Cisco Government Affairs E-Update

Volume 1, Issue 33

05 October 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

Cisco Networking Academy Program Update

Number of Academies:

USA: 4,497 - Canada: 317 - Asia/Pacific: 688 - Latin America 351 - EMEA 2,261 - Japan: 142

Numbers of Academies Worldwide: 8256

Number of students currently enrolled: 204,386

Number of Academy Instructors: 23,881

Number of countries where Academies are deployed: 133

Number of Languages in which Academy is taught: 9

Average Academy graduate starting salary with CCNA certification in U.S: $24,000 - $60,000

The Cisco Networking Academy Program is a comprehensive ten-course program designed to teach students Internet technology skills.  Cisco has expanded the Networking Academy program to include optional, partner-sponsored courses by IT leaders in the Fundamentals of UNIX, sponsored by Sun Microsystems, and the Fundamentals of Web Design, sponsored by Adobe Systems. All courses are delivered through the Cisco Networking Academy Program. For more information: www.cisco.com/edu

For more information about Cisco's education policy: http://www.cisco.com/gov/people/education.html

This Week@WASHINGTON, DC

WEATHERING THE TELECOM STORM - Deregulating US telephone services has been the holy grail of free marketers for decades. In the wake of a stock market bust that has hit telecommunications stocks particularly hard, The McKinsey Quarterly talked to Reed Hundt, a McKinsey adviser and recent chairman of the US Federal Communications Commission, about the future of the telecommunications industry and how to make deregulation work. http://news.cnet.com/news/0-1004-201-7387853-0.html?tag=cd_mh

GAO REPORT: HUMAN CAPITAL:  ATTRACTING AND RETAINING A HIGH-QUALITY INFORMATION TECHNOLOGY WORKFORCE - Testimony by David L. McClure, director, information technology management issues, before the Subcommittee on Technology and Procurement Policy, House Committee on Government Reform. http://www.gao.gov/cgi-bin/getrpt?gao-02-113t (Adobe file)

FTC CHAIRMAN MURIS ANNOUNCES NEW PRIVACY AGENDA - Saying that "there is no question that consumers are deeply concerned about the privacy of their personal information ... how it's being used ... and who is using it," Federal Trade Commission Chairman Timothy J. Muris delivered remarks this week at the 2001 Privacy Conference in Cleveland, Ohio, outlining the FTC's new Privacy Agenda and announcing that the agency plans to increase resources dedicated to privacy protection by 50 percent.

http://www.ftc.gov/opa/2001/10/privacy.htm

http://www.washtech.com/news/regulation/12918-1.html

HIGH COURT HEARS CABLE-INTERNET FEE DISPUTE - In a case that could affect high-speed Internet access nationwide, a Justice Department lawyer urged the Supreme Court on Tuesday to allow regulators to limit the ''pole fees'' that cable companies are charged when they deliver both television programs and Internet service. Cable companies pay the fees for the right to attach wires to poles owned by utilities. A lawyer for utilities countered that the government was unfairly protecting cable from Internet competitors and seeking a ''revolutionary expansion'' of power for the Federal Communications Commission. The utilities say that when a cable company simultaneously transmits TV and Internet services, it no longer is covered by rate protections of a ''pole attachment'' law. The case could affect customers' access to high-speed Internet service, and the costs of that service. http://www.usatoday.com/usatonline/20011003/3503451s.htm

CYBERSECURITY SHOULD BE INCLUDED IN HOMELAND DEFENSE - As the Office of Homeland Security takes shape, federal and private-sector technology experts are urging the Bush administration to ensure that cybersecurity is included. http://www.fcw.com/fcw/articles/2001/1001/news-cyber-10-01-01.asp

HOLDOVER FROM THE CLINTON ADMINISTRATION WILL OVERSEE CYBERSPACE SECURITY FOR PRESIDENT BUSH, while a retired Army general will coordinate anti-terror efforts with military and intelligence counterparts.  Richard Clarke, who currently heads the government's counterterrorism team, will direct efforts to protect the nation's information infrastructure from attack, three administration officials said yesterday.  http://www.washtimes.com/national/20011001-68485178.htm 

FCC'S WORK TO ENFORCE 1994 WIRETAP LAW COULD END WITH NEW CONGRESSIONAL LIMITS - As the Justice Department pushes for quick congressional approval for new wiretap authority, the Federal Communications Commission is still struggling to implement a digital-wiretap law enacted seven years ago.  Like the Justice Department's new initiatives, the 1994 Communications Assistance for Law Enforcement Act, or Calea, was touted as critical for bringing wiretaps into the digital age.  But the law's path has been a tortured one, marked by fights between law enforcement on one side and telecommunications providers and privacy advocates on the other. That conflict culminated in a U.S. Court of Appeals decision last year that is forcing the FCC to rewrite many of its rules implementing the law.  http://interactive.wsj.com/articles/SB1001893315169639480.htm  (paid subscription required)

SLEW OF SUPREME COURT CASES TO FOCUS ON '96 TELECOM LAW - The Supreme Court begins its term on Monday with a full plate of telecommunications cases that lawyers say demonstrate the shortcomings of the landmark 1996 law that was supposed to deregulate the industry and introduce competition to telephone markets long dominated by monopolies.  The 10 lawsuits, broadly consolidated into three sets of cases that will be argued beginning this week, present significant questions about the costs of local telephone and high- speed Internet services.  http://www.nytimes.com/2001/10/01/technology/01TELE.html  (free subscription required)

U.S. TAKES SLOWER APPROACH TO ROLLING OUT 3G - Japan on Monday kicks off nifty third-generation mobile services (3G) like videos on wireless telephones, but the United States is on a slower path, one likely to take even longer with a possible war and recession looming.  The attacks on the World Trade Center and the Pentagon have dashed hopes of negotiating on additional spectrum any time soon with the military and other arms of government, analysts said.  http://dailynews.yahoo.com/h/nm/20010930/tc/telecoms_3g_usa_dc_1.html

THE INTERNET, TAXATION AND THE INTERNET - Report by The Claremont Institute on Internet Taxation. "During the 2000 presidential election campaign, candidates fell over one another to proclaim their devotion to the fashionable idea that the Internet should not be taxed. Most realized that taxing the Internet meant taxing a new method of commerce, just when many of their constituents were beginning to enjoy what appeared to be driving a new economic boom in America. Now that the dot.com bubble has burst, lawmakers are taking a harder look at whether or not issues of “tax equity” are being addressed and whether they can successfully extract some Internet wealth to fatten state and local government coffers. It is the purpose of the present study to examine whether this approach is compatible with constitutional safeguards for freedom of commerce or whether Internet taxation is simply a policy question to be decided by the traditional authority of the states to levy taxes." http://www.pff.org/publications/Lassman092701.pdf  (Adobe file)

REP. UPTON INTRODUCES TECH DEPRECIATION BILL - Rep. Fred Upton (R-MI) introduced HR 2981, a bill to amend the Internal Revenue Code to establish a 2 year recovery period for depreciation of computers and other technological equipment, a 24 month useful life for depreciation of computer software, and a 7 year useful life for depreciation of certain spectrum licenses. The bill was referred to the House Ways and Means Committee. Rep. Upton is the Chairman of the House Commerce Committee's Telecom and Internet Subcommittee. He is not on the Ways and Means Committee. (Tech Law Journal www.techlawjournal.com)

E-GOV REMAINS A BUSH ADMINISTRATION PRIORITY - E-government is still a key part of the President’s management plan, Mark Forman, the recently appointed associate director for information technology and e-government at the Office of Management and Budget, said this week.  Forman said the Sept. 11 terrorist attacks in Washington and New York have not dimmed the prospects of creating an electronic government.  In fact, he said, the federal government will need the help of technology to bridge communications gaps among agencies and provide real-time, security-related information more than ever before. “We are now looking at how we can leverage knowledge management technologies in threat and disaster response,” he said. “We need real-time threat information. We need to know who’s making what decisions at what time.” http://www.govexec.com/dailyfed/1001/100201j1.htm

SENATE COMMITTEE HOLDS HEARING ON INFORMATION INFRASTRUCTURE PROTECTION - The Senate Governmental Affairs Committee held a hearing on the security of critical governmental infrastructure. It also held a hearing on September 12, 2001. See, prepared statements of witnesses: Ronald Dick (FBI's National Infrastructure Protection Center), Sally McDonald (GSA's Federal Computer Incident Response Center), John Tritak (BXA's Critical Infrastructure Assurance Office), Frank Cilluffo (Center for Strategic and International Studies), Joseph Nacchio (Qwest Communications), and Kenneth Watson (Partnership for Critical Infrastructure Protection Security).  http://www.senate.gov/~gov_affairs/100401witness.htm

SENATORS PROPOSE 2-YEAR NET-TAX-BAN EXTENSION - With a nationwide moratorium on new Internet taxes set to expire in less than three weeks, a trio of key U.S. senators introduced legislation today calling for a simple two-year extension of the ban. http://www.washtech.com/news/regulation/12851-1.html

NET TAX MORATORIUM SHOULD EXPIRE IN JUNE '02 - Sen. Byron Dorgan, D-N.D., this week on the Senate floor proposed extending the current Internet tax moratorium until June 2002, one of the shortest extensions proposed thus far.  Dorgan and Sen. Breaux, D-La., today introduced legislation to that effect, that would bar discriminatory Internet taxes until June 30, 2002. The current moratorium is set to expire on Oct. 21. http://www.newsbytes.com/news/01/170837.html

IT PROCUREMENTS SNARL ANTI-TERRORISM EFFORTS - Federal procurement guidelines are fatally delaying the delivery of crucial information technology equipment to federal law enforcement authorities for helping combat terrorism, and U.S. Sen. Richard Durbin, D-Ill., said he would introduce legislation to change that.  Durbin, speaking Thursday on the Senate floor, said that he wants to "attack the bureaucratic mess" that prevents the quick adoption of necessary technology infrastructure equipment in times of national emergency.  http://www.newsbytes.com/news/01/170827.html

PUBLIC EXPECTS HIGH-LEVEL ONLINE SERVICE FROM FEDS - Survey shows that service is more important than price to consumers who conduct government business on the Internet.  The public has high expectations but low satisfaction with online government services, according to a recent survey of Internet users. Security of personal information is very important to users of government services, but many perceive the information is not being held carefully, according to the survey done for WorldCom Inc. by Modalis Research Technologies Inc. of San Francisco. http://www.gcn.com/20_28/tech-report/17087-1.html

E-GOV LEGISLATION STALLS - Sweeping e-government legislation that promised to bring a degree of coordination and discipline to the way agencies make use of information technology has virtually stalled in the Senate. Its supporters have begun looking toward next year as a more realistic time for passage. In part, the bill, introduced last May by Sen. Joe Lieberman (D-Conn.), is a victim of the Sept. 11 terrorist attacks. But the E-Government Act of 2001 is also stymied by determined opposition from the Bush administration. http://www.fcw.com/fcw/articles/2001/0924/web-egov-09-27-01.asp

MARBURGER TO CO-CHAIR PCAST - President Bush issued an executive order Monday authorizing the continuation of the President's Council of Advisors on Science and Technology (PCAST) -- a group that advises the president on science and technology policy. The order also expands the number of members on the council from 19 to 25. PCAST will be co-chaired by John Marburger, Bush's nominee to be director of the White House Office of Science and Technology Policy, and venture capitalist Floyd Kvamme. The names of the 23 others who are to serve on the council are expected to be named "soon," according to White House sources. Bush selected Kvamme as a co-chairman in March, but because Marburger has yet to be confirmed at OSTP, the group has not held an official meeting. Former President Clinton first created PCAST in 1993. (Tech Law Journal -www.techlawjournal.com)

This Week@INTERNATIONAL

THE EUROPEAN INNOVATION SCOREBOARD - The Innovation Scoreboard is an assessment of innovation performance in the individual Member States of the European Union.  To measure innovation performance a set of 17 qualitative indicators are used, based on available statistics covering human resources, knowledge creation, the application of knowledge and innovation finance. The scoreboard is a "benchmarking" tool highlighting both strengths and weaknesses. For comparison, the document includes equivalent figures from the US and Japan, and shows the EU average. It is designed to stimulate debate between members of the business, research and policy-making communities as well as to provide a starting point for policy improvement and mutual learning.  http://www.cordis.lu/innovation-smes/scoreboard/home.html

SPEECH BY EUROPEAN COMMISSIONER LIIKANEN - http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/01/425|0|RAPID&lg=EN

EU INNOVATION SCORECARD' FAULTS PRIVATE R&D SPEND - http://dailynews.yahoo.com/h/nm/20010930/tc/tech_eu_innovation_dc_1.html

DATA SIGNAL GERMANY'S TRANSFORMATION TO IT SOCIETY - Germany is turning rapidly into a "knowledge-based society" with an expanding number of software companies and where every second household has a computer, according to statistics published yesterday.  The number of companies in the information and communication sector jumped by 25 per cent between 1994 and 1999, compared with an increase of 8 per cent for company registrations as a whole, said Johann Hahlen, president of the federal statistics authority, which published its yearbook yesterday.  The proportion of households that have a personal computer rose from 21 to 47 per cent between 1993 and 2000, while 52 per cent of all employees use a computer at work. http://globalarchive.ft.com/globalarchive/article.html?id=011005001808&query=Germany+and+IT

GERMAN STATISTICS OFFICE: http://www.destatis.de/

JAPAN'S PLAN FOR WORLD IT LEAD - The government has devised a set of deregulatory proposals to actualize its "e-Japan" project of making Japan the world's leading information-technology (IT) nation within five years, officials at the telecom ministry said Thursday.  http://www.bitrush.com/newsbits.asp?section=1&style=full&doc=1171

CUBANS SLOW TO GET AN INTERNET WINDOW ON WORLD - In a cool room in a post office in Havana's Vedado district, a row of seven young Cubans lean over computers that let them send e-mail, enter a single Cuban-run chat room and surf a small corner of the Internet. The center, which opened last month, is one of four such facilities in Havana, and the plan is for them to spread to post offices across the communist-ruled island.  In a sense, they are like cyber-cafes without the coffee -- or the full-fledged Internet.  Their limitations typify Cuba's slow entry into the cyber world.  http://dailynews.yahoo.com/h/nm/20011002/wr/cuba_internet_dc_2.html

E-GOVERNMENT CATCHING ON IN UK - After a few faltering starts, electronic government in the UK is now starting to take off both from a central government and a local government perspective, said a senior local government IT manager speaking at Birmingham's E-Business show.  Mark Wheatley, head of IT of the Sandwell Metropolitan Council, said that five years after the British government's e-government project started, the concept is becoming reality. http://www1.govtech.net/news/news.phtml?docid=2001.09.19-3030000000003019

EUROPEAN COMMISSION LAUNCHES CALL FOR PROPOSALS - PREPARATORY AND INNOVATIVE ACTIONS - UNDER THE E-LEARNING ACTION PLAN -http://www.europa.eu.int/comm/education/elearning/call/call_en.pdf (Adobe file)

INQUIRIES INTO LEASED LINES AND MOBILE ROAMING -

http://www.europa.eu.int/comm/competition/speeches/text/sp2001_016_en.pdf (Adobe file)

FRANCE - The 5th session of the French Government Working Group on Internet Public Access Place met on 28 September 2001. Minutes of the meeting: http://accespublics.premier-ministre.gouv.fr/m_gpetravail/cr210901.htm  Next meeting is going to take place on October 19, 2001. 

ARGENTINA: LAND OF FREE ISPs - Remember free ISPs? They were popular once, in the United States and the rest of the world. That was before the dot-com crash, right when banners and online sales were seen as the ideal solution. But it didn't work out. Cash didn't flow as expected, and most ISPs started asking for usage fees. That isn't the case in Argentina -- where there are four free ISPs (Uyuyuy, AlternativaGratis, Fullzero and Tutopia), with another three that started giving Web access in the last weeks (Datafull, InterGratis and Keko), and Yahoo Argentina is testing its own service (with plans to make an official announcement in a couple of months). http://www.wired.com/news/business/0,1367,47079,00.html

OVER A FIFTH OF SLOVAKIANS ONLINE - Almost 23 percent of adults in Slovakia have used the Internet, according to a report on Europemedia. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357232&rel=true

BROADBAND NEARS SATURATION IN SOUTH KOREA - New data from Nielsen NetRatings shows that 95 percent of home Internet users in South Korea, or 15.8 million people, have broadband connections. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357235&rel=true

This Week@US STATES

US FIRMS TURNING TO BROADBAND - Over one million US firms will move to DSL broadband Internet access over the next three years, says eMarketer. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357224&rel=true

CONSUMER CONFIDENCE IN NET REMAINS HIGH - US consumer confidence in ecommerce is rising, according to the latest release of the Yahoo/AC Nielsen Internet Confidence Index. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357227&rel=true

NUMBER OF ONLINE HIGH SCHOOLS GROWS NATIONWIDE - The Monte Vista School District first offered online classes to students who had been kicked out of school and wore radio-transmitter ankle bracelets so the police could track them. Most were in Denver, about 150 miles and a world away from the tiny southern Colorado school district of 1,400 students near the Continental Divide.  Officials in the district, one of the state's poorest, had hoped online education could bring in badly needed money by expanding high school instruction beyond the classroom walls.  Seven years later, the district's On-line Academy lists 78 names on its students page. Those living outside Colorado pay $1,800 a year if they have computer access and $2,400 if the school provides the computer; in-state tuition is covered by the state. http://www.nandotimes.com/technology/story/111314p-1242505c.html

STATE LEGISLATORS PULL SUPPORT FROM BUSH EDUCATION PLAN - In a strongly worded letter, an organization representing many of the nation's 7,000 state legislators told Congress it does not support the education plan President George W. Bush put in motion after

taking office in January.  Asserting that there are numerous flaws in legislation reauthorizing the

Elementary and Secondary Education Act (ESEA), which provides about seven percent of state school budgets, lawmakers belonging to the National Conference of State Legislatures (NCSL) said it was their "honest opinion that this 'reform' stops us in our tracks and sends us off on a new and not necessarily successful course." Topping their list of complaints with the bill: its testing requirement. Under Bush's plan, states would be required to test students in grades 3-8 in reading and math each year initially, and eventually in science and history as well. (www.stateline.org)

SOUTH DAKOTANS TALK EDUCATIONAL TECHNOLOGY - South Dakotan teachers, administrators and university faculty were in Rapid City, S.D., at an educational technology conference this week. The Distance Learning Showcase features national award-winning experts on the use of technology in teaching and learning.  Experts made recommendations on future use of the state's Digital Dakota Network, which links schools, universities, libraries and other facilities throughout South Dakota. Gov. William Janklow gave opening remarks on Tuesday.

http://www.ddnnet.net/

DREXEL TO WIRE PENNSYLVANIA COLLEGES TO INTERNET2 - Drexel University has received approval to sponsor connections to the Abilene network -- an Internet2, high-speed research network – for Pennsylvania's 14-school higher education system, University President

Constantine Papadakis recently announced.  The 14 colleges in the system will connect to the network through Drexel's Keystone Crossroads Partnership for Internet2. Last year, Drexel became the first major university to operate a fully wireless cyber campus and ranks sixth in this year's Yahoo Internet Life poll of America's 100 Most Wired Universities.  (National Journal’s Tech Daily – www.nationaljournal.com)

AOL OFFERS HIGH-SPEED ACCESS IN TAMPA, RALEIGH - AOL Time Warner Inc. said on Wednesday it began offering high-speed Internet service from its AOL unit, the world's largest Internet services provider, over its cable systems in Tampa, Florida, and Raleigh, North Carolina.  The launches come a week after the world's largest Internet and media company began offering high-speed Internet services from rival EarthLink Inc. and AOL in Columbus, Ohio, and Syracuse, New York.  http://dailynews.yahoo.com/h/nm/20011004/wr/tech_aol_highspeed_dc_3.html

TRIBAL LIBRARIES CONNECT COMMUNITIES WITH TECHNOLOGY - Robert S. Martin, the newly appointed Director of the federal Institute of Museum and Library Services, last week announced this year's recipients of the agency's competitive grants to Native American libraries. "With more than $1,516,000 going to 13 libraries serving the needs of Indian tribal communities and Alaska Native villages, IMLS continues its support of an important, but often underserved part of the nation's community of library users," said Dr. Martin. The grants are intended to "help tribal libraries use the power of technology to connect their communities and provide the critical information they want and need." http://www.imls.gov/whatsnew/current/092501-1.htm

CONSUMER ADVOCATES URGE CALIFORNIA PUBLIC UTILITIES COMMISSION (CPUC) TO TAKE ACTION ON LOCAL TELEPHONE COMPETITION - A new study released today by the Consumer Federation of America (CFA) estimates that California consumers could save as much as $220 million per year on their phone bills if local markets are genuinely open to competition. Authored by Dr. Mark Cooper, CFA's Director of Research, the study also examines the reasons behind the failure of local phone competition in California, and what regulators can do to remedy the situation.

http://www.consumerfed.org/calif_localcomp_release_200110.PDF (Adobe file)

US HISPANICS ACTIVE ONLINE - Almost half of US Hispanics are now online, according to new research from Forrester. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357228&rel=true

SAN DIEGO TOPS E-GOV RANKINGS - Good news for San Diego: Its e-government efforts were ranked No. 1 among the 70 largest cities in a comprehensive study by researchers at Brown University's Taubman Center for Public Policy. The bad news: San Diego scored 52.9 on a 100-point scale.  Rounding out the top 10 in the Brown study were Albuquerque, Seattle, Washington, D.C., Salt Lake City, Virginia Beach, Kansas City, Mo., Denver, San Jose and Indianapolis. Albany was ranked last among the cities, joined in the bottom 10 by Buffalo, St. Louis, Birmingham, Rochester, El Paso, Miami, Greenville, Louisville and Cleveland.  http://www.insidepolitics.org/egovt01city.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:

COUNTRIES FULL OF INTERNET CAPACITY - International telecom statistics company TeleGeography reports that the number of international cross-border internet links grew 147% between July 2000 and July 2001 -- a percentage that compares to 382% growth between 1999 and 2000. TeleGeography defines these internet links as general internet applications (for example, e-mail or webpage information requests). Latin America experienced the biggest rise in overall capacity with a 479.2% jump to 16.1 gigabits per second (Gbps). Europe followed with a 190.8% increase and Canada and the US combined grew by 144.3%. Asia grew by 129.3% -- from a capacity of 22.9 Gbps to 52.7 Gbps.

WIRED-UP HOUSEHOLDS WORLDWIDE - Cahners In-Stat believes that the worldwide home networking market will rise from $1.4 billion in 2001 to $9.2 billion in 2006. Canhers explains that the "home networking" market consists of equipment and software, residential gateways and home control automation products. Cahners says that the market's development challenges lie in the vendors' hands. Vendors will need to bring home networking to higher technological levels, while making money off of the investments in such technology.

ENABLING PHONES FOR THE INTERNET WORLDWIDE - According to a September 2001 report from AT Kearney and Cambridge University, the number of people with internet-enabled phones (IEPs) in Japan jumped from 33% in January 2001 to 51% in June 2001. The report also found that in Europe, the percentage rose from 14% to 19% and in the US, it rose from 13% to 14%. Overall, IEP penetration worldwide grew from 16% in January to 24% in June 2001. Finally, in terms of using phones for commerce, between January and June, the average amount of people worldwide buying from their IEPs dropped from 12% to 4%.

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.

OTHER TECH STORIES OF THE WEEK

WHY FLY WHEN THERE’S INTERNET2? - Internet2 members who are developing high-performance networking applications will use the technology themselves to conduct their national meeting.  The organization, originally scheduled to meet in Austin, Texas this Tuesday through Friday, will instead hold the meeting in cyberspace.  The Sept. 11 attacks made the decision inevitable, a spokesman said. Some people are reluctant to fly and some businesses are not allowing employees to fly. http://wired.com/news/school/0,1383,47134,00.html

TECH HOLDS HIGH HOPES FOR INTERNET2 - If Pinchas Zuckerman, the music director at the National Arts Center Orchestra in Ottawa, hears a not-so-perfect note from his violin student Wu Jie, Zuckerman can demonstrate a better way to hold the bow even though Wu is watching from New York City.  Wu, of the Manhattan School of Music, said that because of a two TV set-up she can watch herself on one screen and Zuckerman on the other with little delay and great sound quality, courtesy of a fast link-up to the Internet2 network.  Internet2 started in 1996 as a group of corporations, universities and nonprofits interested in advanced research. The project acts as a laboratory for companies and researchers developing new technologies and also serves as a blueprint of what the Internet could look like in the future.  http://news.cnet.com/news/0-1004-200-7409907.html

EXCITEATHOME TO SELL ASSETS TO AT&T, FILE FOR BANKRUPTCY - ExciteAtHome Corp. on Friday said it filed for Chapter 11 bankruptcy protection and agreed to sell its crown jewel, its broadband Internet access business, to its controlling shareholder, AT&T Corp., unless it gets a better offer.  In an agreement that ends a long downward spiral for what was once a leading Internet company, AT&T has agreed to buy ExciteAtHome high-speed Internet access business for $307 million, a small fraction of where it was once valued. The business delivers Internet service over cable lines to more than 3.6 million customers worldwide and was instrumental in advancing the Internet from a crude text-based service to one featuring rich images and audio and video.  http://dailynews.yahoo.com/h/nm/20010928/wr/tech_exciteathome_dc_6.html

LASERS, BROADBAND WIRELESS HOOKUPS SPEED DATA AROUND LOWER MANHATTAN - Mike Brady doesn't know what to make of the two humming contraptions now peering through windows at Merrill Lynch & Co. offices near the Hudson River in New York City. "They look like searchlights on small refrigerators," jokes Mr. Brady, Merrill's first vice president for global network services.  In reality, the devices are a part of a system of invisible lasers transmitting data for over 2,000 people from two Merrill operations in lower Manhattan to backup offices in Jersey City, N.J., about 1.6 miles away and across the Hudson. Three weeks ago it would have been unimaginable for Merrill to so quickly deploy the technology, called "free-space optics," without months of testing and fiddling. But with its own ring of traditional fiber-optic cables damaged in the destruction of the World Trade Center, it had little choice but to scramble for an alternative. Since Sept. 11, says Mr. Brady, the fiber-optic lines buried beneath the pavement have failed five times. Now, when the fiber goes out, the lasers from Seattle's Terabeam Inc. kick in.  http://interactive.wsj.com/pages/techmain.htm  (paid subscription required)

RICOCHET REBOUNDS AT WTC GROUND ZERO - The Sept. 11 terrorist attacks on the World Trade Center have unexpectedly renewed Ricochet, the wireless high-speed Internet service owned by Metricom that was shut down more than two months ago.

http://cgi.zdnet.com/slink?147091:3446579

COMCAST CONDUCTS TECHNICAL HOME NETWORKING TRIAL - Ucentric Systems is moving full speed ahead with its home networking software trials. The latest: Comcast Corp. signs on for a technical trial. Comcast has agreed to conduct a technical trial of Ucentric's platform. In conjunction with the trial, Comcast will test the entertainment and communication services available through the platform, including digital music, unified messaging and instant messaging across existing home devices -- televisions, computers, stereos and telephones. If Comcast is satisfied with the technical trial, it plans to conduct customer field trials in the future.  http://www.broadbandweek.com/newsdirect/0110/direct011004.htm

VIDEOCONFERENCING MAY GET MUCH-NEEDED CRITICAL MASS - Most large American companies have a good enough network infrastructure to experiment with videoconferencing. The situation is different for residential broadband, since only about 6 percent of American households have high-speed network connections. Silicon Valley would love to see residential broadband take off, since it hopes that would stimulate demand for PC's and related consumer electronics. This week there are two meetings in Washington devoted to this topic, part of a series of efforts by technology and telecommunications companies to change regulatory constraints that they say inhibit residential broadband deployment. http://www.nytimes.com/2001/10/04/business/04SCEN.html (free registration required)

SECURING THE LINES OF A WIRED NATION - In the hours of torment and confusion after the attacks on the World Trade Center and the Pentagon, many people making phone calls to or from the affected cities encountered the grating "All circuits are busy" recording. E-mail messages, however, seemed to sail through the crisis to their destinations. The smooth traffic was hailed by many experts as testament to the underlying strength of the Internet. But hold on just one nanosecond. Are we talking about the Internet, referred to by so many other experts as a famously vulnerable, fragile network that can be brought to its knees by college students in the Philippines or a teenager in Canada, with estimates of damage in the billions of dollars? It is indeed the same Internet, ever a combination of flaky and robust. Fred Cohen, the computer security researcher who first applied the word "virus" to malicious software, said that the individual elements of the network were fragile but that the network over all was resilient. "It's easy to tear a piece of paper," he said. "Try tearing a phone book in half." Still, David J. Farber, a computer scientist and former chief technologist at the Federal Communications Commission, said that the Internet's success on Sept. 11 could largely be attributed to the fact that "nobody attacked it." http://www.nytimes.com/2001/10/04/technology/circuits/04SECU.html (free registration required)

THE INTERNET WORLD INTERVIEW: CHARLES GIANCARLO - The Cisco executive on whether the company's biggest reorganization since 1997 will allow it to break out of an unprecedented market slump.

http://www.internetworld.com/magazine.php?inc=100101/10.01.01interview_p1.html

Giancarlo bio: http://www.cisco.com/warp/public/750/execs/giancarlo.html

WIRELESS INFRASTRUCTURE SPENDING TO SOAR - Spending on wireless infrastructure will increase from USD99.4 billion this year to USD120.2 billion by 2004, reports Wireless NewsFactor. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357240&rel=true

DSL MARKET FALLING IN NORTH AMERICA - A new study from RHK shows that the DSL equipment market in North America in the first half of this year was down 44 percent on the second half of last year. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357229&rel=true

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

SITE OF THE WEEK – The Washington Internet Project - WWW.CYBERTELECOM.ORG - The Washington Internet Project is a pro-bono effort dedicated to raising awareness of and promoting participation in the federal regulatory process on issues relevant to the Internet.   The Project provides timely notice of regulatory proceedings, hearings, meeting, proposed legislation, and public notices.  The Project also provides forums where regulatory developments can be discussed and debated.  The Project is not involved in advocacy, lobbying, or representation.  It receives no funding or support. It has no staff. It is made up entirely of the voluntary efforts of the participants.

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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