Cisco Government Affairs E-Update

Volume 2, Issue 20

17 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

 

LEASING RULES FOR PHONE START-UPS ARE UPHELD - The Supreme Court handed a huge victory to start-up telephone companies today by broadly affirming rules that permit them to lease equipment from the largest phone companies at relatively low costs.  The pricing regulations are meant to let rivals viably compete with the entrenched local phone companies by leasing access to their networks rather than having to build expensive duplicate systems. Although local telephone competition has been slow to catch on for a variety of reasons, rivals have blamed the intransigence of the dominant local companies. The established telephone companies had argued that the rules, which grew out of the Telecommunications Act of 1996, forced them to give competitors access to their networks at unfairly low prices.  While the decision was largely about the arcane issue of accounting practices for telephone companies, it has significant implications for competition in the local phone markets. The rate formula helps determine a number of market issues, including which companies will enjoy greater profits, whether smaller local companies are able to survive and effectively compete, and the extent to which the larger companies are willing to make capital investments. http://www.nytimes.com/2002/05/14/business/14BIZC.html (Free registration required), http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT361A7M61D&live=true&tagid=ZZZPCGI2B0C

The full opinion: http://a257.g.akamaitech.net/7/257/2422/13may20021500/www.supremecourtus.gov/opinions/01pdf/00-511.pdf (Adobe Document)
STATEMENT BY FCC CHAIRMAN POWELL - http://www.fcc.gov/Speeches/Powell/Statements/2002/stmkp210.html

STATEMENT BY AT&T - http://www.att.com/news/item/0,1847,10447,00.html

STATEMENT BY WORLDCOM - http://www.worldcom.com/about_the_company/press_releases/display.phtml?cr/20020513

STATEMENT BY COMPTEL - http://www.comptel.org/press/may13_2002.html

STATEMENT BY USTA - http://media.usta.org/pr/pressRelease.cfm?id=108

STATEMENT BY BELLSOUTH - http://bellsouthcorp.com/proactive/newsroom/release.vtml?id=40323

STATEMENY BY PFF - http://www.pff.org/pr/pr051302TELRIC.htm

 

BILL WOULD CREATE A POST TO MANAGE WORK FORCE SHRINKAGE  - Congress may consider a bill that would call for federal agencies to appoint a chief human capital officer to address the problems of a dwindling federal IT work force.  Republican Sen. George V. Voinovich of Ohio plans to sponsor a bill establishing the post and giving agencies funds to offer recruitment and retention incentives.  The human capital managers would make up a new CHCO Council led by Office of Personnel Management director Kay Cole James, said a staff member for the Senate Governmental Affairs Committee. http://www.gcn.com/vol1_no1/daily-updates/18627-1.html

 

PENTAGON COMMITMENT HELPS ADVANCE E-LEARNING STANDARD  - Michael Parmentier almost gushes about the potential benefits of online learning. He envisions a world where pieces of information -- no matter how detailed or obscure -- are instantaneously available, packaged and delivered for easy absorption. Next week, Parmentier's vision will come a step closer to reality. An initiative spearheaded by the Department of Defense to make various online training technologies work together has quickly produced an unofficial set of standards for the industry. "When we first tried to use distance learning, every time you changed a chip or part of the system, we'd have to recreate all of the content," said Parmentier, director of readiness training policy and programs for the Defense Department. "We knew that if we could create an agreed-upon platform, we wouldn't have to keep changing the content that had been created." http://www.washingtonpost.com/wp-dyn/articles/A11555-2002May13.html

 

THE DMCA IS THE TOAST OF D.C. - At a party this week, Washington's most influential lobbyists and politicians raised toasts to the Digital Millennium Copyright Act (DMCA).  Officially, the celebration, hosted by the International Intellectual Property Alliance (IIPA), was to cheer a global copyright treaty that takes effect on Monday. Equally important, however, was the show of support among key legislators and industry groups for the DMCA which has come under increasing scrutiny in the courts and from technologists. Critics of the DMCA argue that it does not allow for fair use of copyrighted works and that creativity will be stifled. But supporters of the DMCA argue that copyright is essential to promoting creativity. "Creativity - and the economy – thrive when copyrights are strong," said Robert Holleyman, president of the Business Software Alliance. "The DMCA is proof of that. It has been one of the central pillars supporting the growth of the Internet and the economy in general." http://www.wired.com/news/politics/0,1283,52602,00.html

 

COMMERCE COMMITTEE OKS ALLEN-BACKED LEGISLATION TO HELP - Close Digital Divide at Minority-Serving Institutions - The Senate Committee on Commerce, Science and Transportation today approved a bill cosponsored by U.S. Senator George Allen (R-VA) that would authorize grants to help close the digital divide at minority-serving institutions nationwide.  The NTIA Digital Network Technology Program Act, S. 414, provides $250 million in grants to minority-serving institutions, including Historically Black Colleges and Universities and Hispanic-serving institutions, to upgrade their technology infrastructure, provide educational services for technology degrees, to provide educator training and to implement technology projects in conjunction with government agencies.  (U.S. Senate e-mail)

 

SPEECH: National Telecommunications and Information Administration (NTIA) Director Nancy Victory gave a speech titled "Telecommunications Challenges: The Telecom Tsunami". She spoke about spectrum management. http://www.ntia.doc.gov/ntiahome/speeches/2002/GS_050802.htm

 

 

 

This Week@EMEA

 

UK BROADBAND - Oftel has published a Direction amending the requirements for provision of a Flat Rate Internet Access Call Origination product - this is on the website at: http://www.oftel.gov.uk/publications/internet/2002/stfriaco0502.htm,
Press release is at: http://www.oftel.gov.uk/press/releases/2002/pr26_02.htm

 

UK PRIME MINISTER ANNOUNCES STUDY OF UK ELECTRONIC NETWORKS - The Prime Minister, Tony Blair, recently announced that he has asked the Performance and Innovation Unit (PIU) to carry out a project examining the development of Electronic Networks in the UK over the next decade.  The project will look at predicted technology and market developments; the importance of Electronic Networks to UK productivity and growth; and the regulatory challenges for the next decade. The output of the project will be a report to Government, which will assist with the setting of future Government policy and approach, and will contribute to strategic thinking for the new regulator OFCOM.  Responsibility for the current performance, development and economic impact of UK Electronic Networks already lies with groups including the DTI, Oftel, the Office of the e-Envoy, HM Treasury, the Broadband Stakeholders Group and those involved in the Digital TV Action Plan. The PIU has been asked to take a long-term strategic view to complement this existing body of work. Mr Blair said:  "Electronic Networks are important to the UK both economically and socially. Government has an important role to play in their development along with the private sector. The current work to set up the new regulator OFCOM gives us a good opportunity to take stock of how the UK can benefit from developments in Electronic Networks over the next decade."  Douglas Alexander, Minister of State for e-Commerce and Competitiveness at the DTI, will be Sponsor Minister for the project. The PIU aims to complete the project by Summer 2002.  A scoping note outlining the background to the PIU project will be available on the PIU website (www.piu.gov.uk).

 

FREESERVE DEAL SEES NTL OPEN BROADBAND NETWORK - NTL this week became the first UK cable company to open its broadband network to rival internet service providers in a deal with Freeserve, the France Telecom-controlled ISP.  Freeserve customers, who use standard internet access via phone lines, will be free to buy much faster access from NTL provided they swap their BT accounts for cable telephony.  The wholesale pact, due to take effect from the autumn, will step up cable competition to BT as the latter tries to drive broadband usage over its phone network. It will cover a potential 6m homes in NTL's broadband franchises.  http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT35WZEJ61D&live=true&tagid=FTDDMJNIFEC

 

SKY'S THE LIMIT FOR E-GOVERNMENT - Much is unknown about the UK government's decision to launch government services on digital television without first issuing a policy statement or seeking consultation. It is speculated, however, that the government eschewed its "fundamental duty of being consultative and commercially neutral" in a desire to appear technologically progressive. Without having paused, the government launched its UK Online service with two digital television providers: Sky and ITV Digital. But ITV Digital is now defunct, leaving taxpayers wondering if the government is justified in using tax money to have public information content converted into Sky's proprietary format. Without any policy statements, the government now looks like it is favoring a private sector company with patronage. Even more skepticism has been generated by the fact that the government is receiving profits from television e-government. http://www.guardian.co.uk/online/story/0,3605,715874,00.html

 

GOVERNMENT GOES MOBILE - Imagine getting your exam results, an update on your passport application or news that your state benefit was in your bank via mobile phone. It could become a reality as the UK Government considers mobile communications as part of its drive to make all public services available electronically by 2005.  As well as offering services online and via interactive TV, officials are looking at mobile phones as an alternative delivery method.

 http://news.bbc.co.uk/hi/english/sci/tech/newsid_1991000/1991093.stm

 

COMMISIONER: AUTHORITIES SHOULD ENCOURAGE CONVERGENCE - European Enterprise and Information Society Commissioner Errki Liikanen has said that government authorities should work to encourage the convergence of digital television, mobile phones and broadband. At a recent conference he said, "With a wider choice of platforms and networks we will increase inclusion...There is far less reason for anyone to be excluded on the grounds of geography, skills or capabilities." He also added that convergence would help promote entrepreneurship and that "local initiatives that exploit cultural diversity should be able to flourish." http://www.europemedia.net/shownews.asp?ArticleID=10531

 

TURKEY CONSIDERS STRICTER INTERNET BILL - A media bill to go before the Turkish parliament Tuesday could cripple the Internet industry, harm the nation's struggling economy and hobble free speech on the Web, observers say. The bill would expand already stringent regulations on all forms of media and would require websites to submit two hard copies of pages to be posted on the Internet to a government agency for prior approval.  It also would require those who wish to open a website to obtain permission from local authorities, and to inform them every time the site is changed. The legislation comes at a time when European Union-hopeful Turkey is struggling to meet Brussels' political criteria for membership, including overhauling its often dismal human rights record and expanding civil liberties. http://www.wired.com/news/politics/0,1283,52477,00.html, LAW PASSES: http://www.wired.com/news/politics/0,1283,52558,00.html  

 

 

 

This Week@Asia/Pac

 

U.S. OFFICIALS TO TALK TELECOM IN CHINA - Senior Bush administration officials will be in China later this month for a biennial, high-level meeting on telecommunications and information industries under the Asia Pacific Economic Cooperation (APEC) forum. The APEC meeting held every two years is the primary venue for the advancement of telecom issues among the countries that border the Pacific Basin. David Gross, a deputy assistant secretary of State, will lead the U.S. delegation and be joined by FCC Commissioner Michael Copps and Nancy Victory, director of the National Telecommunications and Information Administration. The theme of this year's meeting, to be held May 29-31 in Shanghai, will be "leveraging digital opportunities to promote common development." The meeting will be an opportunity for telecom ministers to exchange views on subjects important to them.  Several areas will be discussed including: the "digital divide," with input from government, industry and academic officials; information infrastructure; telecommunications policy and market regulation; and worker training. The event is expected to result in a statement of policy, the "Shanghai Declaration," that will provide instructions for APEC's telecom working group for the next two years.  (National Journal’s Tech Daily –  http://nationaljournal.com/pubs/techdaily/)

 

CHINA'S TELECOMS GIANT SPLITS INTO TWO  - China Telecom, the dominant company in the world's second-largest fixed- line telephone market, was formally broken up on Thursday, setting the stage for its two successor companies to launch multi-billion initial public offerings and for an eventual increase in competition.  Wu Jichuan, the powerful minister of information industry, the regulator and owner of China Telecom, said the break-up would promote "fair market competition".  Telecoms industry analysts cautioned, however, that the task of integrating systems among the two emergent operators would be significant, slowing progress toward genuine tariff competition.  China Telecom will continue as a much-reduced company, operating in 21 provinces in China's south and west.  Ten of its former provincial operations in the north are now part of a competitor, the new China Netcom Group, which also includes an existing data communications operator, the China Netcom Corp.  http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT38ANZVA1D&live=true&tagid=ZZZPCGI2B0C

 

ONCE BLOCKED FOREIGN NEWS WEB SITES OPEN IN CHINA  - China appears to have lifted long-standing blocks on the Web sites of several Western news organizations that were freely accessible through local Internet connections in Beijing and Shanghai on Thursday. There was no official announcement explaining why normally censored Web sites, including those of Reuters, CNN, and the Washington Post, were unexpectedly open. Foreign news organizations have lobbied hard for China to lift blocks on their sites, which Web-savvy Chinese already access through proxy servers, but Beijing remains deeply suspicious of foreign media, especially in the run-up to a leadership reshuffle expected later this year. The reason for the apparent lifting of the blocks was not immediately clear and it was not known if the measure would be permanent. http://story.news.yahoo.com/news?tmpl=story&cid=582&ncid=582&e=2&u=/nm/20020516/wr_nm/tech_china_censorship_dc_1

 

NEW 'DIGITAL OPPORTUNITY' WEB INITIATIVE TO ELEVATE VOICES FROM DEVELOPING COUNTRIES - Digital Opportunity Channel launch to coincide with World Telecommunications Day -

OneWorld (www.oneworld.net), the online sustainable development and human rights network, and the Benton Foundation, the Washington, D.C.-based nonprofit that works to realize the social benefits of communications technology, today announced the launch of Digital Opportunity Channel, an online community focusing on the use of information and communications technologies (ICT) for sustainable development.  Officially launched on World Telecommunications Day from the OneWorld center in India, the Web site will place a special emphasis on promoting digital opportunity in developing countries. "Developing countries have largely been marginalized in the global dialogue on the benefits and negative impacts of digital technologies," said Kanti Kumar, channel editor. "Digital Opportunity Channel aims to give organizations and community leaders - especially in the South - a platform for their voice to be heard." http://www.digitalopportunity.org (Benton foundation e-mail)

 

SINGAPORE ISP TO OFFER BROADBAND MOVIES - A DSL service provider in Singapore is set to offer movies-on-demand over the Internet. Singaporeans with Internet service faster than 512 Kbps will be able to order from a selection of 20 Hollywood movies each week. The service will cost US $7.09 per month ($2.66 for those who subscribe by June) and uses Microsoft's Windows Media Player for playback on a subscriber's PC.  SingNet, the on-demand service provider, says that most of the films will be offered on broadband before being shown on local television. http://www.newsbytes.com/news/02/176618.html

 

TEACHING GOES VIRTUAL IN PAKISTAN - Thanks to a new virtual university, thousands of Pakistanis now have the opportunity to learn computer skills. The $40 million project provides distance learning via the television and Internet. The program is designed to create the estimated 60,000 computer science graduates needed to develop an information technology industry. "India is a very inspiring case. They got their act together very early," said Salman Ansari, adviser to Pakistan's Ministry of Science and Technology. "We are leveraging technology to get to the level that we need to get to," he added. In order to keep access open to all citizens, regardless of income, the prices have been kept extremely low and educational centers are being set up around the country.  The government has worked with the university to ensure that the cost of going online is reasonable for most people. Currently approximately 500 students are enrolled in a pilot project. The university hopes to have 5,000 students by September and 25,000 students by the end of 2003. http://news.bbc.co.uk/hi/english/sci/tech/newsid_1979000/1979750.stm

 

 

 

This Week@Americas International

 

BRAZIL: LET'S GO POSTAL - In another attempt to close the gap between the wired and the unwired, Brazil will install computer kiosks in post offices around the country, where people will be able to log on to the Internet. Correios, Brazil's postal agency, plans to have at least one computer in each of Brazil's 5,366 post offices. As a way of encouraging people to use the service, the first 10 minutes will be free. It has not yet been determined how much users will have to pay after that. "Of course we intend to charge a very low price, at least lower than cybercafes," said Fausto Weiler, Correios' assessor in the capital city of Brasilia. "Our goal is to open this new world for those who can't afford to buy a computer, even in the countryside." According to Weiler, the kiosk project is only a first step in reducing, and eventually eliminating, the country's digital divide. Once an easy Web link is established, the plan is to launch another project, called Permanent Electronic Address (PEA), that will supply every Brazilian with a free, private e-mail account. http://www.wired.com/news/politics/0,1283,52414,00.html

 

 

This Week@US STATES

 

BELLSOUTH'S BIDS FOR LONG-DISTANCE ARE CLEARED IN GEORGIA, LOUISIANA - Federal regulators cleared the way for BellSouth Corp. to begin selling long-distance phone service to its local-phone customers in Georgia and Louisiana, dealing another blow to beleaguered long-distance providers such as AT&T Corp. and WorldCom Inc.  The Federal Communications Commission approvals are the first for Atlanta-based BellSouth, which has struggled to persuade state and federal regulators that its local markets are open to competition. The Telecommunications Act of 1996 allows the four regional Bells to sell long distance only after their local markets are opened to competition.  The action also marks a turnaround of sorts for the company. In December, BellSouth withdrew the two applications ahead of almost-certain rejection by the FCC, which was initially concerned that the company hadn't done enough to open its local market to competition.  http://online.wsj.com/article/0,,SB1021499589116142600.djm,00.html (Paid subscription required)

 

CALIFORNIA PUC ORDERS RATE CUT FOR PAC BELL RIVALS - In a decision expected to jumpstart competition in the state's residential local phone business, California's Public Utilities Commission on Thursday sharply lowered the wholesale rates that Pacific Bell can charge rivals for access to its monopoly local phone networks.  Both AT&T and WorldCom hailed the decision as a major victory for California consumers and vowed to go head to head with the Baby Bell in delivering local phone service to the state's residential and small business customers.  In order to reach customers, AT&T, WorldCom and other competitors must lease local phone lines from Pac Bell, which controls the connections going into homes. Until now, however, the challengers have argued that they could not compete because the rates Pac Bell charges for access to its networks made it uneconomical for them to sell local phone service.  http://www.siliconvalley.com/mld/siliconvalley/3282094.htm


MICHIGAN PLANS TO SUPPORT BROADBAND NETWORKS - Firms would get deals for fast Net connections - In an effort to provide the high-speed Internet connections that Michigan officials think are critical for growth, the state on Monday is expected to announce a plan to encourage the construction of more broadband networks.  The proposal would give broadband companies special deals for guaranteed business with groups of state government offices, and possibly colleges, school districts and local governments, as an incentive for building the new networks, according to a report from the Michigan Economic Development Corp., the agency that will unveil the plan.  The companies would be free to sell the remaining bandwidth access to business customers, as long as they sell it fairly and do not give any customer preferential treatment, according to the MEDC report obtained by the Free Press.  The report's recommendations were developed for a state policy called LinkMichigan, intended to create more broadband networks throughout the state. http://www.freep.com/money/tech/cable12_20010512.htm

 

KENTUCKY LAUNCHES PROGRAM TO ASSESS STATE'S USE OF TECHNOLOGY - In an effort to move Kentucky to ''the forefront in participating in the networked world,'' Gov. Paul Patton yesterday announced a plan to assess where the state leads or lags in Internet use and develop a plan for improvements.  The three-year program, called connectkentucky, will examine such areas as the state's overall network capacity; the use of the Internet by individuals, government, schools and businesses; and the availability of high-speed connections throughout the commonwealth.  A development plan will be laid out by early fall, said Linda Johnson, president of the Center for Information Technology Enterprise, which will coordinate the project.  Speaking to a gathering of business leaders from around Kentucky at the Capitol, Patton said the program springs from the state's Office of the New Economy, which identified ''information technology and communications'' as one of five priority research areas. http://www.courier-journal.com/localnews/2002/05/16/ke051602s207882.htm

 

CELLPHONE CHATS COURTESY OF THE TELEVISION AIRWAVES - SIGFX, a Ridgeland, Miss. Company is developing technology that would use a small part of a broadcast television signal to send and receive cell phone calls.  SIGFX officials view the technology as a cheap way to augment current cell sites in the United States and internationally.  Dr. Nash, co-founder of SIGFX said, "We are another alternative to help them reach areas that are not as profitable, but they would like to get there. We don't replace their expansion plan, we augment their plan." The technology is still in the testing phase and the company is working through a number of issues with the technology including problems handling multiple calls. http://www.nytimes.com/2002/05/16/technology/circuits/16NEXT.html (free registration required)

 

LOCAL GOV'TS LAMBAST FCC RULING - Groups representing the nation's local governments are suing the Federal Communications Commission over a ruling they say will cost them $300 million in revenues from lost cable fees this fiscal year alone. The lawsuit concerns the FCC's March decision to insulate high-speed Internet services offered by cable companies like AOL Time Warner and AT&T Broadband from extensive regulations. The FCC tentatively concluded that local authorities are not allowed to charge a fee for the cable Internet service like the fee currently charged for video programming offered by the cable operators. Cable companies currently pay franchise fees of up to 5 percent of their gross revenue from video services, roughly $2 billion annually. Local governments are not only upset at the loss of revenue, but at what they say is the FCC's pre-empting their control over their own public assets, such as the streets that must be torn up and repaired to lay Internet infrastructure. http://www.wired.com/news/politics/0,1283,52531,00.html

 

OTHER TECH STORIES OF THE WEEK

 

A NEW DIRECTION FOR INTELLECTUAL PROPERTY - A group of law and technology scholars are setting up a nonprofit company that will develop ways for artists, writers and others to easily designate their work as shareable. The firm's founders argue that recent expansions in intellectual property law could stifle creativity. The new company, called Creative Commons, will work on clearly identifying material that is meant to be shared. By making it easier to place material in the public domain, Creative Commons hopes to encourage more people to do so. "It's a way to mark the spaces people are allowed to walk on," said Lawrence Lessig, leading intellectual property expert. Lessig will take a partial leave from Stanford Law School to serve as chairman of Creative Commons. http://www.nytimes.com/2002/05/13/technology/13FREE.html?ex=1021953600&en=ca323ab879f0cd03&ei=5040&partner=MOREOVER  (Free registration required)

 

'THIS IS WAR' - SHOULD THE COMPUTER INDUSTRY PROTECT HOLLYWOOD FROM DIGITAL THEFT? The guns are drawn. - Nothing has stirred up Hollywood lately like Ted Waitt's talented Holstein. Waitt is CEO of Gateway, the nation's fourth-largest PC manufacturer, and the cow is his company mascot. It's the Holstein's spots you see on Gateway packaging. Lately, though, Waitt has been using his sidekick to attack the entertainment industry. In a TV commercial, Waitt is driving down the highway in an 18-wheeler at dusk, with the cow riding shotgun. Waitt shoves a homemade CD into the truck's sound system. Out comes a hip-hop version of Gordon Lightfoot's 1974 classic "Sundown." Waitt raps along as he steers the big rig, bobbing his head to the beat. "Hey, B, what's the deal?" Waitt asks the cow.  On cue, the Holstein starts rhyming like a bovine Jay-Z: "Sometimes I rap slow, sometimes I rap quick..."  Sounds innocent enough. But as Waitt and cow head off into the sunset, viewers are directed to Gateway's Website, where they can download the song free. There, they are urged to oppose a Hollywood-backed bill in the U.S. Senate intended to end the unlawful distribution of copyrighted music and movies. "Have you seen this??" asks an e-mail circulating among movie-studio and record-company executives. "This is WAR!"  It certainly is. Hollywood has gone to Washington to stop the trading of pirated movies online. It has thrown its lobbying muscle behind a bill, introduced by South Carolina Senator Ernest Hollings, that would order the Federal Communications Commission to find a way to halt this thievery if the entertainment and technology sectors can't come up with their own solution. Disney CEO Michael Eisner, testifying in favor of the bill, took the opportunity to bash Silicon Valley on the Senate floor: "We're dealing with an industry where an unspoken strategy is that the killer app is piracy." http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=207975

 

KAAZA, VERIZON PROPOSE TO PAY ARTISTS DIRECTLY - Over the past few years the major record labels have been attempting to control online music swapping with little success.  When one company is shut down another one takes its place and today online file swapping is booming.  In an effort to convert individuals into paying customers, the major record labels started up two online music ventures, PressPlay and MusicNet.  For the most part, the public has ignored the ventures because they do not offer music in MP3 format and the files cannot be used on portable devices or burned to CD.  Jim Guerinot, a board members of Don Henley's and Sheryl Crow's Recording Artists Coalition said, "It would be like me opening a video store, charging 10 times what others were charging and only offering videos in Beta format."  Kaaza, an online music sharing Web site and Verizon have drafted a possible solution. They propose computer manufacturers, blank CD makers, ISPs and software companies each pay a modest fee and use the funds to pay artists directly.  Verizon vice president Sarah Deutsch said, "We're proposing the idea of a copyright compulsory license for the Internet, so peer-to-peer distribution would be legitimate and the copyright community would get compensation."

http://www.usatoday.com/life/cyber/tech/2002/05/14/music-kazaa.htm

 

POPE GIVES BENEDICTION TO INTERNET - Pope John Paul II is putting his faith in the Internet.  In his weekly address at St. Peter's Square on Sunday, the 81-year-old Pontiff said: "I've decided, therefore, to propose a big new theme for this year: 'The Internet--a new forum for proclaiming the Gospel.'" The leader of the world's Roman Catholics didn't say how much he practices what he preaches--for instance, whether he surfs the World Wide Web. He doesn't have his own e-mail address. But the Vatican does have an active Web site, the pope sent his first message over the Internet last year, and there's talk that he is searching for a patron saint for Internet users. ``Recent progress in communications and information have presented the church with unheard-of possibilities for evangelism,'' he said. ``We shouldn't be afraid to put to sea in the vast ocean of information,'' he went on. ``If we do so, the good news can reach the hearts of the men and women of the new millennium.'' In the past, the pope has said the Web should be regulated to stop depravity in cyberspace. Sunday, he gave it his unwavering blessing. http://news.com.com/2100-1023-912013.html?tag=fd_top;
Vatican website: http://www.vatican.va/

 

VOICE OVER INTERNET PROTOCOL SPARKS GROWTH OF NEW PHONE TECHNOLOGY - When Houston City Official Denny Piper wants to know who has phoned him, he checks his e-mail.  "I can see, oh, somebody left me a voicemail message, double click on it and it plays back the message," says Mr. Piper, the city's chief information officer.  To phone others, he can click on names on his laptop's contact list or dial by clicking on a phonelike image on the computer screen and "just talk to the microphone on the PC." His BlackBerry wireless e-mail device also lets him know who has called. "It's really neat stuff," Mr. Piper says.  Joining a small but growing number of organizations, Mr. Piper is leading the city of Houston's leap into the so-called next generation of voice technology. The city hired Cisco Systems Inc. to transform its functional but technologically disparate traditional phone network, including 43 separate voicemail systems, into a network that converges voice and data communication and will link the city's 400 facilities with 25,000 new phones. http://online.wsj.com/article/0,,SB1021501835169835800.djm,00.html (Paid subscription required)

 

TELEPHONY THAT TARGETS SMALL BUSINESSES - Robert Flood knows that most people think Internet-based phone services mean static and delays. His mission is to show them it doesn't have to be that way.  Flood, founder and chief executive of PingTone Communications Inc., believes that combining Internet and telecom services will eventually become standard for U.S. business.  While some large enterprises began switching to Internet telephony services in recent years, small and medium-sized businesses have been slower to make the change. PingTone plans to target this group by promising lower costs and comparable quality.  http://www.washingtonpost.com/wp-dyn/articles/A8360-2002May12.html

 


FACTS AND STATS:

WORLDWIDE WIRELESS INTERNET MARKET - According to a recent report from Pioneer Consulting, worldwide revenues from mobile and wireless internet service will grow from $1 billion in 2002 to $18.4 billion by 2008. Pioneer predicts that wireless equipment revenues will also rise by $16 billion between 2002 and 2008. http://www.emarketer.com/estatnews/estats/wireless/20020516_pioneer.html

 

DSL BOOSTS PRODUCTIVITY IN THE WORKPLACE - Most DSL business subscribers in the US believe that the productivity benefits associated with DSL outweigh the monthly subscription costs.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357940&rel=true

 

MORE RUSSIANS GET ONLINE - Europemedia reports that the number of Internet users in Russia doubled in 2001, to reach a total of 18 million. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357923&rel=true

 

GLOBAL HOME NET ACCESS POPULATION GROWS - The number of people who access the Internet from home, grew by 7 percent from the fourth quarter of 2001 to the first quarter of 2002, reports Newsfactor.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357941&rel=true

 

US INTERNET TRAFFIC DOUBLES IN 2001 - Internet traffic in the US doubled during 2001, according to a new report from RHK.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357928&rel=true

 

BROADBAND GROWTH EXPECTED IN NORTH AMERICA - The North American market for broadband will continue to grow in both subscribers and revenues over the next five years, according to a new forecast from the Yankee Group. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357929&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@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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