Cisco Government Affairs E-Update

Volume 1, Issue 36

26 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

BROADBAND POLL: Cisco GA E-Update is conducting an informal poll on broadband usage.

1. How does broadband make your life easier?

2. What broadband applications do you look forward to using?

Please send a quick e-mail to jearnhar@cisco.com. Your name and affiliation will not be used or shared. Thank you.

This Week@WASHINGTON, DC

DICK GEPHARDT CALLS FOR BROADBAND TO EVERY AMERICAN HOME IN KEYNOTE ADDRESS TO SVMG – In an address to the Silicon Valley Manufacturers Group (SVMG) in San Jose, CA, US House of Representatives Minority Leader Richard Gephardt (D-MO) called for broadband deployment to every American home in 10 years as part of a large economic stimulus package. In his remarks, Gephardt indicated that the US has fallen behind three other countries as broadband leaders and insisted that the US can not lose their worldwide leadership position on deploying broadband across the country.

FCC CHAIRMAN POWELL OUTLINES FCC, BROADBAND AGENDA - Chairman Michael Powell this week gave a speech outlining the five areas where the FCC would focus its attention: broadband deployment, competition policy, spectrum allocation policy, re-examination of the foundations of media regulation, and homeland security. He outlined the five principal broadband policy objectives. First, "The Nation should commit to achieving universal availability of broadband." He stressed that the goal should be "availability" rather than "adoption". Second, "Broadband service should exist in a minimally regulated space." He elaborated that "Substantial investment is required to build out these networks and we should limit regulatory costs and regulatory uncertainty. We should guard against regulatory creep in order to encourage investment by avoiding the threatening overhang of future regulation." However, he did not state which existing rules or proposals he opposes. Third, "There should be multiple broadband platforms." Fourth, "Promote universal service objectives in economically sound ways." And fifth, "Do not let definitional battles define regulatory treatment." Powell also discussed actions to be taken by the FCC. He said that the FCC will continue to study broadband issues in its annual Section 706 reports. He also stated that the FCC "needs to consider expeditiously how to classify the various forms in which these services are provisioned and consider what the access obligations will be for them." He also referenced three proceedings that "will be used as a vehicle for clarifying regulatory treatment of broadband infrastructure and service". These are "The New Networks Proceeding", "The Cable Open Access Proceeding", and "The 3G Spectrum Proceedings". http://www.fcc.gov/Speeches/Powell/2001/spmkp109.html

PHIL BOND HONORED AT LUNCHEON HOSTED BY CISCO - TechNet hosted a roundtable luncheon with Phil Bond, Undersecretary of Commerce for Technology Policy today at Cisco Systems. Phil Bond was confirmed unanimously by the Senate on Tuesday and was visiting the Valley to discuss tech issues with leaders in the Valley.

BROADBAND IN THE USA – Broadband connections to the Internet have won increasing numbers of converts in the United States, yet there has been little research into what happens to the on-line habits of consumers as they switch over from narrowband. To bridge that information gap, McKinsey teamed up with Jupiter Media Metrix and with Vividence to evaluate consumer behavior before and after the conversion. The resulting profile of today's broadband users divides them among six segments: chatters, gamers and gamblers, entertainment junkies, researchers and hobbyists, e-mailers and readers, and news seekers. Each segment has distinct on-line preferences.

Mckinsey URL: http://www.mckinseyquarterly.com/ab_g.asp?ar=1131 (free registration required)

ITAA WHITE PAPER ON BROADBAND - http://www.positivelybroadband.org/whitepaperExecSumm.pdf

SECRETARY OF COMMERCE DONALD EVANS FAVORS NET TAX BAN EXTENSION. Evans released a statement in which he encouraged the Senate to pass an extension of the moratorium on access taxes and on new and discriminatory Internet taxes. The House passed HR 1552, the Internet Non- Discrimination Act, on October 16 by a unanimous voice vote. This bill extends the current moratorium for two years. The current ban, which was enacted in the 1998 Internet Tax Freedom Act, expired on October 21. Said Evans, "we urge Senators to extend the bipartisan moratorium as soon as possible." www.techlawjournal.com

RIDGE, WELDON CALL FOR INDUSTRY TO TAKE PART IN HOMELAND DEFENSE - Office of Homeland Security director Tom Ridge today called on the IT industry to use their products and expertise to support homeland defense efforts. Rep. Curt Weldon, who chairs the procurement subcommittee of the House Armed Services Committee, echoed Ridge’s call while decrying the information stovepipes among intelligence agencies. Ridge, Weldon and several other officials spoke to more than 350 agency and industry representatives on homeland defense subjects at a half-day meeting in Washington. Ridge said homeland defense involves not just the federal government but a national strategy, and that’s why the private sector must engage itself in the effort. http://www.gcn.com/vol1_no1/daily-updates/17366-1.html

E-GOV INITIATIVES READY TO ROLL - The Bush administration's big push toward e-government is ready to be released, but the initiatives cannot succeed unless agencies overcome their resistance to sharing information and resources with others across federal, state and local governments, officials said Oct. 23. The e-government task force led by the Office of Management and Budget is writing its final report on the 23 cross-agency, high-impact initiatives approved by the President's Management Council earlier this month and by OMB Director Mitchell Daniels Jr. on Oct. 19. http://www.fcw.com/fcw/articles/2001/1022/web-egov-10-23-01.asp

SENIOR OFFICIALS URGED TO SET THE PACE IN TELECOMMUTING - Senior federal officials must be role models in telecommuting if the practice is to take root and become commonplace, telework advocates said Friday morning at an Office of Personnel Management seminar. OPM presented the seminar, which brought together congressional leaders, private industry advocates and federal officials, to promote telework as a valuable tool in recruiting and retaining employees. “If you felt a little stressed getting here in morning traffic today, then you understand why we’re having this conference,” OPM Director Kay Coles James said. James vowed to begin telecommuting, saying she was “much more productive in my pajamas.” http://www.govexec.com/dailyfed/1001/101901t1.htm

AGENCIES USE INTERNET TO IMPROVE SERVICE, AVOID ANTHRAX - The Federal Communications Commission (FCC) and the Office of Management and Budget (OMB) have unveiled plans to move more interactions with citizens to the Internet. The FCC's action comes in response to the threat of anthrax exposure through the mail. The FCC, for example, will no long accept documents delivered by hand or by messenger at its Washington headquarters. It will accept such deliveries at its Capitol Heights, Md., facility as of Oct. 22. The full text of the FCC's revised procedures can be found at www.fcc.gov. OMB's plan is motivated by a desire to provide the public more access to its its regulatory and paperwork review processes. The goal "is to increase public understanding of OMB's regulatory review responsibilities, thereby allowing public scrutiny, criticism and praise of what we do," said John Graham, OIRA administrator, in an Oct. 18 statement. "If OMB is to be a credible advocate of e-government, we must practice e-government ourselves." http://www.washtech.com/news/govtit/13281-1.html

GOVERNMENTWIDE SECURE NETWORK A 'PIPE DREAM,' REPORT SAYS - The concept behind the Bush administration’s proposal to build a super-secure voice and data network for federal civilian agencies is flawed, according to Forrester Research Inc., a market research company based in Cambridge, Mass. The administration recently released a request for information (RFI) outlining a network that would be independent from all other networks and thus impervious to cyberattacks. Called GOVNET, the network would be immune to the threats posed by viruses, worms and denial-of-service attacks. The GOVNET wish list includes airtight security, complete isolation and total survivability, according to Forrester’s report, “A New Secure Government Network: Keep It Simple.”

“GOVNET sounds great in theory,” said the report, “but it simply won’t work. A massive, completely partitioned government network is a pipe dream.” At issue is the persistent threat of insider hacking, complex system interconnectivities and the need to move data from one agency to another, said the report. http://www.govexec.com/dailyfed/1001/101901j1.htm

DOES THE NET NEED ANTI-TERRORIST PROTECTION? - An anti-terrorism advisory group called on Congress this week to create a panel to protect against potential attacks on the Internet's infrastructure. Virginia Gov. James Gilmore, chairman of the advisory group known as the

Gilmore Commission, outlined recommendations to the House Committee on Science in a hearing Wednesday. The proposal asks for the establishment of a cybersecurity panel, with representatives from 23 federal agencies, to address terrorist threats to computer systems in the wake of last month's

suicide attacks on the World Trade Center and Pentagon. http://news.cnet.com/news/0-1005-200-7572793.html?tag=dd.ne.dtx.nl-sty.0

STATE AND LOCAL GOVERNMENT PLAY LARGE ROLE IN PROMOTING BROADBAND -
Federal policy promoting broadband services is important, but equally important is the role state and local governments have in making it a priority to build high-speed Internet infrastructure, panelists said Thursday at the National Summit on Broadband Deployment

This Week@INTERNATIONAL

EU STARTING TO GO THE EXTRA MILE FOR BROADBAND - Ten months after the European Union opened up the last mile of telephone lines to competition, Internet broadband access is starting to take off in most member states, a report obtained by Reuters shows. In seven of 15 EU countries the number of fast Internet connections offered over phone lines upgraded with DSL (Digital Subscriber Line) technology has roughly doubled in the last six months. In three other states, there was a marked increase.

http://dailynews.yahoo.com/h/nm/20011024/wr/telecoms_eu_unbundling_dc_1.html

HIGH-SPEED NET CONNECTIONS SURGE IN JAPAN - The number of high-speed Internet access ADSL lines in Japan surged to 350,800 from 70,700 in the six months to September as the country rushed to embrace broadband, the Multimedia Research Institute said this week. ADSL, or asymmetric digital subscriber line services, offer fast data download speeds of up to eight megabits per second, 125 times faster than conventional dial-up connections. The technology industry research firm said Yahoo Japan Corp, a late entrant into the market, managed to grab the third largest market share with its cut-rate prices and advanced ADSL services, while the two regional carriers of former state telecoms monopoly Nippon Telegraph and Telephone Corp (NTT) grabbed the two top spots. http://dailynews.yahoo.com/h/nm/20011024/wr/telecoms_japan_adsl_dc_1.html

UK DIGITAL TV ACTION PLAN - The DTI & DCMS recently announced the Digital TV Action Plan

http://www.digitaltv.culture.gov.uk/ministers_fwd.html; more general information on the UK's plans for Digital TV can be found at http://www.digitaltv.culture.gov.uk/

UK Prime Minister Tony Blair: "The key to reform is re-designing the system around the user."

The recent focus on the 'war of terrorism' has overshadowed everything else; but one important announcement of the ongoing focus that the Blair administration will be placing on modernisation of the public services was a speech Blair gave earlier in the week. http://www.pm.gov.uk/news.asp?NewsId=2767 E-government is an important component of this agenda.

FRANCE TO FINISH 3G SALE BY NEXT AUTUMN - France will only complete the sale of its four third-generation mobile telephone licences next autumn - over two years after the end of the British and German auctions - according to a sketchy timetable produced.

http://tm0.com/sbct.cgi?s=166389374&i=409599&d=1929316

FRANCE / EDUCATION OVER THE INTERNET - 10 networked campus to train according to personal needs - http://www.service-public.fr/accueil/campus_web.html

NEW MEASURES TO REINFORCE SECURITY: As a direct response to terrorism, the French Senate approved several amendments to the bill on day to day security introduced (according to a highly unusual procedure) by the French government. The amendments introduce new means for judges to fight criminality linked to the use of new information technology and communication means.

http://www.internet.gouv.fr/francais/index.html

EU PROMOTES EGOVERNMENT AT CONFERENCE presenting interactive applications that work in practice. http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/01/1456|0|RAPID&lg=EN;

BRUSSELS. COUNCIL RESOLUTION ON "E-INCLUSION" — exploiting the opportunities of the information society for social inclusion. http://europa.eu.int/eur-lex/en/dat/2001/c_292/c_29220011018en00060008.pdf (Adobe File)

INTERNET USE RISING IN SPAIN - Europemedia reports that 7 million Spanish people now have an

Internet connection. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357304&rel=true

GERMAN SCHOOLS IN THE WEB - Government and business connect for education

All 35,000 German schools which opted to join the scheme now have access to the Internet.

http://eng.bundesregierung.de/frameset/index.jsp

EC SPEECH ON DIGITAL CONTENT - Mr Erkki Liikanen Member of the European Commission, responsible for Enterprise and the Information Society "Taking the lead with European digital content" Norden digital Conference Helsinki. http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/01/460|0|RAPID&lg=EN;

APEC LEADERS CALL FOR ENHANCED ELECTRONIC NETWORKS TO FIGHT TERRORISM - APEC leaders in Shanghai committed to strengthening international cooperation against terrorism, including through appropriate financial measures, enhancing air and maritime security, enhancing customs communications networks and expeditious development of a global integrated electronic customs network, and through cooperation in developing an electronic records systems for movement of persons. www.apec-china.org

LEADERS ADOPT E-APEC STRATEGY APEC leaders also endorsed an "e-APEC Strategy" in three areas: market oriented structures and institutions, infrastructure investment and technology development, and human capacity building. The infrastructure strategy set forth as goals non-restrictive, affordable access through competition and encouragement of investment in

high bandwidth networks. Endorsed policy actions in this areas include continued liberalization of telecommunications markets, modernization of regulatory structures to accommodate convergence, removing impediments to private sector participation in provision of high speed communication,

prompt implementation of the WTO Basic Telecom Agreement and adoption of its Reference Paper of regulatory principles, and the adoption by all APEC economies of the WTO Information Technology Agreement. Broader policy recommendations included adopting of a sound macroeconomic policy framework, sustained structural reform, an effective competition regime, good financial and corporate governance, efficient venture capital markets, sound legal intellectual property framework, improved risk management, transparent decision making, robust institutional frameworks, flexible labor markets, and targeted social policies. The strategy also urges adoption of on-line transaction laws, continuing work on electronic authentication and signatures, the promotion of information security, personal data protection and consumer trust, policies to increase access to digital information, and the encouragement of standards development. www.apec-china.org

IIE ISSUES NEW ECONOMY AND APEC REPORT - At the request of APEC senior officials, the Institute of International Economics prepared a report delivered to APEC ministers in Shanghai that demonstrates that the heightened productivity growth promised by the New Economy can only be

realized by combining technology with meaningful structural reforms. Without the policy reforms in the areas of banking and financial structures, fiscal, trade, transparency, and competition policies, IT will not deliver high productivity growth. www.iie.com, www.apecsec.org.sg

APEC E-LEARNING INITIATIVES LAUNCHED - The United States Government and a number of U.S. companies, including Cisco, were strong supporters of APEC initiatives aimed at strengthening education through use of the Internet. Three important new APEC education projects were launched: the APEC Cyber Education Cooperation consortium, the Asia Pacific E-Learning Alliance, and the e-Language Learning Project. http://www.whitehouse.gov/news/releases/2001/10/20011023-21.html

This Week@US STATES

TWO IN FIVE HOUSEHOLDS TO BE HI-SPEED BY 2006 - Forty-one percent of online households in the US will have a broadband Internet connection by 2006, up from 9 percent in 2000, according to Jupiter Media Metrix. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357311&rel=true

GOV. GILMORE MAKES LATE CASE FOR PROLONGING NET TAX BAN - Virginia Gov. James Gilmore, R, sent a letter to Senate leaders urging them to take action to resurrect the moratorium. Gilmore was the chairman of a congressionally appointed commission to study the Internet tax issue. An ardent opponent of Internet taxes, Gilmore and most of the commission decided to recommend to Congress a number of measures to forestall states' and localities' abilities to impose such taxes. Relying on the power of e-mail, Gilmore, Massachusetts Gov. Jane Swift, and Colorado Gov. Bill Owens, told Senate Majority Leader Tom Daschle, D-S.D., and Trent Lott, R-Miss., that a prompt extension of the moratorium is essential for the U.S. economy. The governors also sent their letter to House Speaker Dennis Hastert, R-Ill., and Minority Leader Richard Gephardt, D-Mo., although the House of Representatives already has passed a two-year extension. "The Internet tax moratorium is critical to maintaining stability in the technology economy," said Governor Gilmore. "Extending the Internet tax moratorium permanently will not only stimulate economic activity but also aid in the economic recovery of the United States." http://www.newsbytes.com/news/01/171342.html

ARKANSAS: DELL EXEC NAMED STATE CIO - Gov. Mike Huckabee has named Randall Bradford, a senior manager for Dell Computer Corp., to be the state's first chief information officer. The cabinet-level position was created by the legislature this year as part of an effort to streamline and consolidate information technology initiatives. Before moving to the private sector, Bradford managed the Air Force's largest support officer training school, training more than 450 information systems officers annually. Later, he held IT positions with Knowledge Based Systems, PeopleServe and EMC Corp., joining Dell in July 2000. www.governing.com

THE CLASSROOM OF THE FUTURE - Newsweek asked leading teachers, inventors and entrepreneurs for their vision of what schools will be like in the year 2025—and how learning will change. Steve Jobs - Apple; Bill Gates - Microsoft; John Doerr - Kleiner, Perkins, Caufield and Byer; Senator Maria Cantwell (D-WA) and Former Speaker of the House Newt Gingrich among others.

http://www.msnbc.com/news/645566.asp

STREAMING MEDIA USE UP IN U.S. OFFICES - Over half of US office workers used streaming media at work in September, according to Nielsen NetRatings. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357297&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:

LOG IN, TAKE OFF - According to IDC, wireless internet usage in the US will rise by a compound annual growth rate (CAGR) of 73% between 2000 and 2005 - from 5 million users to 84 million users. IDC also predicts that the number of business wireless internet users will significantly grow from 2.6 million in 2000 to 49 million in 2005.

NEWS SITES INSTEAD OF NEWSPAPERS? - According to an ABCNEWS.com survey, conducted by Taylor Nelson Sofres, 48% of US adults go online for news, an increase from 37% who went online for news in 1999. The study questioned 1,023 US adults between 10 and 14 October 2001 and found that 18% go online for news every day -- up from just 8% in 1999. 36% of adults who go online for news say that they have been doing so more often since the 11 September 2001 attacks on the US, 58% say they have kept the same amount of usage and only 6% say they have gone online less for news.

MAJOR GROWTH FORECAST FOR B2B REVENUES - Global B2B revenues will rise from USD282 billion last year to USD4.3 trillion by 2005, according to IDC.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357306&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.

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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