ie/surveys/?f=VS&art_id=905356858&rel=true

EGYPT AT FOREFRONT OF TELCO LIBERALIZATION - Egypt is leading the way in telecommunications reform and liberalization in Africa, according to South African research firm

BMI-T. http://www.nua.ie/surveys/?f=VS&art_id=905356871&rel=true

INTERNET PENETRATION BY COUNTRY – EUROPE - http://www.emarketer.com/analysis/eeurope/20010620_europe.html?ref=dn

IN IRANIAN INTERNET CAFES, GLUED TO THE SCREEN

http://www.newsfactor.com/perl/story/11339.html

UK INTERNET USE ON THE RISE - The number of people surfing the internet in the UK has risen to more than 16 million, according to a survey by the Consumers' Association.

http://news.bbc.co.uk/hi/english/business/newsid_1396000/1396616.stm

ALMOST 60 PERCENT OF UK FIRMS ONLINE - Fifty-eight percent of all British businesses now have Internet access, up from 48 percent in July 2000, according to NOP Research.

http://www.nua.ie/surveys/?f=VS&art_id=905356862&rel=true

E-ASEAN GROUP TO ADDRESS REGIONAL DIGITAL DIVIDE - http://www.newsbytes.com/news/01/167092.html

3G LICENSES WORTH THE MONEY - Although the USD100 billion spent by European mobile operators on 3G licenses may have seemed exorbitant, a new report from Telecompetition shows it was money well spent. http://www.nua.ie/surveys/?f=VS&art_id=905356866&rel=true

CISCO@US STATES

THE STATE OF E-LEARNING IN THE STATES - The study, "A Vision of E-Learning for America’s Workforce," was co-sponsored by National Governors Association (www.nga.org) and the American Society for Training and Development (www.astd.org). It aims to frame emerging policy issues regarding e-learning — delivering instructional content via electronic technology, such as the Internet, satellite downlinks and interactive TV. (Civic.com) http://www.nga.org/cda/files/060601ELEARNING.pdf (Adobe Reader required)

http://www.nga.org/cda/files/ELEARNINGREPORT.pdf (Adobe Reader required)

PENNSYLVANIA PURSUES MONEY FOR 'DIGITAL SCHOOL DISTRICTS' - The Pennsylvania Education Department is urging its school districts to apply for federal grants as part of the U.S. Education Department's program of community technology centers. The federal Education department announced the grants May 31, and local school districts have until July 16 to apply.

The federal program's goal is to promote the use of educational technology in economically distressed urban and rural communities. (National Journal’s TechDaily)

CALIFORNIA USES THE NET TO ENROLL FAMILIES IN HEALTH PROGRAM - California is counting on the Internet to speed enrollment in the Healthy Families program, the state's low-cost

health-insurance program for low-income working families. (GovTech.net) http://www.govtech.net/news/news.phtml?docid=2001.06.13-2530000000002475

FINANCING ONLINE GOVERNMENT - These days, state and local governments are resorting to all kinds of innovative funding arrangements to fuel electronic government initiatives. http://egovernment.govtech.net/stories.phtml?id=2530000000002143

WEB GUIDE AIMED AT LOCALITIES - Government Web sites should be organized from the point of view of the citizens looking in, not the government looking out. That's once piece of

advice from Untangle the Web, a new guide to delivering municipal services via the Internet from New York's Center for Technology in Government. Download the guidebook http://www.ctg.albany.edu/

GOVERNMENT AFFAIRS HIGH TECH COMMUNITY –

Issue of the week: Broadband Deployment - It is estimated that 2.5 BILLION hours were wasted with people accessing the Internet via dial-up. Broadband access, or always-on, high-speed internet, allows productivity increases, standard of living increases and new applications that haven't even been thought of. Broadband can be delivered via satellite, wireline, wireless, cable, fibre and technologies are being tested for access through electical wires. Broadband is the future of the internet and the future of communications. What are some examples of the ways broadband has added to your productivity?

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:

GLOBAL WEB USAGE FIGURES - Nielsen//NetRatings reports that there are 429 million people worldwide with internet access as of Q1 2001. 41% of all users come from the US and Canada. The region encompassing Europe, the Middle East and Africa was next with 27%, followed by the Asia Pacific region (20%) and Latin America (4%). North America may not be the leader for long, though -- an additional 12% of Asia Pacific households and 9% of European households are

expected to come online within just 12 months.

BROADBAND USE TO BROADEN - Cahners In-Stat Group forecasts that the number of broadband subscribers will top the 21 million mark globally by the end of 2001 and reach nearly 84 million by 2005. Subscribership in the US is expected to increase from 6.8 million to more than

19 million between 2000 and 2002. With the rise in broadband usage will come a tremendous jump in revenues as well – Cahners predicts that worldwide broadband service revenues will exceed $37 billion in 2005, up from $5.8 billion in 2000.

NEW WIRELESS AND BROADBAND INDUSTRIES - According to Strategy Analytics, the worldwide market wireless content, broadband entertainment and "telematics" will increase by 26% between 2000 and 2005. Strategy predicts that by 2005, emerging service revenue will generate $401 billion and device revenue will total $188 billion. Strategy notes that service and device includes wireless data and devices, broadband services and devices and in-vehicle

telematics devices.

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

CISCO.COM/GOV AND E-UPDATE FEEDBACK

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