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Cisco Government Affairs
E-Update
Volume 2, Issue 25
21 June 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
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CONGRATULATIONS
TO INTERNET PIONEER STEPHEN WOLFF- Stephen
Wolff Receives the Internet Society's Postel Service Award for 2002 - Internet
pioneer Stephen Wolff was honored this week by the Internet Society for his
significant contributions on behalf of the Internet. A founding member of the
Internet Society, Wolff is considered one of the "fathers of the
Internet" and was directly involved with its development and
evolution. Wolff received the Postel
Service Award, named for Dr. Jonathan B. Postel, an Internet pioneer and head
of the organization that administered and assigned Internet names, protocol
parameters, and Internet Protocol (IP) addresses. He was the primary architect
behind what has become the Internet Corporation for Assigned Names and Numbers
(ICANN), the successor organization to his work. Wolff left the federal
government and joined Cisco Systems, Inc. in 1995, where he works in the
University Research Program - Cisco's program supporting academic investigators
with unrestricted grants for research on computer networks. http://www.isoc.org/isoc/media/releases/020617pr.shtml
This Week@WASHINGTON, DC
BUSH
JUMPS ON THE BROADBAND BANDWAGON -
COMMENTARY--If you want to know how to get a bunch of high technology CEOs to
applaud thunderously, just have President Bush declare that the "country
must be aggressive about the expansion of broadband." Speaking before more
than 100 high tech CEOs at the 21st Century High Tech Forum in Washington last
Thursday, the president declared that it was time to move forward with a
broadband agenda. What precisely that
agenda should be is not clear, given he offered no specifics. Bush basically
lobbed the task of coming up with the policies to enable expansion of high-speed
Internet services to the Federal Communications Commission (FCC). An expansion of broadband services goes way
beyond political expediency and generating profits for corporate America. In
fact, it is a technology issue that cuts across party lines and social
stratum. The reasons to support a
national broadband plan are unambiguous. For homeland security, broadband
connections across federal, state and local agencies would speed up access to
data -- as well as to the Internet. http://story.news.yahoo.com/news?tmpl=story&u=/zd/20020618/tc_zd/936967
BROADBAND - Assistant
Secretary Nancy J. Victory speaks on U.S. and European Approaches to the Future
of Broadband. She outlines the
responsibilities of the National Telecommunications and Information
Administration and comments on President Bush's broadband strategy. From the
President's plan she pulls out several points including tax incentives to
increase broadband deployment, such as extending the research and
experimentation tax credit and the Internet tax moratorium. She also discusses
the challenges of managing the nation's spectrum resources and lists several
issues identified at the Spectrum Summit. In the speech Victory also touches on
ICANN and the movement to reform its mission, structure and process. http://www.ntia.doc.gov/ntiahome/speeches/2002/ei06192002.htm
TECH FIRMS SEE BUSH POLICY
ON BROADBAND AS LACKING - Ever since President Bush took office, the high-tech
world has been trying to get the White House to craft a detailed plan for
bringing high-speed Internet access -- commonly called broadband -- to more
Americans through a combination of regulatory changes, new legislation or tax
credits. The companies hoped President
Bush, during a long-awaited speech on the issue last week, would unveil an
ambitious timetable for bringing broadband to more people by a certain date,
and specific policy recommendations for how to achieve the goal. They argue
that the technology's relatively low penetration rate has rippled through the
economy, leading to slower sales for such companies as Cisco Systems Inc., a
network-equipment maker, and Dell Computer Corp., the personal-computer maker.
They also insist rapid broadband deployment would boost providers of online
content such as movies, music and games.
But when Mr. Bush walked to the lectern of a conference room in the Old
Executive Office Building on June 13 to offer his first public remarks on the
issue, he said almost nothing about what the administration plans to do, how it
will do it, or how long it will take. http://online.wsj.com/article/0,,SB102462395674149800.djm,00.html
(Paid Subscription required)
NOTE: Cisco was not contacted for
comment on this story.
LIEBERMAN
POSITIONS HIMSELF OUT FRONT – (PROFILE) Presidential
Ambitions Not Hidden – BROADBAND MENTIONED - In what often looks and feels like
a presidential primary among Democratic senators, Joseph I. Lieberman has been
the unabashed aggressor of late… Lieberman is pushing for a new, national
broadband policy, one that will result in speedier Internet connections for
millions. This is one of the most complicated and controversial technology
issues confronting policymakers, but a favorite of the politically independent
and wealthy technology sector. Bush
has been under pressure to delineate his own broadband policy but has balked
because his advisers are split on the best approach. Lieberman said he will
introduce legislation that will force Bush to show his hand within six months. http://www.washingtonpost.com/wp-dyn/articles/A1824-2002Jun17.html
THE INTERNET GETS SERIOUS -
As the Internet matures, resolution of security and copyright problems becomes
more important. In it's infancy, the Internet offered consumers access to
everything, anytime, anywhere. Today, the Internet has evolved into a
"messy, dangerous ground." As more and more well-funded interests
battle over what is not allowed on the Internet, these two issues dominate the
technology world. Left unsolved, they could further stunt the U.S. tech
industry. Dozens of other issues such as competition and spam make the rounds
on Capitol Hill, computer security and digital rights remain perplexing because
"their solutions seek to protect the technology from itself."
According to Rep. Rick Boucher (D-Va.), "What we are now seeing in the
policy sphere is...an effort on the part of the content community to exercise
an unwarranted amount of control." Others argue that the entertainment
industry simply needs to find a new business model for the
digital environment. http://www.washingtonpost.com/wp-dyn/articles/A6168-2002Jun18.html
INTERNET PROVIDERS TEAM UP
TO LOBBY FCC - Washington-based BroadNet Alliance plans to lobby the FCC to
abandon certain proposals it claims would threaten its members' ability to
access regional phone companies' networks. For the more than 100 independent
ISPs in the coalition, being able to purchase network access at wholesale rates
is essential. According to BroadNet Alliance, three proposals before the FCC
would end that access. Two proposals would reclassify high-speed access as
information service; meaning telecom regulation would no longer apply, removing
the provision for wholesale prices to ISPs. The third proposal would change
what parts of the networks the regional carriers must share with competitors -
essentially with potentially the same end result as the first two proposals.
For both independent ISPs and the giant incumbent carriers, it seems that the
current regulations create disincentive to invest in networks. The FCC is
expected to rule on these matters later this year. http://www.washingtonpost.com/wp-dyn/articles/A14453-2002Jun19.html
LEGISLATORS LAUD DEBUT OF
COVAD'S LOW-PRICE BROADBAND SERVICE - The announcement of Covad's low-priced
broadband service had a political flourish this week, with congressmen
applauding the move. The company had
already suggested that it might offer such a service when Chief Financial
Officer Mark Richman spoke at a CIBC World Markets conference in New York
recently. Richman had also suggested the deal could carry some political clout
and could influence the Federal Communication Commission's decision on whether
or not telecommunications companies have to share their DSL lines with
Covad. In the announcement Wednesday,
Covad said the service's lower price would attract more users from dial-up
Internet access. Cable companies have also been shifting to tiered services to
accommodate customers who want lower prices and less bandwidth. The announcement was made at a press
conference in Washington with Rep. Edward Markey, D-Mass.; Rep. Bill Luther,
D-Minn.; and Rep. Chris Cannon, R-Utah; along with Covad Chief Executive
Charlie Hoffman. The congressmen touted the news as a significant help to the
government's efforts to push broadband adoption. Sen. Joe Lieberman, D-Conn.,
has been among the more vocal proponents of an aggressive government policy on
broadband, with suggestions such as corporate incentives. http://msnbc-cnet.com.com/2100-1033-937523.html
Story on Covad: http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020619/wr_nm/telecoms_covad_dc_1
CONFESSIONS OF AN UNABASHED
BANDWIDTH HOG - Comcast Corp is considering setting speed limits on Internet
usage and charging higher monthly rates when consumers exceed them. The
company's new cable-modems can measure Internet consumption down to the last
kilobit. The move toward tiered pricing on cable networks, where so-called Net
hogs pay more to use more bandwidth, has triggered concerns about the creation
of a data class system. Consumer advocates see tiered pricing as part of a plot
by the cable industry to seize control of the Internet in ways that could
strangle openness and innovation. They say higher prices and fewer choices will
be an inevitable result of the Federal Communications Commission ruling in
March that said cable companies don't have to open their networks to competing
Internet providers. "Tiered pricing is being used by the cable companies
to control the market," declared Mark Cooper, research director for the
Consumer Federation of America. "It creates a middle speed, a class of
customers who can't access any content requiring high speeds because their
access is too slow. And that's precisely the point: Cable companies want to
make sure they get compensated if their customers view video or other content
that requires high speeds." http://www.washingtonpost.com/wp-dyn/articles/A14399-2002Jun19.html
AVIATION
SECURITY REPORT SETS STAGE AS MODEL FOR NATION - A Silicon Valley aviation-security panel on Monday released a report
that its members hope will serve as a model for airport and airline security
around the country. Rep. Mike Honda,
D-Calif., and San Jose Mayor Ron Gonzales established the Silicon Valley
Blue-Ribbon Task Force on Aviation Security and Technology after the Sept. 11
terrorist attacks. Chaired by Symantec CEO John Thompson and consisting of
airline, technology industry and law enforcement officials, the group studied
technologies that can be used to enhance security at the Mineta San Jose
International Airport. Honda said last week that he hopes the report can serve
as a model for other airports.
"I am proud of the work of the task force and their resourcefulness in
finding new applications for proven, deployable technology to improve aviation
security," Honda said at a press conference in San Jose. "I look
forward to going back to Washington, D.C., to showcase solutions that could
serve as a national model for establishing a more secure aviation
infrastructure." (National Journal’s Tech Daily – www.nationaljournal.com) The report: http://www.sjcblueribbontaskforce.org/report.html
The TaskForce Web Site: http://www.sjcblueribbontaskforce.org/
Richard Palmer, Cisco VP, served on the Task Force.
LAWMAKERS VOTE TO POSTPONE
WIRELESS-SPECTRUM AUCTIONS - In a win for the wireless industry, lawmakers crafted
and approved a last-minute deal to delay indefinitely a pair of spectrum
auctions, including one set for Wednesday, as questions lingered on when those
airwaves would actually become available for use. Tuesday's House and Senate votes represent a victory for wireless
carriers and a setback for station owners such as Paxson Communications Corp.,
which urged that both auctions proceed as scheduled. The company operates 19 of
the nearly 100 television stations broadcasting on channels 60 to 69 and hopes to
convince wireless carriers to pay it significant sums to relinquish its
spectrum sooner than it needs to. The
deal, reached after days of intense negotiations, postpones Wednesday's auction
and a related sale set for January until federal regulators decide to go ahead
with them. The measure had broad
support in the House, but in the Senate it brought objections from Republican
Ted Stevens of Alaska, who wanted Wednesday's auction to proceed, as it
involved airwaves particularly useful to rural carriers such as Alaska Native
Wireless. http://online.wsj.com/article/0,,SB1024450234796205280.djm,00.html
(Paid subscription required)
FEDERAL APPEALS COURT BACKS
AT&T - A federal court sided with AT&T Corp., saying it need not carry
phone calls by long-distance customers if the fees charged by their local phone
companies are too high.AT&T pays fees to local carriers to complete an
AT&T long-distance customer's call on both ends of the line, called
"access fees." At issue was
whether AT&T could reject calls made from customers of some unregulated
"competitive local exchange carriers," smaller phone companies that
compete with the Baby Bells in some markets.
The CLECs were charging AT&T access fees that were as much as nine
times higher than the regulated rates charged by the dominant Baby Bell
telephone companies. The Federal
Communications Commission said AT&T couldn't refuse the connection, but did
eventually limit access fees to 2.5 cents per minute or whatever the local
dominant telephone company charges. http://story.news.yahoo.com/news?tmpl=story&cid=528&ncid=528&e=10&u=/ap/20020614/ap_on_hi_te/at_t_long_distance_2
ACCOUNTING BILL ADVANCES – A
key Senate committee this week approved a bill to tighten regulation of
auditors, stock analysts and corporate executives, drawing unexpectedly strong
support from most of the panel's Republicans.
With six of its 10 Republican senators joining a solid Democratic bloc,
the Banking Committee voted 17 to 4 to adopt a much more far-reaching
legislative response to the collapse of Enron Corp. and other recent corporate
scandals than the House of Representatives, which weeks ago endorsed measures
accepted by the accounting industry.
The Senate bill would sweep aside the accounting industry's
self-policing system, widely criticized as ineffectual, by creating a new
oversight board with power to discipline auditors of publicly traded companies.
The bill also would restrict the consulting services that accounting firms
could provide for companies they audit.
http://www.washingtonpost.com/wp-dyn/articles/A7761-2002Jun18.html
CUT IN WEBCAST ROYALTY RATES ANGERS BOTH
SIDES - The
Librarian of Congress on Thursday cut in half the royalty rate Webcasters must
pay to stream music over the Internet, a compromise that made almost no one
happy. Operators of small Internet
radio stations said the rate is still three times what they can afford -- and
predicted that hundreds of independent broadcasters would collapse. The
recording industry, meanwhile, complained it is being forced to subsidize the
online operations of conglomerates like America Online, RealNetworks and
Viacom. ``I'm stunned that the
Librarian of Congress did very little, if anything, to effect a fair and
equitable resolution to this issue,'' said Kevin Shively, interactive media
director for Beethoven.com, a popular online classical music station. The Librarian of Congress last month
rejected the licensing fees proposed Feb. 20 by a three-member arbitration
panel. After six months of hearings, the Copyright Arbitration Royalty Panel
proposed a two-tiered rate structure -- one that would charge Internet-only
broadcasters twice the amount that AM or FM stations would pay to retransmit
their broadcasts online. http://www.siliconvalley.com/mld/siliconvalley/3513708.htm
BUSH URGES PRIVATE SECTOR TO
SHORE UP NETWORKS - The Bush administration has taken its efforts to bolster
private sector support for critical infrastructure protection on the road to
encourage companies to shore up their networks against hackers and
cyberterrorists on their own before the government will be forced to step in
with regulations. The president's
Critical Infrastructure Protection Board hosted a town hall meeting this week
to urge the private-sector owners and operators of the nation's critical
infrastructure such as banks, transportation, telecommunications, and energy
companies -- to join the federal government effort to protect the nation from a
devastating cyber attack. The federal government's effort, first launched by
President Clinton, is geared to boost protection of the IT systems that run 85
percent to 90 percent of the critical infrastructure in the country. http://www.infoworld.com/articles/hn/xml/02/06/19/020619hnbushinfra.xml?0619wepm
NEW JOB, NEWER REALITIES - 'E-GOVERNMENT CZAR' ASSUMED A BIGGER ROLE
AFTER SEPT. 11 - Three months before the Sept. 11 terrorist attacks, Mark
Forman became the nation's first "e-government czar" -- a relatively
low-profile and nebulous job that many in the technology industry regarded as
chiefly responsible for helping federal agencies make better use of the
Internet. That changed after the attacks. National security concerns are now
much more acute, and Forman finds himself increasingly at the forefront of the
debate over how to balance the public's interest in accessing government services
with the need to keep sensitive information off-limits. The conflicting priorities have meant
different things for Forman's various initiatives as associate director of the
Office of Management and Budget for e-government and information technology.
http://www.washingtonpost.com/wp-dyn/articles/A5341-2002Jun18.html
PRO-TRADE DEMOCRATS HOLD KEY
TO FAST-TRACK LEGISLATION - Rep. Anna Eshoo comes from Silicon Valley, home to
big exporters such as Hewlett-Packard Co. and Sun Microsystems Inc. Rep. Adam
Smith's district includes a huge Boeing Corp. factory near Seattle, and is in
one of the most trade-dependent states in the country. Yet both Democrats stunned many of their own
constituents by voting last December against the biggest trade bill to hit
Congress in years. "This was it,
the big enchilada. And they went the wrong way," says Ralph Hellmann, a
leading lobbyist for a technology-industry group that includes Microsoft Corp.
and Cisco Systems Inc. and a former top aide to House Republican leaders. For the White House, as well as Mr. Hellmann
and other corporate lobbyists, convincing Democrats such as Reps. Smith and
Eshoo to reverse their "nay" votes is the key to getting to President
Bush a trade bill that remains one of his top priorities. The pending
legislation would restore presidential "fast track" authority to
negotiate trade agreements that Congress could approve or reject, but not
amend. http://online.wsj.com/article/0,,SB1024449136821035640.djm,00.html (Paid
subscription required)
This
Week@EMEA
The European Union might be planning to take over
spectrum licensing from the individual European government agencies, according
to a report from the European Commission published yesterday. The report is an update to the state of the
market for third-generation mobile technology and services, prepared under the
guidance of Erkki Liikanen, member of the EC for Enterprise and Information
Society. According to the report: "the harmonization in licensing
conditions and radio spectrum assignment may avoid market distortions and
uncertainty in the sector." The EC is now opening talks with national
regulators and operators to decide if this is a good idea. http://www.ayg.com/wireless/Article.po?id=288644
UNITED KINGDOM - BB UPDATE -
two documents have been published that summarise the trends from Oftel's
quarterly research of consumer use of mobile and fixed telephony, and the
Internet. For business consumers, the relevant trend document can be found
here: http://www.oftel.gov.uk/publications/research/2002/trenb0602.htm and
for residential consumers, at http://www.oftel.gov.uk/publications/research/2002/trenr0602.htm
COMMISSION
LAUNCHES PUBLIC CONSULTATION ON PRODUCT AND SERVICE MARKETS IN ELECTRONIC
COMMUNICATIONS SECTOR - The European
Commission launched a public consultation concerning a Recommendation on relevant
product and service markets in the electronic communications sector. This
Recommendation forms part of the new regulatory framework for electronic
communications in Europe that will be applied by Member States from July 2003.
The new framework responds to the need to provide the best deal for consumers,
greater legal certainty for market players, and to roll back regulation where
it is no longer required. The European
Commission has launched today a public consultation on a draft Recommendation
on relevant product and service markets in the electronic communications
sector, as required by the new European Union regulatory legislation that was
adopted in February this year. http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/878|0|RAPID&lg=EN
BT
SLAPPED DOWN ON BROADBAND ACCESS - UK
telecoms watchdog Oftel has thrown a lifeline to phone companies trying to roll
out fast internet connections by ordering British Telecom (BT) to open up its
vast network to them. The move follows
a complaint from Thus and Energis - both currently struggling with collapsed
share prices and a telecoms market firmly in the doldrums. Till now operators wanting to offer ADSL
connections, which allow fast data over normal phone lines, have had either to
buy BT's own product wholesale or install equipment in the exchange in order to
divert the traffic onto their own networks.
BT owns almost all the connections between homes and small business and
the exchange itself. http://news.bbc.co.uk/hi/english/business/newsid_2057000/2057207.stm
OECD REPORT ON TECHNOLOGY
AND PRODUCTIVITY - "Productivity and Innovation: the impact of product and
labour market policies" shows the positive effects that product market
liberalization and labor market adaptability can have on production
efficiency. Its main conclusion, not a surprising one: Easing product market regulation and
employment protection positively affects productivity and technological
innovation by raising incentives to improve efficiency and lowering the
costs of doing so, and policies that favor competition spur innovation. http://www.oecd.org/pdf/M00030000/M00030785.pdf
(Adobe file)
ONLINE
PUBLIC SERVICES: EUROPE MAKING PROGRESS ON EGOVERNMENT - The latest study from the
European Commission on eGovernment in Europe shows clear progress since the
last measurement in October 2001, with the availability and interactivity of
public services on the Internet rising by 10 percentage points to 55%. The
study - carried out in April 2002 as part of the European Commission's
'Benchmarking eEurope' initiative - measures twenty basic public services in
the 15 EU Member States, plus Iceland, Norway and Switzerland. The online
delivery of public services has been a priority of the EU's eEurope initiative
since the launch of the first eEurope Action Plan in 2000 because it can make
life easier for citizens and business directly as well as support the overall
development of the European Information Society.
http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/901|0|RAPID&lg=EN
BRITS
AREN'T SO THRILLED WITH 3G - A British
survey on consumer attitudes towards 3G caused a shudder in London this week
when it revealed that 40 percent of the potential market believed they would
never use their phone for 3G services.
The telcos, which will end up spending more than £40 billion to launch
3G in Britain, are skeptical about the report.
Wasn't it the chief executive of IBM who said in the 1940s that the
world would only ever need two mainframes? And I think Bill Gates said no one
would ever need more that 48K of memory for a personal computer," said a
spokesman for Vodafone. "I think it's impossible to predict 3G take-up
before it's available but in Japan, J-Phone-Vodafone has seen over 5 million
subscribers, one-third of our customers there, buy the most expensive handset
on the marketplace so they can use our picture messaging service, launched just
13 months ago," he said. http://www.wired.com/news/wireless/0,1382,53371,00.html
ANNA
BIRULÉS NOTES THAT SPANISH PRESIDENCY’S OBJECTIVES HAVE BEEN “LARGELY ACHIEVED”
- The
President-in-office of the EU Research Council, Anna Birulés, has appeared
before the European Parliament’s Committee on Industry, External Trade,
Research and Energy to review Spain’s achievements during its EU Presidency. The Minister singled out the adoption of the 6th Framework
Programme of Research, Technological Development and Demonstration (2002-2006),
which will lend impetus to the European Research Area. Mrs Birulés also referred in particular to
the eEurope programme to be adopted at the Seville European Council, which
should boost the use of the Internet, removing barriers to ecommerce.
Essentially, the eEurope programme will develop the broadband. http://www.ue2002.es/DetalleNewsletters.asp?idioma=ingles&opcion=1&subopcion=1&id=2221
FRANCE TELECOM
HIT BY MOBILCOM PLAN - France Telecom shares on Thursday plunged 14 per cent to
a fresh low as investors fretted over the highly-indebted operator's plan to
take over MobilCom, its German partner. Led by France Telecom, the supervisory
board of MobilCom is expected to oust Gerhard Schmid, the German mobile phone
operator's founder, chief executive and largest shareholder, at an
extraordinary meeting on Friday. But
people close to Mr Schmid said that, while he would accept the board's
decision, he would not cede his 49 per cent stake in MobilCom to France Telecom
unless he received a "fair and reasonable offer". http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1024578113808&p=1012571727260
This
Week@Americas/International
CANADA TO SPEED UP RURAL
BROADBAND INTERNET ACCESS - The federal government will speed up its plans to
deliver high-speed Internet service to rural Canada, Prime Minister Jean
Chretien said this week. "We are accelerating our plan to improve broadband
Internet access for rural communities," Chretien told reporters. "We
will begin work this year rather than waiting until 2004." He said Industry Minister Allan Rock would
announce the program in the next few weeks, but he gave no further
details. The Liberal Party made
universal broadband access a pledge in their 2000 re-election campaign, but it
appeared to have gotten tangled up in competing races of cabinet ministers to
replace Chretien. http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020620/wl_canada_nm/canada_telecoms_canada_col_1
INTEL
HEAD URGES MORE INFORMATION TECH IN BRAZIL
- Brazil should take information technology as seriously as it does its
national soccer side, which has reached the quarter-finals of the World Cup,
the head of Intel Corp. said this week. "In a certain way, Brazil is
lagging behind other countries," Chief Executive Craig Barrett told
Brazilian business executives during a speech. According to a study presented
by Barrett, Brazil ranks in 36th place in terms of readiness for electronic
commerce, behind Chile which is in 29th position and Mexico, which is in 34th.
Brazilian statistics show that the value of goods sold through electronic
commerce last year reached $5 billion and is estimated to rise to $20 billion
in 2006. Barrett said he expected electronic commerce to only reach $10 billion
by 2006. The chief executive said the Brazilian government should take up this
challenge by eliminating taxes and tariffs on technology products. http://story.news.yahoo.com/news?tmpl=story&cid=581&ncid=581&e=10&u=/nm/20020619/tc_nm/tech_brazil_intel_dc_1
This
Week@Asia/Pac
TAIWAN
TELECOM STAKE AUCTION DELAYED AGAIN - An
attempt to sell a 5.7 per cent stake in Chunghwa Telecom, Taiwan's state-owned
telephony company, failed amid confusion on Wednesday, with officials saying
the only participant in the twice-delayed auction had submitted bid documents
that did not meet requirements. The
collapse of the auction, which was supposed to have been completed last week,
was the latest in a long series of setbacks that have beset Taiwan's most
important single privatisation project.
However, Tony Teng, director general of the Posts and Telecommunications
Dept, said the government would repeat the auction - possibly this week - and
that all interested potential buyers from Taiwan and abroad were welcome to
take part. http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1024484352994&p=1012571727260
This Week@US STATES
AMERITECH ORDERED TO WIRE
APPALACHIA - The Public Utilities Commission of Ohio's ruling this
week to fine SBC Ameritech $8.5 million for inadequate service also includes an
order for the state's largest local phone company to help rewire Appalachia for
the Internet. The PUCO upheld a Jan. 31 ruling that Ameritech had appealed. In
its original ruling, the regulators told Ameritech to open 20 central offices
in the southeast Ohio region. But on Thursday, Chairman Alan Schriber said that
was not practical. The order requires
Ameritech to work with the Governor's Office of Appalachia and its director,
Joy Padgett, to bring high-speed Internet capability to the region. Padgett said in a telephone interview from
Ironton that she has had "general talks" with Ameritech, but was
waiting to see how the case turned out. Ameritech can appeal the ruling to the
Ohio Supreme Court, but spokesman Greg Connel said it needed to further study the
ruling. Appalachia presents a challenge
because so many of its homes and businesses have inadequate wiring for
high-speed connections, Padgett said. http://story.news.yahoo.com/news?tmpl=story&cid=528&ncid=528&e=5&u=/ap/20020620/ap_on_hi_te/ameritech_appalachia_3
WIRELESS INTERNET ZONE TO BE
EXPANDED - 2 NEIGHBORHOODS TO GET FREE SERVICE – FLORIDA - The same
technology that allows Internet users to surf the Web for free at The
Jacksonville Landing is being expanded to two low-income neighborhoods, as city
officials and community activists aim to bridge the digital divide. Antennas have been installed atop the Emmett
Reed Community Center at 1903 W. Sixth St. and the Twin Towers Center at 619 W.
44th St. and will create two coverage areas that range from half a mile to 1.5
miles and provide free Web access to registered residents. The sponsors of Jacksonville's Wireless Internet
Zone project hail it as a first-of-its-kind attempt to provide complete
community access to the Internet in low-income areas. Each citizen living in the WIZ is eligible for service,
regardless of income. The Urban League will donate available computers to
residents unable to afford the equipment and who meet federal income
guidelines. http://www.jacksonville.com/tu-online/stories/061102/met_9636582.html
NUMBER OF U.S. TELECOMMUTERS RISING - With its quaint shops and leafy
residential roads, it's easy to mistake Mill Valley for simply a quiet, upscale
bedroom community across the Golden Gate Bridge from San Francisco. Truth is, there's as much wheeling and
dealing in this town as in a big-city skyscraper. From their Mill Valley homes, Joe Caldwell handles the investment
portfolios of millionaire clients, Robin Thompson works with large corporations
like Wells Fargo or Oracle, promoting Canada as a meeting destination, and
Marilyn Jackson's computer consultancy clocks in at three clients a day. The three are part of a growing contingent of
Americans whose commutes consist of a walk down the hall or a jaunt to the
converted garage. The number of
Americans working at home three or more days a week grew nearly 23 percent,
from 3.4 million in 1990 to 4.2 million in 2000, according to U.S. Census
figures. Mill Valley topped California's list, with 15.4 percent of its 14,000
residents working at home. http://story.news.yahoo.com/news?tmpl=story&cid=528&ncid=528&e=1&u=/ap/20020616/ap_on_hi_te/telecommuting_2
VERIZON GETS MAINE LONG
DISTANCE - The Federal Communications Commission approved a request this week
by Verizon Communications Inc. to provide long-distance service to its local
customers in Maine. "Approval of
Verizon's application promises substantial benefits for the state's consumers
in the form of enhanced competition in both the local and long distance
markets," the FCC said. The
decision makes Maine the seventh state where Verizon has won approval to
provide long-distance under Section 271 of the 1996 Telecommunications Act. The
other six: New York, Massachusetts, Connecticut, Pennsylvania, Rhode Island and
Vermont. http://story.news.yahoo.com/news?tmpl=story&cid=528&ncid=528&e=7&u=/ap/20020619/ap_on_bi_ge/verizon_maine_2
NEW!!!! EDUCATION AND TECHOLOGY VIDEO – Cisco Video
on California Digital Project and the importance of technology in
education. http://www.cisco.com/gov/people/education.html
MOTOR
VEHICLE OFFICES SHIFT TO ONLINE - Karen Mitterando is not a
die-hard techie. She hasn't purchased anything online, and she's nervous about
paying her taxes online. But the
Piscataway, N.J., resident did check out the Net after a recent move, logging
on to the state motor vehicle site to fill out change of address forms and
renew her registration. "We were nervous at first, but we saw this
disclaimer about (the state's) privacy act and that it's a secure site. We
figured we had to try it anyway to get into the next century," she said.
"It worked great. It was very simple; you just follow all the steps they
tell you to and put in all your information. It takes a few minutes to
register, and it's complete." http://msnbc-cnet.com.com/2100-1017-938327.html
OTHER
TECH STORIES OF THE WEEK
U.S.
FIRMS SHOW MORE INTEREST IN PHONE CALLS VIA INTERNET - Issues of
Competition, Regulation Loom Large It began about six years ago as a geeky
cyber-trick. But since then, using computers to make telephone calls over the
Internet has become such a huge threat to some state-controlled
telecommunications companies around the world that more than a dozen countries
have banned the practice. But elsewhere
it has become big business. Analysts estimate that up to 8 percent of all international
voice calls travel over the Internet. In hundreds, if not thousands, of
Internet cafes around the globe, people line up to make calls that bypass local
and long-distance telephone monopolies, creating huge savings for
consumers. Internet telephone service
is projected to spread as more countries deregulate their telecommunications
industries. In April, India dropped its ban on Internet telephone businesses as
it opened its the market to competition. But others continue to block the
technology. "In most countries the local phone company is still owned by
the government. If people get around it, that could mean a real reduction in
revenues," said telecom analyst Peter Jarich. In the United States, where
telephone service is comparatively cheap, voice-over-the-Internet technology
has been slower to take hold. Initially, the nation's major telephone companies
resisted and even tried to block its deployment, but lately, many of the major
regional telephone companies have embraced the technology in the hope of
cutting costs and shaking off regulators who closely govern their
business. - http://www.washingtonpost.com/ac2/wp-dyn/A5644-2002Jun18
TELECOM OUTLOOK: FIRST THE
BAD NEWS, THEN THE BAD NEWS - The turmoil continues in telecommunications,
making the long-awaited turnaround increasingly difficult to call. Indeed, in
light of a wave of bad news last week and through the weekend, some analysts
say the industry's problems could actually become worse before they become better. http://www.nytimes.com/2002/06/18/technology/18FONE.html
(Free
registration required)
LIBERATE, SAMSUNG TEAM FOR
VIDEO OVER DSL - Liberate Technologies said this week that it has teamed up
with Samsung Electronics to provide interactive video over digital subscriber
line networks. The service will
include a digital set-top box that supports the MPEG video compression standard
to deliver interactive video over telecommunications companies' DSL
networks. Liberate is demonstrating the
service at the BroadcastAsia 2002 trade show this week in Singapore. The news
comes after an announcement Tuesday by Walt Disney's ESPN sports network saying
it has chosen Liberate to provide technology for its first foray into
interactive television. Analysts have
been skeptical in the past about current broadband services having enough speed
to deliver content such as video and interactive games. "The box is not where the bottleneck
is; the bottleneck is in the DSL networks," said Ryan Jones, an analyst
with research firm Yankee Group. Jones
said video services need about 6 megabits of bandwidth, whereas most DSL
networks offer only about 500 kilobits or 1.5 megabits. "In certain areas
and for certain operators it will work," he said, but it will take many
upgrades before most DSL providers can offer such services. Given the uncertain regulatory environment,
in which the requirement that DSL providers share access to their networks is
under scrutiny, it could be some time before those upgrades occur, he
added. http://msnbc-cnet.com.com/2100-1023-937406.html
THE “A TO G” OF WIRELESS
NETWORKING - Think you mastered the ABCs in kindergarten? Then you apparently
haven't spent much time mucking around with wireless networking. I'll bet the teacher never taught you that
''b'' comes before ''a'' -- or that ''g'' comes next. But that's how the geek alphabet
goes. Let me explain. At issue are a new breed of gadgets that will let you
traipse around your house, your office, and in some cases your local Starbucks,
and surf the Net wirelessly with a laptop.
This gear basically comes in two flavors, adhering to industry standards
with names only engineers could cook up: 802.11b and 802.11a. And though both
standards were approved in September 1999, the ''b'' products arrived well
ahead of the ''a'' gear, a relative latecomer. As Atheros Communications CEO
Rich Redelfs quips: ''a'' stands for advanced and ''b'' for basic. (Atheros is
the leading producer of 802.11a chips.) Yet a third, ''g,'' is on the way. http://story.news.yahoo.com/news?tmpl=story&u=/usatoday/20020619/tc_usatoday/4204889
MUSIC LABELS URGED TO MOVE
FAST ON HOME NETWORKS - With record labels suffering a downturn due largely to
piracy by unauthorized file-swapping on the Internet, a new report on Wednesday
urged the industry to move quickly on the next big digital thing --
transferring songs from PCs to stereos. "With each new digital technology
that comes along, the music industry seems to take a wait-and-see approach and
as a result you end up with situations like Napster when the industry is forced
to be reactionary and try to stuff the genie back in the bottle," said Joe
Laszlo, senior analyst with Jupiter Media Metrix. "Sharing broadband
connections between multiple PCs will drive early adoption of home networks, but
music will take it mainstream," he said.
In home networking, televisions, stereos and computers are connected,
allowing for the transfer, for example, of movies or music from one place to
another at high speeds, and also allowing Internet connections to be shared. http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020619/music_nm/music_jupiter_dc_1
MICROSOFT AND VERIZON IN
D.S.L. DEAL - Verizon Communications said yesterday that it would begin using
Microsoft's content, software and marketing support for its high- speed D.S.L.
Internet service and would pay Microsoft a portion of the revenue. As for
Microsoft, it said yesterday that it now offered a D.S.L. version of its MSN
online service in 70 markets nationwide, representing 90 percent of the
households that can get D.S.L. service. Until yesterday, MSN was available in
only 33 markets, primarily in the Western states served by the local phone unit
of Qwest Communications. Now, MSN is buying wholesale D.S.L. access from
BellSouth, SBC Communications and Verizon and reselling them with MSN content
and software. MSN's earlier efforts to
expand its D.S.L. service nationwide have been star crossed. It first contracted
with Northpoint Communications to provide its nationwide backbone network. When
Northpoint filed for bankruptcy protection, Microsoft hired Enron, which met
the same fate. Now Qwest is providing Microsoft's backbone. Verizon customers who sign up directly with
MSN for D.S.L. service under the current wholesale agreement will be encouraged
to convert to the new service, called Verizon Online With MSN, when it begins
this fall. http://www.nytimes.com/2002/06/21/technology/21MSN.html (Registration required)
WEB THINKERS WARN OF CULTURE
CLASH - At the annual Internet Society conference this week, many of the
Internet's pioneers expressed concern that Web's potential for promoting expression
and empowering citizens is under threat from corporate and government policies
that clash with the medium's long-standing culture of openness. Vint Cerf,
co-developer of the Internet's basic communications protocols, worries that big
businesses could gain unprecedented control through manipulating high-speed
access. Companies are inhibiting innovation, Cerf said, by letting users
receive information faster than they can send it. Eric E. Schmidt, chief
executive of Google Inc. said the Internet's openness is increasingly
threatened by "profit motives of corporations and control issues of
governments." He pointed to the current "balkanization" of
instant messaging, where a lack of standards prevents America Online users from
communicating with people on rival services. http://www.washingtonpost.com/wp-dyn/articles/A20577-2002Jun20.html
WI-FI’s NEW JOB: DOING THE
DISHES? - Wi-Fi, it seems, is finally getting something else to do other than
move files from place to place. Peninsula Covenant Church parishioners in
Redwood City, Calif., bring their Bibles, and their Palms, to Sunday mass. A
Wi-Fi access point on the church's rooftop cross-beams them the text of a
Sunday sermon and an accompanying multimedia presentation. And in Houston,
Wi-Fi is being used to create wireless billboards to replace the melange of
scribbled notes on kitchen refrigerators that usually serve as a family
bulletin board. Since it burst upon the computing scene two years ago, wireless
networking based on Wi-Fi--also known as 802.11b--has been a one-trick pony.
Wi-Fi networks send data from one device to another, whether it's a digital
television signal being beamed to an upstairs bedroom or a Web-surfing session
a floor away from the digital subscriber line jack. http://msnbc-cnet.com.com/2100-1033-937074.html
LEARNING
A COMMON COMPUTER TONGUE -You say tomayto, I say tomahto; what if you say
automobile and I say car? Or you say truck and I say lorry? Or you say money
and I say cash? In conversation, these simple word variations matter scarcely
at all and any temporary confusion is easily overcome. In the world of
computers, these things are much harder to get right and point to an increasing
difficulty. Technology companies are
gearing up for the next stage of electronic commerce, called web services,
which demands a deeper level of communication between many hundreds of
thousands of computer systems than has been attempted before. Web services will allow computer systems
around the world to communicate readily with one another over the internet,
without some of the barriers between different companies' websites that remain
in place at present. For instance,
today when a customer enters a retailer's website to buy a garden bench, the
retailer handles the transaction with the customer, then a separate function
orders the bench to be sent from its warehouse by a delivery company, while a
third system must be notified to restock the retailer's inventory from the
manufacturer. http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1024578107309&p=1012571727248
MICROSOFT, HP JOIN GLOBAL
TECH CHARITY EFFORT - Both Hewlett-Packard(HP) and Microsoft have joined the
CEO Charter for Digital Development, an initiative by the World Economic Forum
being administered by the United Nations. HP and Microsoft are the only
American companies in the initiative that includes Vivendi Universal, MIH
Group, and Equitable Cardnetwork. Both Microsoft and HP will divert 20% of
their charitable donations to provide Internet and telephone service to
developing countries. According to Debra Dunn, HP's senior vice president of
corporate affairs, "These projects are not purely philanthropic. We're
very much lining up business opportunities in these countries. Unless we grow
our business what we can do is constrained." Using charity to increase
markets in developing countries is a key item on the UN agenda. Jose Maria
Figueres-Olsen, special representative to secretary General Kofi Annan said, "If
they look at this to include business down the road, I think that's perfectly
valid." The CEO Charter for Digital Development initiative plans to
recruit 150 member corporations by the end of 2002. In a recent address General
Kofi Anan said, "The digital divide still yawns as widely as ever, with
billions of people still unconnected to a global society which, on its side, is
more and more 'wired'." http://www.usatoday.com/life/cyber/tech/2002/06/18/technology-donation.htm
UN
CONFERENCE HEARS DIGITAL DIVIDE STILL GROWING - The digital divide between rich and poor countries is growing despite
the many efforts to help developing nations break into the global economy via
computers, U.N. Secretary-General Kofi Annan said this week. "The digital
divide still yaws as widely as ever, with billions of people still unconnected
to a global society which, on its side, is more and more wired," Annan
said. "Despite commendable efforts
and various initiatives, we are still very far from ensuring that the benefits
of information and communications technology are available to all," he
said at the start of a two-day session of the U.N. General Assembly devoted to
computers and development. He called on
industry to work with governments, civic groups and the United Nations to find
better ways to integrate developing nations into globalization, and to be
prepared to commit resources to the problem over the long term. Participants
said there was broad consensus that information and communications technologies
could play a major role in promoting economic growth and development, and
fighting poverty and disease. http://story.news.yahoo.com/news?tmpl=story&cid=581&ncid=581&e=9&u=/nm/20020618/tc_nm/tech_un_dc_1
U.N. E-GOVERNMENT REPORT -
Benchmarking E-Government: A Global Perspective: “Assessing the Progress of UN
Member States - http://www.unpan.org/e-government/Benchmarking%20E-gov%202001.pdf
(Adobe file)
MUSIC
LABELS URGED TO MOVE FAST ON HOME NETWORKS
- With record labels suffering a downturn due largely to piracy by unauthorized
file-swapping on the Internet, a new report on Wednesday urged the industry to
move quickly on the next big digital thing -- transferring songs from PCs to
stereos. "With each new digital technology that comes along, the music
industry seems to take a wait-and-see approach and as a result you end up with
situations like Napster when the industry is forced to be reactionary and try
to stuff the genie back in the bottle," said Joe Laszlo, senior analyst
with Jupiter Media Metrix.
"Sharing broadband connections between multiple PCs will drive
early adoption of home networks, but music will take it mainstream," he
said. http://story.news.yahoo.com/news?tmpl=story&cid=582&ncid=582&e=1&u=/nm/20020619/wr_nm/media_jupiter_dc_1
MEDEM TO ENABLE PHYSICIANS
TO CHARGE FOR ONLINE 'VISITS' - Medem Inc., a for-profit Internet company
launched a service today that will facilitate online doctor-patient
communications. While the majority of patients surveyed say they want to
communicate with their doctors via email, less than 25% of surveyed doctors
actually use e-mail with their patients.
One study from the University of Michigan Health System suggested that
e-mail could increase physician workloads. Medem claims that it's new service
will streamline the communications process and protect doctors against
potential liability and lack of payment. The service was designed to meet the
eRisk guideline for online medicine endorsed by 33 malpractice carriers and the
American Medical Association. Right now using the Medem service is not covered
by insurance. Medem charges physicians $2.50 per online visit which is passed
along to the patient. Pain-management specialist Lynne Carr Columbus says,
"...We let them do two online consults, and then come in for a third one
to be seen in person. It wouldn't work for emergency situations; it's for
routine consults and follow-ups." http://online.wsj.com/article/0,,SB1024265768750036320,00.html
(Paid Subscription Required)
FACTS AND STATS:
WORLDWIDE B2B REVENUES TO
RISE DRAMATICALLY - eMarketer projects that worldwide business-to-business
(B2B) ecommerce revenues will grow by almost 74 percent in 2002. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358058&rel=true
MORE EUROPEANS BUYING ONLINE
- Nearly 60 million Europeans made purchases on the Internet during the period
November 2001 to April 2002, according to new research from GfK-Webgauge. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358043&rel=true
WORLDWIDE INTERNET USAGE ON
THE UP - News.com reports that Internet usage is increasing worldwide as more
people log on for greater lengths of time.
http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358048&rel=true
SINGAPOREANS EMBRACE
BROADBAND - The number of home broadband users in Singapore has grown by 35
percent in just six months, reports Asia.Internet.com. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358054&rel=true
OVER THREE MILLION XDSL
SUBSCRIBERS IN JAPAN - The number of xDSL subscribers in Japan grew by 330,000
during May, reports AsiaBizTech. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358059&rel=true
OVER 17 MILLION GERMANS
ONLINE AT HOME - IDG.net reports that over 17 million Germans now use the
Internet at home, up from 16.3 million at the end of March. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358044&rel=true
IRISH NET POPULATION REMAINS
THE SAME - Around 98 percent of Irish businesses use the Internet on a regular
basis, according to the Office of the Director of Telecommunications Regulation
(ODTR). http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358040&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.
STOCK OPTIONS
DISCUSSION – “QUESTION OF THE MONTH” – JOIN THE COVERSATION - Got an opinion on the stock options
debate? Add it in Cisco Government
Affairs High-Tech Community. There are plans
in Washington and beyond which would make companies expense stock options,
which for many companies could fundamentally change the way options are issued
to all employees. Many companies (including most high-tech companies) and
entrepreneurs have used stock options as productivity drivers as well as a way
for employees to "own" the company they work for, rather than just
"rent." What are your views on the stock options debate? http://forums.cisco.com/eforum/servlet/HtCom?page=main
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
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To contact any member of the
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