Cisco Government Affairs E-Update

Volume 1, Issue 28

24 August 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's E-Update keeps you up to date on the major policy news of the week. Focusing on broadband, education and e-government areas, but covering high-tech and telecom in general, the E-Update is a great source of information for state, federal and international policymakers. To subscribe, send a message with “subscribe” in the subject line to “Subscribe-eUpdate@cisco.com.”

CISCO@INTERNATIONAL

SURVEY: SOUTH KOREANS ARE BIGGEST INTERNET USERS - South Koreans are the world's most avid Internet surfers, followed by people in Hong Kong and the United States, according to Nielsen/NetRatings. A monthly study released this week by the measurement service showed that surfers in South Korea spent an average of 19 hours 20 minutes online in July, topping the list in Internet usage. Ranked second was Hong Kong, where people spent on average 12 hours and 12 minutes each browsing the Net during the same period. In the United States, the average in July was 10 hours and 19 minutes. The survey keeps track of Internet usage in 28 countries, seven of them in the Asia-Pacific. They include Australia, New Zealand, South Korea, Hong Kong, Taiwan, Japan and Singapore. http://dailynews.yahoo.com/h/nm/20010824/wr/tech_internet_dc_2.html

GERMANS ARE EUROPE’S BIGGEST NET USERS - http://dailynews.yahoo.com/h/nm/20010824/wr/tech_internet_europe_dc_1.html

EXPERTS: CONTENT HINDERS ASIAN BROADBAND TAKE-UP - The Asia-Pacific region may lead the world in embracing broadband access to the Internet but penetration rates are not what they could be as content lags behind, industry experts told a conference on Wednesday. http://dailynews.yahoo.com/h/nm/20010822/wr/tech_asia_broadband_dc_1.html

POLL: E-GOVERNMENT IN EUROPE - Ireland's focus on e-government over the past few years is paying off big as some of the country's e-government sites ranked the best in Europe, according to a recent poll conducted by PoliticsOnline and Amsterdam-Summer University. The Irish Government scored 81 out of a total of 100 points for best overall performance among EU government Web sites in the third Internet Intelligence study. The United Kingdom followed close behind, racking up a score of 79, while Spain finished last, with 33 points. Ireland also scored top prize for best parliamentary and best social ministry Web sites.

http://www.politicsonline.com/specialreports/010803/eusurvey2001.asp

AUSTRALIA PRIVACY CODE ANNOUNCED - http://www.iia.net.au/privacylaunch.html

REPRESSIVE GOVERNMENTS ABLE TO TAME INTERNET - Touted as unstoppable forces for free expression and democracy, the Internet and the World Wide Web have so far compiled an unimpressive record for political change in some of the world's most authoritarian regimes, according to a new study released by the Washington-based Carnegie Endowment for International Peace. http://www.washtimes.com/world/20010823-14516190.htm

TECH SLOWDOWN – NIGHT IN U.S. – SUNSHINE IN INDIA - http://www.siliconvalley.com/docs/news/reuters_wire/1430821l.htm

HIGH-TECH CENTER TO OPEN IN GHANA - BusyInternet is setting up a state-of-the-art technology center in a place where consistent telephone service, electricity and even running water can be hard to find. With the help of Ghanaian business partners, BusyInternet is preparing to open a high-tech development center in Accra, Ghana, that offers training rooms, office space, meeting rooms, workstations for low-cost public Internet access, a photocopying shop and a cafe. Freeman Dyson, in his 1999 book "The Sun, the Genome and the Internet," point out that the

technology can be used to educate people in developing countries and help close the economic gap between them and industrialized countries. http://www.nytimes.com/2001/08/23/technology/circuits/23AFRI.html (free registration required)

MALAYSIA'S INTERNET ROAD SHOW - A bus called the Mobile Internet Unit, is an attempt by Malaysia to help bridge its digital divide by delivering technology to its poorest, most remote schools. The United Nations Development Program, conceived the program, which uses a 40-foot bus loaded with 20 personal computers to teach basic computer and Internet skills to rural children and teachers. At the end of each visit, the Mobile Internet Unit's organizers leave behind a PC, a modem and an Internet account so that pupils can practice and teachers can find ways to work computers into the curriculum. http://www.nytimes.com/2001/08/23/technology/circuits/23MALA.html (free registration required)

IT PUSH IN CHINA - The State Development Planning Commission of China announced a new

plan in August 2001 to expand the size of its information and telecom network, which will make it the largest in the world by 2005. This new focus on information and IT devices in everyday life will provide 20 million new job opportunities in the next 5 years. The output of IT service industries will grow by more than 30% annually, and the output of IT and information products will make up 3% of the country's gross domestic product. As a result of this plan, China will have more than 70 million computers in 2005. Also, the number of internet users will increase to over 8% of the population. (eMarketer)

MOST KIDS NOW ONLINE IN UK - Three-quarters of British children aged between 7 and 16 now have internet access, according to NOP. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357089&rel=true

REGULAR NET USER NUMBERS UP IN UK - ZDNet reports that the number of regular Internet users in the UK has risen to 17.3 million, up from 13 million last year. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357076&rel=true

B2B ON THE RISE IN POLAND - New research from Polish Market Review has found that 81 percent of firms in Poland will have a website by next year, up from the current figure of 56 percent. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357095&rel=true

SPANISH NET POPULATION ON THE RISE - The number of Internet users in Spain increased by 717,000 people during the first half of 2001, reports Europemedia. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357091&rel=true

TATA POWER LAYS HIGH-SPEED LINES IN INDIA - Tata Power of India will invest $187.23 million on a broadband initiative for the country. It will also spend $70.21 million to lay fiber-optic cable in Delhi, Mumbai, Chennai, Pune and Hyderabad. http://www.newsbytes.com/news/01/169148.html

CISCO@WASHINGTON, DC

VERIZON ON BROADBAND - Tom Tauke - Senior Vice President Public Policy and External Affairs - Verizon Communications - Progress and Freedom Foundation - August 21, 2001 - "Delaying the Last Mile " - http://newscenter.verizon.com/proactive/newsroom/release.vtml?id=60328%20&PROACTIVE_ID=cecfcccfcac9c9cccdc5cecfcfcfc5cecfc9cecacdc6cccec6c5cf

AT&T SAYS BROADBAND STILL A TOUGH SELL - Caught in the midst of a dispute over how to hasten the rollout of high-speed Internet services, the president of AT&T Corp. said Tuesday that consumers did not really have much reason to get broadband yet. The former "Ma Bell" showed interest in a compromise proposal from Verizon Communications, a Baby Bell, on how to share local networks, but at a summit focused on clearing up barriers to rolling out high-speed networks said a lack of "killer applications" to make the fast Web useful and fun was central to the problem. http://digitalmass.boston.com/news/2001/08/22/broadband.html

SAVE THE ENVIRONMENT: TELECOMMUTE - Businesses were offered a powerful incentive Tuesday to allow workers to telecommute -- pollution credits that can be used to reduce taxes or sold to other companies for cash. U.S. Commerce Secretary Norman Mineta told more than 100 business and government representatives that the pilot program is designed to reduce traffic and auto emissions by encouraging workers to ``e-commute.'' http://www.nytimes.com/aponline/technology/AP-Telecommuting-Credits.html (Free registration required)

MPAA CHIEF: MOVIES WILL CAUSE BROADBAND EXPLOSION - Jack Valenti knows a little bit about the power of entertainment. And, recognizing the potential of broadband, the head of the Motion Picture Association of America says putting movies - the world's favorite form of entertainment - online will propel the technology to a "wondrous new delivery system" right up there with cable, television and videocasettes. But consumers won't embrace broadband access to the Internet until it offers something worth spending money on. http://www.newsbytes.com/news/01/169263.html

Related Story: AOL TO OFFER VOD - AOL Time Warner has announced that it is creating an interactive video division. The new division will offer services such as video-on-demand (VOD).

http://www.nytimes.com/reuters/technology/tech-media-aoltimewarner.html (free subscription required)

GOVT. 3G AUCTION TIMETABLE THREATENS U.S. SECURITY - GAO - A plan to auction airwaves for use in next-generation wireless services could endanger national security if the Defense Department is not given additional time to study the matter, government auditors said in a report released today. Under a mandate from Congress to identify airwaves for use in next generation high-speed "3G" wireless services, government agencies have proposed have proposed auctioning licenses for 1750-1850 MHz band for private sector use by September 2002. http://www.washtech.com/news/telecom/12004-1.html

GAO Report: http://www.gao.gov/new.items/d01795.pdf (Adobe Reader required)

SIEBEL SYSTEMS INVESTS $2 MILLION IN E-GOVERNMENT - Siebel Systems has launched a major new push into the e-government marketplace, and the firm is backing its commitment with a new lobbying shop in Washington and a $2 million political action committee (PAC). "We want people to start running for office talking about" e-government, Mike Maibach, the senior vice president of government affairs for the San Mateo, Calif.-based company, said in an interview with National Journal's Technology Daily. They are looking to further establish "desktop, user-friendly, 800-number government. Let's make government as easy to deal with as Federal Express," he said. (National Journal’s Tech Daily)

CONCERN ABOUT SATELLITE RADIO - XM Satellite Radio Inc.'s broadcasting technology may interfere with other wireless transmissions, two telecommunications companies said this week in objections that could affect the Washington company's planned rollout of nationwide radio service this fall. In comments filed with the FCC this week, firms including BellSouth Corp. and AT&T Wireless Inc. asserted that the repeaters would interfere with transmissions on the Wireless Communications Service, or WCS, band of the electromagnetic spectrum. The WCS band is in the early stages of use for distributing Internet and other services.

http://www.washtech.com/news/telecom/12053-1.html

CITIZENS LIKE E-GOVERNMENT - Consumers are increasingly using the Internet for contacting government agencies and companies, but many are dissatisfied and want online services to be better integrated with traditional forms of communication, according to a national survey. The survey, "Help Me Please! The Changing Face of Customer Service in the Digital Age," was released Aug. 22 and found that 98 percent of respondents had used some form of online customer service. But it further indicated that online resources — including e-mail and self-service Web sites — still lagged behind traditional in-person and telephone methods in terms of satisfaction. The survey was conducted by Modalis Research Technologies Inc. and was commissioned by WorldCom Inc.

http://www.fcw.com/fcw/articles/2001/0820/web-survey-08-24-01.asp

CISCO@US STATES

MAINE GOVERNOR’S LAPTOP PLAN APPROVED - Last year, Governor Angus King of Maine proposed that Maine middle school children be equipped with laptop computers. In this streaming media interview Gov. King announces that the plan has been approved by the Maine legislature for every seventh and eighth grader in Maine. Gov. King details the type of hardware Maine is seeking, additional conditions of the plan's implementation, and the challenges in moving the project forward such as teacher support and hardware support. http://www.wired.com/news/school/0,1383,45866,00.html

TAKE-HOME TEST: ADDING PC'S TO BOOK BAGS - Amid the decisions of some school districts to provide all of their grade school students with laptops, some educators worry whether it is the right choice. The debate is still open about whether laptop programs are really the panacea that some claim. Budget cuts, maintenance, technical support and training merge with concerns about child safety: Will the computers be magnets for muggers? Who is going to make sure that students use them for schoolwork as opposed to instant messaging and video games? But given wireless networks, $1000 laptops, and organizations that either provide or assist in the

hardware, software and wireless networking, the movement is becoming harder and harder to resist. Henrico County, Va., purchased 23,000 Apple iBooks which are being distributed this month to every high school student; in Maine, Gov. Angus King is using a $30 million state budget surplus to supply portable computers for every seventh and eighth grader in the state; and New York is expanding its laptop program. http://www.nytimes.com/2001/08/23/technology/circuits/23LAPP.html (free registration required)

STUDENT'S WELCOME WEBS HELP WITH HOMEWORK - High school students say the Internet is a great resource for their schoolwork. Educators encourage computer use but often caution students not to rely on the Internet alone. http://www.nandotimes.com/technology/story/64470p-923863c.html

DELL AND EDUCATION - Dell plans to expand a program that allows poor students to learn to rebuild refurbished Dell computers. The students are able to take the computers home and receive free Internet access as long as they maintain a ``C'' average, attend school regularly and stay out of trouble. http://www.nytimes.com/aponline/technology/AP-Dell-Education.html

IDAHO CONCENTRATING ON TECHNOLOGY - Idaho is trying to put itself on the edge of the digital era by using technology to enhance government and consumer services. The Electronic Commerce Interim Committee held its second meeting toward that end last week. "They're getting a feel for what Idaho has been doing as far as e-government before they delve into the e-commerce aspect of it," said legislative aide Maureen Ingram. Led by state Sen. Bart Davis and state Rep. Robert Schaefer, the group heard state Commerce Department Director Gary Mahn's update on Idaho's e-commerce activities, with a particular emphasis on tax credits for high-speed Internet access. Last year, lawmakers passed a bill, H.B. 377, that provides tax credits for research and development, job creation, broadband deployment and investment in counties with high unemployment or low personal income. Because of the Gem State's rural nature, many residents who work from home in the global marketplace could benefit from the broadband credits, Ingram said. "We're kind of hoping that some of the legislation that was passed last year -- we can see how it is working," Ingram said. (National Journal’s Tech Daily)

MOST GOVERNORS SAID TO FAVOR STREAMLINED NET SALES TAX SYSTEM - Governors in most states support a continued ban on taxing Internet access provided Congress lets states change the sales tax system to permit the taxation of sales made online, Utah Governor Mike Leavitt said yesterday. Leavitt, speaking on behalf of 42 state and two territorial governors who signed a letter to Congress, said a three-year moratorium on taxing Internet access should be extended. http://digitalmass.boston.com/news/globe_story.html?uri=/dailyglobe2/233/business/Most_governors_said_to_favor_streamlined_Net_sales_tax_system-.shtml

STATE APPROVES TOUCH-SCREEN VOTING MACHINES - Clearing the way for a new era of voting technology, Secretary of State Katherine Harris on Thursday approved the first touch-screen computers for use at polling places statewide. http://www.sun-sentinel.com/news/local/florida/sfl-fvote17aug17.story?coll=sfla%2Dnews%2Dflorida

HOUSTON ATTEMPTS TO BRIDGE DIGITAL DIVIDE - Houston citizens get free e-mail Project attempts to close 'digital divide' - In what may be the most ambitious project to narrow the ''digital divide,'' the city of Houston will launch a program today to offer free e-mail and use of personal computer software to its 3 million area residents. http://www.usatoday.com/usatonline/20010820/3556765s.htm

GOVERNMENT AFFAIRS HIGH TECH COMMUNITY – Broadband Deployment – It is estimated that 2.5 BILLION hours are 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, fiber and technologies are being tested for access through electrical wires. Broadband is the future of the internet and the future of communications. What does broadband mean in your life? 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:

ECUADORIAN eCOMMERCE - According to Corpece, an Ecuadorian e-commerce agency, e-commerce transactions in Ecuador will generate $100 million in revenue by 2002. Corpece reports that as of 2001 the most popular website in Ecuador, Mercadolibre.com, received 650,000 hits and generated $1 million from transactions. The agency also predicts that Latin America in general will generate $9.6 billion by the end of 2001 -- an increase from $3.4 billion in 2000.

CORPORATE eLEARNING TO EXPAND - The market for corporate e-learning in the US generated nearly $2.3 billion in 2000, and according to IDC, is in no way slowing down. The company predicts that by 2005 the e-learning market will exceed $18 billion. The market will face some changes in training, moving from IT skills towards non-IT or business skills. In 2000, only 24% of the market was dedicated to non-IT skills, this percentage will increase to 53.8% by 2005.

ISPs PUSH 'NET GROWTH IN INDIA - IDC India estimates that the country's internet service providers (ISPs) will stimulate internet growth in the region from $4 million in 2000 to $634 million by 2004. IDC predicts that value-added services will grow at a compound annual growth rate (CAGR) of 159% between 2000 and 2004. IDC believes that the floodgates will open in 2002 once the monopoly telecom giant Bharat Sanchar Nigam (BSNL) has on voice-services ends.

LIFE WITH BROADBAND - According to a study by Nielsen//NetRatings, the number of home high-speed internet users grew from roughly 8 million in July 2000 to 17.7 million in July 2001. The number of 56K modem users increased as well from 49.7 million in July 2000 to 64.3 million in July 2001. Nielsen also found that new broadband users viewed 5.5 billion web pages in July 2001 and spent 15 hours, per person, online.

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

As we continue to build out Cisco’s Government Affairs web site, as well as our new service, this E-Update, we welcome comments, criticisms, praise and suggestions. Please send any feedback to John Earnhardt at jearnhar@cisco.com.

To contact any member of the Government Affairs team, please visit our “Contact Us ” page. http://www.cisco.com/gov/contact/index_ext.html

SUBSCRIBING/UNSUBSCRIBING:

You are receiving this update because you requested it. If you no longer wish to receive this update, send a message with “unsubscribe” in the subject line to Subscribe-eUpdate@cisco.com.

If you received this message because it was forwarded to you and you wish to subscribe to this weekly E-Update, please send a message to Subscribe-eUpdate@cisco.com with “Subscribe” in the subject line. Or, visit our Government Affairs homepage (www.cisco.com/gov) and click on the “Subscribe” button in the lower left-hand corner.