Cisco Government Affairs E-Update

Volume 2, Issue 16

16 April 2002

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

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

NEW Cisco Government Affairs Videos -
Please visit the Cisco Government Affairs website and see these new Cisco videos on the following topics:

Ø       Copyright Protection/DRM – Jeff Campbell, Senior Telecom Policy Counsel

Ø       Broadband – Jeff Campbell

Ø       California Protective Orders Issue – Michelle Peacock, State Government Affairs Manager

Ø       U.S. State Elections – David London, State Government Affairs Representative

All these new videos and more can be viewed at our multimedia site at: http://www.cisco.com/gov/multimedia/index.html

INTERNET STAT OF THE WEEK:  NET MOST IMPORTANT MEDIUM FOR KIDS - According to a study from Knowledge Networks/Statistical Research (KN/SRI), one-third of children ages 8 to 17 say the internet is the medium they would choose if they could only have one, topping television, telephone and radio. For boys, television was a strong second choice, though girls ranked TV third behind the net and telephone.  http://www.emarketer.com/estatnews/estats/edemographics/20020410_kids.html

This Week@WASHINGTON, DC

COMMANDER OF THE AIRWAVES - The FCC could be a big obstacle to recovery, unless it can be overhauled by its chairman, Michael K. Powell. Powell, 39, a lawyer elevated to the chairmanship by the Bush Administration a year ago, is a man with a name--his father, Colin, is secretary of state--and a man with a mission. Michael Powell vows to refashion the FCC into an outfit that is fast, decisive and, above all, hands-off. This is an agency that has spent a decade fumbling, albeit with good intentions. Its wireless-spectrum auctions tempted smaller bidders, given special terms in the auctions, to overreach and end up bankrupt, with valuable airwave properties left for years in limbo. Some of the FCC's efforts at social engineering, with incentives for minorities and women, were outlawed by an appeals court. The agency deliberated over digital television for a decade, giving away new spectrum to the old broadcast networks, which still haven't used it. Its antiquated restrictions on the ownership of TV stations and cable systems just got thrown out by a federal court. Other FCC rules artificially block the wireless business from undergoing a much-needed consolidation. The worst FCC disaster of all: its reading of the 1996 Telecommunications Act, which was supposed to deregulate phone and cable, spark more competition, cut prices and spawn new services. In the hands of FCC lawyers the law turned into thousands of pages of gobbledygook that had the opposite effect. http://www.forbes.com/forbes/2002/0429/078.html

BUSH SUPPORTS BUSINESSES IN DEBATE OVER CHANGING OPTIONS ACCOUNTING - The Bush administration is siding squarely with the business community in the escalating debate over whether to account for stock options as a business expense, opposing any changes in the way options are treated on financial statements.  The stakes are high for the business community: Reported profits would suffer if corporate-accounting critics get their way and the value of stock options is subtracted from earnings. Stock options give employees the right to buy a company's stock, in the future, at a predetermined price. The more the company's stock price rises in the meantime, the more valuable that right becomes.  On Monday, President Bush himself said stock options shouldn't be treated as a corporate expense -- taking issue with Federal Reserve Chairman Alan Greenspan and some lawmakers. Mr. Bush went on to say that options should be handled precisely the way they currently are in annual reports. http://online.wsj.com/article/0,,SB1018390978662248640,00.html?mod=home_whats_news_us  (Paid subscription required)

SPEECH: BRUCE MEHLMAN, ASSISTANT SECRETARY FOR TECHNOLOGY POLICY AT THE COMMERCE DEPARTMENT, gave a speech titled "Our Digital Future" to the European American Business Council Digital Economy Workshop in Brussels, Belgium. He advocated the benefits of new technologies, reviewed Bush administration policy initiatives, and discussed pending technology related policy debates. “I am happy to report that President George W. Bush and his Administration are committed to strengthening America’s science and technology capabilities. In fact, the common theme among our highest priority issues right now - winning the global war on terrorism, protecting Americans at home, and restoring robust economic growth - is using technology to improve our world.” http://www.ta.doc.gov/Speeches/BPM_020410_DigitalFuture.htm

OP-ED: AN ENRON 'ELIXIR' WOULD TRY TO CURE WHAT DOESN'T AIL US - By HARRIS N. MILLER, President of ITAA - A wag once said that for every challenge, there is a solution that is simple, straightforward--and wrong.  Unfortunately, that seems to be the case in the congressional response to the Enron collapse. And the worst example of a wrong solution to Enron is the Levin-McCain bill on stock options.  Proposed in the Senate by Michigan Democrat Carl Levin and Arizona Republican John McCain, the bill would require the stock option tax deduction to be reflected as an expense on a company's income statement, reducing reported profit. It would have the harmful effect of limiting the use of stock options, a form of employee ownership, for all but the most senior executives. Levin-McCain takes away the incentive for companies to encourage employee stock ownership, a practice that Congress and other provisions of federal tax law have tried to promote. Never mind that the tax on stock options is paid by the individual employee who receives the benefit and usually at a higher rate than the company would pay. If either the financial or tax costs of offering stock options to employees is increased, as happens with Levin-McCain, companies will be forced to limit option grants.  http://www.latimes.com/news/opinion/commentary/la-000025759apr11.story?coll=la%2Dnews%2Dcomment%2Dopinions

OP-ED: STOCK OPTIONS AND COMMON SENSE - By Warren Buffett - In 1994 seven slim accounting experts, all intelligent and experienced, unanimously decided that stock options granted to a company's employees were a corporate expense. Six fat CPAs, with similar credentials, unanimously declared these grants were no such thing.  Can it really be that girth, rather than intellect, determines one's accounting principles? Yes indeed, in this case.  Obesity -- of a monetary sort -- almost certainly explained the split vote.  The seven proponents of expense recognition were the members of the Financial Accounting Standards Board, who earned $313,000 annually. Their six adversaries were the managing partners of the (then) Big Six accounting firms, who were raking in multiples of the pay received by their public-interest brethren.  In this duel the Big Six were prodded by corporate CEOs, who fought ferociously to bury the huge and growing cost of options, in order to keep their reported earnings artificially high. And in the pre-Enron world of client-influenced accounting, their auditors were only too happy to lend their support.  http://www.washingtonpost.com/wp-dyn/articles/A16890-2002Apr8.html


FED CHAIRMAN STAYS FIRM ON IDEA THAT OPTIONS SHOULD BE EXPENSED - Alan Greenspan may be the most respected figure in Washington, but eyes roll and heads shake when the Federal Reserve chairman talks about the need to count stock options as a corporate expense. And he won't stop talking about it.  President Bush disagrees, respectfully. "Alan Greenspan is very smart. I'd hate to get into a debate with him on it," he said Monday in an interview in the Oval office. Securities and Exchange Commission Chairman Harvey Pitt disagrees, too. Only a handful of members of Congress back his cause -- either because they are incurable mavericks, like Senator John McCain, or because they've reached the limits of their political ambitions.  http://online.wsj.com/article/0,,SB1018313716950777560,00.html?mod=politics%5Fsecondary%5Fstories%5Fhs (Paid subscription required)

FCC ISSUES ORDER ON REMAND IN CALEA PROCEEDING - The Federal Communications Commission (FCC) released an Order on Remand in the proceeding titled "In the matter of Communications Assistance for Law Enforcement Act". http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-02-108A1.pdf

DIGITAL-COPYRIGHT BILL INSPIRES FLURRY OF CRITICISM - A digital-copyright bill introduced last month has inspired howls of protest from consumers and high-tech firms who say it could slow technological advances and dictate how consumers listen to music or watch videos at home. Well-connected lobbyists and everyday users alike have flooded Congress with faxes and e-mails over the last several weeks to lodge complaints against a bill that would prevent new computers, CD players and other consumer-electronics devices from playing unauthorized movies, music and other digital media files. Sen. Ernest Hollings' bill is backed by media firms such as The Walt Disney Co., who fear fast Internet connections and an array of digital devices such as MP3 players and CD burners will encourage consumers to seek free copies of hit singles and new movies. http://story.news.yahoo.com/news?tmpl=story&cid=582&582&e=19&u=/nm/20020409/wr_nm/tech_media_piracy_dc_2

ANDREESSEN: COPY PROTECTION EFFORTS ARE DOOMED - Netscape co-founder Marc Andreessen told the nation's broadcasters that efforts to copy protect music, movies or television shows are destined to fail.  As film studios and recording studios urge Congress to extend copy protection to every home entertainment device, Andreessen said the entertainment industry need look no further than the software industry's own expensive, failed attempts at encryption to realize it is ineffective at stopping piracy.  ``If a computer can see it, display it and play it -- it can copy it,'' said Andreessen, in a keynote address to the National Association of Broadcasters convention.  Andreessen said the recording and broadcast industries should recognize the explosive popularity of Napster and successor song-swapping services for what they are: evidence of unmet consumer demand and a terrific business opportunity. It should respond with a volume of cheap digital music -- and an ad campaign that reminds consumers that ``file swapping'' is merely a euphemism for theft.  http://www.siliconvalley.com/mld/siliconvalley/3031836.htm

'GEEKPAC' TAKES ON MICROSOFT, HOLLYWOOD, TAUZIN-DINGELL  - Two longtime Linux enthusiasts are calling on geeks everywhere to join an ambitious new political action committee designed to blunt the lobbying might of Hollywood, Microsoft and the Baby Bells.  Jeff Gerhardt, host of "The Linux Show," and Doc Searls, senior editor of Linux Journal, are soliciting donations and volunteers to jump-start an advocacy group called the American Open Technology Consortium, and a new political action committee affectionately dubbed "GeekPAC."  The groups will attempt to educate lawmakers from the developer's viewpoint, taking aim at such legislation as the Tauzin-Dingell broadband deregulation bill, the Digital Millennium Copyright Act, and legislation offered by Senate Commerce Committee Chairman Ernest "Fritz" Hollings, D-S.C., that would mandate the inclusion of copy prevention technologies in all digital media devices.

http://www.newsbytes.com/news/02/175789.html

This Week@EMEA

USING IT TO FIGHT POVERTY - G-7 NATIONS FIND A NEW FORM OF FOREIGN AID - PALERMO, Sicily An unusual coalition of wealthy Group of Seven governments, leading multinational corporations, nonprofit groups and developing countries is seeking ways to use the Internet and information technology as a new form of foreign aid to help alleviate global poverty.  The public-private partnership, which was among the top issues discussed during a two-day meeting here of 91 countries, is called the Digital Opportunity Task Force, or DOT force.  Members of the group will present their work to President George W. Bush and other G-7 leaders attending their annual summit meeting, to be held in June in the Canadian resort town of Kananaskis.  Flanking the G-7's DOT force are aides to Kofi Annan, secretary-general of the United Nations, and James Wolfensohn, the World Bank president, both of whom have taken a personal interest in the new aid project.  "The real significance of this initiative," said Denis Gilhooly, director of information technology aid projects at the UN Development Program, "is that information technology will ultimately be integrated into the mainstream of overseas development aid."  http://www.iht.com/cgi-bin/generic.cgi?template=articleprint.tmplh&ArticleId=54460
 
EUROPE ELBOWS INTERNET CONTENT 'BLOCKING' - The European Parliament has voted overwhelmingly to oppose the use of "blocking" as a way of regulating content on the Internet. The vote (460 in favour, 0 against and 3 abstentions) this morning means that ISPs will not be forced to restrict access to Web sites.  Instead, they have been given the green light to continue with self-regulation.  Today's decision has been welcomed by Louisa Gosling, President of the European Internet Services Providers Association (EuroISPA), as a "forward looking and informed decision".   Said Ms Gosling: "We are also very pleased that the Parliament has come out strongly against blocking, which is not only a technically disastrous solution, but also raises significant free speech and democratic concerns."  http://www.theregister.co.uk/content/6/24808.html

BT DEFIES BAN TO LAUNCH WI-FI NETWORK - British telephone company British Telecommunications said Wednesday that it plans to launch the nation's first commercial Wi-Fi network in June, despite a ban on such businesses in the United Kingdom.  The carrier is trying to follow the lead of U.S. carriers that have already added wireless Internet access into their mix of offerings. These wireless networks can download Web pages at speeds much quicker than a digital subscriber line (DSL). But their drawbacks include a range of less than 300 feet and notoriously porous security. Despite that, Wi-Fi networks have grown in popularity, finding a place in millions of businesses and homes worldwide. VoiceStream Wireless sells Internet access based on Wi-Fi, otherwise known as 802.11b, at about 600 Starbucks throughout the United States. Nextel Communications said it intends to add Wi-Fi to its stable of offerings, and Sprint is an investor in Boingo, a commercial Wi-Fi service.  http://zdnet.com.com/2100-1105-880181.html, http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT32VP04UZC&live=true&tagid=ZZZPCGI2B0C

BT TO UNVEIL NEW CHEAP BROADBAND OFFER THIS MONTH - BT Group said on Monday it will introduce a discounted high-speed Internet access package in the coming weeks in a concerted push to hit its ambitious goal of one million broadband customer by next summer. BT has temporarily dubbed the new broadband package "Direct." It said it will provide full details, including prices and which markets it is intended for, on April 24. "All I can say now is it is seen as a mass enabler for broadband. It's another way for BT to reach its goal of one million new broadband connections by next summer and five million by 2006," a company spokesman said.  http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020408/wr_nm/telecoms_bt_broadband_dc_2

INTERNET FOR AIR TRAVELERS ANNOUNCED - The pool of firms vying to provide airline passengers with high-speed Internet service just got another player. Inmarsat Ltd., the British satellite communications firm, announced Tuesday it would begin selling satellite bandwidth to fliers who wish to surf the Web, send e-mail and eventually, watch television.  The service, called Swift64 and resold by four separate providers, will be offered to corporate jet owners in June and to commercial airliners by year's end, said Simon Tudge, an Inmarsat marketing manager.  Swift64 will offer data speeds of up to 64 kilobits per second, equivalent to an earth-bound digital subscriber line, or DSL, connection.  http://story.news.yahoo.com/news?tmpl=story&cid=528&528&e=13&u=/ap/20020409/ap_on_hi_te/inmarsat_airline_internet_2

COMPUTER LIFELINE FOR REFUGEES - Refugees in Belgium, mostly from the former Soviet republics, Iran and Afghanistan, are being offered training in computer skills. The program, offered at a refugee reception center in Kapellen, is run by volunteers and relies on donated computers. "Experience with computers can open new opportunities for the person, whether it is to continue with language learning or with computer skills, or simply to be able to access the Internet for news," said a representative for the center, Rudi De Bleser. The project began in 1999 with two computers donated by Oxfam and has since grown to include 27 computers and a volunteer staff of computer experts to provide training to the 450 migrants who await answers to requests for asylum. "We offer the opportunity to acquire skills that may be useful to [the refugees] in Belgium as well as in any other country, since only 20 percent gets a positive result to their asylum request," said Bleser. http://news.bbc.co.uk/hi/english/sci/tech/newsid_1917000/1917441.stm

FT CASSE LES PRIX DE L'ADSL ET L'AUTORITÉ DE L'ART - France Télécom a cédé aux pressions conjointes des opérateurs tiers, de l'ART, de la Commission européenne et sans doute du gouvernement Jospin. Sans attendre l'homologation de l'ART, l'opérateur historique propose une baisse de ses tarifs ADSL d'environ 20 % pour « démocratiser le haut débit ». Les opérateurs concurrents sont partagés entre satisfaction et réserve.
http://lettres.01net.com/u.asp?a=103998:62:3

INTERVIEW: GUILLAUME KLOSSA (EBG) : « Le bas débit ne permet pas d'amortir les investissements » Dans son Livre blanc sur «la généralisation de l'accès internet à haut débit», l'European Business Group (EBG) prône la libre concurrence pour relancer l'économie numérique. Guillaume Klossa, son vice-président répond à nos questions.
http://lettres.01net.com/u.asp?a=103998:62:4

GERMANY - Regulator lowers one-time charges for access to the "last mile" - Prices reduced as much as 24 percent.  http://www.regtp.de/en/aktuelles/pm/02532/index.html

UNITED STATES AND EUROPEAN COMMISSION AGREE INCREASED REGULATORY COOPERATION - The United States authorities and the European Commission today announced that they have developed guidelines designed to promote more effective US-EU regulatory cooperation. In particular, the EU and US will share better mutual access to the process of developing regulations.  EU Commissioner for Enterprise and the Information Society Erkki Liikanen, EU Trade Commissioner Pascal Lamy, United States Trade Representative Robert B. Zoellick and US Commerce Secretary Don Evans welcomed the Guidelines as an important mechanism for promoting a more positive US-EU trade agenda. Under negotiation since late 1999, the completion of the "Guidelines on Regulatory Cooperation and Transparency" has been a priority initiative for the United States, the European Commission and transatlantic stakeholders.  http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/555|0|RAPID&lg=EN&display=
COMMISSIONER LIIKANEN SPEECH: http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/140|0|RAPID&lg=EN


CASTRES ET MAZAMET RELANCENT LEUR EXPÉRIENCE PILOTE SUR LE HAUT DEBIT  -
Le contrat signé, le 5  avril, avec Cegetel pour alimenter en services de télécommunications le réseau de ces deux villes devrait leur permettre d'attirer les activités et les entreprises, qui, depuis dix ans, ont un peu boudé ce projet.  La mayonnaise du réseau à haut débit commence-t-elle enfin à prendre à Castres et à Mazamet ? Les signes positifs s'accumulent, presque dix ans après les débuts d'un projet d'infrastructures de élécommunications censé être la clé du renouveau industriel de cet ancien grand pôle lainier et textile du Tarn.  Vendredi 5 avril, Philippe Germond, PDG de l'opérateur Cegetel, est venu y signer un contrat engageant son entreprise à fournir pendant dix ans des services de télécommunications s'appuyant sur le réseau mis en place. Ce dernier représente une infrastructure haut de gamme, 30 kilomètres de fibres optiques enterrées, 155 Mbits/s de débit ; "comme à la Défense", a-t-on coutume de dire sur place. http://www.lemonde.fr/article/0,5987,3228--270743-,00.html

E-VOTING IN UK 'MUST BE POSSIBLE BY 2005' - Electronic voting in local and national elections must be technically possible by 2005, local authorities will be told on Monday. The move to develop the technical capacity for e-voting raises the possibility of an online poll for the first time at the next general election.  The government instruction follows approval for 30 pilot projects testing alternative methods in the English local government elections on May 2, including a trial of internet voting in Liverpool and the use of electronic voting machines in Newham, east London.  Nick Raynsford, the local government and regions minister, said the trials would help to resolve security problems with electronic voting, including restricting access to those entitled to vote. However, ministers believe electronic voting has the potential to deliver a substantial boost in voter turnout, which fell to 60 per cent in the 2001 general election and rarely reaches much more than half that level in local elections.  http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT30I1N7RZC&live=true&tagid=FTDDMJNIFEC

This Week@Asia/Pac

SOUTH KOREA: A DIGITAL SHOWCASE - Imagine a vast urban landscape transformed into one big point-and-click gallery. Leave your money, credit cards and checkbook at home. Sporting an infrared equipped mobile phone, walk into any store, pick up a shirt or CD and carry it to the clerk’s terminal. The clerk initiates the sale. Point your phone and shoot your encrypted credit card information at the receptor.  Almost instantly, an electronic receipt is beamed back to your phone. No numbers to punch (or air time charge). No cumbersome barcode to download. Elsewhere in the city, bus stops, toll gates and kiosks are similarly equipped, making your excursion almost friction free.  This scenario is becoming a reality today in Seongnam (pop. 930,000), a densely urbanized suburb of Seoul, Korea. It is part of the government’s three year plan to transform this middle class municipality into the world’s “first digital city.”  http://www.thefeature.com/index.jsp

TIBETAN CULTURE GETS A TECH BOOT - At a gala recently at the opulent Russian Tea Room in New York City, serene looking Tibetan monks rubbed elbows with suited clients of a Silicon Valley company that boasts about having survived the tech bust. This is a story about an unlikely marriage between philanthropy and capitalism, and how it could very well help preserve the culture of the people of Tibet. SCATTERED across Northern India, Nepal and Bhutan are 32 settlement camps, home to more than 122,000 Tibetan exiles displaced from their native land by Chinese troops, who invaded the country 50 years ago. Just last month, action was begun in earnest to install a computer in each of these settlements, and to wire each for Internet access. Part of the bill for this project is being paid by a Web-based customer relations management company, half a world away.  http://www.msnbc.com/news/737241.asp?0si=-

MORE CHINESE HOPE TO LEARN, WORK ON HOME PCS - More Chinese are showing interest in using computers at home for education or work, but online shopping or e-commerce is proving slow to catch on, according to a recent survey by market research group AC Nielsen. In the past, getting onto the Internet to use e-mail, download music and play games were the top services driving Chinese to buy PCs, according to the study, which questioned 8,000 Internet users in Asia Pacific countries including China. But among those Chinese consumers who planned to buy a PC within the next six months, a growing number were showing interest in other services.  "What's more telling is the shift in anticipated functions," said Barry Tse, an AC Nielsen research director based in Beijing.  One third of Chinese planning to buy a PC said they hoped to use it for education, compared to 23 percent of those who already owned a PC, the report said. http://story.news.yahoo.com/news?tmpl=story&cid=581&581&e=11&u=/nm/20020411/tc_nm/lifestyle_china_computers_dc_1

This Week@US STATES


MICHIGAN: COMCAST TO SPEED INTERNET ACCESS - BROADBAND SERVICES TO HAVE DIFFERENT LEVELS - Comcast Corp. plans to unveil a high-speed Internet plan with faster download speeds designed for small businesses within the next few months.  Comcast could not say how fast the new levels of service would transmit data or exactly how much they would cost, but the different services will give customers different levels of bandwidth.  Its Internet service costs $39.95 a month for those who have cable TV and about $10 more for those who don't. The new business plans will cost more.  Schaefer will explain the Internet service tiers and how Comcast's network runs Thursday when he kicks off the first of three forums on the state of broadband services in Michigan, sponsored by Glima, an association of about 200 businesses that have interests in doing business on Web.  http://www.freep.com/money/business/bband10_20020410.htm

BILL WOULD FREE BELL BROADBAND FROM REGULATORS - A bill to enable Southwestern Bell of Oklahoma to expand its high-speed Internet service in the state easily passed Wednesday in the state Senate, despite an argument it would limit competition.  The legislation, House Bill 2796, removes Southwestern Bell's high- speed Internet service from regulation by the Oklahoma Corporation Commission.  Sen. Mike Morgan, D-Stillwater, the bill's author, said no one else is regulated in the field in Oklahoma.  This includes cable companies that have 70 percent of the high- speed Internet service in Oklahoma, he said.  He said this legislation levels the playing field in high-speed Internet service, also known as broadband communications.  Sen. Bernest Cain, D-Oklahoma City, urged senators to vote against the bill.  "This is for limiting competition," he said.  http://www.newsok.com/cgi-bin/show_article?ID=846618&pic=none&TP=getbusiness

BRANCHING OUT IN MONTICELLO - Jefferson County, Florida's first branch library has been designed to serve double duty as a community technology center.  The library branch will be housed in the Jefferson County Youth Council and Teen Center and include five flat-screen computers plus 1,000 books.  The Jefferson County Main library often has a line of patrons waiting to use the eight Internet-ready PCs.  Verna Brock, director of the Jefferson Country library, said, "In our county, a lot of people can't afford their own computers and Internet.  We provide a place for them to train and become more familiar with technology.  This (branch) will help bridge the digital divide in Jefferson County." http://www.tallahassee.com/mld/democrat/news/local/3046769.htm

CALIFORNIA VENTURE GROUP SEEKS TO FUND CHARTER SCHOOL 'BRANDS' - A nonprofit venture-capital fund in Silicon Valley has raised $25 million to invest in networks of charter schools, independent public schools that are seen as a promising approach to education but have suffered from lack of management expertise and access to capital.  The New Schools Venture Fund hopes to raise $50 million to create as many as six nonprofit charter-school management organizations, each with a unique "brand" identity. Within five years, the fund expects the networks will run a total of 80 schools serving 30,000 students.  Los Angeles billionaire Eli Broad, through his foundation, pledged as much as $10.5 million for the charter-school management effort and promised millions more to launch a revolving fund to finance facilities for charter schools. Charter schools receive state funding based on student enrollment but generally don't have access to school buildings or other state-funded facilities.  http://online.wsj.com/article/0,,SB101840150642272760,00.html?mod=venture%5Fcapital%5Fprimary%5Fhs (Paid subscription required)

FED CIO URGES STATE PARTICIPATION - Mark Forman, who essentially is the chief information officer of the federal government, urged his state counterparts on April 8 to participate in several federal initiatives to help foster citizen-centric government.  Forman, associate director of information technology and e-government at the Office of Management and Budget, outlined a number of government-to-government initiatives, such as electronic grants, the e-Vital project for accurate death reporting, disaster assistance and crisis response, the geospatial one-stop program, and GovBenefits, among others that will begin testing within the next six months.  "At the end of the day, this is about transforming government to give results to the citizen," Forman said at the National Association of State Chief Information Officers' midyear conference in Denver. http://www.fcw.com/geb/articles/2002/0408/web-forman-04-09-02.asp

CIOS BUILD CASE FOR BUSINESS - With budget revenues below expectations in most state governments, getting information technology projects approved during the next two years will require a strong business case, according to several experts and chief information officers. During a roundtable discussion April 9 at the National Association of State Chief Information Officers' midyear conference in Denver, a survey of about two dozen chief information officers found that 57 percent said that building a business case showing a return-on-investment (ROI) strategy is the single most important driver of new funding for IT initiatives. http://www.fcw.com/geb/articles/2002/0408/web-nascio-04-11-02.asp

EDUCATIONAL SHIPMENTS OF iBOOKS ARRIVING IN MAINE - Nine Maine middle schools have received their first shipments of 675 iBooks.  The program is part of the Maine Learning Technology Wireless Classroom Solution to help Maine students "become one of the most digitally capable groups in the world." In a contract that runs through 2006, Apple will provide 36,000 iBooks to all seventh and eighth grade students and teachers in Maine. Laptops will be shipped to seventh grade students and teachers by fall 2002 and to eight graders in 2003.  The nine schools that are receiving their shipments early have been selected to be Demonstration/Exploration Schools. They will serve as laboratories and teacher training sites and share information about their experiences at conferences. http://story.news.yahoo.com/news?tmpl=story&cid=77&ncid=77&e=8&u=/mc/20020410/tc_mc/educational_shipments_of_ibooks_arriving_in_maine

 

STUDY SAYS N.C. NOT FRIENDLY TO E-COMMERCE - You can finally buy wine online in North Carolina, thanks to a court ruling this week, but the state still puts too many limits on Internet commerce, critics say.  A state law passed in 1997 restricted online wine sales until a ruling Monday by a federal judge in Charlotte declared the legislation unconstitutional. But there are other laws in place that make it difficult or downright illegal to buy some goods and services online, despite the state's many achievements in building a tech economy and the touted consumer benefits of e-commerce -- price, variety, convenience, prompt service. For example: Find a great deal on a year's supply of soft contact lenses at 1800contacts.com? You can't have them shipped to North Carolina because the nation's largest online contact lens dealer doesn't meet the state's criteria for a "dispensing optician," according to the state Board of Opticians.  http://www.news-observer.com/front/Business/v-print/story/1284331p-1318381c.html

MISSISSIPPI SCHOOLS RECEIVE POWERUP GRANT - The Mississippi Department of Education has received funds from PowerUP, a non-profit initiative which seeks to bridge the digital divide across the nation. The Mississippi Department of Education awarded funds from PowerUP to 50 schools across the state. Known as PowerPALS in Mississippi, the program provides computers, printers, software and Internet accounts for school labs. But PowerPALS is not just for students: the labs remain open into the early evening for those in the community who wish to further their education or gain more computer skills. http://www.djournal.com/djournal/site/articles/news/988821.htm

SILICON VALLEY HAS VOICES IN SACRAMENTO, AND SOMETIMES THEY'RE HEARD - WHEN Silicon Valley went calling on Sacramento last week, it was government right out of a civics textbook.  Appointments were made with elected representatives. The visitors were courteously received. Positions were urged upon legislators, who either hastened to agree, politely demurred or vowed to cogitate deeply until their indecision vanished.  This was not, needless to say, the complete picture of lobbying in Sacramento. But it would be a mistake to dismiss it simply as a charade. Not all that happens in the Capitol is partisan calculation and trolling for campaign dollars.  The delegation embodied Silicon Valley the geographic region, not just Silicon Valley the business dynamo. The Silicon Valley Manufacturing Group, the Santa Clara County supervisors and the Santa Clara County Cities Association gathered people from businesses and local government to meet with legislators over two days. It was the sixth year for such a trip.  http://www.prod.bayarea.com/mld/bayarea/news/columnists/phil_yost/3008694.htm

OTHER TECH STORIES OF THE WEEK

THE BENEFITS OF BROADBAND - Many governments around the world including South Korea, the United Kingdom, Canada, Japan and others have instigated national policies to drive the adoption of high-speed internet. Why? What benefits or potential benefits are there in widespread broadband adoption?  US Federal Communications Commissioner Michael Copps says: "The transformative potential of broadband technologies is, I believe, akin to the major infrastructure developments that built America to greatness." http://www.emarketer.com/analysis/technologies/20020404_at.html (Part I) http://www.emarketer.com/analysis/technologies/20020411_at.html (Part II)

TELECOM FIRMS IN BROADBAND BUSINESS GET RELIEF FROM RIGHT-OF-WAY RULES -

Telecommunications companies' complaints against local governments are getting the attention of the Bush administration and state governments. The telecom industry is claiming that municipalities are making it too difficult to continue broadband expansion. In response to the complaints, more and more state legislatures have passed laws limiting the municipalities rights to regulate use of the their streets and other "rights of way". Seventeen telecom companies have formed a lobbying group called Industry Rights-of-Way Working Group to ask the FCC to limit government fees to "only the actual and direct costs incurred in managing" public rights of way.  FCC Chairman Michael Powell has said that there is a "growing concern about rights of way as a barrier" and the FCC will "tee up and put the spotlight on these issues."  Local officials are saying telecom companies are trying to blame them for industry problems stemming from a glut of fiber and that the telecom industry seeks to avoid paying for damage to the streets when installing new wires. http://online.wsj.com/article/0,,SB1018403314933037360,00.html?mod=telecommunications%5Fprimary%5Fhs (Paid subscription required)


FREE-SPACE OPTICS OFFER FAST DATA WITH FEWER PHYSICAL LINKS
- When LifeSpan BioSciences sought to move its burgeoning data center last April to a new building three blocks away, it faced having to shut its research labs for a few months. That's how long it would take to tap fiber-optic lines buried in the street and establish a high-speed connection between labs in the old building and databases in the new. Instead, LifeSpan used laser beams to zap data between the buildings. It took about two weeks to get the system up and running.  The technology, called free-space optics (FSO), is emerging as one way to avoid the bottleneck that occurs when fiber-optic lines don't extend the ''last mile'' to offices. Instead of spending time and money to tap into those lines, companies can use laser beams to relay massive amounts of data from building to building -- or from a building to one from which it can more easily be shifted to a fiber-optic line for transmission over greater distances.  The laws of physics tightly constrain FSO. It can be used only where there is a clear line of sight between buildings -- which can be rare in crowded cities. Bad weather and obstructions can interfere with the beam, thus data transmission. And beleaguered telecommunications companies are too distracted to do much with the infant technology. http://story.news.yahoo.com/news?tmpl=story&u=/usatoday/20020411/tc_usatoday/4018160

HOME NETWORKS: A SHOCKING IDEA - Connect a HomePlug device to an Internet feed and suddenly the high-speed Web courses through your home power wires. What can emerge from a standard electric outlet besides electricity? Starting now, the Internet. Swapping information over power lines isn't new. Systems like X10, Cebus and LonWorks have long used those wires to send smidgens of data for controlling appliances and other devices. But grander schemes for bigger data flows have been short-circuited by light dimmers and hair dryers that broadcast heavy-metal levels of electrical noise into the wires. http://biz.yahoo.com/fo/020429/home_networks_a_shocking_idea_1.html

WORLDWIDE I.T. SPENDING POISED FOR RECOVERY - After years of double-digit growth, worldwide spending on information technology, or IT, screeched to a halt in 2001. According to a study by the Aberdeen Group, IT spending will begin to recover this year, but growth will be nothing like it was during the tech boom in the late 1990s.  Aberdeen, a market analysis firm, said worldwide IT spending grew just 0.2 percent last year, including a 0.4 percent decrease in the U.S.  Hugh Bishop, senior vice president at Aberdeen and lead author of the study, told Newsbytes the first quarter of 2002 was "not anything stellar," but he believes a turnaround will begin this year due to pent-up demand.  "Many companies have put things off for the past 12-15 months," said Bishop. "The economy is picking up, and there is more capital available in Europe and the U.S. than there was last year."  Total IT spending was $1.21 trillion last year, Aberdeen said. The firm said it foresees a 3 percent growth rate from 2001 to 2002, with IT spending of $1.24 trillion this year. http://www.newsbytes.com/news/02/175829.html, http://www.emarketer.com/estatnews/estats/ebusiness/20020411_ab.html

RIAA BLASTS GATEWAY'S DIGITAL MUSIC CAMPAIGN - Gateway plans to add even more support for digital downloads. The company reportedly is negotiating with several record companies to provide downloadable music on its Web site.  The Recording Industry Association of America (RIAA) has charged that a Gateway (NYSE: GTW) advertising campaign that declares support for digital music downloads uses "misleading scare tactics" to frighten consumers into buying more of the company's products. Gateway, the fourth largest PC maker in the United States, launched a radio, television, Web and in-store advertising campaign Wednesday in an effort to rally support for consumers' rights to download music from the Internet.  "If only they would devote a little bit of the millions of dollars they're spending on this ad campaign to help stop illegal downloading ... but that wouldn't help them sell more CD burners, would it?" RIAA president and CEO Hilary Rosen asked rhetorically. http://www.newsfactor.com/perl/story/17220.html

MICROSOFT, I.B.M. AND VERISIGN TO COOPERATE ON WEB SECURITY - Microsoft, I.B.M. and VeriSign plan to announce a new technical approach today that they hope will ensure greater security and thus stimulate commercial development of an emerging Internet technology called Web services.  Web services is the term used to describe clever software that in theory could bring a new level of automation and greater productivity to all kinds of online transactions among companies, suppliers and consumers. Yet the new, unproven technology — which uses the Web to find and share data in electronic databases of companies or individuals — has stirred concerns about data security and personal privacy. http://www.nytimes.com/2002/04/11/technology/11WEB.html (Free registration required)


FACTS AND STATS:

DUTCH ONLINE SPENDING GROWS - Online spending in the Netherlands rose by 50 per cent in 2001, a new study by Blauw New Media, commissioned by the Dutch organization HBD, has shown. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905357813&rel=true

INCREASE IN ONLINE SALES IN CANADA - Canadian businesses increased sales of goods and services over the Internet in 2001, according to a new report from Statistics Canada. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905357806&rel=true

GLOBAL HOME NET ACCESS GROWS - Home Internet users account for almost one eighth of the world's population and this number is still rising, findings from Nielsen//NetRatings have shown.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905357811&rel=true

TWO MILLION ADSL SUBSCRIBERS IN JAPAN - Reuters reports that subscriptions to high-speed Internet access ADSL services in Japan have passed the two million mark. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905357801&rel=true

SEX OUT, ECOMMERCE IN - A new report from Penn State University indicates that Internet users

are spending less time searching for sexually orientated material, and more time looking for useful information.

http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905357809&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

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