Cisco Government Affairs E-Update

Volume 1, Issue 21

6 July 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

What’s In Cisco Government Affairs E-Update?

I.                    Cisco@Washington, DC

II.                  Cisco@International

III.                Cisco@U.S. States

IV.                Government Affairs High Tech Community

V.                  Facts and Stats of the Week

VI.                Other High-Tech Stories of the Week

VII.              Cisco Government Affairs@2001

This Week@Cisco in Government Affairs

I. CISCO@WASHINGTON, DC

FirstGov Web portal deluged with citizen e-mail
Citizens are flooding FirstGov, the federal Web portal, with e-mail requests for information, creating a technology and management headache for the site's operators.  When FirstGov debuted last September as the one-stop shop for access to government services and information, 95 percent of all e-mail correspondence consisted of compliments and recommendations.  Now, 70 percent of FirstGov's e-mails are queries that need to be routed to the appropriate agency and responded to, according to Deborah Diaz, deputy associate administrator of the Office of FirstGov, which is a part of the General Services Administration's Office of Governmentwide Policy. 

Diaz said the flood of e-mails is a positive, if unforeseen, step in FirstGov's evolution.  "This is a transformation of the citizens," she said.  "People want more out of their government and want to use the Internet to make that happen."
http://www.govexec.com/dailyfed/0701/070501j1.htm

LONG-DISTANCE ROMANCING
The regional telephone companies, such as Verizon and SBC, and their upstart competitors are clashing over the rules and implementation of the 1996 Telecommunications Act.  In order to spur local competition, the regional
companies are required to open local phone markets to competition.  In return for leasing the local phone wires to the upstarts, regulators would allow the regional companies to sell long-distance service, one state at a time.  The Tauzin-Dingell legislation seeks to clarify that the Telecommunication Act did not intend for data transmission to face the same restrictions as long-distance voice transmissions.  The impact of the bill would allow regional bells to offer high-speed data services such as DSL without first demonstrating to regulators that they've opened their markets to competitors.

http://www.washtech.com/news/telecom/10933-1.html
See Also:
TELECOMMUNICATIONS: THE BROADBAND DEREGULATION DEBATE
http://www.washtech.com/specialreports/telecom_debate.html

National security needs boost sales of encryption products
Hacker and e-terrorist attacks are propelling sales of network encryption devices as the Internet increasingly becomes a target of cybervillains, according to a research report released Tuesday by the consulting company Frost & Sullivan.  With the amount of classified information being transmitted via electronic networks on the rise, agencies like the National Security Agency and international bodies such as NATO are increasing network defense spending and modernizing equipment to ensure the privacy of their information, according to the study.  The military in particular is showing an increased interest in
wireless encryption. 
http://www.govexec.com/dailyfed/0701/070501td.htm


MANY AMERICANS BELIEVE THAT THE INTERNET COULD BRING FAR GREATER EFFICIENCIES IN GOVERNMENT SERVICES
Despite representing the world's most computer-literate society, the US federal government lags many of those it serves in its use of the internet to make its own and the lives of citizens easier.

While most Americans log onto the web at least once a week, less than 1 per cent of their dealings with Washington DC occur online, according to the sponsors of proposed new legislation to automate government services over the internet. http://globalarchive.ft.com/globalarchive/article.html?id=010620001412

LABOR SECRETARY PLANS WEB PROGRAM

Secretary of Labor Elaine Chao will unveil nine initiatives aimed at filling tech job vacancies with skilled U.S. workers at a conference this week. She plans to announce a partnership with job site Monster.com to cross-reference job listings with the Labor Department and a training program that would prepare disabled and veteran citizens for the new economy. Chao intends to focus on providing skills to workers so they can fill the demand for tech workers. Deron Zeppelin of the Society for Human Resource Management, lauds the plan, which he calls "thinking out of the box." The conference, "21st Century Workforce," will also feature President Bush, Microsoft CEO Steve Ballmer, and other industry executives.

http://www.msnbc.com/news/589822.asp

II. CISCO@INTERNATIONAL

INTEL SIGNS UP FOR EU 'SAFE HARBOR' AGREEMENT
The contentious U.S. and the European Union "safe harbor" agreement to protect the privacy of EU citizens while allowing uninterrupted data transfers with U.S. companies has been slow to attract U.S. corporate support.  However, Intel Corp. climbed on board the agreement just over a week before it went into effect July 1, 2001.  EU data privacy regulations prohibit international data transfers to e-commerce and other companies that do not comply with EU privacy standards.  Companies that do not participate in the safe-harbor agreement and are found to have inadequate privacy policies will be subject to EU privacy regulation enforcement.  Other high-tech giants that have signed the agreement include Microsoft and Hewlett-Packard, but only 71 other businesses, mainly smaller privacy protection and/or certification companies, have joined them.  "Ireland, Luxembourg and France have yet to pass laws to comply with the directive, and it's difficult for the EU to enforce the directive against companies based in other countries until such time as all the member states are in compliance," said Jonathan Winer, attorney and a former deputy U.S. assistant secretary of state for international enforcement.  "It's not yet clear that anything bad is going to happen to you if you don't sign up." 
http://www.newsbytes.com/news/01/167541.html

EU Study Confirms Digital Divide

The European Union's (EU) Eurobarometer surveys provide valuable insights into the behavior and attitudes of the citizens surveyed.  As part of its Eurobarometer series, the EU published the results of a survey on internet use conducted by EOS Gallup during the last two weeks of February 2001.  The story highlights how internet penetration varies widely throughout the EU, from a high in Sweden, with 62.7% of people online, to a low in Greece, with only approximately 12.9% connected to the net.

http://www.emarketer.com/analysis/eeurope/20010620_europe.html?ref=dn

Venezuelans Go Online, Against All Odds
Internet usage in Venezuela has been growing despite the many impediments presented by the country's limited fixed-line infrastructure.  Low teledensity and high access charges remain serious barriers to the country's internet market.  However, telephone companies do offer a small discount to customers dialing in to their internet service provider (ISP), and access prices may decline as new operators enter the fixed-line market (open to competition in November 2000).  The government and private industry are implementing various incentives and initiatives to spur internet deployment and use.

http://www.emarketer.com/analysis/elatin_america/20010705_latam.html

SE Asia to see US$1.2b in VoIP revenues

SINGAPORE--Southeast Asia is expected to generate total revenues of US$1.2 billion in the voice over Internet protocol (VoIP) market by 2006.  This compares with US$77.9 million the region (which comprises Singapore, Malaysia, Indonesia, the Philippines and Thailand) posted in revenues last year.  According to Frost & Sullivan's Asia Pacific IP Telephony Services Equipment and Market Report, the projected figures translate to a compound annual growth rate of 57.1 percent.

"We expect VoIP services to be an increasing proportion of the total originating voice traffic in Southeast Asia because of value added applications and the possible cost savings in long distance as the key introduction driver for VoIP services in newer markets," Frost & Sullivan industry manager for VoIP in Asia Pacific Nitin Bhat said in an email interview.

http://www.zdnetasia.com/news/money/story/0,2000024757,30084856,00.htm

BILL WOULD REQUIRE ICANN TO CREATE '.KIDS' DOMAIN
Last week, Reps. John Shimkus, R-Ill. and Edward Markey, D-Mass introduced legislation that would force Internet addressing authorities to create a ".kids" domain that would be designed to serve as a safe online haven for children.  Under the legislation, the U.S. Department of Commerce would require the Internet Corporation for Assigned Names and Numbers (ICANN) to include .kids alongside .com, .net and .org in the Internet's worldwide addressing system.  The bill also outlines some rules that the operators of .kids would be required to follow in order to ensure that only child-friendly content is allowed in the domain.  Although the not-for-profit ICANN autonomously manages the global Domain Name System (DNS) the Commerce Department retains veto power over major ICANN decisions.
http://www.washtech.com/news/regulation/10881-1.html

SUPREME COURT REJECTS FCC APPEAL IN WIRELESS-SPECTRUM AUCTION DISPUTE
The Supreme Court has refused to hear a spectrum auction case, complicating federal to effort to resolve a parallel, $17 billion dispute.  The court, without comment, declined to resolve a fight between Metro PCS, an upstart cellular-phone company, and the FCC.  The company, once known as General Wireless Inc., had submitted winning bids for 14 spectrum licenses at a government auction in 1996.  But it sought bankruptcy protection before paying the government all it owed.  The FCC wanted to repossess the licenses, but a bankruptcy court ruled that Metro PCS could keep the licenses for a fraction of the original bids.  By refusing to hear the case, the Supreme Court has effectively let stand findings of the bankruptcy court.  This case has implications for the ongoing efforts to resolve a similar dispute with NextWave Telecom.  In that instance, the U.S. Court of Appeals last month scrapped a re-auction of spectrum seized from NextWave.  Earlier this year, the government resold the seized NextWave licenses.  The Appeals Court ordered the FCC to return to the licenses to bankrupt NextWave.
http://interactive.wsj.com/articles/SB99383909259603099.htm

III. CISCO@US STATES

STATE SURPLUS AUCTIONS GO HIGH

Oregon is a pioneer in the online government auction business, using eBay to sell goods and property confiscated by the police, lost or forgotten by citizens, state-owned items marked for replacement, as well as federal surplus. In 1998, Oregon decided to utilize eBay's 30-million-customer base in an attempt to attract more buyers and get higher prices, and the project was so successful that all of Oregon's auctions are now conducted online. Oregon's success has led states such as California and Colorado to ask Oregon officials for advice about conducting their auctions. Also, the Federal Bureau of Land Management, a division of the Department of Interior, uses Oregon to sell its surplus vehicles at a rate of up to six per week, generating the state $200, or 7 percent of the selling price, for each car sold. The entire Interior Department will soon follow suit. Although Oregon is the only state to auction exclusively online, Texas, which already sells items through eBay, Yahoo!, and Amazon, may be next. In California, Internet auctions raise nearly 10 percent of the state's annual $1.5 million in surplus revenues. Several other states, including Georgia, Maine, Massachusetts, North Carolina, Pennsylvania, and Virginia, also utilize the Web to auction off items.

http://www.stateline.org/story.cfm?StoryID=133265

INSTRUCTOR COORDINATES STATEWIDE TRAINING

The Oklahoma Farm Bureau recently provided training for 300 workers over an interactive audio/video network. A team of technology centers, the Farm Bureau, and the National Guard set up the state-wide network. Farm Bureau training director Larry Brown wanted to train employees using new, Web-based software. The distance-learning initiative relied on the studios of the Regional Training Institute of the National Guard. The initiative cost the Farm Bureau $563, compared to an estimated $30,000 for classroom instruction. Fran Miller of the Gordon Cooper Technology Center received an award for her role in the undertaking.

http://www.news-star.com/stories/061701/edu_miller.shtml

DOING YOUR HOMEWORK ON SCHOOL DISTRICTS

California's Department of Education (CDE) publishes aggregate school-by-school test scores and other data online. The CDE publishes the data on its home page, including annual standardized test scores as well as enrollment, demographic, staffing, and drop-out data from throughout the state at both the per-school and per-district level. School rankings on state-wide tests, called the APIs, are also ranked on a comparative 1 through 10 basis, meaning parents can discover whether their child's school ranks from the bottom 10 percent of California schools (API 1) to the top 10 percent (API 10). The CDE site also provides a national comparison for Stanford 9 standardized tests, with schools being awarded straight percentages, where a 53 percent ranking means a school falls slightly above the national median. Real estate agent Andrea Healey says the information can inform people of "the quality of the school district," among other benefits. 

FOSTER PARENTS LOG ON FOR TRAINING

Washington State's Department of Social and Health Services, working with the state's Department of Information Services, has picked 23 sites that will be converted into computer classrooms. These classrooms will host virtual classes for foster parents on topics such as fetal alcohol syndrome, brain development, and how to deal with troubled children. Parents who attend these free classes will be able to interact via the Web with experts and other foster parents following a live Webcast lesson. Parents with Internet connections at home can access the lessons as well. Those who miss the live lessons will be able to access them through an online archive.

http://www.civic.com/civic/articles/2001/0618/web-foster-06-18-01.asp

IV. 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 electrical 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.

V. FACTS AND STATS OF THE WEEK:

INTERNET IN IRAN
The Washington Post reports that in Tehran, Iran, internet cafés open at a rate of one per day.  Though the internet became available only 18 months ago in Ian, there are currently 450 internet cafés in Tehran.
eMarketer

EU CALLS FOR AN eCHICKEN IN EVERY POT
European Union officials backed a plan to wire all citizens to the internet.  The proposal is far-reaching but falls short of promising broadband access. 
http://www.emarketer.com/estatnews/enews/reuters/06_27_2001.rwntz-story-bcnettelecomseuinternetdc.html?ref=euw


WHOA BACK, EUROPE, CHECK YOUR EGO AT THE DOOR
The EU is starting to act like that loner in the schoolyard who just realized he's tough enough to beat people up.  Europe shouldn't get a swelled head over its newfound mojo in the global economy. 
http://search.businessweek.com/magazine/content/01_27/b3739156.htm


MOBILE DATA DEVELOPS AND EMERGES
By 2010, the number of mobile data subscribers (729 million) in developing and emerging economies will nearly equal that of developed nations, according to Telecompetition's "Worldwide Mobility Report 2001.”  Between 2001 and 2010, developing and emerging economies are expected to generate cumulative mobile revenues of over $2.1 trillion, nearly 40% of the global total of $5.4 trillion.
eMarketer

WIRED AND WIRELESS IN ESTONIA
According to the 2001 Global eCommerce Report from Taylor Nelson Sofres, 39% of the Estonian population (80% of internet users) use mobile phones and 39% do not.  TNS questioned people around the world between January and June 2001 and found that 67% of the population in Estonia is online, but only 6% of internet users are online shoppers.

eMarketer

9 in 10 children have a mobile phone

Nine out of 10 children under the age of 16 have a mobile phone and 10% talk for more than 45 minutes every day, according to research published yesterday.  It comes a year after the Stewart Group stated in its report that the widespread use of mobile phones by children for non-essential calls should be discouraged.

http://www.guardian.co.uk/uk_news/story/0,3604,514137,00.html

GOING...GOING...UP!
The May 2001 Nielsen//NetRatings and Harris Interactive survey reports that auction sites grossed revenues of $556 million in May.  eBay leads the way with 64.3% of all auction revenues.  The online survey of 35,000 web users reports that auction spending skyrocketed from $223 million in May 2001 to $556 million in 2001 growing by 149%.  Usage has also experienced significant growth.  More than 6.2 million users made online purchases on auction sites compared to 5.1 million in May 2000, a 22% jump.

eMarketer

GLOBAL OPINIONS ON THE FUTURE OF TECHNOLOGY
The US may claim to have "invented the internet," but 37% of worldwide consumers believe that by 2025 the Asia Pacific region will be the world's high-tech leader. 
http://www.emarketer.com/estatnews/estats/wireless/20010628_rscg.html?ref=wiw


Internet, broadband use grows in Taiwan

AP - The number of Taiwanese using the Internet grew to 8 million - nearly one-third of the island's population - as of early June, up from 5.6 million a year ago, according to a survey by Business Next magazine.  About 1.5 million people in Taiwan use broadband, up sharply from less than 100,000 last year, John Wang, editor-in-chief of the monthly magazine, said at a press conference Friday.  About 500,000 Taiwanese subscribe to the superfast Internet service.

http://news.ninemsn.com.au/sci_tech/story_15139.asp

SUMMARY OF INTERNET ACTIVITY FINDINGS FOR AUSTRALIA

HIGHLIGHTS

-The number of ISPs in Australia fell 4% to 665 during the March quarter following a fall of 3% between September and December 2000.

-The number of Points of Presence (POPs) fell 4%.

-The number of access lines available to subscribers was down 5% from the December number.

-The number of subscribers increased by 47,000 (1.2%).

-There was virtually no change in the volume of data downloaded.

-The number of Web sites hosted by ISPs was down 9%.  This was mainly due to some businesses falling out of the scope of the survey because they now concentrate on hosting Web sites and no longer provide Internet access.

http://www.abs.gov.au/ausstats/ABS%40.nsf/e8ae5488b598839cca25682000131612/6445f12663006b83ca256a150079564d!OpenDocument

DOT-GONE

The June 2001 report from Webmergers finds that 53 dot-coms closed their doors forever in June 2001 -- down only slightly from May's 54 dot-closures and 55 in April.  In June 2000, only 17 dot-coms closed down.  Webmergers reports that since January 2000, 555 "substantial" worldwide internet companies have shut down.

eMarketer

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.

VI. OTHER TECH STORIES OF THE WEEK

Late Edition: Another Chance for Newspapers on the Web

Already under threat from the internet, newspapers now have to contend with wireless communications.  Mobile devices, which are more common in parts of Asia and Europe than the PC, lend themselves particularly well to location-specific World Wide Web features such as city guides, entertainment listings, and restaurant reviews—exactly the kind of information that was once easiest to find in a newspaper.  How can newspapers defend their territory against yet more competitors?

The take-away: Service providers have the best customer relationships and therefore the best chance of capturing the biggest chunks of revenue.  What they lack, though, are marketing and editorial skills, content, and a highly regarded brand name.  Newspapers have all of these assets and should therefore take advantage of them by negotiating deals with wireless providers right now.

The McKinsey Quarterly

http://www.emarketer.com/analysis/broadband/mckq_bband.html

WEB-READY PHONES ARE NOT ENOUGH
Of the 10 million handsets purchased in the US in Q4 2000, most featured enhanced graphics and longer battery life.  Analyst Ben Macklin points out that the phones are far more advanced than the wireless services available. 
http://www.emarketer.com/analysis/wireless/20010706_wireless.html?ref=wiw

The Password Plague
Who knew that managing passwords could be so unbelievably expensive?  Boeing did.  The aerospace company recently estimated it was spending millions of dollars a year - Boeing would not provide an exact number - in support costs and lost productivity because of password management tasks.
http://cgi.zdnet.com/slink?115252:24409310

CDT, INTERNEWS FORM COALITION TO FIGHT DIGITAL DIVIDE
The U.S.-based Center for Democracy and Technology (CDT) and Brussels-based Internews groups announced the creation of the Global Internet Policy Initiative, (http://www.gipiproject.org).  GIPI is a foundation formed to help developing countries enact policies that narrow the digital divide.  Jim Dempsey, CDT's director of technology, said "... there's a lot of confusion out there about what it takes in terms of policy to create an environment where the Internet becomes affordable, widely available and can be used for economic growth and human development.”  According to Dempsey, GIPI will seek to educate and advise government policymakers and grassroots advocates on a range of Internet policy issues, including universal service, privacy, technical standards, licensing, digital signatures, content controls and the domain name system.  The coalitions has already hired 10 full-time "country
coordinators" who are familiar with the laws and languages of the countries in which they are stationed.  The project is funded by a number of companies, including AOL Time Warner and Microsoft, as well as the Soros Foundation and the Markle Foundation - organizations already affiliated with the multi-nation Digital Opportunities Task Force, or "DOT Force."
http://www.washtech.com/news/regulation/10964-1.html

VII. CISCO GOVERNMENT AFFAIRS@2001

Cisco’s top policy areas 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 visit our multimedia section . 

Home Page: www.cisco.com/gov

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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