Cisco Government Affairs E-Update

Volume 1, Issue 34

12 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

CISCO PRESIDENT AND CEO INAUGURATES FCC CHAIRMAN’S SPEAKERS SERIES – John Chambers, Cisco’s President and CEO, last week was the inaugural speaker at Federal Communications Commission (FCC) Chairman Michael K. Powell’s speakers series.  Presenting his vision for the future of telecommunications and his views on the current market environment, Chambers spoke to a standing room only crowd at FCC headquarters in Washington, DC.  Chairman Powell introduced Chambers as one of the best CEO’s in the world.  Chambers said that government leaders need to set a national goal to bring high-speed Internet connections to all Americans in the next decade.  “For productivity and national competitiveness reasons, the nation must make broadband rollout a national priority.  Just as putting a person on the moon was a national goal,” said Chambers, “getting broadband to all Americans and small businesses should have the same effort behind it.”  While he said that industry would be responsible for the vast majority of the roll-out, he also stated that the federal, state and local governments have a role in helping reach underserved areas.  Chairman Powell, Commissioner Kevin Martin and Commissioner Michael Copps were in attendance at the talk.  Senator Ted Stevens (R-AK), as well as FCC Bureau chiefs were also in the audience.

SCHEINMAN, IPSEN PROMOTED – LEE JOINS CISCO TO HEAD ASIA-PACIFIC GOVERNMENT AFFAIRS – Dan Scheinman was recently promoted to new responsibilities and will now oversee Business Development, Strategic Alliances, Strategic Technology Policy, Government Affairs, Legal, and Corporate Public Relations as Senior Vice President, Corporate Development, Cisco Systems, Inc.  Scheinman will report directly to Cisco President and CEO John Chambers.  Laura Ipsen was recently promoted to Vice President for Government Affairs.  She will continue to head the global public policy department for Cisco and focus on broadband buildout, education and e-government policy issues.  She joined Cisco over six years ago and started and built Cisco’s Government Affairs department.  She will continue to report to Scheinman.  Malcolm Lee recently joined Cisco’s Government Affairs shop and will have responsibilities for government affairs in the Asia/Pacific region.  He will also manage global trade policy issues.  Formerly, Lee was a senior National Economic Council staffer in the Clinton White House and most recently a key U.S. telecommunication and Internet policy negotiator as deputy assistant secretary of State.  Lee will report to Ipsen.

VOTE ON BROADBAND BILL POSSIBLE - The U.S. House of Representatives could vote soon on a measure pushed by dominant local telephone companies that would kill a requirement that they open their networks to rivals before offering long-distance data services, a top Republican said on Friday.  The measure would also allow telephone giants like Verizon Communications and SBC Communications to launch new data networks without having to sell rivals pieces of the network for the provision of high-speed Internet service, known as broadband, as required for traditional voice services. While there is stiff opposition in the Senate, Rep. Billy Tauzin, chairman of the House Energy and Commerce Committee and one of the authors of the measure, said he hoped it would reach the House floor in the next month or so, before the House adjourns for the year. http://news.cnet.com/news/0-1004-200-7508173.html

BUSH ECONOMIC PLAN A BOON FOR TECHS - President Bush's economic-stimulus plan could give a needed boost to the tech sector and information-technology spending, analysts say. Last week, Bush outlined a broad tax stimulus plan to help the economy recover from the Sept. 11 terrorist attacks on the World Trade Center and the Pentagon. One of the agreed-upon techniques to boost the economy is so-called enhanced expensing, which would allow companies to depreciate assets at a more rapid clip.  For the tech sector, beset by layoffs and profit warnings, depreciation--a reduction of earnings to write off the cost of an asset over its estimated useful life--is no small matter. Technology executives have long griped that tax rules don't reflect reality in the sector, which is defined by 18-month product cycles.  The idea of accelerated depreciation isn't new, but with Bush's jump start, a handful of bills designed to give the tech sector a shot in the arm are more likely to become law. http://www.zdnet.com/zdnn/stories/news/0,4586,5098118,00.html?chkpt=zdhpnews01

INTERNET TAX MORATORIUM - The House Judiciary Committee passed a substitute version of HR 1552, the Internet Tax Nondiscrimination Act, a bill to extend the current moratorium on Internet access taxes, and multiple and discriminatory taxes on Internet commerce. The current ban expires on October 20. The Committee approved an amendment in the nature of a substitute offered by Rep. Spencer Bachus (R-AL) that provides a two year extension.  HR 1552, as introduced, and as approved by the Subcommittee on Commercial and Administrative Law on August 2, would have provided a five year extension of the ban on multiple or discriminatory taxes, and permanently banned taxes on Internet access. The vote on Bachus's amendment was 19 to 15. Then, the bill, as amended, passed by a voice vote. (TechLawJournal.com)

U.S. SEEKS TO BUILD SECURE ONLINE NETWORK - The government's new cyber-security officials yesterday asked telecommunications companies for help building a government computer network that would have "no risk of outside penetration" -- a task some computer security consultants say is nearly impossible.  Plans for the private network, called Govnet, hinge on whether a reliable network infrastructure can be built at an affordable price, officials said. Computer system consultants said they could not estimate how much the network would cost because of the government's enormous size and security needs.  http://www.washingtonpost.com/wp-dyn/articles/A40092-2001Oct10.html  The new network is the brainchild of Richard Clarke, the newly appointed presidential adviser for cyberspace security, and is intended to carry data, voice-over-IP and possibly video.  "Planning for this network has been going on for several months," Clarke said in a statement, adding that the General Services Administration--the agency responsible for providing service and equipment to the U.S. government--will play a critical role. "We need the combination of skills the GSA has to establish this network quickly."  http://news.cnet.com/news/0-1005-202-7481276.html

GOVNET PROPOSAL: http://www.fts.gsa.gov/govnet/govnet.doc

SECURITY EXPERTS LEERY OF GOVERNMENT NET - Network-security professionals supported the Bush Administration's idea of a separate government Internet but stressed that security on such a network will be elusive. Actions as simple as a government employee connecting a nonsecured computer to the network or loading data from a diskette could compromise the entire system, experts said.  "It still is a really good idea," said Bruce Schneier, president of network-protection company Counterpane Internet Security. "But you really have to physically separate the networks."  http://www.zdnet.com/zdnn/stories/news/0,4586,5098169,00.html?chkpt=zdnnp1tp02

U.S. TO INTENSIFY EFFORT AGAINST THREAT OF COMPUTER TERRORISM - The Bush administration confirmed Monday that it will spend $10 million to launch a newly intensive war against cyber-terrorism, which many government officials and terrorism experts consider a serious threat to national security with the potential for causing mass confusion and loss of life.  As evidence of the new emphasis on high-tech terrorism, the White House is expected to announce today the creation of a "cyber-security" office.  "Cyberspace," said one Bush administration official, "is our next battlefield. And the president has concurred that we need to be better prepared for it." President Bush will appoint Richard Clarke, the longtime coordinator of security, infrastructure protection and counter-terrorism for the National Security Council, to the position of special advisor to the president for cyberspace security. Retired U.S. Army Gen. Wayne Downing will be appointed deputy national security advisor and "national director for combating terrorism," administration officials said.  http://www.latimes.com/technology/la-000080558oct09.story?coll=la%2Dheadlines%2Dtechnology

GOVT. PLANS TO FIND AIRWAVES FOR WIRELESS FIRMS - The Bush administration on Friday unveiled a new plan to find more airwaves to sell to wireless companies hungry for more so they can launch a new generation of advanced mobile services.  Several government agencies plan to assess the usefulness of two bands of spectrum for commercial services and possible timelines in which the bands could be made available, according to a statement by the Commerce Department's National Telecommunications and Information Administration (NTIA).  http://dailynews.yahoo.com/h/nm/20011005/tc/telecoms_spectrum_study_dc_2.html

PRESIDENT’S MANAGEMENT COUNCIL APPROVES 23 FEDERAL PROJECTS - The President’s Management Council, made up of 29 chief agency operating officers, this week approved 23 e-government projects.  “Each of these initiatives represent this concept that I’ve been laying out: Unify and simplify,” said Mark Forman, associate director for IT and e-government at the Office of Management and Budget.  Some projects will consolidate redundant federal systems, and others will simplify agencies’ business processes. OMB will release the list of the approved initiatives soon, said Forman.  http://www.gcn.com/vol1_no1/daily-updates/17262-1.html

AGENCIES BUYING UP FIELD-READY COMPUTERS, SECURITY TECHNOLOGY - The federal government’s appetite for portable, wireless Internet products and information security software has grown in the wake of the Sept. 11 attacks on the World Trade Center and the Pentagon, leading technology contractors and purchasers said Thursday.  Terri Allen, senior vice president of sales for technology reseller GTSI, said that since Sept. 11, federal agencies have ordered up “ruggedized” computers with high-speed wireless Internet access that can be deployed into remote locations at a moment’s notice and then be extracted and moved to another site. The computers are designed to keep working despite intense physical punishment.  http://www.govexec.com/dailyfed/1001/100501h1.htm

OFFICE OF HOMELAND SECURITY NEEDS MORE POWER, LAWMAKERS SAY - The new White House Office of Homeland Security lacks the budgetary authority and staff resources to coordinate the efforts of the dozens of agencies that play a role in protecting the nation against terrorism, several members of Congress and public administration experts said Tuesday.  Under an executive order signed by President Bush Monday, Homeland Security Director Tom Ridge can review the budgets of programs involved in homeland security and introduce legislation that will help agencies fight terrorism. But Ridge has no legal authority to alter or reject agency anti-terrorism budgets, meaning he has less formal control over counter-terrorism budgets than former drug czar Barry McCaffrey wielded over the government’s drug control budget.  http://www.govexec.com/dailyfed/1001/101001p1.htm

SENATE PASSES SWEEPING SURVEILLANCE PACKAGE - Just before midnight on Thursday, the Senate passed a sweeping anti- terrorism measure that would ease many restrictions on electronic surveillance and wiretapping by federal authorities.  Following a marathon session, the Senate voted 96-1 to approve the measure, which broadens federal phone and electronic surveillance authority; makes it easier for government officials to obtain phone, Internet and business records; and loosens evidentiary requirements for obtaining wiretaps in terrorism cases. http://www.newsbytes.com/news/01/171062.html

PHONE HUB SECURITY SOUGHT; VERIZON UNEASY ABOUT BUILDINGS - Saying terrorist attacks against telecommunications hubs could shut down banks, broadcasters and financial markets, Verizon Communications wants tougher security in phone-equipment buildings. ''If you really want to create panic, take down the telecommunications facilities,'' says Larry Babbio, vice chairman of Verizon, the USA's No. 1 local phone company.  Verizon has told Federal Communications Commission Chairman Michael Powell of its concerns. And the FCC, which regulates the issue, is encouraging companies to come forward with proposals, it says.  Babbio raised the issue Thursday, while touring one 32-story telecom hub, which was severely damaged in the World Trade Center attacks. It is one of the USA's most critical communications facilities. http://www.usatoday.com/usatonline/20011012/3535538s.htm

INTERNET EDUCATION BILL PASSES IN HOUSE - The House passed HR 1992, the Internet Equity and Education Act of 2001, by a vote of 354 to 70. See, Roll Call No. 375. This bill would make it easier to obtain student loans for Internet based education, and other distance learning. The bill is sponsored by Rep. Johnny Isakson (R-GA).  The bill amends the Higher Education Act of 1965 by removing the burden of the "12-hour rule" for non-traditional programs. This rule requires educational institutions to keep voluminous attendance records to demonstrate that their students attended certain types of work sessions. The bill also makes exceptions to the 50% requirement by allowing a limited number of institutions to offer more than 50% of their courses by telecommunications, or to serve more than 50% of their students through telecommunications courses. The bill also addresses incentive compensation provisions.  On September 21, Sen. Mike Enzi (R-WY), and others, introduced S 1445, a companion bill in the Senate. (TechLawJournal.com)

This Week@INTERNATIONAL

UK BUSINESS HIT BY INTERNET ACCESS SHORTAGE - UK businesses say their competitiveness is suffering because of a shortage of high-speed internet access, according to a report by the Communications Management Association. http://tm0.com/sbct.cgi?s=166389374&i=402287&d=1878335

SCANDINAVIA LEADS EUROPE IN BROADBAND USE - Sweden and Denmark have the highest broadband penetration in Europe, according to a new study from NetValue.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357245&rel=true

ONLINE GROCERIES SET FOR GROWTH EXPLOSION - Europe's rapidly expanding online market for food and drinks could be worth more than $23 billion by 2005, but research on Thursday showed retailers should view the Internet more as a marketing tool than as a sales channel.  In a wide-ranging eight-nation study made available exclusively to Reuters, market analysts Datamonitor estimated the global online food and beverages market would grow by almost 80 percent annually over the coming four years. This will take the value of Internet food and drinks purchases in the seven European nations surveyed plus the U.S. to $55 billion by 2005, Datamonitor estimates, with the U.S. accounting for well over half of the total.  http://dailynews.yahoo.com/h/nm/20011011/wr/retail_internet_dc_1.html

SPAIN: THE MINISTER FOR SCIENCE AND TECHNOLOGY ADOPTS A 15 ML PESETAS PROGRAM TO SUSTAIN NEW TECHNOLOGIES ADOPTION BY SMBS - El Ministerio de Ciencia y Tecnología concede 15.000 millones a las pymes para fomentar el uso de las nuevas tecnologías - La Razón  http://www.larazon.es/lared/laredmillones.htm

COPENHAGEN AIRPORT GETS 802.11B WIRELESS INTERNET ACCESS - Travelers passing through Copenhagen airport this week will be able to access the Internet free of charge using their 802.11b. http://www.newsbytes.com/news/01/171004.html

AN INFORMATION SOCIETY FOR ALL - COUNCIL RESOLUTION (only in French)

http://ue.eu.int/Newsroom/LoadDoc.cfm?MAX=1&DOC=!!!&BID=79&DID=67980&GRP=3812&LANG=2

INTERNET USE IN EUROPEAN SCHOOLS GROWING, BUT WIDE DIFFERENCES REMAIN -

http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/01/1392%7C0%7CRAPID&lg=EN

STAFF WORKING DOCUMENT "E-EUROPE 2002 BENCHMARKING - EUROPEAN YOUTH INTO THE DIGITAL AGE" -

http://europa.eu.int/information_society/eeurope/news_library/documents/SEC_2001_1583_EN.pdf

SPAIN: ANNA BIRULES, MINISTER FOR SCIENCE AND TECHNOLOGY, declared this morning, during a hearing in front of the Senate that Spanish are affected by information technology viruses less compared to the European average. http://www.elmundo.es/navegante/2001/10/10/esociedad/1002714514.html

GLOBAL INTERNET CONNECTIVITY STILL GROWING - International Internet bandwidth growth remains strong, although it is down on last year, according to TeleGeography. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357257&rel=true

This Week@US STATES

ENGLER SIGNS STREAMLINED NET-TAX BILL INTO LAW - Michigan Gov. John Engler, R, has signed legislation clearing the way for his state to join a coalition that is working to streamline sales tax codes so states can collect sales taxes online.  "The bipartisan support for this measure shows that Michigan is committed to fully funding our public schools," Engler said in a release today. "By coming together, we protect our schools and give Main Street retailers a fair and level playing field."  Earlier this month, the Michigan Senate approved H.B. 5080, a bill offered by the Michigan House, that calls on the state to join the Streamlined Sales Tax Project, founded by the National Governors' Association. http://www.newsbytes.com/news/01/170928.html

BRINGING BROADBAND TO THE NORTH COUNTRY - New Hampshire Gov. Jeanne Shaheen has signed a contract with a company that will help expand affordable, high-speed telecommunications services for businesses in the northern part of the Granite State.  "Almost every company now depends on the Internet to conduct their day-to-day business," Shaheen said in a statement. "To attract them to our state, our telecommunications prices must be competitive." Shaheen modeled the initiative after Berkshire Connect http://www.bconnect.org/, which expanded affordable telecom services in Western Massachusetts. North Country Connect, an economic development project that searches for low-cost broadband service providers, has signed an agreement with Global Crossing and Equal Access Networks to reduce telecom prices by up to 60 percent. Monadnock Connect, a similar initiative aimed at western New Hampshire, already is underway. (National Journal’s TechDaily)

CALIFORNIA GOVERNOR DAVIS VETOES E-MAIL BILL - California Gov. Gray Davis vetoed Senate Bill 147, sponsored by Sen. Debra Bowen (D-Marina del Rey). This bill would prohibit an employer from secretly monitoring the electronic mail or other computer records generated by an employee.  Gov. Davis stated that "This bill would require employers, by March 1, 2002, to execute signed or electronically verifiable agreements between an employer and employees regarding the right of the employer to monitor the e-mail traffic and computer files of employees. If such agreements are not provided, the bill prohibits employers from monitoring business computers by employees to guard against inappropriate business or personal uses." (TechLawJournal.com)

MOST US SMALL FIRMS ONLINE - Cyberatlas reports that two-thirds of all small businesses in the US now have Internet access. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357265&rel=true

IT SUPPORT AND SERVICE VACANCIES UP - IT vacancies in the US have tripled since 1999, reports CyberAtlas. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357262&rel=true

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:

THE WHOLE WORLD IS GOING WIRELESS - The global market for wireless Internet-capable devices will grow by 630 percent by 2005, according to a new report from Accenture.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357256&rel=true

XDSL SERVICES TO TAKE OFF GLOBALLY - Strategy Analytics predicts that by 2008, 46 million households around the world will subscribe to digital TV services delivered over existing copper phone lines. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357264&rel=true

UK LED EUROPEAN ONLINE AD MARKET IN 2000 - Netimperative reports that the total online ad spend in Europe last year was GBP1.2 billion (USD1.77 billion), up from GBP164 million (USD242 million) in 1999. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357261&rel=true

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

SPY PLANES, IMAGES HELP U.S. TROOPS - Sophisticated spy planes and satellites offer U.S. forces vivid images of their targets in Afghanistan and the resistance they may face, intelligence analysts said Monday. Advances in broadband communications and computer technology mean that soldiers in the field can use laptop computers to get the latest images of the targets right before an attack.  ``They are not going to conduct any operations without using satellite imagery to understand where every house and hill is in the area,'' said John Pike, a military specialist with GlobalSecurity.org, an Alexandria, Va., think tank. http://dailynews.yahoo.com/h/ap/20011008/us/attacks_spying_2.html

FOR HIGH-SPEED ACCESS TO THE WEB, A DISH-TO-DISH ROUTE - Frustrated with the four and a half hours it took to download Microsoft Internet Explorer, Ronald Marshall of Parkville, Mo., decided last spring to investigate high-speed Internet options.  Like most bandwidth-hungry consumers, Mr. Marshall, 65, thought that his only alternatives were a digital subscriber line, or D.S.L., and a cable modem. But he learned that his local phone company did not offer a D.S.L. connection and that cable- modem service would cost $50 a month.  Then two representatives of AT&T Wireless knocked on his door offering him a different kind of Internet service, known as fixed wireless, which sends data from one fixed antenna to another.  Mr. Marshall's knowledge of wireless technology, given his years as a ham radio operator, helped pique his curiosity. And in mid-July he signed up for the $40-a-month service, joining a small but growing number of consumers pursuing a third path for high-speed Internet service.  http://www.nytimes.com/2001/10/11/technology/circuits/11WIRE.html

NEW STUDY: SPLIT UP THE BELLS TO SPUR GROWTH - Will the local telephone monopoly limit economic recovery?  A new study by noted economists Robert E. Hall of Stanford and William H. Lehr of Columbia indicates that certainly may be the case. http://www.techcentralstation.com/NewsDesk.asp?FormMode=PolicyTracksArticles&ID=137

THE STUDY: http://www.techcentralstation.com/images/pdf/hlpaper.pdf (Adobe file)

AT&T DISCUSSIONS WITH BELLSOUTH COOL AS CABLE BUSINESS CLOUDS POSSIBLE DEAL - AT&T Corp.'s discussions to merge with BellSouth Corp. have cooled because the regional Bell company is uninterested in taking on AT&T's massive cable business, people familiar with the matter say.  But BellSouth remains interested in AT&T's phone business or in potentially merging with another long-distance player. To that end, BellSouth and Sprint Corp., the nation's No. 3 long-distance company have had "initial contact," according to a person familiar with the matter. However, no detailed discussions are under way, and a Sprint deal isn't BellSouth's No. 1 choice.  The moves come at a time when the long-distance carriers -- battered from quarters of sluggish revenue and eroding profit margins -- are all considered prime takeover targets for the Baby Bells, the offspring of the AT&T breakup. Most of these regional phone companies have stronger market capitalizations -- and healthier balance sheets -- than the big three long-distance firms -- AT&T, WorldCom Inc., Clinton, Miss., and Sprint, Westwood, Kan. They also are poised to break into the long-distance markets in their home states, so they may offer both local and long-distance service to customers. A long-distance carrier that waits too long could end up without a partner as its core business continues to erode. http://interactive.wsj.com/articles/SB1002756623256474040.htm (paid subscription only)

SUN MICRO CEO SEES MORE SUPPORT FOR NATIONAL ID - Scott McNealy, chairman and CEO of Sun Microsystems Inc., said Thursday his long-held belief the United States needs a national identity system has gained a lot of traction since the Sept. 11 attacks on the World Trade Center and the Pentagon.  ``This is more than a sea change,'' McNealy said to reporters at an industry conference in Orlando. ``I have not spoken to one person who hasn't flipped a switch to say, 'You're darn right, I want to know who's getting on a plane with me.''' http://dailynews.yahoo.com/h/nm/20011011/tc/tech_id_dc_1.html

SOUTHWEST TURNS TO NET TO CUT COSTS - In a gamble to cut "every discretionary cost," Southwest Airlines said it will rely on the Internet, not "snail mail," to reach its most loyal and profitable customers. http://cgi.zdnet.com/slink?150742:3446579

CABLE MODEMS OUTSCORE RIVALS IN SATISFACTION POLL - "I can't get no satisfaction," may be what many Internet access subscribers are chanting, but not the majority of cable modem customers, one analysis says.  Eighty percent of cable modem customers are satisfied or completely satisfied with their service, according to a new study released by the Cable & Telecommunications Association for Marketing. DSL and dial-up did not fare as well, with customers posting a 65 percent and a 52 percent satisfaction rating respectively.  The high satisfaction rate contributes to 95 percent of cable modem customers saying they plan to keep their service for the next six months, versus 87 percent of DSL customers and 82 percent of dial-up. Dial-up customers who have had their service for less than two years are the most likely to switch service providers (79 percent). http://www.broadbandweek.com/newsdirect/0110/direct011010.htm

RIAA STRIKES LICENSING DEAL WITH US MUSIC GROUPS - The recording industry has reached a licensing agreement with US songwriters and publishers for online music, ending months of negotiations. The agreement clears another obstacle for the major record companies as they try to establish paid internet music services.  http://tm0.com/sbct.cgi?s=166389374&i=402288&d=1878372

HOME NETWORKING MARKET TO SOAR - A new report from Cahners In-Stat predicts the global home networking market will rise in value from USD1.4 billion this year to USD9.2 billion next year.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357251&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

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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