Cisco Government Affairs E-Update

Volume 1, Issue 32

28 September 2001

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

LIBERTYUNITES.ORG – Along with our friends and partners at AOL Time Warner, Amazon.com, E-Bay, Microsoft and Yahoo, Cisco is participating in a website to help the United States begin the healing process after the September 11 tragedies. As the rubble is cleared, the rebuilding process for the survivors and their communities is only just beginning. From medical and rehabilitation needs to psychological assistance and financial support for the families of the victims, the burdens on charitable organizations will be staggering. Please visit www.libertyunites.org and see what you can do to help.

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

This Week@WASHINGTON, DC

FCC ON 3G - The FCC announced that back on September 6 it adopted an order pertaining to use of the 2500 - 2690 MHz band. This is one spectrum band that has been identified for possible reallocation for use for Third Generation (3G) wireless services. 3G is intended to bring broadband Internet access to portable devices. The FCC stated that it will not reallocate this band for 3G purposes.

http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/2001/nret0107.html

IT COULD PLAY BIG ROLE AT HOMELAND SECURITY OFFICE - The Office for Homeland Security, which President Bush announced last week in his speech to a joint session of Congress, could rely heavily on information technology to maintain domestic security, according to federal IT experts. http://www.fcw.com/fcw/articles/2001/0924/news-home-09-24-01.asp

INTEL SEEKS FCC AID IN PROMOTING BROADBAND DEPLOYMENT - Chip manufacturer Intel today filed a pleading with the Federal Communications Commission (FCC) asserting that current regulations are "undermining" the delivery of broadband Internet services to American consumers. Intel characterized the current broadband market as "discouraging," and, citing anticipated benefits to the economy, urged the FCC to review the regulations that apply to broadband providers in order to encourage investment in the infrastructure needed to bring high-speed Internet access to the home. According to Intel, under section 706(a) of the Telecommunications Act of 1996, the FCC is "obligated to promote the reasonable and timely deployment of broadband through a variety of regulatory tools." At a minimum, the company asserts, the FCC should propose deregulating all new, last mile broadband investment to "encourage the fastest possible deployment of the highest speed technology." http://www.newsbytes.com/news/01/170493.html

GAO REPORT: ELECTRONIC GOVERNMENT: Better Information Needed on Agencies' Implementation of the Government Paperwork Elimination Act. http://www.gao.gov/cgi-bin/getrpt?gao-01-1100 (Adobe File)

STUDY FINDS IMPROVEMENT IN STATE AND FEDERAL 'E-GOVERNMENT' WEBSITES - The second annual "e-government" survey, conducted by researchers at Brown University's Taubman Center, finds significant improvement in state and federal websites. Analysis indicates Indiana, Michigan, Texas, Tennessee, and Washington have the top-ranking online services among the 50 states and that the Food and Drug Administration, Department of Agriculture, Federal Communications Commission, Department of Housing and Urban Development, and

Internal Revenue Service rank most highly among federal agencies. http://www.brown.edu/Departments/Taubman_Center/polreports/egovt01us.html

GOV'T WEB SITES SEE RECORD TRAFFIC AFTER ATTACKS - Magazine special editions and Web sites updated around the clock don't seem to be enough to satisfy the public's need for news and reassurance after the attacks on the World Trade Center and the Pentagon. So thousands of people have found ways to get information directly from the source. The Internet pages of government agencies have been busier than ever before in the days following last week's devastating attacks with hijacked planes on New York's World Trade Center and the Pentagon outside Washington -- second only to news Web sites. http://dailynews.yahoo.com/h/nm/20010921/wr/attack_media_internet_dc_4.html

IRS OPENS E-MAIL TO BUSINESS - The Internal Revenue Service is using e-mail to help answer questions from businesses in the wake of the Sept. 11 terrorist attacks. http://www.fcw.com/fcw/articles/2001/0924/web-irs-09-26-01.asp

CONGRESS AND WHITE HOUSE CAN COMPROMISE ON E-GOVERNMENT - Mark Forman isn’t the federal CIO, but his appointment earlier this year shows that the Bush administration agrees with Sen. Joseph I. Lieberman (D-Conn.) that electronic government programs need strong leadership to succeed, said the chief author of the Lieberman’s E-Government Act of 2001. Kevin Landy, majority counsel for the Senate Governmental Affairs Committee, which Lieberman chairs, said Forman’s appointment as director of IT and e-government for the Office of Management and Budget shows that there is common ground on which Lieberman and 14 co-sponsors can agree with the administration. http://www.gcn.com/vol1_no1/daily-updates/17198-1.html

GOVERNMENT MOVES UPDATES TO THE WEB - The Office of Management and Budget is calling on agencies to provide updates about moving services to the Web and is providing a way for agencies to submit the information through a secure online application on the CIO Council's Web site. http://www.fcw.com/fcw/articles/2001/0924/web-gpea-09-26-01.asp

SEN. ENZI INTRODUCES INTERNET EDUCATION BILL - Sen. Mike Enzi (R-WY) and others introduced S 1445, the Internet Equity and Education Act of 2001, a bill to make it easier to obtain federal financial aid for web based education programs. The bill was referred to the Senate Committee on Health, Education, Labor, and Pensions, of which Sen. Enzi is a member. The bill would amend the Higher Education Act of 1965 (HEA) to expand the opportunities for higher education via the Internet. Currently, the HEA limits the amount of aid a student enrolled in distance education courses delivered via telecommunications may receive if the institution offers half or more of its courses by correspondence or telecommunications. S 1445 would remove this limitation for postsecondary institutions that are already participating in the federal student loan programs with student loan default rates under 10%. (Tech Law Journal – www.techlawjournal.com)

REP. SMITH INTRODUCES WEB WIRETAP BILL - House Judiciary Crime Subcommittee Chairman Lamar Smith, R-Texas, introduced legislation last Thursday that would make it easier for federal investigators to obtain court approval for eavesdropping on Internet communications. Smith said the focus of his bill - H.R. 2915, "The Public Safety and Cyber Security Enhancement Act of 2001" - is to assist the FBI in its ongoing investigation into the Sept. 11 terrorist attacks. http://www.newsbytes.com/news/01/170489.html

TECHNOLOGY COULD BE KEY TO AIRPORT SECURITY - One machine can detect stress by reading flickering eye movements. Another uses X-rays to conduct virtual strip-searches that can spot a razor blade taped to a person's inner thigh. A third videotapes faces in a crowded room and matches them to known terrorists. http://www.washingtonpost.com/wp-dyn/articles/A37675-2001Sep27.html

FEDERAL RESERVE LAUNCHES WEB SITE TO TEACH ECONOMIC POLICY - If Federal Reserve Chairman Alan Greenspan has his way, pupils across the nation will soon add monetary policy to their regular courses on reading, writing and arithmetic. The Fed this week unveiled a new Web site designed to teach how the central bank affects the economy through its conduct of monetary policy. "The Federal Reserve has actively promoted economic education and better public understanding of the roles of the Federal Reserve for many years," Greenspan said in a statement announcing the new site. http://www.nandotimes.com/technology/story/108560p-1225900c.html

TRANSPORTATION AGENCIES CALLED VULNERABLE TO CYBERATTACKS - The Transportation Department and its operating agencies are vulnerable to computer attacks, according to a newly released report from the department’s inspector general. “This report presents the first big picture on security at DOT,” said David Barnes, spokesman for the IG’s office. The report focuses primarily on security deficiencies in the Federal Aviation Administration’s air traffic control system and on the Coast Guard’s disaster recovery capabilities. http://www.govexec.com/dailyfed/0901/092701j1.htm

This Week@INTERNATIONAL

CISCO’S CHAMBERS MEETS WITH KING AND PRESIDENT OF SPAIN - His Majesty the King of Spain recently received in a private audience the President and CEO of Cisco Systems, John Chambers. During this audience, Mr. Chambers informed the Spanish Monarch of his vision for the development of New Technologies in the world and in Spain in particular. Mr. Chambers also explained to the King how broadband may promote economic growth of countries, allowing enterprises to be more competitive and to act with greater freedom in an increasingly globalized world. Chambers also met with President Aznar where they spoke about the evolution and the development of the Internet, as well as the integration of new technologies in society.

ARE YOU READY FOR FASTER DSL? - An emerging high-speed Internet standard in Europe holds potential for faster download speeds and broader availability for many U.S. businesses--if they're willing to wait a while. Although DSL speeds vary widely, the new G.SHDSL could be two to three times faster than most versions of DSL targeted at business customers. The G.SHDSL standard also can deliver data farther than earlier DSL technologies, which are limited to a relatively short distance. Some European communications carriers are using the faster DSL (digital subscriber line) technology on a limited basis.

http://www.zdnet.com/zdnn/stories/news/0,4586,5097269,00.html?chkpt=zdnnp1tp02

BT TO UNVEIL BROADBAND IN A BOX - UK broadband users could soon be sorting out their own high-speed on-ramp to the information superhighway. BT is poised to unveil a "broadband-in-a-box" product that should make it much easier to sign up to and start using fast net access. The move will make it cheaper to get a high-speed net connection, and could boost the take-up of such services in the UK. Trials of the DIY broadband system are already underway, and it should be widely available in early 2002.

http://news.bbc.co.uk/hi/english/business/newsid_1556000/1556660.stm

EUROPEAN UNION: EU MAY INTERVENE ON LOCAL LOOP - Foot dragging by incumbent operators in unbundling the local loop in European countries may lead to action being taken by Brussels. In recent weeks Mario Monti, the European Union Competition Commissioner, has said that his department may investigate pricing structures and alleged anti-competitive behaviour by large telecoms operators. Prices for local broadband internet access have not been reduced in recent months, and are still much higher than in the US. Action could also be taken against EU countries over their failure to create a competitive market for telecommunications to homes and offices. Despite EU regulation opening the local loop to competition, very few individuals and businesses can get fast internet access over their copper telephone wires from alternative high-speed internet access providers. www.worldmarketsonline.com

U.K. E-COMMERCE MINISTER CALLS FOR TIGHTER INTERNET SECURITY - Douglas Alexander, the U.K. e-commerce minister, spoke today of the need for a heightened awareness of Internet security, following the terrorist attacks in America two weeks ago. Speaking at the Information Security Solutions Europe (ISSE) show this morning where he gave the keynote speech for the three-day event, Alexander told delegates that the British government has attached a high level of priority to tracking and securing the Internet. "We have, of course, long recognized the need for practical solutions to the information security problems which face us," he said, adding that the recent tragic events in the U.S. have put a new and intense focus on how the government approaches security and the protection of both its people and assets. http://www.newsbytes.com/news/01/170538.html

EUROPEAN COMMISSION PROMOTES BETTER INTERNET ACCESS FOR PEOPLE WITH DISABILITIES -http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/01/1309|0|RAPID&lg=EN

REPORT ON THE COMMISSION COMMUNICATION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON E-COMMERCE AND FINANCIAL SERVICES -

http://www2.europarl.eu.int/omk/OM-Europarl?PROG=PRESS-BRIEF&L=EN&PUBREF=-//EP//TEXT+PRESS-

SELLING FINANCIAL SERVICES BY MAIL, TELEPHONE AND THE INTERNET - COMMISSIONERS BYRNE AND BOLKESTEIN WELCOME POLITICAL AGREEMENT IN THE COUNCIL -

http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/01/1325|0|RAPID&lg=EN

EURO INFO CENTRES' E-BUSINESS CAMPAIGN: GETTING SMES INVOLVED IN ELECTRONIC COMMERCE -

http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/01/1318|0|RAPID&lg=EN

IRISH SMALL FIRMS WIRED FOR BROADBAND - A new survey has found that nearly 70 percent of small firms in Ireland have installed a broadband telephone line in the past year, reports the Sunday Business Post. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357204&rel=true

INDIAN EBUSINESS REMAINS HEALTHY - Indian ebusiness will be worth USD1.48 billion by 2005, reports Newsbytes. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357209&rel=true

EUROPE TO LEAD 3G MOBILE COMMERCE - Europe will dominate the 3G mobile commerce market, according to a new report from Cahners In-Stat. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357197&rel=true

A QUARTER OF MALAYSIA ONLINE BY 2005 - Twenty-five percent of the Malaysian population will have Internet access by 2005, up from 10 percent at the end of this year, reports Malaysian news site The Star. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357198&rel=true

AUSTRALIAN USERS TURN SLOWLY TO BROADBAND - Only 5.4 percent of Australian Internet users have a high-speed Internet connection, reports Newsbytes. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357219&rel=true

CHINA'S BROADBAND MARKET TAKES OFF - A new research report from Pyramid Research says that the rollout of broadband access has begun in China, after years of delay. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357217&rel=true

MEXICAN BILLIONAIRE TO SELL CONTROLLING STAKE IN PRODIGY - Carlos Slim, the Mexican billionaire, has agreed to sell his controlling stake in Prodigy Communications, the Texas-based internet service provider, to SBC Communications, the US telecoms giant. http://tm0.com/sbct.cgi?s=166389374&i=396568&d=1836547

INDIA'S IT AND TELECOMS MINISTRIES TO MERGE - India said that it would merge its information technology and telecommunication ministries in a move to increase government efficiency and streamline the development of the IT industry. http://tm0.com/sbct.cgi?s=166389374&i=396570&d=1836622

This Week@US STATES

GOAL: GET N.C. UP TO HIGH SPEED - Group to put money into faster Internet access and training - To glimpse a dream of N.C. leaders, fast-forward five years to government offices with no waiting lines, which were eradicated by useful Web sites. To achieve such an interconnected state, North Carolina launched its e-NC program this week, promising high-speed Internet access for everyone in the state within two years. North Carolinians already have access to dial-up Internet access through modems, but the future demands faster cable and digital connections, state leaders believe. And they don't want to leave anyone behind, especially those in poorer rural or urban areas. The first step for the Rural Internet Access Authority is to convince and subsidize private firms to expand coverage areas to provide that high-speed access. The authority, backed with a $30 million grant from a private nonprofit group, has budgeted about $14 million to prompt telecoms to move into poor areas they otherwise might avoid or enter more slowly. http://www.charlotte.com/observer/business/pub/rural0927.htm

CALIFORNIA INTERNET TAX FREEDOM ACT HAS BEEN SIGNED INTO LAW BY GOVERNOR DAVIS - The bill extends the current moratorium on new and discriminatory taxes on the Internet. The current moratorium was set to expire at the end of this year. Under this bill, the California Commission on Tax Policy in the New Economy must issue its interim report to the Governor and the Legislature by December 1st, 2002 and the current moratorium on new or discriminatory taxes on the Internet will be extended until January 2004.

CALIFORNIA LEGISLATURE - Governor Gray Davis issued a proclamation reconvening the California Legislature on October 9, 2001 for a third special session to enact legislation to end the state's emergency role as a power buyer and keep the state's second largest utility solvent.

FEDERAL, STATE AND LOCAL AGENCIES ARE EXPECTED TO BOOST SPENDING - As corporations slash spending on high-tech software, systems and services, the government has emerged as a rare bright spot for the beleaguered information-technology industry. What's more, public spending on technology will probably rise in the wake of the Sept. 11 attacks, say some high-tech executives, government officials and industry analysts. Even as tax revenues shrink, they predict, state and federal agencies will likely spend more on technologies to shore up civil defense, expand the sharing of law-enforcement records and increase screening of employees in sensitive industries. http://interactive.wsj.com/articles/SB1001528037148142760.htm (paid subscription required)

COLLEGE EDUCATIONS ONLINE - Gone are the days when students had to attend classes on campus to earn a college degree. With the most distant university and the most obscure facts a mouse click away, students are finding they can get a college education via computer. Nearly 2 million U.S. students take courses online, in an approach often called distance learning.

http://www.latimes.com/technology/la-000077248sep27.story?coll=la%2Dheadlines%2Dtechnology

GAO REPORT – ELECTIONS: Voting Assistance to Military and Overseas Citizens Should Be Improved. http://www.gao.gov/cgi-bin/getrpt?gao-01-1026 (Adobe File)

NO MORE JOKES, PLEASE: PALM BEACH COUNTY GETS TOUCH-SCREEN VOTING MACHINES - After being under the nation’s microscope during the 2000 presidential election, Palm Beach County officials positioned themselves under a new spotlight to show off their new $14.5 million voting system that will, they hope, put an end to all those jokes about the county and its voters. http://www.sun-sentinel.com/news/local/palmbeach/sfl-machines926.story?coll=sfla%2Dnews%2Dpalm

MICHIGAN – LAPTOPS FOR TEACHERS - While many school districts around the country have implemented programs to provide students with laptops, the state of Michigan is taking a different approach by equipping its teachers with their own computers. Last year, the legislature appropriated $110 million for the Teacher Technology Initiative, a proposal by Gov. John Engler that equips full-time classroom teachers in public schools with a personal computer, software, remote Internet access and professional development opportunities. http://www.wired.com/news/school/0,1383,46987,00.html

E-GOVERNMENT - SACRAMENTO DEVELOPMENT SITE - Sacramento, Calif., has launched a Web site that gives leaders of current and potential businesses a place to view and download maps, documents and other information relevant to investments they intend to make within the city. Existing businesses, for example, can find out about land-use planning or building restrictions for certain locations and download the necessary permit applications. Businesses planning to set up shop in the city can compare the attractiveness of various sites. (www.sacsites.com) http://www.fcw.com/geb/articles/2001/0924/web-map-09-27-01.asp

SURVEY SHOWS GAINS IN STUDENT NET ACCESS - A survey recently released by the California Technology Assistance Project reveals that California has made great progress in providing educational technology in the past year. Among other things, the survey found that: 90 percent of state schools are connected to the Internet, compared with 80 percent in 2000; 93 percent of all high schools are connected, and that number is expected to reach 99 percent as schools complete their Digital High School installations over the next year; and 77 percent of classrooms are online, compared with only 58 percent in 2000. (http://ctap.k12.ca.us/)

WISCONSIN ELECTRONIC GOVERNMENT CHIEF NAMED - Rebecca Heidepriem, a 19-year veteran of the Xerox Corp., was named Tuesday by Gov. Scott McCallum as secretary of the newly created state Department of Electronic Government. http://www.jsonline.com/news/state/sep01/egov26092501a.asp

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:

B2C WILL CONTINUE TO GROW IN US - B2C ecommerce revenues in the US are set to rise from USD38.3 billion last year to USD156 billion by 2005, according to eMarketer. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357218&rel=true

36 BILLION EMAILS PER DAY BY 2005 - IDC has forecast that an average of over 36 billion person-to-person emails will be sent daily by 2005. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357206&rel=true

WIRELESS DATA GROWTH - The US wireless data market is projected to reach nearly $13 billion by 2006 from just $164 million in 2000, according to a report by ATLANTIC-ACM. Sprint PCS is expected to hold the largest market share in 2006 with nearly 21%. Rounding out the top four in 2006 are AT&T Wireless, Verizon Wireless and Cingular Wireless.

For 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

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