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Cisco Government Affairs
E-Update
Volume 2, Issue 19
10 May 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
This Week@WASHINGTON, DC
SENATORS PROPOSE BROADBAND
REGULATORY PARITY - Senator John Breaux (D-LA) and Senator Don Nickles
(R-OK) introduced legislation aimed at
accelerating the rollout of broadband infrastructure by ensuring regulatory
parity between competing technologies (cable modem, DSL, fixed wireless and
satellite). The "Broadband Regulatory Parity Act of 2002" requires
the FCC to issue regulations within 120 days of the bill's enactment to level
the playing field in the broadband market. The FCC would retain the authority
to determine which regulatory requirements - if any - should be retained and
which should be eliminated. http://www.senate.gov/~breaux/releases/2002430907.html
BROADBAND IN THE FARM BILL -
Sens. Harkin, Daschle and Dorgan are pleased to announce that the recently
passeed farm bill, the Agriculture, Conservation, and Rural Enhancement (H.R.
2646), includes a new initiative which will help ensure that rural America has
the same access to broadband as its urban neighbors. The broadband program will provide up to $750 million a year in
direct loans to those entities that provide broadband service to rural
communities of 20,000 people or less who don't currently have it. This is the
largest rural broadband program in U.S. history, an unprecedented initiative
that is long overdue. The program, which will operate under the USDA's
Rural Utilities Serivce, is technologically neutral and both profit and
nonprofit entities will be eligible. (Senate e-mail)
ITI RELEASES 10-POINT PLAN
TO BRING BROADBAND TO MORE AMERICANS - The Information Technology Industry
Council (ITI) released its 10-Point Broadband Plan a comprehensive legislative
and regulatory agenda to advance the deployment of widespread, high-speed,
affordable broadband to all Americans. In the plan, ITI goes beyond setting
goals, making specific recommendations to policymakers about how they can
stimulate broadband deployment and facilitate a pro-competitive environment for
multiple technology platforms. ITI's
Broadband Plan focuses on 10 policy initiatives, which, if adopted and
implemented effectively, will promote capital investment, stimulate broadband
demand, reduce regulatory barriers and enable wireless broadband. ITI's key
initiatives include enacting a broadband tax credit, creating tax incentives
for telework (or telecommuting) programs, and minimizing regulations for new,
last mile broadband infrastructure.
"The time has come for us to take a pragmatic approach to this very
important issue," said ITI President Rhett Dawson. "ITI will work
with Members of Congress, the FCC and the Bush Administration to implement
these policy initiatives until all Americans who want high-speed broadband
connections can get them at an affordable price." http://www.itic.org/policy/brdbnd_020502.pdf
(Adobe file)
NOBEL ECONOMISTS COMMENT ON
BROADBAND - Numerous comments have been submitted to the Federal Communications
Commission (FCC) recently that pertain to its regulatory treatment of broadband
services. Perhaps it is noteworthy that among the many comments is one from
veteran Nobel prize winning economists Kenneth Arrow and Gary Becker. Arrow, Becker, and others submitted a
comment in which they argue that the FCC "should not regulate broadband
Internet access at this time. In the current market, there is no justification
for substituting government regulatory criteria for the competitive process of
the marketplace in arriving at optimal technologies, access arrangements, and
business models. The results of such regulation can only suppress investment
into new technologies and services that would otherwise increase consumer
choice and enhance the development of advanced communications networks." http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6513190214
(www.techlawjournal.com)
CABLE WILL RULE BROADBAND,
REPORT SAYS - Cable modems will rule the broadband age--at least for the next
five years, according to a research report The Yankee Group released Tue day.
DSL technology will remain in second place due to regulatory hurdles, and other
broadband technologies, such as satellite, will lag far behind, according to
the report from the from the Boston-based research firm. By the end of 2001, 60
percent of U.S. homes were equipped for cable modem service, while only 45
percent of homes were equipped for DSL service. The report also predicted that
broadband growth will cannibalize the market for dial-up Internet access. http://news.com.com/2100-1033-901501.html?tag=cd_mh
HOLLINGS INTRODUCES
BROADBAND BILL - Sen. Ernest Hollings (D-SC) and others introduced S 2448,
the Broadband Telecommunications Deployment Act of 2002, a bill pertaining to
the taxation of communications services, and the funding of loan and grant programs
intended to promote the deployment of broadband services in rural and under
served areas. The bill would provide
that one half of the taxes collected pursuant to the excise tax on phones,
codified at 26 U.S.C. § 4251, would go into a trust fund to support various
loan and grant programs created by the bill. The bill would create an entity
named the Broadband Deployment and Demand Trust Fund, to be located at the
Treasury Department. However, the Commerce Department would write implementing
regulations, and administer the programs created by the bill. Sen. Hollings stated that this bill
"represents a step towards fostering the deployment and adoption of
broadband services. It uses monies from the telephone excise tax to fund a
number of loan and grant programs. It stimulates broadband deployment in rural
and underserved areas by providing low interest loans to upgrade facilities
including remote terminals and fiber between a remote terminal and central
office. It authorizes NIST to study how we can facilitate broadband deployment
in rural and under served areas. It promotes competition by establishing pilot
projects for wireless and other non-wireline broadband technologies in rural
and underserved areas." (Tech Law
Journal – www.techlawjournal.com) The bill: http://thomas.loc.gov/cgi-bin/bdquery/z?d107:s.02448:
, http://www.washingtonpost.com/wp-dyn/articles/A23113-2002May2.html
ENDING THE BROADBAND RIP-OFF
- Paul Beckner, president and CEO of Citizens for a Sound Economy discusses the
necessity for lawmakers to develop legislation that will speed the deployment
of broadband Internet service. The White House, House of Representatives
and FCC have made statements suggesting they would ease current regulations in
an effort to speed broadband deployment. Beckner questions where the Senate
will come down on broadband. Beckner feels that equalizing regulations
between phone and cable companies will encourage investment in broadband
networks and offer a major boost to the U.S. economy. http://news.com.com/2010-1078-902091.html
HOUSE APPROVES BILL TO DELAY
SPECTRUM AUCTION - The U.S. House of Representatives today approved legislation
to prevent the Federal Communications Commission (FCC) from auctioning off a
block of airwave licenses in the 700 MHz band that could be attractive
properties for many wireless companies. That portion of the spectrum is
currently occupied by broadcasters, who are required to return it as they make
the transition to digital television. There is concerned that a sale would be
premature, since there is no solid estimate as to when the current occupants of
those airwaves will vacate them. Opponents of the auction also say that the FCC
should not parcel out the licenses until the agency develops a comprehensive
plan for managing the airwave spectrum under its control. http://www.washingtonpost.com/wp-dyn/articles/A48080-2002May7.html
- The House passed HR 4560, the Auction Reform Act of 2002, by a voice vote. Sen. John Ensign (R-NV) introduced
S 2454, the companion bill in the Senate, on May 2. No action has yet been
taken on that bill. Secretary of Commerce Donald Evans has announced his
support for a postponement of the auctions.
(Tech Law Journal – www.techlawjournal.com)
SPEECH: BRUCE P. MEHLMAN,
ASSISTANT SECRETARY FOR TECHNOLOGY POLICY, United States Department of Commerce
– “The Changing Wealth of Nations: Intellectual Property in the Age of
Innovation” – “With intellectual output playing such a critical role in our
economy, society and global competitiveness, the Bush Administration is
pursuing a high tech agenda that seeks to maximize the creation, protection and
commercialization of intellectual property. Specifically, our policies promote
innovation, support entrepreneurship, improve infrastructure and empower
people…To improve our innovation infrastructure, the President’s technology
priorities include hardening the nation’s defenses, especially critical
infrastructure protection and cyber security; implementing a national energy
plan that uses technology to improve energy efficiency while expanding domestic
capacities; supporting the deployment and usage of high-speed Internet
(broadband) networks in a number of different ways, both on the supply and
demand sides; and working to ensure we manage the radio spectrum most
effectively. The information infrastructure is particularly important in the
information age, and broadband usage may soon be the critical factor separating
leading economies from the rest.” http://www.ta.doc.gov/Speeches/BPM_020503_Wealth.htm
SPEECH - PHILLIP BOND, UNDER
SECRETARY OF COMMERCE FOR TECHNOLOGY, gave a speech titled "Convergence:
Digital, Global, and Policy" to the Utah Information Technology
Association in Salt Lake City, Utah. He stated that information technology has
"a history of minimal regulation, robust competition, rapid innovation,
market driven economics and falling prices. Telecom has traditionally been
heavily regulated, monopolistic, slow to change, heavily subsidized and often
marked by high prices. While convergence of information technology and telecom
creates wonderful innovations & new services for consumers, it's hardly
frictionless -- ask any legislator in Washington about the last mile -- or
about privacy or about digital rights management or about spectrum. And they
have to know how to handle these issues along with environmental law, education
reform, agriculture policy, national security, corporate governance, ad
infinitum ad nauseum." http://www.ta.doc.gov/Speeches/PJB_020501_UITA.htm
NEW MEMBER OF FEDERAL RESERVE
BOARD - President Bush announced his intent to nominate Ben Bernanke to be a
Member of the Board of Governors of the Federal Reserve System. He is Chairman
of the Department of Economics at Princeton University. He has been picked for
a seat which has only two years remaining in its term. http://www.whitehouse.gov/news/releases/2002/05/20020508-4.html,
Bernake bio: http://www.princeton.edu/~bernanke/
CIO COUNCIL ROLLS OUT FIRST TAKE ON E-GOV BEST
PRACTICES
- The CIO Council last week laid the
foundation for an e-government knowledge base. “We wanted to do something in
real time and create a set of best practices that would be helpful
immediately,” said Debra Stouffer, co-chairwoman of the CIO Council’s Best
Practices Committee. White papers by industry and government teams outlined the
issues, success factors and recommendations for the Business Compliance
One-Stop and the Geospatial One-Stop projects. The teams, made up of government
officials and members of the Industry Advisory Council, plan to issue similar
reports for all 24 e-government initiatives under the Office of Management and
Budget’s sponsorship. http://www.gcn.com/vol1_no1/daily-updates/18604-1.html
HOUSE
APPROVES BILL TO DELAY SPECTRUM AUCTION - The U.S. House of Representatives approved
legislation to prevent the Federal Communications Commission (FCC) from
auctioning off a valuable swath of airwave spectrum. At issue is a block of
airwave licenses in the 700 MHz band that could be attractive properties for
many wireless companies. Broadcasters currently occupying that spectrum band are
expected to vacate the airwaves as they make the transition to digital
television. The FCC is scheduled to
auction the airwaves beginning June 19. http://www.washingtonpost.com/wp-dyn/articles/A48080-2002May7.html
BILL WOULD END TAX BREAK
THAT VIOLATES TRADE PACTS - An effort to settle a nasty trade dispute between
the U.S. and Europe over an American export subsidy is setting off a brawl
among big companies. "They're
squealing like stuck pigs," says Rep. Amo Houghton (R., N.Y.), describing
some top U.S. multinationals' response to his proposal to appease Europe by
revamping the $5 billion-a-year subsidy. Boeing Co., with hundreds of millions
of dollars of tax breaks at stake, has been among the loudest complainers. Many
smaller exporters, too, are alarmed at the prospect. At issue is the Extraterritorial Income Exclusion, a 30-year-old
corporate tax break on U.S. companies' profits from exports. International
trade bodies repeatedly have ruled that the break amounts to a subsidy that
violates trade agreements, and Congress has responded each time by tweaking the
program to comply with the letter of the ruling. http://online.wsj.com/article/0,,SB1020202036927785200.djm,00.html
(Paid Subscription required)
DIGITAL TV ROLLOUT GETS
BOOST FROM CABLE INDUSTRY - The cable industry made its biggest effort yet to
break the digital television logjam Wednesday by offering "strong and
enthusiastic support" for a set of voluntary initiatives proposed last
month by Federal Communications Commission Chairman Michael Powell. The USA's 10 biggest operators — including
AT&T Broadband, AOL Time Warner, Comcast, Charter and Cox — said that by
2003 they will provide a package of high-definition television (HDTV) services
to subscribers who want them. This will happen in systems in the 100 biggest
markets with high-capacity wires and at least 25,000 subscribers. To support this promise, operators said they
will immediately order set-top decoders that can handle HDTV and send a digital
signal directly to the new generation of digital TV sets. And the industry
promised to advertise its HDTV offerings, possibly in conjunction with
broadcasters and set manufacturers. http://www.usatoday.com/life/cyber/tech/2002/05/02/digital-tv.htm
This
Week@EMEA
SKY-HIGH BROADBAND FOR RURAL
AREAS - As part of a regeneration plan for isolated areas, rural areas in
southeast England could soon be getting access to the Internet through
satellite broadband. The development agency responsible for southeast region is
offering 300 grants to help cover the cost of satellite net access and will
provide training to users. Despite being the hub of Britain's technology
industry, some parts of the southeast have inadequate Internet access.
"The south-east has the third highest number of people in the country
lacking Internet connections," said Anthony Dunnett, chief executive of
the South East England Development Agency (SEEDA). Because England does not
have any universal service provisions for broadband, telecommunication
companies have no obligation to bear the high cost of providing high-speed
access to rural areas. The SEEDA grants are aimed at small businesses as,
according to Dunnett, more than 90 percent of the 250,000 companies in the
region employed fewer than 10 people. Other organizations such as schools and
clinics may also apply for a grant. http://news.bbc.co.uk/hi/english/sci/tech/newsid_1974000/1974740.stm
BROADBAND REACHES MORE THAN
500,000 IN UK - More than 150,000 customers have signed up for broadband over
the past four months, taking the number of high-speed internet access
connections above 500,000, Oftel, the telecommunications regulator, will
reveal. http://tm0.com/sbct.cgi?s=166389374&i=521002&m=1&d=2606985
OFTEL ON VOIP - Oftel issues
guidance for service providers planning to offer consumers voice over Internet
Protocol (VoIP) services - Oftel has issued guidance for service providers
planning to offer consumers VoIP services. It has commented that it is
receiving an increasing number of calls from service providers interested in
providing such services. Oftel has also said that it is looking at introducing
a new telephone number range so that calls that are carried using Internet
technology can be easily identified. VoIP is the generic term for the transfer
of voice traffic using Internet Protocol technology. The VoIP traffic can be
carried on a private managed network or the public Internet or a combination of
both. (Internet telephony is a specific type of VoIP service that uses the
public Internet to carry the IP traffic). The categorisation of a service
depends on the way it is marketed and bundled with other services, rather than
a technical analysis of how it is provided. This guidance is only relevant to
the provision of VoIP services under the current regulatory regime http://www.bakernet.com/NewsLetters/Article.asp?ArticleID=312&URL=Newsletter.asp&NLID=11&EditionID=32
EU TO IMPOSE TAX ON
DOWNLOADED PRODUCTS - The European Commission issued a release in which it
stated that the EU's Council of Economics and Finance Ministers will impose a
new tax on products that are downloaded electronically. The rule will require
U.S. companies to charge a value added tax (VAT) on sales into the European
Union (EU). http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=MEMO/02/89|0|RAPID&lg=EN;
ENGLAND
VOTES, BUT NOT NECESSARILY AT POLLS - Cell
Phones, Internet and Touch-Screen Kiosks Used by Many in Local Elections - When
18-year-old Tallyn Gray cast his ballot for city council today, it was the
first vote of his life. The high school senior in northern England also was one
of the first voters anywhere to cast an online ballot in a governmental
election. Gray became a pioneer in the
fast-moving world of e-democracy because Britain has gone further than any
other country in using high-tech communications techniques for voting. As elections were held for 6,000 city
council seats all over England, voters cast their ballots on the Internet, over
the telephone and at touch-screen kiosks set up in public places. Voters could
also use the centuries-old method of marking an X on the ballot at a polling
place. http://www.washingtonpost.com/wp-dyn/articles/A24357-2002May2.html
EUROPEAN
COMMISSION - COMMISSIONER LIIKANEN SPEAKS ABOUT EC AND FUTURE CHALLENGES. - Mr Erkki
Liikanen Member of the European Commission, responsible for Enterprise and the
Information Society "Status of the Information Society in the European
Union and Future Challenges" Biel's 1st Communication Days Biel-Bienne,
Switzerland, 2 May 2002 - http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/193|0|RAPID&lg=EN
This
Week@Asia/Pac
TELSTRA SAYS RULES IMPACT
'NEUTRAL' - Telstra, Australia's dominant telecommunications group, sought to
play down the impact of new government regulations, which will force it to
divulge far more information to potential competitors and strengthen the role
of the competition authority in setting prices. http://tm0.com/sbct.cgi?s=166389374&i=522251&m=1&d=2612944
This Week@US STATES
BLACK
MAYORS LIKE ECHOSTAR'S BID FOR HUGHES - The National Conference of Black Mayors
has urged the FCC to approve EchoStar Communications Corp's plan to acquire
rival satellite television provider Hughes Electronics Corp. , saying it will
give their constituents affordable high-speed Internet access. The resolution
was adopted on April 26 and released on Wednesday by Denver Mayor Wellington
Webb, president of the organization of 500 black mayors of cities with a
combined population of 40 million people. "We believe the merger would
allow more competition with cable (television)," Webb told Reuters in a
telephone interview. http://story.news.yahoo.com/news?tmpl=story&cid=582&ncid=582&e=9&u=/nm/20020508/wr_nm/media_echostar_dc_1
US STATES DIGITAL DESIGNATIONS
- According to The Progress & Freedom Foundation's 2001 Digital State
Survey, the top two US states are Illinois and Kansas, each gaining a score of
91.8 out of 100 in 2001. http://www.emarketer.com/estatnews/estats/ebusiness/20020507_prog.html
E-DEFINING EDUCATION -
Education Week's survey "E-Defining Education: A Survey of State
Technology Coordinators" sheds new light on how e-learning is changing the
landscape of education. According to the survey, 12 states have established
online high school programs, 25 states allow cyber charter schools, and 32
states have e-learning initiatives under way. "Virtual Schools: Trends and
Issues," a report commissioned by WestEd, estimates that 40,000 to 50,000
students will have enrolled in an online course by the end of this school year.
"The virtual school movement," the WestEd report says, is "the
'next wave' in technology-based K-12 education." Still, concerns about online
education abound. Questions about effectiveness, quality, and technology
instruction for students are just the tip of the iceberg. To increase
understanding of the benefits and drawbacks of e-learning, Technology Counts
2002, the fifth edition of Education Week's annual 50-state educational
technology report, examines the issues from different perspectives. Education
Week reports may
be found at their Web site:
(http://www.educationweek.org/). The
WestEd report is available online at (http://www.wested.org/cs/wew/view/rs/610).
http://www.washingtonpost.com/wp-dyn/articles/A61269-2002May9.html
OTHER
TECH STORIES OF THE WEEK
HIGH-SPEED INTERNET ACCESS A
BOON TO BUSINESS - A new study by Yankee Group reports that an overwhelming
number of small business owners consider broadband Internet access a
significant resource. 90 percent of the
550 small businesses surveyed said that gains from increased productivity meet
or exceed the cost of DSL. One reason for DSL's popularity over a T-1 line for
business use is cost: DSL is roughly half the cost. The ability to send e-mail
with large attachments is one of the most frequently used capabilities of
high-speed Internet. Other high scoring uses include online research,
purchasing supplies and making travel reservations. The study also found that businesses that had used high-speed
access for at least two years were more likely to use the Internet for advanced
applications such as collaborative work, distance learning or purchasing goods
and services. http://www.newsbytes.com/news/02/176491.html
SMARTER WAY TO BUY BANDWIDTH
- You might think that the market for Internet bandwidth would be a paragon of
capitalist rationality. After all, isn't bandwidth a commodity? And isn't it
all about moving bits from place to place? Precisely the kind of fluid, digital
exchange that both engineers and economists would love for its efficiency and
transparency? Guess again. As it turns out, the market for bandwidth is
practically medieval in its obscurity and irrationality. If your company needs
to buy an Internet connection, you're at the mercy of a bunch of Internet
service providers whose marketing statements have little to do with reality and
whose prices are all over the map. For example, a 45-megabit-per-second T-3
line can cost as little as $9,000 per month or as much as $18,000 per month,
depending on whether you go through a low-cost, discount ISP like Teleglobe or
an established, premium provider like AT&T. http://www.business2.com/articles/web/0,1653,40398,FF.html?nl=df
CAN BROADBAND
SAVE INTERNET MEDIA? - On-line
entertainment sites stand to benefit most as broadband diffuses, but increased
usage won't save their ailing ad-based business models. For on-line
entertainment—indeed, for the Internet media sector as a whole—the implications
are clear: forget about supporting your sites with advertising. http://mckinsey.chtah.com/a/hA82ng1AG8E6$AHixUQAHZF-u8K/mkq97
PRICE IS RIGHT FOR USING THE
NET FOR PHONE CALLS - What relatively inexpensive technology has been in
homes for decades, works reliably most of the time, appeals to all age groups
and is user-friendly? Need a hint? Everybody -- and I mean everybody -- can
reach out and touch somebody with it. http://story.news.yahoo.com/news?tmpl=story&u=/usatoday/20020501/tc_usatoday/4073444
COX'S GAMBLE ON TELEPHONY
STARTS TO PAY OFF - Cable operator Cox Communications Inc. has
managed to outperform its rivals as it stands by its strategy of becoming a
one-stop shop for telecommunications services that also include high-speed
Internet access and telephone service. http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020507/tc_nm/media_cox_robbins_dc_1
CABLE EXECS: BROADBAND IS
LACKING - Digital cable television and high-speed Internet are
catching on quickly with consumers, but providers must offer the public more
compelling content, several cable industry executives said. http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020506/ap_on_bi_ge/cable_show_2
ANALYSTS: CABLE OPERATORS
AVOID REGULATORY HEAT - As U.S. cable industry executives arrive in the
hot, humid Louisiana bayou for their annual convention this week, the heat is
likely only from the temperature and not from regulators, analysts said. http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020505/wr_nm/media_cable_regulations_dc_3
'OPEN ACCESS' ISN'T ALL THAT
OPEN AT AOL, DESPITE REGULATORY DEALS - Before the AOL Time Warner was
approved, federal regulators demanded that that AOL and Time Warner carry out
11 steps in opening up their cable lines to small competitors. Small
competitors were to have access to AOL Time Warner's cable-TV lines, and
control their own customer billing. So far, only one company, New York
Connects.net Ltd, has been able to offer service after negotiating a deal with
AOL Time Warner marked by high access costs and an inability to bill New York
Connects.net customer directly. The regulations placed on cable companies were
meant to be similar to phone companies who are required to sell wholesale
access to small Internet providers. In reality, cable companies have been able
to handpick their competitors and Christopher Bogart, president and chief
executive of Time Warner Cable Ventures said, "This is for us, a joint
offering of service, a partnership with an Internet service provider...We're
not in the wholesale access business." Jeff Chester, executive director of
the Center for Media Education said the deals AOL Time Warner is making with
small competitors, "...makes a mockery of open access." http://online.wsj.com/article/0,,SB1020637295188507120,00.html?mod=todays%5Fus%5Fmarketplace%5Fhs
(Paid subscription required)
COMMENTARY FROM THE
FINANCIAL TIMES - Fewer than 10 per cent of US home computer users have
broadband internet connections. Now even this group is facing unexpected
charges to take full advantage of their high-speed lines, as internet
publishers grapple with the mounting costs of providing bandwidth-gobbling
streaming video and audio news, e-learning tutorials, video conferencing and
webcast services. http://tm0.com/sbct.cgi?s=166389374&i=526808&m=1&d=2631111
FIBER-OPTIC OVERDOSE RACKS
UP CASUALTIES -This ought to be a glorious moment for the telecommunications
industry. Around the world, people are spending record amounts of money to use
its networks to talk and e-mail and exchange gobs of information. The pace of
technological innovation is positively breathtaking. Trillions of dollars have
been invested in its growth. Instead,
the industry is in the midst of a financial meltdown. The ouster this week of
founder Bernard J. Ebbers as chairman of WorldCom Inc. is but the latest twist
in a saga that almost certainly will involve more resignations, more
bankruptcies and a period of painful industry consolidation. The ripples from the telecom implosion
extend well beyond the industry. It has become a significant factor holding
back the economic recovery, not just in the United States but also globally.
The stock market's current funk stems in significant part from concern over
telecom stocks, which drove the late-'90s rally but since their peak have
generated paper losses of more than $1 trillion, by some estimates. http://www.washingtonpost.com/wp-dyn/articles/A18217-2002May1.html
CLASS
STRUGGLE - DOES
E-LEARNING MAKE THE GRADE?; Web conferencing offers more to attendees; how
"business maps" may take brainstorming in the right direction. "Like college deans everywhere, Rick Taniguchi
knows a thing or two about the high cost of education and the need to balance
student expectations against administrative realities. Having lobbied for a $4
million expansion to his "campus," his careful cost-benefit approach
will soon be put to the test."..."While computer-based training is at
least 20 years old, the advent of the Internet has triggered what Gartner
analysts Kathy Harris and Jim Lundy call the "hyperadoption" of
E-learning. They say that by 2005, E-learning will be the single most-used
application on the Web. Not all of that will be corporate use; primary, secondary,
and higher education will also tap the Web extensively, as will government
entities. But corporate investment in E-learning will grow, they say, from $2.1
billion last year to $33.4 billion by 2005. Another IT consulting firm, Meta
Group, says that 60 percent of companies will deploy E-learning systems over
the next two years."..."Proponents of E-learning claim the technology
can yield impressive returns, from obvious savings on travel to
harder-to-quantify benefits such as better customer service and a
more-productive employee base. But they often face skepticism on the part of
senior managers, who balk at the high price and wonder why current methods of
training don't suffice." http://www.cfo.com/printarticle/0,5317,7154|M,00.html
GATES TAKES AIM AT DIGITAL
DIVIDE – Microsoft’s Bill Gates said the high-tech industry needs to keep the
cost of technology low to bring more minorities on board as the industry
evolves. He was the keynote speaker at the Rev. Jesse Jackson's Rainbow/PUSH
Coalition conference Digital Connections, aimed at addressing the so-called
"digital divide" involving minorities and emerging technology. "I think the solutions here involve
both creating the demand and creating the supply," Gates said. "And
creating that supply means getting more involved in the educational
system." Gates said he wanted to
ensure that schools around the country keep up with the rapid, exponential
growth of his industry. "Making sure
(schools) have the latest in technology. Making sure that the employees of our
companies are reaching out to those schools and getting involved in getting the
computers and getting the technology there," Gates said. http://www.dailynews.com/business/articles/0402/26/biz02.asp
ENTREPRENEURS APPLY TECH
EXPERTISE TO SOCIAL PROBLEMS - Digital Partners, a Seattle-based nonprofit is
seeking to bring together information technology experts, entrepreneurs,
foundations and development organizations to help create small businesses that
would stimulate local economies. Raj Merchant, the president of the Portland
chapter of Digital Partners said, "We can't solve world hunger, but we
have 10 projects ongoing, and we are aligned with universities and companies to
implement these projects." The nonprofit will be hosting a
fundraiser on May 17 to raise money and awareness for the projects. Several
politicians and business and technology executives, including Bill Gates, have
expressed support for the nonprofit and its mission. http://www.bizjournals.com/portland/stories/2002/05/06/daily34.html
NET RADIO PULLS PLUG TO
PROTEST FEES - Hundreds of Internet radio stations plan to go silent Wednesday
to protest proposed record-label royalty payments they say would endanger their
industry. Radio Free Virgin, Stanford
University's KZXU, Choice Radio and KING of Seattle are some of the Web radio
services that will take part with either total silence or non-stop public
service announcements on the issue. This follows last week's move by members of
Congress to take up the cause of Internet radio — an increasingly popular form
of Web entertainment. Twenty
congressional representatives sent a letter urging the U.S. Copyright Office to
make sure the new rates don't harm Net broadcasters. The copyright office has
until May 21 to accept or reject new rates recommended in February by an
arbitration panel. http://www.usatoday.com/life/cyber/tech/2002/04/29/radio-fees.htm
FACTS AND STATS:
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@2002
Cisco’s top policy focuses
for 2002 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
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