Cisco Government Affairs E-Update

Volume 1, Issue 3
02 March 2001
Brought to you by Cisco Government Affairs Online: www.cisco.com/gov

This Week@Cisco in Government Affairs

CISCO@INTERNATIONAL

·        In July 2000, the heads of state of the Group of Eight (G-8) sought to address the Digital Divide and created the Digital Opportunity Taskforce (dot force) project (http://www.g8kyushu-okinawa.go.jp/e/genoa/index.html#1). The dot force plans to present a final report by this summer at the next G-8 meeting in Genoa, Italy and will distribute its first draft of a report very soon.

·        Is there an e-Economy?” – (http://europa.eu.int/comm/stockholm_council/speech1_en.htm) Opening address by Romano Prodi, (http://europa.eu.int/comm/commissioners/prodi/index_en.htm) President of the European Commission, to the conference on "The e-Economy in Europe: its potential impact on EU enterprises and policies", Brussels, Belgium.

·        The EU ministers for education and for research have this week discussed how the interest among young people for the natural sciences and technology can be stimulated and how the member states can increase the recruitment to education and research in these areas. The Education and Research ministers have also discussed how the communications and relations between science, education and the general public can be strengthened. (Council of the European Union)

·        The budget the European Commission proposes for the period 2002-2006 is for EUR 17.5 billion. Compared with the present (fifth) framework programme, the proposal means an increase of 17 per cent in the allotted resources. The Commission's proposal includes research areas that will be given priority, including:

-       information society technologies

-       sustainable development and global change

-       citizens and governance in the European knowledge-based society. (Council of the European Union)

·        There are now over 22.5 million Internet users in China, according to the latest study from the China Internet Network Information Center (CNNIC).  Read more here.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356475&rel=true

·        Use of the Internet by both individuals and businesses in Germany is increasing rapidly.  It is reported that more than a third of Germans over the age of 14 now have Internet access.  Read more here.

http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905356471&rel=true

·        This week, Isabella de Michelis di Slonghello, Cisco’s EMEA Government Affairs Manager, was in Cisco headquarters in San Jose, CA to meet with executives and interact with corporate leaders on e-government, education and broadband. 

CISCO@WASHINGTON, DC

·        President George W. Bush this week unveiled his Economic Blueprint.  (http://www.whitehouse.gov/news/usbudget/blueprint/budtoc.html) Among other policies, the 206-page budget plan:

·        Increases funding for elementary and secondary education by $1.9 billion in 2002 over 2001 funding, a 10-percent increase.

·        Permanently extends the research and development (R&D) tax credit.

·        Earmarks $100 million for federal e-government initiatives.

·        http://www.gao.gov/new.items/d01277.pdf The General Accounting Office this week released a report on the federal government's public key infrastructure (PKI) strategy for e-government security, finding that while agencies have made progress, there are many challenges ahead.

·        Cisco Telecommunication Policy Counsel Bruce Mehlman (http://www.cisco.com/gov/multimedia/index.html#Mehlman) addressed the Precursor Group's "Reset: New Market -- New Politics" conference on Friday.  Appearing on a panel with former Senior Technology Advisor to President Clinton, Tom Kalil and Release 1.0 (http://release1.edventure.com/index.cfm) Editor Kevin Werbach, Mehlman contended that productivity improvements enabled by broadband networking (http://www.cisco.com/gov/networks/broadband_deploy.html) and e-business methods have only just begun to reshape the world's economies and improve standards of living.  Pointing to economic data showing robust Internet health last year and optimistic expectations for future growth, Mehlman suggested that policy makers' support for broadband deployment will be the key variable determining the pace of economic growth and productivity gains going forward.

·        Last Thursday Cisco filed comments with the Federal Communications Commission on the 3G rulemaking (.pdf document – Adobe Acrobat required) (http://svartifoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6512560386), affirming the need for policy makers to allocate more spectrum for high speed Internet access.  Cisco commented that while "prompt efforts to identify new radio frequencies for Third Generation (“3G”) services are essential . . . policy makers will not achieve this broadband imperative by switching spectrum from one high-speed use to another."  Cisco urged the Commission to maintain the integrity of the MMDS/ITFS bands -- which are presently allocated for high speed fixed wireless (http://www.cisco.com/warp/public/779/servpro/solutions/wireless/) uses -- and find alternative spectrum for 3G services.

·        U.S. Federal Trade Commission (FTC) Commissioner Orson Swindle this week released a commentary on Privacy, entitled “Privacy in a Digital World:  Industry Must Lead, or Government Will Follow.” (http://www.pff.org/POP_8.4.htm)

CISCO@US STATES

·        Cisco President and CEO John Chambers, will speak at the 2001 Global Internet Summit in McLean, Virginia next Tuesday, March 5th.  Chambers is the Summit’s co-chairman with Virginia Governor Jim Gilmore.  The event will present a variety of perspectives from those most affected by the Internet: Industries, Governments and Consumers.

·        The state of Florida’s “IT Taskforce” recently released a 162-page report on the state of IT in Florida.  The report examines education, e-government and more.  For the full report, go to IT Florida’s homepage.  The report is accessible in .pdf format.  http://www.itflorida.com

·        Former North Carolina Governor Jim Hunt visited Cisco headquarters in San Jose this week to meet with executives and talk about “Measuring Up 2000: The State by State Report Card for Higher Education.”  (http://measuringup2000.highereducation.org/) See how your home state measures up and what can be done to improve the overall state of education.

·        This week, US President George W. Bush met with US Governors at their annual meeting.  Read his speech here. (http://washingtonpost.com/wp-srv/onpolitics/transcripts/bushtext022601.htm)

·        President Bush spoke today to the National Association of State Legislatures about his tax-cut plan.  Read the Reuters story. http://dailynews.yahoo.com/h/nm/20010302/pl/bush_taxes_dc_2.html)

·        Tax Time!!!  Visit our U.S.States (http://www.cisco.com/gov/us_states/index.html) page to find your state and federal income tax forms.  Download the forms or file electronically.  eGovernment (http://www.cisco.com/gov/people/e_government.html) in action!

SITE OF THE WEEK –WWW.WHITEHOUSE.GOV

President Bush’s budget and tax cut plan sets the tone for the debates in the US Congress on many important tech issues.  View the President’s Budget. http://www.whitehouse.gov/news/usbudget/blueprint/budtoc.html)

GOVERNMENT AFFAIRS LAUNCHES “VIRTUAL THINK TANK”

·       To read about the newest Cisco Government Affairs web supported public policy initiative please visit News@Cisco. (http://newsroom.cisco.com/dlls/index.shtml)

FACTS AND STATS OF THE WEEK:

“British e-Revolution, Broadband, and Japanese e-shopping”

UK BUSINESSES ONLINE

·        A recent study done by The Confederation of British Industry (CBI) and KPMG Consulting found that 50% of businesses in the UK with an online presence expect that in the next three years 10% of their revenue will come from e-commerce transactions. Also, 99% of respondents expect e-business to be an integral part of overall trading by 2003. Currently 41% of companies find that e-business is an integral part of their structure while 17% say it plays a limited role.

THE BROAD REACH OF BROADBAND

·        Kinetic Strategies reports that 7.8 million households in the US and Canada subscribe to broadband internet services -- 5.5 million of which use cable modems and 2.3 million of which use digital subscriber line (DSL) connections. Kinetic says that multiple service operators (MSOs) currently possess 70% of the residential broadband internet market. By the end of 2000, MSOs installed 4.8 million cable modem customers compared to 1.8  million households that added DSL connections.

JAPANESE FEAST ON eHOLIDAY SHOPPING

·        According to the latest Nikkei Market Access report, 45.8% of internet users in Japan went online to research or buy gifts during the 2000 holiday season. The number of users who bought gifts increased by 12.9% from the same period in 1999, and 56.1% of these users were first-time buyers. The most popular e-purchases were local specialty foods (bought by 28.3% of users), followed by clothing (23.7%) and general foods (21.4%).

THE STATE OF THE INTERNET

·        A special report from Cisco Government Affairs is now available online.

Some of the information included:

The year 2000 year saw a...

* 67% rise in GLOBAL INTERNET USAGE

* 230% increase in the NUMBER OF WEB PAGES

* 103% increase in BUSINESS-TO-CONSUMER E-COMMERCE

* 132% jump in BUSINESS-TO-BUSINESS E-COMMERCE

The future looks even brighter, with expectations that by 2005 we'll see...

* 1.17 billion WORLDWIDE INTERNET USERS (up 183% from today)

* $6.2 trillion in B2B E-COMMERCE (up 1,775% from today)

* 3,300 COLLEGES OFFERING E-LEARNING (up 120% from today)

·        For more Facts and Stats on the New Economy, visit our Facts and Stats (http://www.cisco.com/gov/factsNStats/index.html) page.

·        For daily, topical Facts and Stats visit our Hot In Tech (http://www.cisco.com/gov/hot_tech/index.html) 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)

CISCO.COM/GOV AND E-UPDATE FEEDBACK

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DISCLAIMER

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