Cisco Government Affairs E-Update

Volume 2, Issue 28

19 July 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

 

BROADBAND POLL – SHARE YOUR VIEWS IN OUR BROADBAND POLL.  Do you have broadband?  Do plan to get broadband?  Is broadband too expensive?  Go to our broadband poll and give your input: http://forums.cisco.com/eforum/servlet/HtCom?page=main

 

 

This Week@WASHINGTON, DC

 

FCC, FACED WITH TELECOM CRISIS, COULD LET A BELL BUY WORLDCOM  - Declaring the telecommunications industry in a state of "utter crisis," the chairman of the Federal Communications Commission suggested his agency could allow a Baby Bell to take over WorldCom Inc., a combination once seen as unthinkable.  A merger of a large regional phone carrier and the nation's second-largest long-distance company would reverse the FCC's position on such deals. It could also revive the spirit of AT&T's monopoly before the 1984 court-ordered breakup that created the regional Baby Bells, by allowing one company to control huge swaths of both markets.  But in his first public comments on the unfolding WorldCom scandal, FCC Chairman Michael Powell said the industry's battered, debt-ridden condition now leaves regulators little choice but to consider such options, especially if the alternatives would disrupt phone and data service to WorldCom's 20 million customers. http://online.wsj.com/article/0,,SB1026696580457716480,00.html (Paid subscription required)

 

SENATE PANEL OKAYS ADELSTEIN FOR FCC - Ending months of political bickering over judicial nominations, a Senate panel approved a longtime aide to Senate Majority Leader Tom Daschle for a seat on the Federal Communications Commission.  The nomination of Jonathan S. Adelstein, who has worked for the Democratic leader since 1995, will go to the full Senate for a vote. Approval is expected, with several Republican senators saying they would vote for the South Dakota native.  http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020716/ap_on_go_co/fcc_adelstein_1

 

NEW REPORT CONCLUDES FEDERAL PROGRAMS CRITICAL TO BRINGING A NATION ONLINE - The Leadership Conference on Civil Rights Education Fund and the Benton Foundation, with support from the Ford Foundation, released a new report that concludes that continued Federal leadership is essential to bringing a nation online, given the significant technology gaps that remain along economic, racial and geographic lines.  "Bringing a Nation Online: The Importance of Federal Leadership" examines data released earlier this year by the Department of Commerce in its report "A Nation Online: How Americans Are Expanding Their Use of the Internet" which showed substantial gains in access to computers and the Internet for all Americans. The report released today underscores that despite these gains, a significant divide remains based on income, race and ethnicity, geography and disability. As a result, many Americans have yet to witness the significant social, civic, educational and economic benefits of the information age.  http://www.civilrights.org/publications/bringinganationonline

 

BROADBAND, TELECOMMUTING SEEN AS ECONOMIC BOONS - In an effort to improve sluggish broadband adoption nationally, high-tech firms want companies to let employees telework or telecommute as a way to improve productivity, reduce costs and encourage baby boomer employees nearing retirement to remain in the workforce. The initiative also has the backing of the U.S. Department of Commerce, which views broadband usage as an integral part of U.S. economic development.  "Broadband deployment and usage will define the global winners and losers in the 21st century," said Bruce Mehlman, an assistant secretary at the Commerce Department. And telecommuting "is really the killer app right now that's out there for home broadband use."  http://www.computerworld.com/careertopics/careers/labor/story/0,10801,72805,00.html

 

ITAA WHITEPAPER ON BROADBAND – “Building a Positive, Competitive Broadband Agenda: Positively Broadband.” http://www.positivelybroadband.org/whitepaper.pdf (Adobe file)

 

FCC’S TELECOM RULES ARE PRAISED, DAMNED - Finger-pointing in the meltdown of the telecommunications industry was the theme yesterday as companies and special interests scrambled to file comments in a proceeding that could result in an overhaul of rules governing the industry.  At issue are Federal Communications Commission regulations that were meant to spark local phone competition by allowing upstarts to provide service by leasing, at deep discounts, equipment ''unbundled'' from the Baby Bell networks. Equipment includes last-mile ''loops'' to the home or central office switches. That competition strategy was alternately praised and damned by groups as varied as the upstart competitive local exchange carriers, or CLECS, the Bells, equipment manufacturers, consumer groups, and high-tech companies.  http://www.boston.com/dailyglobe2/199/business/FCC_s_telecom_rules_are_praised_damned+.shtml

 

FTC SEEKS GREATER AUTHORITY OVER TELECOM SECTOR - At a Senate Commerce subcommittee hearing this week all five Federal Trade Commissioners pressed Congress for authority to regulate the nation's largest telecommunications providers in an effort to shield consumers against aggressive telemarketers and questionable billing practices. Draft legislation that would grant much of the FTC's request focuses on funding for new consumer protection measures, and does not seek to involve the commission in telecommunications merger and competition proceedings, which are currently decided by the FCC in consultation with the U.S. Justice Department. But Mozelle Thompson, one of two Democratic commissioners on the FTC, said he hopes the commission can use the added authority to weigh in on competition proceedings within the telecom sector. http://www.washingtonpost.com/wp-dyn/articles/A14569-2002Jul16.html

 

 

This Week@EMEA

 

EUROPE, U.S. FACE SIMILAR BROADBAND CHALLENGES, PANELISTS SAY - Policymakers in Europe face the same conundrum regarding high-speed Internet access as those in the United States, panelists said Wednesday at a Congressional Internet Caucus forum. Both sides must confront how their governments can help spur broadband deployment while not interfering with market forces.  During several days of meeting with European officials, FCC Commissioner Kathleen Abernathy said she discovered they share the same goals as U.S. regulators of determining "the appropriate role of regulators" in ensuring that advanced communications services are offered to consumers. The best route will vary by the types of laws countries have in place, she said.  Europe currently is struggling with "what broadband really means and how policy might or might not affect it," said Monica Ridrueo, who represents Spain in the European Union Parliament. "The situation is difficult on both sides of the Atlantic" when choosing the proper policy, she said. The European Union has moved toward deregulation of its telecommunications industry but has stipulated that it will impose regulations if one firm gains a dominant position in a marketplace. Lawmakers must better define those relevant markets and the term "dominant," she said.  First, panelists said, government must decide what "broadband" means -- address its speed and the type of services it should support. The FCC has defined broadband for U.S. markets, but many in the technology industry say that the definition is inadequate because it is defined at a speed that is too slow. True broadband is at least 100 megabits per second, something none of the currently widely offered technologies provide, they said. (National Journal’s Tech Daily - http://nationaljournal.com/pubs/techdaily/pmedition/tp020717.htm - Paid subscription required)

 

BROADBAND BOOST FOR BT - Ben Verwaayen, chief executive of BT Group, yesterday said the telecoms operator was receiving 12,000 orders a week for broadband connections and that it already had 280,000 users connected. Speaking at the group's annual meeting in Edinburgh, Mr Verwaayen said that 1,115 of its exchanges, more than a fifth of its total, had been broadband enabled and that these exchanges covered 73 per cent of internet users. http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1026916481326&p=1012571727248

 

BT ORDERED TO CUT INTERNET PRICES BY 8.5% - Around 4m users of flat rate 'narrowband' internet access could benefit from lower monthly bills following a ruling on internet charges by the telecoms watchdog.  Oftel this week ordered BT Group to cut the unmetered internet fees it charges to rival operators who in turn sell their services to internet service providers. The move, which will reduce BT's wholesale leased line charges by 8.5 per cent, is being closely watched by ISPs as they evaluate whether or not they will be able to pass on savings to consumers.  In the UK narrowband flat rate internet access typically costs around £15 a month with Freeserve and AOL charging £13.99 and £15.99 monthly respectively.

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1026916490272&p=1012571727248

 

SOMMER, AMID PRESSURE, QUITS DEUTSCHE TELEKOM CEO SPOT - Ron Sommer stepped down this week as chief executive of Europe's largest telecommunications company, Deutsche Telekom AG, giving in to heavy pressure from German leaders who wanted the unpopular chief executive out before national elections.  Deutsche Telekom has suffered from some of the same ailments that have battered other European telecommunications companies: a slumping global economy, new mobile-phone licenses that cost billions and increasing competition in home markets.  http://online.wsj.com/article/0,,SB1026835150979042680,00.html (Paid subscription required) 

 

WHY COUNTRIES MAKE SITES UNSEEN - With the full cooperation of the Saudi Arabian Internet Services Unit, which is responsible for routing and filtering all international Internet traffic in the country, Harvard law professor Jonathan Zittrain and researcher Benjamin Edelman tried to access nearly 60,000 Web pages through Saudi servers. They discovered about 2,000 sites to be blocked by the Saudi government, one of dozens of governments around the world trying to control content their citizens see online. A new Harvard Law School study examines the pattern of censorship of governments around the world. "You can get a sense of what worries a regime by what sites they block," said Carin Karlekar, a senior researcher at Freedom House, a pro-democracy group. "In Saudi Arabia, the government's more interested in clamping down on personal freedom than on political freedom. But in China, they're more concerned about political subversion than personal morality, so news sites are the ones that are censored." http://www.wired.com/news/politics/0,1283,53933,00.html

 

This Week@Asia/Pac

 

CHINA INTERNET PORTALS SIGN PACT - Internet portals in China, including Yahoo!'s Chinese-language site, have signed a voluntary pledge to purge the Web of content that China's communist government deems subversive, organizers of the drive say. The "Public Pledge on Self-discipline for China Internet Industry" has attracted more than 300 signatories since its launch March 16, said a spokeswoman for the Internet Society of China, who identified herself only as Miss Sun.  The pledge's main aims appear fairly benign: promotion of Internet use, prevention of cyber crime, fostering healthy industry competition, avoiding intellectual property violations. http://story.news.yahoo.com/news?tmpl=story2&cid=528&ncid=528&e=4&u=/ap/20020715/ap_on_hi_te/china_sanitary_internet_3

 

This Week@US STATES

 

CEOS URGE GOVERNORS TO SUPPORT EDUCATION - The leaders of Micron Technology and Cisco Systems urged the nation´s governors Sunday to make sure education remains a top priority in their states — or risk falling behind the rest of the world.  Micron CEO Steve Appleton and Cisco Systems CEO John Chambers spoke to the state leaders during the second day of the National Governors Association meeting in Boise. 
http://204.228.236.37/story.asp?ID=15317

 

GOVERNORS LAY IT ON THE LINE: ADAPT OR GO BROKE - Cisco exec tells them states must improve education - The nation´s governors were wowed by Cisco Systems CEO John Chambers on Sunday, as he buoyantly spoke of an unprecedented era of prosperity built on technology.  But if states want to benefit, they´ll have to invest in education — something we in Idaho took a step back on this year because of an ill-timed 2001 tax cut.  Responding to a question from Gov. Dirk Kempthorne — who signed off on cuts in higher education and public schools in the 2002 legislative session — Chambers said the formula for growth isn´t all that complicated.  “The jobs will go where the best educated work force is, where the right infrastructure is, with the right supportive government,” said the man who runs the world´s leading Internet networking company. 
http://204.228.236.37/story.asp?ID=15266

BID TO SIMPLIFY STATE SALES TAX SNAGS ON LEVEL OF ENFORCEMENT - A Herculean effort to simplify state sales taxes that was to be a precursor to convincing Congress to allow states to tax Internet transactions suffered a setback as representatives from businesses and state governments failed to agree on a final, crucial part of the plan.  After two years of discussions, state officials hoped to emerge from a meeting in Salt Lake City on Friday with a draft of a modernized sales tax. Once states adopt this simpler, uniform tax, they planned to press Congress to approve an Internet tax.  But representatives of major retail corporations are threatening to withhold their support of the effort after they failed to agree with state Streamlined Sales Tax Project delegates about how to enforce uniformity among the states.  http://online.wsj.com/article/0,,SB1026684628931364520,00.html (Paid subscription required)
 

 

 

OTHER TECH STORIES OF THE WEEK

 

WHEN WILL BROADBAND RULE THE MARKET? - Earlier this year, Internet service provider (ISP) shutdowns and other issues slowed broadband adoption, but analysts still call high-speed Internet via cable and DSL (digital subscriber line) one of the fastest-growing technologies the world has ever seen.  Experts now say that the issues holding back broadband have more to do with access and content than with regulation or price. And despite the fact that hopes for high-speed Internet may have been overblown, broadband has managed to eclipse other hot technologies, such as DVDs, in only its fourth year of existence, Yankee Group senior analyst Mike Goodman told NewsFactor. "It ranks right up there with the fastest-growing products of all time," Goodman said. "Broadband isn't even close to being derailed."  http://www.newsfactor.com/perl/story/18621.html

 

DORMAN TO BECOME AT&T CHIEF - The collapse of WorldCom has increased the liklihood of big mergers in the US telecommunications industry, David Dorman, the executive in line to become AT&T's next chairman and chief executive, said on Wednesday. He added, however, that AT&T, which is relatively unhampered by debt and has so far been untouched by the wave of accounting scandals in the telecoms world, was in a strong position to stand apart from any mergers.  “We don’t think we have any strategic imperative to combine with anyone,” Mr Dorman said.  http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1026916473667&p=1012571727260

 

TALKS WEIGH BIG PROJECT ON WIRELESS INTERNET LINK - Several leading computer and telecommunications companies are discussing the joint creation of a wireless data network that would make it possible for users of hand-held and portable computers to have access to the Internet at high speeds nationwide.  The Intel Corporation, I.B.M., AT&T Wireless and several other wireless and Internet service providers including Verizon Communications and Cingular are exploring the creation of a company to deploy a network based on the increasingly popular 802.11 wireless data standard, known as WiFi, according to several people close to the talks.  The discussions, which are code-named Project Rainbow and have been going on for the last eight months, envision a nationwide service that would provide on-the-go professionals and other Web surfers a unified way to reach the Internet from a wide range of "hot spots" like airports and other public places. It is not intended to supply broadband connections to customers' homes, an executive involved in the discussions said.  http://www.nytimes.com/2002/07/16/technology/16WIRE.html (free registration required)

 

HOLLYWOOD, TELECOMS DIFFER ON INTELLECTUAL PROPERTY PROTECTION - Representatives from Hollywood and the telecommunications industry highlighted their differences of opinion on how intellectual property should be protected during a forum of the Congressional Internet Caucus and its European counterpart.  But in a sign that some of the passions stirred by the debate over mandatory technology for digital-rights management (DRM) may be cooling, both Motion Picture Association of America (MPAA) and Verizon Communications officials concurred that balance is a key component in implementing copyright laws.  The Americans spoke after members of the European Parliament summarized current efforts by member nations of the European Union to pass laws that implement the EU copyright directive that became effective in June 2001.  The directive seeks to spur member nations to implement the 1996 World Intellectual Property Organization Copyright Treaty by December 2002. The United States implemented the treaty by passing the 1998 Digital Millennium Copyright Act (DMCA).  (National Journal’s Tech Daily - http://nationaljournal.com/pubs/techdaily/pmedition/tp020717.htm (Paid Subscription required))

 

MORE POLITICIANS EMBRACE E-MAIL AS CAMPAIGN SEASON HEATS UP - With campaign season heating up, more political candidates are hoping voters will take messages from the inbox to the ballot box.  Gone are the days of passing signup sheets at state fairs and conventions, says David Wade, communications director for Sen. John Kerry, a Massachusetts Democrat. "You don't organize what might become a national grass-roots volunteer operation on legal pads and index cards anymore," he says.  Regular mail is expensive, and producing a television or radio spots can take up to 36 hours. But with e-mail, "all it takes is writing it and pushing the button, and that can make a difference in a high-stakes campaign," says Bill Pascoe, campaign manager for New Jersey Republican Senate candidate Doug Forrester. ""It's the best thing I know of for an instantaneous or pre-emptive response."  http://online.wsj.com/article/0,,SB1026325900409236040,00.html (Paid subscription required)

 

 

FACTS AND STATS:

BROADBAND PROBLEMS ENRAGE US SUBSCRIBERS - A new Harris Interactive study has found that just over half of American broadband subscribers have had problems with service and support from their provider.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358124&rel=true

 

ONLINE TELECOM CUSTOMERS SPEND MORE - A new study from Vividence Research indicates that Internet users who visit the websites of telecommunications companies; spend 32 percent more on telecom services than offline customers. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358128&rel=true

 

EUROPEANS UNIMPRESSED WITH ELEARNING - Almost two thirds of Europeans rate elearning as either 'fair' or'poor', according to a new ETV survey.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358138&rel=true

 

VOD FANS FAVOR MONTHLY SUBSCRIPTION MODEL - New research from Parks Associates indicates that 30 million Americans would sign up for Video-On-Demand (VOD) services if they were made available.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358134&rel=true

 

OVER TWO MILLION ROMANIANS NOW ONLINE - Europemedia reports that around 12 percent of Romanians are now online.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358125&rel=true

 

UK INTERNET ACCESS AT MORE THAN FORTY PERCENT - The number of British homes with Internet access rose to 42 percent in the first quarter of 2002.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358121&rel=true

 

AUSTRIANS INCREASE BROADBAND UPTAKE - Austria's broadband market has been rated as the fifth most advanced in Europe and the 11th worldwide, reports eMarketer.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358135&rel=true

 

UK STILL BEHIND IN BROADBAND RACE - Denmark and Germany have the highest number of home broadband subscribers in Europe, according to NetValue.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358115&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.

 

 

BROADBAND DISCUSSION – “QUESTION OF THE MONTH” – JOIN THE COVERSATION – This month’s poll asks the questions about when, and if, you are going to subscribe to broadband.  Is it the price that is keeping you from getting it?  Is it the lack of applications?  Or, do you already have it?  Share your thoughts in this months “Question of the month,” to paraphrase the song, “Broadband, what is it good for?”  What is good?  What is bad?  Do you have it?  Why don’t you have it?  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 feedback to John Earnhardt at jearnhar@cisco.com.

 

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