Cisco Government Affairs E-Update

Volume 1, Issue 38

09 November 2001

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

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

This Week@Cisco in Government Affairs

Cisco's E-Update keeps you up to date on the major policy news of the week. Focusing on broadband, education and e-government areas, but covering high-tech and telecom in general, the E-Update is a great source of information for state, federal and international policymakers. To subscribe, send a message with “subscribe” in the subject line to “Subscribe-eUpdate@cisco.com

This Week@WASHINGTON, DC

CISCO HOSTS COMMERCE UNDER SECRETARY JUSTER – Kenneth I. Juster, Under Secretary for Export Administration for the U.S. Department of Commerce visited Cisco headquarters in San Jose this week. Laura Ipsen, VP, Worldwide Government Affairs; Mark Chandler, VP and General Counsel; and Ken Watson, Manager of Business Development and President of the Partnership for Critical Infrastructure Security (PCIS) shared some of Cisco’s history, policy positions and involvement in infrastructure security. Among other duties, Secretary Juster oversees the U.S. Critical Infrastructure Assurance Office (CIAO), the lead government partner with the PCIS.

Secretary Juster bio: http://www.bxa.doc.gov/ManagementTeam/JusterBio.html

CIAO website: http://www.ciao.gov/

PCIS website: http://www.pcis-forum.org/

FCC SEEKS TO ESTABLISH NATIONAL PERFORMANCE STANDARDS FOR TELECOM CARRIERS' WHOLESALE OPERATIONS - the Federal Communications Commission (FCC) began a rulemaking proceeding to establish a core set of national performance measurements and standards for incumbent local exchange carriers (LECs). The Notice of Proposed Rulemaking (NPRM) seeks to identify a list of key performance measurements and standards for evaluating an incumbent LEC's performance in provisioning wholesale facilities and services to competitors. http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2001/nrcc0144.html

CHAIRMAN POWELL STATEMENT – http://www.fcc.gov/Speeches/Powell/Statements/2001/stmkp139.html

COMMISSIONER COPPS STATEMENT - http://www.fcc.gov/Speeches/Copps/Statements/2001/stmjc124.html

FTC CHAIRMAN MURIS TESTIFIES BEFORE HOUSE COMMITTEE – Chairman Muris submitted detailed prepared testimony to the House Commerce Committee's Subcommittee on Commerce, Trade and Consumer Protection which outlined FTC goals in various technology related areas, including competition policy, the relation between antitrust and intellectual property law, online privacy, and online fraud. http://www.ftc.gov/os/2001/11/muris011107.htm

FEDS TO RECEIVE COMPUTER SECURITY REPORT CARDS - A House subcommittee will hand out report cards on Friday to two dozen federal agencies, grading them on their efforts to protect the government's most vital computer networks. The grades are required under the Government Information Security Reform Act, a law passed in November 2000 that requires federal agencies to asses and test the security of their non-classified information systems. http://www.newsbytes.com/news/01/171970.html

VERIZON TO GRANT OFFICIALS WIRELESS PRIORITY - The Bush administration has entered into an agreement with Verizon Wireless to give hundreds of federal officials priority access to its networks in Washington and New York during times of national emergencies, according to sources familiar with the plan. The White House’s National Communications System plans to seek similar access to other wireless networks throughout the country during the next year. But in the wake of the Sept. 11 attacks, federal officials have decided there is an immediate need for a priority calling system in Washington and New York, said one industry source. http://www.washtech.com/news/telecom/13528-1.html

SENATORS BACK RENEWED NET TAX BAN - A letter sent by six senators urging passage of a two-year moratorium on new Internet taxes has prompted complaints from some state and local government organizations. On Monday, the senators sent a "Dear Colleague" letter asking the rest of the Senate to support a proposal that would simply extend a moratorium on new Internet taxes for two more years. In the letter, the senators argued against the support of a competing bill sponsored by Sen. Mike Enzi, R-Wyo., which would establish a structure by which states could set up a streamlined sales tax system. The letter was signed by John McCain, R-Ariz.; Ron Wyden, D-Ore.; Patrick Leahy, D-Vt.; Barbara Boxer, D-Calif.; Conrad Burns, R-Mont.; and George Allen, R-Va. http://news.cnet.com/news/0-1007-200-7810880.html http://www.wired.com/news/politics/0,1283,48250,00.html

FCC TO LIFT CONTROLS ON WIRELESS SPECTRUM - Regional telephone companies and other major wireless providers gained more freedom to buy or merge with their rivals yesterday as federal regulators began to do away with a cap on limiting how much of the airwaves any one company can control. The FCC voted 3 to 1 yesterday to begin a two-step process that would first raise the cap by 22 percent and then abolish it altogether on Jan. 1, 2003. Without the cap, companies would find it easier to team up, leaving a market like the Washington area with fewer providers than the more than half-dozen which now exist. The move is part of a push by Federal Communications Commission Chairman Michael K. Powell to deregulate the telecommunications industry. http://www.washtech.com/news/telecom/13618-1.html

This Week@INTERNATIONAL

U.K. PRIME MINISTER BLAIR HERALDS INTERNET REVOLUTION - Prime Minister Tony Blair distanced himself from 1970s-style employment laws and steered a course for an internet-friendly future, in a bid to repair a cooling relationship with industry chiefs. …(H)e promoted the importance of high-speed, or broadband, internet services, whose slow roll-out in Britain has raised widespread concerns. "We are in the early days of broadband, but it has the potential to revolutionise many aspects of our lives," Mr Blair said. Beside boosting the productivity of UK firms, it could open up fresh markets, and conquer a geographical divide between town and country economies. "Geographical location will no longer be a restriction to competing with urban rivals." The government is to review its own technology purchasing arrangements for ways to support broadband. This is in addition to measures to promote competition and set up "effective" regulation needed to "advance broadband in Britain". The comments followed a speech from e-Envoy Andrew Pinder on Monday morning urging business support for broadband measures in the face of scepticism from parts of government. "I absolutely welcome the prime minister's speech," Mr Pinder told BBC News Online. "It is good to see the prime minister retate his commitment to new technology." http://news.bbc.co.uk/hi/english/business/newsid_1639000/1639431.stm

UK BROADBAND DRIVE BEING BLOCKED - Efforts to boost the woeful progress of high-speed internet services in Britain are snagging on Chancellor Gordon Brown's reluctance, the government's internet supremo has said. Andrew Pinder, the "e-Envoy", urged delegates at the Confederation of British Industry conference to back a campaign to persuade Mr Brown of the importance of broadband services. Acknowledging criticism over the slow spread of broadband, and talking of the "need to intervene" to support it, Mr Pinder said the chancellor remained sceptical of the importance of the technology. Mr Brown, referred to as "last night's speaker", has objected that in areas where broadband is accessible, "among smaller firms, hardly anyone is using it", Mr Pinder said. http://news.bbc.co.uk/hi/english/business/newsid_1638000/1638630.stm

GETTING ON WITH UK ONLINE - MAJOR CAMPAIGN STARTS - UK Online, the Government's national drive to help the UK get the most out of the Internet, has launched a major new £3 million marketing campaign. This marks the first consumer facing campaign since the Prime Minister officially launched the UKonline campaign in September 2000 and aims to build awareness of the pan-Government UK online initiative. Campaign activity includes the first UK online TV advertisement. The ad reflects UK online's aim to ensure that the Internet is seen as relevant and accessible to anyone who wants it. It features celebrities including Stephen Fry, Liz Smith from the Royle Family and Jenny Powell, and explains the benefits of going online and how UK online Centres give Internet access and advice. http://www.e-envoy.gov.uk/campaign.htm

NATIVES TO CANADA: BROADBAND NOW - Canada's native people want to create a "First Nations Broadband Network" to bring high-speed Internet access to all indigenous communities across Canada, and are calling on the government to make the construction of the network a high priority. "We missed the Industrial Revolution. We will not miss the Information Technology Revolution," said Matthew Coon Come, head of the Assembly of First Nations, the national organization of native people in Canada. The primary purpose of the high-speed connection would be to provide health and education services to communities that cannot support full-time doctors, nurses or teachers, Coon Come said. Health professionals could examine patients by using teleconferencing technology, and teachers can hold classes online. http://www.wired.com/news/politics/0,1283,48184,00.html

ECTA SLAMS POOR PROGRESS ON LOCAL LOOP UNBUNDLING - The European Competitive Telecommunications Association (ECTA) this week publishes its 4^th and most comprehensive analysis of the state of local loop unbundling (LLU) across the European Union, the LLU Scorecard, which has been produced in association with Cullen International. Key points from the scorecard are: DSL penetration in the EU is running at just 1 per cent of total lines; of the 2.7million DSL lines in operation, just 3 per cent are provided by new entrants over unbundled local loops, some nine months after the LLU regulation came into effect; and in almost all markets, the clear majority of DSL lines provided by the incumbent are retail, as opposed to wholesale, products – indeed in the largest market, Germany, there is no wholesale product. http://www.ectaportal.com/html/index.php?pgd=83&rec=299&sc=5&ecs=a4191f30e0775d56a1e4c4f4a9395511

Full Scorecard: http://www.ectaportal.com/uploads/486LLU_Scorecard_October01.xls

BRAZIL TO OPEN WEB BOOTHS - -- Brazil is pledging to install Internet booths in 4,000 post offices next year, giving free Web access to some 150 million people in a massive effort to bridge the country's gaping digital divide, President Fernando Henrique Carodoso announced. In his regular weekly radio address to the nation Tuesday, Cardoso promised to ``guarantee one of the great conquests of the modern world'' to the nation's residents. The kiosks will be placed in cities with 10,000 residents or more, and then put in areas with smaller populations. The first phase is expected to be done by the first quarter of 2002. http://www.nytimes.com/aponline/technology/AP-Brazil-Internet.html

ASIAN NATIONS AGREE ON FREE TRADE ZONE - South East Asian nations and China have agreed to set up the world's biggest free-trade area within 10 years. The area would cover a market of nearly two billion people. The agreement was reached during talks in Brunei between the Chinese Prime Minister, Zhu Rongji, and the 10 leaders of the Association of South East Asian Nations (Asean). China's economy is growing fast, and trade with South East Asia is worth $40bn a year and rising. http://news.bbc.co.uk/hi/english/world/asia-pacific/newsid_1640000/1640387.stm

IRAN COUNCIL BANS PRIVATE INTERNET SERVICE - A conservative council says that private companies cannot provide Internet service in Iran, but some lawmakers and technology experts disputed its right to rule on the matter. An estimated 1,000 Internet service providers throughout Iran could be affected if the ban is enforced, one expert said. Iranians currently have unrestricted Internet access. Parliament was expected to intervene in the dispute, and perhaps hammer out definitive rules for Internet service, after it reconvenes next week. Its decisions can be overruled by Iran's supreme leader, Ayatollah Ali Khamenei, though his position on the issue and whether he would get involved were not known. http://www.nytimes.com/aponline/international/AP-Iran-Internet.html

BT TO TEST MESH RADIO IN BATTLE TO DOMINATE BROADBAND - British Telecommunications, the UK operator, is to test a radically new wireless technology in the battle for domination of the new market for digital entertainment and high-speed internet services. http://tm0.com/sbct.cgi?s=166389374&i=417751&d=2001524

U.K. HAS DROP IN HOME INTERNET CONNECTIONS - The number of UK homes connected to the internet has fallen for the first time, according to a new study. The figures show the number of households connected to the world wide web dropped from a peak of 40% in May to 39% in August. It is the first recorded dip since the telecoms watchdog Oftel began measuring the figures in January 1999, when just 12% of homes were online. The fall is likely to fuel speculation that home use of the internet has reached saturation point, but Oftel is not drawing any conclusions. A spokesman said: "It is too early to say from a single quarter's results whether this represents a change in the long-term trend. http://news.bbc.co.uk/hi/english/uk/newsid_1640000/1640236.stm

SOUTH KOREA DELAYS TELECOM SELL-OFF - The South Korean government has been forced to delay privatising the country's biggest fixed line phone operator, Korea Telecom, because it cannot get a good price for its stake. In July, information minister Yang Seung-taik said the government had been holding talks with a number of foreign firms, including Microsoft. The sell-off is now pencilled in for the end of 2002, six months later than originally planned, according to Korea Telecom's chief financial officer, Nam Joong-soo. http://news.bbc.co.uk/hi/english/business/newsid_1633000/1633966.stm

MOST JAPANESE SAY NET IS ESSENTIAL - Sixty-nine percent of the Japanese online population say the Internet is essential to everyday life, reports AsiaBizTech. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357352&rel=true

MR ERKKI LIIKANEN MEMBER OF THE EUROPEAN COMMISSION, responsible for Enterprise and the Information Society "The future of European business support networks" Euro Info Centres (EIC)

http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/01/527|0|RAPID&lg=EN;

BRUSSELS 7TH NOVEMBER : COMMISSION TO FUND HOTLINES TO PROMOTE SAFER INTERNET - http://www.europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/01/1545|0|RAPID&lg=EN;

YOUNG EUROPEANS HEAVY USERS OF TECHNOLOGY -

http://www.europemedia.net/shownews.asp?ArticleID=6589

E-COMMERCE CONVENIENCE MOTIVATES ONLINE SHOPPERS MORE THAN PRICE -

http://www.europemedia.net/shownews.asp?ArticleID=6562

EU'S LOCAL LOOP UNBUNDLING PROGRESS POOR - http://www.europemedia.net/shownews.asp?ArticleID=6475

3G WIRELESS TO BE LAUNCHED IN UK BY JANUARY 2002 -

http://www.europemedia.net/shownews.asp?ArticleID=6524

E-GOVERNMENT EFFECTIVENESS LIMITED BY SECURITY CONCERNS -

http://www.europemedia.net/shownews.asp?ArticleID=6556

LUXEMBOURG - A report on the Internet access and use in Luxembourg has been released. It highlights that 42% of Luxembourg residents access Internet regularly, at least once a week, usually from home. Only 16% from schools. Average connection time is 5 hours per week. 63% of homes have a pc. 45% have Internet access. The report also highlights the current citizens perception on e-government available and expected services and applications showing that tax declaration on line is the most interesting application from the user point of view, together with other administrative filings. A short reference is also made to broadband access expectations by users, highlighting 64% complaints about low speed access but only 37% would be ready to pay higher for a broadband connection. http://www.eluxembourg.lu/internet_lux.cfm

This Week@US STATES

CONGRATULATIONS TO NEWLY ELECTED OFFICIALS – Cisco congratulates new Governors Mark Warner of Virginia and Jim McGreevey of New Jersey on hard-fought victories in their respective commonwealth and state. Cisco looks forward to working with these new governors and all new elected officials in helping spur the economy and productivity through the deployment of broadband services, e-government initiatives and a focus on education. Mayor-elect Michael Bloomberg of New York also deserves special recognition for his election victory during an historic and unprecedented time in the U.S.’ largest city. For more information on Cisco’s state and local government affairs program, please contact Michelle Mallory Peacock at mimallor@cisco.com.

IN THE PIPELINE--RICOCHET AS A UTILITY? - Traditional utilities such as gas, water and heat may soon have a cutting-edge companion: the Ricochet wireless network. Aerie Networks, which bought the network Friday for $8.25 million, has plans to let city governments sell the service in much the same way that utilities provide consumers with water and electricity, company officials said.http://www.zdnet.com/zdnn/stories/news/0,4586,5099209,00.html

FEW AWARE OF BOSTON'S INNOVATIVE E-GOVERNMENT SITE - The City of Boston has come up with a cutting-edge way of using the Web to make the lives of its residents a little bit easier. Unfortunately, almost no one in Boston is aware of it. The city's Web site, cityofBoston.gov, now allows a resident to pull all sorts of information from the site together in one personalized page dubbed mygov. The resident can quickly check his property, excise tax, and dog license information, find out about health violations at his favorite restaurants, or choose to receive special announcements on various topics by e-mail or electronic phone message. The notification process has a lot of potential. Snowstorms, for example, cause a lot of headaches for the city and its residents. Will schools be closed? When will a snow emergency, which restricts where residents can park, be declared or canceled? Residents now flood the mayor's hot line for information during a snowstorm, often wasting their time and the time of the operators. But by signing up for the notification function at the Web site, a resident could sit back and relax and have the announcement sent to him by e-mail or phone when it's ready. http://www.boston.com/dailyglobe2/309/business/Few_aware_of_city_s_innovative_Web_site+.shtml

U.S. INTERNET POPULATION GROWTH RATE STABLILIZES - The Internet population's growth has reached a plateau for the first time since the Net explosion started in 1994, according to a new Harris Poll. Harris Interactive indicates that roughly 65 percent of U.S. adults use the Internet at home, at work or from other locations. That is only slightly higher than the number of U.S. adults online 12 months ago, the data indicates. Harris researchers say the percentage translates to about 127 million adults in the U.S. who use the Internet, up from about 121 million in 2000. The poll also indicates that 52 percent of adult Americans use the Internet at home, compared to 28 percent who surf on the job. http://www.newsbytes.com/news/01/172015.html

SCHOOLS AND LIBRARIES CONNECT TO THE WEB - Schools and libraries are making substantial use of the funds they get to provide telecommunications and Internet infrastructure, according to the Monitoring Report on Universal Service that was released Tuesday. Through the e-rate fund, schools and libraries received $2.1 billion in fiscal 2000. Total demand for universal-service support increased by 26 percent that year, and a total of $4.5 billion was made available. Telecom firms contribute a percentage of their revenue to the fund to subsidize the cost of telecom services for low-income and rural individuals, among other things. The FCC's Federal-State Joint Board issues the report yearly.

http://www.fcc.gov/ccb/stats

CALIFORNIA WEB SITE APPEALS TO BUSINESS - With the world's fifth largest economy, California officials know all too well that retaining and attracting businesses to their state is a fiercely competitive pursuit. As part of that effort, the state government's Technology, Trade and Commerce Agency (TTCA) unveiled a revamped Web site Nov. 5 to promote California's $1.4 trillion economy and continued investment and economic opportunity. http://www.fcw.com/geb/articles/2001/1105/web-ttca-11-08-01.asp

TELECOM GIANTS KEY TO U.S. ECONOMY SAYS VERIZON CHAIRMAN - To support his company's plans to expand its wireless and broadband Internet services, Verizon Communications chairman Charles R. Lee pointed to how successful his company was at restoring services in downtown Manhattan following the collapse of the World Trade Center. Lee insisted, "For all the focus on the viability of small 'niche' competitors in the communications industry, this was one instance where - when push came to shove - scale mattered." Driving home his point, Lee said, "Populist sentiments aside, sometimes consolidation can actually be the best thing for consumers, especially if it creates strong, viable companies in vital, capital-intensive industries." http://digitalmass.boston.com/news/globe_story.html?uri=/dailyglobe2/312/business/Telecom_giants_key_to_stability_of_nation_Verizon_chairman_says-.shtml

FEW PC OWNERS DO NOT GO ONLINE - Ninety-three percent of PC-owning households in the US have Internet access, according to the Yankee Group. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357350&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:

ELEARNING GAINING GROUND IN US - According to a report on eMarketer, 24 percent of US organizations are now using elearning to train employees, up from 16 percent last year.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357359&rel=true

ADSL TO REMAIN DOMINANT IN W. EUROPE - According to Datamonitor, the business and residential broadband market in Western Europe will be worth USD16 billion by 2006. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357362&rel=true

NET POPULATION STILL GROWING IN JAPAN - The number of cable Internet subscribers in Japan rose to 1.15 million by the end of September, up from 967,000 at the end of June, and 463,000 at the end of September 2000. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357361&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

CISCO.COM/GOV AND E-UPDATE FEEDBACK

As we continue to build out Cisco’s Government Affairs web site, as well as this 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

SUBSCRIBING/UNSUBSCRIBING:

You are receiving this update because you requested it. If you no longer wish to receive this update, send a message with “unsubscribe” in the subject line to Subscribe-eUpdate@cisco.com.

If you received this message because it was forwarded to you and you wish to subscribe to this weekly E-Update, please send a message to Subscribe-eUpdate@cisco.com with “Subscribe” in the subject line. Or, visit our Government Affairs homepage (www.cisco.com/gov) and click on the “Subscribe” button in the lower left-hand corner.