Cisco Government Affairs E-Update

Volume 1, Issue 29

31 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

HALF A BILLION PEOPLE ONLINE - According to figures released by Nielsen/Netratings today, is approaching half a billion people online worldwide. The survey notes an increase of 30 million people online since the first quarter of 2001, reaching a projected 459 million people globally. The firm claims it now measures 93 percent of the online universe, after adding Argentina, India, South Africa and Israel to its latest quarterly survey. The firm already measured 30 nations in

North America, the Middle East, the Asia-Pacific region and Latin America. The U.S. and Canada together accounted for 40% of the world's online population; down 1% from June 2001. Europe and the Middle East-Africa region account for 27 percent of the world's Internet population; the Asia-Pacific totals 22 percent and Latin America remains almost unchanged at 4 percent.

http://www.washtech.com/news/media/12164-1.html

CISCO@INTERNATIONAL

GOVERNMENTS PUSH FOR OPEN-SOURCE SOFTWARE - A recent global wave of legislation is compelling government agencies and government-owned companies to use open-source or free software unless proprietary software is the only feasible option.  This legal movement, earliest and most pronounced in Brazil, but also showing signs of catching on elsewhere in Latin America, Europe and Asia, is finding ready converts as governments struggle to close sometimes vast digital divides with limited information-technology budgets. So far, there is no evidence that similar legislation is being considered anywhere in the United States, experts said. http://cgi.zdnet.com/slink?134331:18848815

AES PUSHES VENEZUELA ON TELECOM TAKEOVER BID - AES moved to reassure the Venezuelan government on Thursday that its $1.4bn unsolicited takeover bid for the country's biggest telephony company was intended to maximiZe shareholder value and was not a ploy

to dispose of an existing minority stake.  http://tm0.com/sbct.cgi?s=166389374&i=385089&d=1720653

MICROSOFT TO HELP WIRE MEXICO - Microsoft CEO Steve Ballmer pledged $58 million over five years to help Mexico's President Vicente Fox with his e-Mexico plan that aims to get 98% of the country's population online. http://www.latimes.com/technology/la-000068537aug24.story?coll=la%2Dheadlines%2Dtechnology

JAPAN TELECOM INVESTS IN ADSL - Japan Telecom, in which Vodafone owns a 45 per cent stake, is investing Y4bn ($33.5m) in an ADSL service provider.  http://tm0.com/sbct.cgi?s=166389374&i=385089&d=1720658

UOL MAKES CAPITAL OUT OF STEVE CASE'S BUSINESS MODEL - Universo Online (UOL), the ISP Luis Frias helped create and now heads, has become the largest in Latin America and the biggest headache for AOL in its efforts to tap the fast-growing Brazilian market.

http://tm0.com/sbct.cgi?s=166389374&i=385087&d=1720576

CYBERCRIME 'THREAT TO E-BUSINESS' - Cybercrime risks stifling the development of e-business in the UK, according to a survey by the Confederation of British Industry, the principal employers' organization.  http://tm0.com/sbct.cgi?s=166389374&i=385087&d=1720580  

US TO HELP THWART CHINA'S NET CENSORS - The United States plans to finance the spread of new computer technology designed to help Chinese Web surfers dodge Beijing's efforts to censor the Internet, architects of the plan said on Thursday. http://breakingnews.scmp.com/NLet/NLet.asp?Sec=technology&Id=ZZZLTM0FQQC (free registration required)

HONG KONG BROADBAND USE UP 56% - High-speed broadband usage in Hong Kong surged 56 per cent during the first six months of the year, Internet measurement company NetValue said on Thursday. http://breakingnews.scmp.com/NLet/NLet.asp?Sec=technology&Id=ZZZ90OZEQQC (free registration required)

SPAIN - ONLY 10% OF PRIMARY SCHOOL TEACHERS AND 33% OF ALUMNI IN MADRID KNOW HOW TO USE INTERNET - Sólo el 10% de profesores de Primaria y el 33% de los alumnos de Madrid sabe manejar Internet. La Red parece no haberse asentado en el sistema educativo de la capital. Tan sólo el 10% de los profesores de Primaria de la Comunidad de Madrid sabe navegar por Internet, un 37% asegura tener conocimientos de ello mientras que un 53% no conoce el manejo de la Red de Redes, según se pone de relieve en un sondeo elaborado por la Fundación Madritel sobre conocimiento de nuevas tecnologías en el ámbito escolar de la CAM. http://www.elmundo.es/navegante/2001/08/30/esociedad/999172871.html

MAKING THE MOVE TO ONLINE PROCUREMENT IN EUROPE - eMarketer's eCommerce: B2B Report on why Europe is cautious about e-procurement. http://www.emarketer.com/analysis/world_regions/20010829_wr.html?ref=glw

MOST FRENCH DON'T WANT THE 'NET - The Ministry of Finance in France reports that in 2001, 6% of the population without an internet connection plans to get connected in the next year. However, over one-half of the unwired population never plans to get an internet connection. In 2001, more than one-half of the French population has a mobile phone, but only 25% owns a personal computer (PC). The Ministry believes that the small amount of people who own a PC, the cost of telephone calls and the slow spread of broadband are some of the reasons people are not interested in adopting the internet.

BRIGHT FUTURE FOR eBUSINESS IN LATIN AMERICA - IDC reports that in 2000, companies in Latin America attributed 1.6% of sales to the internet, but in July 2001 they attributed 4.5% of sales to the 'net. IDC surveyed 1,300 businesses in Argentina, Brazil, Colombia and Mexico in Q1 2001 to find that 16.2% of companies' information technology (IT) budgets went to internet initiatives in 2000. This percentage increased to 20.9% in 2001. The study also notes that the manufacturing sector in Latin America will spend the largest amount of its IT budget (25%) on Internet plans.

VIDEO-ON-DEMAND COMING SOON IN EUROPE - According to Frost & Sullivan, the European broadband video-on-demand market will be worth USD2.5 billion by 2006, as over 8.5 million Europeans will have subscribed to the service. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357113&rel=true

SIXTY PERCENT OF BRITONS ONLINE - Over 33 million British people, or 60 percent of the population, used the Internet between April and June 2001, according to Jupiter MMXI. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357100&rel=true

BROADBAND SET TO SOAR IN ITALY - Europemedia reports that the broadband market in Italy is set to grow exponentially over the next few years. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357119&rel=true

INTERNET BANNED IN AFGHANISTAN - Afghanistan's Taliban banned any use of the Internet on Saturday and ordered the religious police to punish users according to Islamic law, the official

radio station reported. "Within the territory of the Islamic Emirate of Afghanistan, no governmental or non-governmental, domestic or international NGO (non-governmental organization) or individuals can exploit the Internet," Taliban leader Mullah Mohammad Omar said in a decree broadcast on radio Shariat. The radio report gave no reason for the ban nor did it say what punishment awaited Internet users.  http://www.nando.com/technology/story/67756p-962641c.html

CISCO@WASHINGTON, DC

HOUSE AND SENATE RETURN TO WORK – Both Houses return to regular schedules next week. 

KEEP DIGITAL COPYRIGHT LAW INTACT, AGENCY SAYS - The U.S. Copyright Office said yesterday that it sees no need for major changes to the Digital Millennium Copyright Act, but did recommend changes to rules regarding personal copies of digital works. In the report, lawyers said it is too early to assess whether the Digital Millennium Copyright Act of 1998 is a success or a failure. Much of the report focuses on the "first sale doctrine," a portion of traditional copyright law that allows people who purchase items such as books, CDs and software to pass them on to a family member or friend. Book publishers have said the first-sale privilege shouldn't extend to electronic media because lending a copy of something digital often means a duplicate is made. The copyright office refused to take sides, although it said it saw no justification for modifying the law at this time. http://www.washingtonpost.com/wp-dyn/articles/A16744-2001Aug29.html

FCC COMMISSIONER TRISTANI ANNOUNCES DEPARTURE -

http://www.fcc.gov/Speeches/Tristani/Statements/2001/stgt152.html

GOVERNMENT TELECOMMUTING WEBSITE - Two federal agencies have made it easier to meet federal telework requirements by launching www.telework.gov.  The Office of Personnel Management (OPM) and the General Services Administration (GSA) recently unveiled a new website designed to provide one-stop shopping on federal telework policies. Now a single location provides access to guidance issued by both agencies and other information on initiatives and activities. http://www.opm.gov/pressrel/2001/OPMGSALaunchTeleworkSite.html

AT&T AND BELLS FIGHT TO CONTROL WEB ACCESS - The country's regional Bell telephone companies and the cable giant AT&T are engaged in a furious fight on Capitol Hill over the rules managing the rollout of high-speed Internet access into Americans' homes, in the process reopening one of the most bitter lobbying clashes of the last decade.  The battle is over the two main technologies that give consumers high-speed, or broadband, Internet access: cable modem service offered by companies like AT&T and digital subscriber lines, or D.S.L., provided by phone companies. Both sides say they have consumers' interests at heart.  http://www.nytimes.com/2001/08/29/technology/ebusiness/29NET.html (free registration required)

WHITE HOUSE TO UNVEIL NEW WEBSITE - Eight months after Bush administration staff took control of the White House Web site, a revamped version of the site is scheduled to be launched in late summer or early fall.  The site will have better graphics, navigation tools and a "superior" search engine, said a White House spokesman.  The launch is a long time coming, as administration officials had said in late April that they planned in "a couple of weeks" to relaunch the site with a fresh look. Currently, the site emphasizes daily press releases, presidential speeches and transcripts from White House officials' press conferences.  http://www.govexec.com/dailyfed/0801/082701td1.htm

www.whitehouse.gov

CISCO@US STATES

PEOPLE STILL SIGNING UP FOR BROADBAND - Despite a wide technology downturn, Internet subscriber figures continue to grow in the United States where a majority of homes have at least dial-up access and nearly one-in-four online households use a broadband connection, according to a new study.  The June 2001 survey, conducted by Gartner Dataquest, shows that 65 million U.S. households, or 61 percent of the nation's homes, actively use the Internet on a regular basis. The total represents an increase of 8.4 million customers since November 2000, when the research firm last conducted a similar study. Gartner Dataquest is the market research arm of business consulting firm Gartner.  According to the study, 91 percent of respondents said they would continue to subscribe to an Internet service, a sign Gartner Dataquest suggests indicates the Net has become essential in American homes.

http://news.cnet.com/news/0-1004-200-7003895.html?tag=pt.msnbc.feed..ne_7003895

www.gartner.com

US PROFESSIONALS CHOOSE 'NET OVER OTHER MEDIA - US working professionals with at least one child under the age of 18 -- no matter what race -- use the internet during the day more than other forms of media. http://www.emarketer.com/estatnews/estats/edemographics/20010821_big.html?ref=wn

TRANSCRIPT OF LIVE CHAT WITH MAINE GOVERNOR ANGUS KING ON DIGITAL DIVIDE - Beginning in August of 2002, Maine will provide all 7th and 8th grade students and teachers across the state with laptops. Every middle school in Maine will be equipped with a wireless internal network that ties in with the existing broadband connections to the Maine School and Library Network. http://discuss.washingtonpost.com/wp-srv/zforum/01/school_king0830.htm

BLOOMBERG PITCHES PLANS TO MAKE POLICE MORE ACCOUNTABLE - Michael R. Bloomberg called yesterday for measures to make the police more accountable to the public, saying that racial data on stop- and-frisks should be posted on the Internet and that the Civilian Complaint Review Board should report to the mayor rather than to the police commissioner.

Last week, the City Council passed a bill championed by Mr. Vallone, a Democratic candidate for mayor, that requires the police to release quarterly reports on the race and sex of people who are stopped and frisked. Mr. Bloomberg said the measure did not go far enough. "If we are going to

have those statistics available to the City Council," he said, "they should be out there on the Web." http://www.nytimes.com/2001/08/28/nyregion/28BLOO.html (free registration required)

WIRELESS VILLAGE WAITS TO CONNECT - Westbury, a southeastern Virginia neighborhood being redeveloped with federal money, would become the first wireless community in the nation at the point that one of its residents decides to go wireless. The 63 home community is the first housing development in the country built with a wireless Internet infrastructure. Any of the 30 families who live in the community now can browse the Web without the need for a telephone line or cable modem. http://www.wired.com/news/business/0,1367,46050,00.html

 

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:

ONLINE AT HOME IN THE US - Gartner Dataquest reports that as of June 2001, there are 65 million US households online -- up from 8.4 million in November 2000. Gartner also mentions that 25% of those households are making high-speed connections (50% of which are cable modem subscribers). Roughly 20% of households still making dial-up connections say they will get high-speed internet by mid-2002.

WIRELESS INTERNET WORLDWIDE - The Intermarket Group predicts that by 2005, more than one-third of worldwide internet users will have access to the internet through a wireless device. 59% will use non-personal computer (PC) devices such as handsets, personal digital assistants (PDAs) and other appliances. Intermarket says that there will be under 40 million worldwide wireless 'net users in 2001 and 730 million by 2005. As of 2001, roughly 80% of wireless internet users are from the Asia/Pacific region.

STREAM A LITTLE BIT LOUDER - A July 2001 Arbitron/Edison Media Research survey finds 52% of US internet users age 12 and older have watched or listened to online streaming media. That amounts to 34% of US residents in that age demographic (about 78 million people). 12% of internet users say they listen to internet-only webcasts monthly. The survey is detailed in a September 2001 report, "Internet VII: The Internet & Streaming: What Consumers Want Next."

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.

OTHER TECH STORIES OF THE WEEK

NARROW AUDIENCE STALLS BROADBAND - The broadband revolution is slowing down. Major providers of cable modems and digital subscriber lines -- the two main types of residential broadband technology -- have raised their prices this year even while dozens of Internet service providers and upstart phone companies have collapsed in recent months. The sector, while still showing strong growth, has seen a general decline when compared to last year. The number of U.S. subscribers to cable modems increased 16% in the second quarter from the first quarter

-- down from a 28% growth rate a year earlier, according to Kinetic Strategies, a Phoenix research firm. DSL uptake has fallen from a quarterly growth rate of 45% to 12%. Many phone and cable companies have raised their broadband prices and curtailed promotional discounting even as consumers are cutting back on spending because of the faltering economy, said Michael Harris, president of Kinetic Strategies.  One other factor adding to the slowing of broadband uptake: the lack of mass-market applications that require the speed and capacity of broadband. "What the average person can do with it hasn't been compelling," acknowledged AT&T President David Dorman last week. http://www.siliconvalley.com/docs/news/depth/broad082701.htm

BUSINESSWEEK: BROADBAND BALONEY - High-speed service may sound good, but it's nowhere near the Net's cure-all.  As the growth of the Internet flags, the people who run struggling online media, e-commerce, and networking companies think they have identified the elixir to revive it: broadband. From Cisco Systems and Intel to Sony and Yahoo!, they're all betting that high-speed Internet service will spur multimedia ads, snazzy video, and the ability to make impulse purchases--thereby getting more people on the Net to spend more time and more money. Unfortunately, it's a bad bet.  Let's face it, most people simply won't get high-speed connections at home for years to come. Blame the steep costs of installing high-speed lines, clumsy regulatory rules, or the poor economy, but broadband has been slower to take off than expected. Market watcher Forrester Research Inc. estimates 72% of dial-up Net access customers won't pay more than $25 a month for broadband--half of what most providers now charge. As a result, fewer than 5% of U.S. online households have anted up. Intel Corp. Executive Vice-President Leslie L. Vadasz estimates it could take a decade for two-thirds of households to get broadband. http://www.businessweek.com/magazine/content/01_36/b3747624.htm

QWEST AND LOUDCLOUD IN $260M WEB PARTNERSHIP - Qwest, the US telecoms company, and Loudcloud, the internet managed services provider, confirmed a $260m five-year partnership to provide customers with a combination of network and web hosting services.

http://tm0.com/sbct.cgi?s=166389374&i=385087&d=1720577

CLECS ARE IN A POSITION TO COMPETE - Move over incumbents, CLECs are on the move. With the demand for broadband services being high, CLECs can "thrive and survive," especially in the DSL arena, one analysis says. In the first quarter of 2001, CLECs had roughly 476,000 DSL lines in service, which translates to about 16 percent of the DSL market in the United States, reports research firm Cahners In-Stat Group. http://www.broadbandweek.com/newsdirect/0108/direct010831.htm#3  (News story) http://www.instat.com/pr/2001/tx0106sp_pr.htm (Press Release)

MORE GOOD NEWS FOR ONLINE AD SECTOR - Online advertising is set to enjoy more growth than other forms of advertising, reports CyberAtlas. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357101&rel=true

TWO-THIRDS OF US WORKERS GO ONLINE IN OFFICE - Sixty-six percent of the US workforce now has Internet access at work, according to a new survey from Xylo.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357118&rel=true

CYBER DIALOGUE: US SMALL FIRMS TAKE TO WIRELESS NET - The number of small firms in the US that access the Internet via a wireless device has more than doubled this year.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357103&rel=true

GROWING AUDIENCE IS TURNING TO ESTABLISHED NEWS MEDIA ONLINE - More and more people, particularly younger ones, are turning to the Web for news. According to Jupiter Media Metrix, the audience for news and information sites grew 14.7 percent over the past year. Those looking for news online tend to visit the sites of large national new organizations like

the Washington Post, The New York Times and CNN.

(http://www.nytimes.com/2001/08/27/business/media/27WEB.html

(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

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

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