Cisco Government Affairs E-Update

Volume 2, Issue 32

23 August 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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This Week@WASHINGTON, DC

DEAD OR ALIVE: TELECOM AND BROADBAND - A flurry of telecommunications and high-speed Internet legislation likely will be introduced when lawmakers return from August recess, but no legislation is likely to make much headway before Congress leaves before the November elections.  The most likely broadband proposal to see action is one that would provide tax credits to companies that deploy high-speed Internet services, Senate sources said. The idea could be offered as an amendment to minimum-wage legislation the Senate is expected to address.  (National Journal’s Tech Daily - http://nationaljournal.com/pubs/techdaily - Paid subscription required)

OFFICIALS URGE ADMINISTRATION TO PURSUE DEREGULATORY LEGACY - Pulling the telecommunications industry out of its dismal state will require government action, federal regulators said at the Progress and Freedom Foundation summit, and they hope the telecom legacy of the Bush administration will be one that removes regulation that disrupts the market.  Understanding that the industry will "never have perfect regulatory parity," the government "needs to move in that direction where failure to do so is disruptive to the market," said Nancy Victory, director of the National Telecommunications and Information Administration.  (National Journal’s Tech Daily - http://nationaljournal.com/pubs/techdaily - Paid subscription required)

AMERICANS SUPPORT NEW NATIONAL EDUCATION LEGISLATION  - Parents continue to give high marks to the schools their own children attend, while the public at large offers more mixed reviews of the public schools in its communities and is generally critical of the nation's public schools as a whole. One of the major events in the field of education this year was the enactment of the federal education initiative known as the No Child Left Behind Act (NCLBA). This legislation, sponsored by President Bush and passed by overwhelming majorities in both houses of Congress, establishes an unprecedented role for the federal government in requiring the states to establish curriculum standards and tracking of students through regular testing.  http://www.gallup.com/poll/releases/pr020820.asp

EXPERTS SEE FEDERAL ROLE IN CONVERGING CONTENT, TECHNOLOGY - Combining content with other aspects of the technology industry that contributed to the widespread adoption of computers, technology and the resulting productivity gains will require the right mix of public policy, participants said here Monday at a Progress and Freedom Foundation (PFF) summit.  The industry is just beginning to adopt new technologies and services that will be driven by high-speed Internet demand, PFF President Jeffrey Eisenach said. Eisenach predicted that convergence of content and technology will happen regardless of what government does but that government could hasten the process.  "It seems to me there is more that could be done than what is being done today," Eisenach said.  (National Journal’s Tech Daily - http://nationaljournal.com/pubs/techdaily - Paid subscription required)

FCC CHAIRMAN REEXAMINES DEREGULATION - Federal Communications Commission Chairman Michael K. Powell said yesterday that he is backing off proposals to reduce his agency's record-keeping requirements, saying a change of course is warranted because of the accounting scandals that have swept through the telecommunications industry.  Unlike the Securities and Exchange Commission, the FCC is not responsible for protecting investors against fraud. Instead, the regulatory agency is charged with reviewing financial and other corporate data to ensure that telephone companies are not overcharging customers or gouging rivals that rely on their equipment. http://www.washingtonpost.com/wp-dyn/articles/A28615-2002Aug16.html

This Week@EMEA

TELECOMMUNICATIONS DRAWING INVESTORS IN AFGHANISTAN - There are only 12,000 functioning telephones for nearly 2 million people in Kabul. And most calls never go through.  The situation is worse in the provinces. Wiring Afghans is a colossal challenge that has only just begun. For starters, the government is scrambling to lure investors to build private cellular networks. The bigger challenge will be repairing and extending the rudimentary, bomb-damaged wireline phone network. http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020822/ap_wo_en_po/fea_wiring_afghanistan_2

GENDER INTERESTS DIVIDE SILVER SURFERS - A recent study in Britain revealed that as more seniors get online, there is a difference between how older men and women utilize the Internet. The survey, conducted by ICM, found that men prefer to use the Web to pursue hobbies and find information, whereas women see the Net as an alternative to the telephone, using it to chat with friends and families. http://news.bbc.co.uk/2/hi/technology/2205941.stm

LOGGING ON IN THE EMERALD ISLE - According to the August 2002 Online Outlook study from Amárach Consulting, 38% of the adult population in Ireland now have internet access. Amárach estimates that this penetration rate represents roughly 1.1 million internet users, a sizeable increase from the 32% that had net access in Q2 2001.  http://www.emarketer.com/news/article.php?1001527&ref=ed

BT QUESTIONS OFTEL'S REQUEST FOR TRANSPARENCY - BT Group and Oftel are set to clash as the UK telecommunications regulator asks for greater transparency in the former monopoly's competition-related disclosures.  The UK telecommunications group on Wednesday said it would question a proposal by Oftel for more disaggregated financial information related to its product and service groups, network components, and types of customers. The regulator also requested more detail on how BT prepares its financial information.  "We understand why Oftel needs the numbers - of course we will do it. But there is a disproportionate burden on some specific requests," BT said.  http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1028185925258&p=1012571727248

CALL FOR CLARITY IN E-COMMERCE - The European Union's e-commerce directive is soon expected to be formally implemented in the UK. Its purpose is to facilitate e-commerce within the single market by clarifying questions of jurisdiction and what information online suppliers must give to customers.  But industry body e.centre, together with partners within the Alliance for Electronic Business, say the government's new regulations are unclear in some crucial respects.  Above all, it says, the UK has failed to resolve the "country of origin" question. Member states that have implemented the directive so far have unambiguously specified that the courts in the service supplier's home state have jurisdiction.  http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1028185851053&p=1012571727248

This Week@Asia/Pac

STEEP PHONE FEES HELP WIN JAPANESE TO VOICE OVER INTERNET SERVICES - For years, the high cost of phone calls was the biggest obstacle to Internet growth. These days, that curse is proving to be a bit of a blessing.  As always-on broadband Internet service becomes more available, towering tariffs for traditional voice calls are encouraging adoption of a technology that has yet to make much headway with consumers elsewhere: voice over Internet.  More than 300,000 people have signed up for the service from BB Technologies Corp., a subsidiary of Tokyo Internet company Softbank Corp. That's easily more than three times the estimated U.S. consumer market.  The service, which began in April, doesn't require a new telephone. With a book-sized modem, one gets voice quality comparable to that of regular voice lines — at a fraction the cost.  http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020822/ap_wo_en_po/fea_japan_internet_telephony_2

CHINA’S HOT TECHNOLOGY MARKET - It's one of the few PC companies today with profits and growth in market share. Its close allies on various projects--Microsoft, Intel, Texas Instruments, America Online--reads like high-technology's A-list.  But one important difference separates the company from the pack: It's based in China, one of the world's hottest markets for technology.  http://news.com.com/2009-1001-948983.html?tag=fd_lede

CHINA DOMAIN RULES RELEASED - A new Ministry of Information Industry (MII) regulation calls for the establishment of a nongovernmental name dispute settlement mechanism under the China Internet Network Information Center (CNNIC) to solve conflicts involving domain names and IPR protection. While the new regulation does not mention a time frame for dispute decisions, Council sources indicate that CNNIC will make a decision within 14 days of accepting a case. For the Chinese text of the regulation, see:
http://www.cnnic.net.cn/ruler/1.shtml.

LINES CROSSED IN CHINA - State-Owned Firms Bully Customers, One Another in Fight for Telecom Turf - An Jianye's desk does not look like a war zone. An, who manages a seedy six-floor walk-up hotel in this northern Chinese city, keeps the place neat and his In-Out baskets clean. But the two phones sitting there tell a different story.  Over the past few weeks, workers from one of China's state-owned telecommunications behemoths, China Netcom, have twice severed the phone lines of China Railcom, a plucky rival that is also state-owned, to keep it out of An's hotel. Government regulators, allegedly in cahoots with Netcom, clipped little Railcom's wires a third time. http://www.washingtonpost.com/wp-dyn/articles/A28586-2002Aug16.html

This Week@US STATES

RURAL COUNTIES PLUGGING IN - Giving rural North Carolinians access to the Internet is the focus of the e-NC Initiative, a state-backed effort that has awarded $1.47 million in grants to 93 programs throughout the state.  The initiative is distributing $12,000 each to 64 rural counties, such as Perquimans, Clay and Harnett, where the money will be used to establish “public access points” in libraries and schools.  Funds are being used to buy new equipment and hire new workers, develop training standards, teach people how to use different computer applications, teach new skills to disabled computer users and help senior citizens keep in touch with family members by e-mail.  http://www.philanthropyjournal.org/more.asp?ID=2308

CAPITOL’S TELECOM CARRIED BY CABLE - Oklahoma's state capitol complex has become the first such state government facility to be wired by a national cable company for telecommunications service, according to the company.  Cox Business Services, an affiliate of Atlanta-based Cox Communications Inc., has connected about a dozen state buildings in Oklahoma City with upgraded fiber technology to deliver digital voice, data and video services, including videoconferencing and television. http://www.fcw.com/geb/articles/2002/0819/web-okla-08-19-02.asp

VIRGINIA LOOKS FOR ECONOMIC LIFT FROM ACADEMIC-TECHNOLOGY CENTER - Despite budget troubles, Virginia has found money to begin construction of an $18-million academic-technology center that officials hope will spur economic development in the southern part of the state. The new facility is called the Institute for Advanced Learning and Research (http://www.ialr.vt.edu/).  http://chronicle.com/free/2002/08/2002082001t.htm

IBM TO BUILD LINK TO EMERGENCY SERVICES - Washington and the states of Maryland and Virginia yesterday announced they would create an emergency wireless network allowing federal, state and local agencies to deal with crises such as September 11. The network, which would link up to 10,000 people in about 40 different organisations, should be fully operational within two years. The wireless network will be built by IBM, which won the $20m contract. The text-based instant messaging service will allow messages to be sent securely between PCs, laptops, personal digital assistants and wireless telephones.  http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1028185942292&p=1012571727242

BROADBAND COMPANIES INCREASE MOVE TOWARD RATE PLANS - The days of one-price-fits-all for high-speed Internet access are ending. No. 3 broadband Internet provider SBC Communications Wednesday became the latest to say it would charge a range of prices for consumers, as it already does for big businesses.  SBC currently charges all consumer broadband users $50 a month. Starting this fall, the company will offer six rate plans. Prices haven't been set. No range was given.  http://www.usatoday.com/tech/news/2002-08-21-dsl_x.htm

IBM GRANT WILL FUND WEB SITE FOR TEACHERS - IBM has granted the San Jose Unified School District $1.5 million to fund the second phase in the IBM Reinventing Education program. The money will support a Web-based program that is designed to help teachers "reflect on their practices," and provide easy access to classroom strategies and support. Lesson plans based on state standards and information about implementing the plans will also be available on the Web site.  Superintendent Linda Murray also noted that with the new Web site, "New teachers can interact with experienced teachers." http://www.siliconvalley.com/mld/siliconvalley/news/local/3913795.htm

OTHER TECH STORIES OF THE WEEK

INTERNET AUDIENCE STILL GROWING AFTER ALL - After a June in which sequential growth of the Internet audience slowed to a standstill, Media Metrix says the number of Americans using the medium is rising again. The study found that there were 119 million Internet users in July, up 29 percent from 92.2 million users the previous July. Usage minutes climbed 3.7 percent month over month, marking the first significant gain since February. Total usage minutes were measured at 106.1 billion in July 2002, up 62 percent from 69.7 billion a year ago.  http://www.internetnews.com/IAR/article.php/1448061

PACK UP YOUR PBX – VoIP IS HERE - The future of enterprise telephony is clearer than ever. Circuit-switched PBXs are nearing obsolescence. IP technology is increasingly becoming the standard for corporate voice communications.  A recent report by Allied Business Intelligence predicted that premise-based (IP PBX) voice over IP (VoIP) gateways will grow from 4.3 million ports in 2001 to 47.6 ports in 2007. VoIP uses a TCP/IP network for the transmission of audio signals, enabling an enterprise to use an existing network for its telephone system rather than a separate PBX.  http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2877001,00.html

INTERNET TO REACH SOUTH POLE - The internet is coming to the South Pole following a decision to lay a fibre-optic cable nearly two thousand kilometres across the polar ice.  It will be one of the most dramatic and challenging engineering tasks ever carried out in Antarctica. It will take years to design and construct, but when finished it will revolutionise communications with the South Pole.  The South Pole is the only permanently inhabited place on Earth that cannot see geosynchronous communication satellites, a fact that severely restricts communication with the base. http://news.bbc.co.uk/2/hi/science/nature/2207259.stm

STARBUCKS POURS A CUP OF WIRELESS - T-Mobile is now selling wireless access to the Internet in 1,200 Starbucks locations, with plans to have 2,000 cafes wired up for Wi-Fi by year's end, the company said.   Wi-Fi is a network that creates wireless access to the Internet in a zone of about 150 feet indoors and 1,000 feet outdoors.  The Starbucks with the "T-Mobile HotSpot" service are located in New York, New Jersey, Connecticut, and several large metropolitan areas such as San Francisco, Seattle, Boston and Dallas.

http://msnbc-cnet.com.com/2100-1033-954692.html

AOL TO OFFER BROADBAND ON AT&T, COMCAST LINES - A top America Online executive called its first big deal to offer high-speed Internet service over another cable company's lines a ''big step,'' but no cure-all for AOL's broadband woes. ''This is one of a number of steps,'' says AOL Broadband President Lisa Hook. ''It's a great audition for us.'' - http://story.news.yahoo.com/news?tmpl=story&u=/usatoday/20020822/tc_usatoday/4382301

CABLE INVESTMENT IN BROADBAND - A new study reveals that cable operators have begun making major investments into the infrastructure for high-speed Internet service and interactive data and voice communications. The Yankee Group, a technology research firm, released the report Tuesday. It highlights the growth investment that cable firms plan to make in software to accommodate new services. The study examined software purchases by cable companies planning to upgrade systems that process customer orders. In order to monitor and deliver new services, cable operators have begun by investing $1.5 billion.  http://www.yankeegroup.com/public/news_releases/news_release_detail.jsp?ID=PressReleases/news_08202002_tss.htm

MAKING THE BEST OF WORKPLACE EDUCATION – E-LEARNING - Times are tough, and companies are scrutinising the money they spend on training with a critical eye. With so many more pressing calls on their finances, many are tempted to cut their training budgets to the bone. Those that have not, however, are asking whether their training programmes are as cost efficient as they could be - and whether they are producing the desired results. For technology and telecommunications companies, these questions are particularly crucial. Rapid changes in technology require employees to update their knowledge of products and services constantly, which is why these companies have been the heaviest investors in training. But these are the very companies whose budgets are now under the most pressure.  In response, they are increasingly willing to explore cost-efficient alternatives such as e-learning, using the internet and other electronic media. http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1028185836894&p=1012571727248

FACTS AND STATS:

US KIDS AND TEENS ONLINE - Kids and teenagers accounted for nearly 20 percent of the active online population in the US during July, according to new research from Nielsen-Netratings. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358261&rel=true

HIGH-TECH CUSTOMERS PREFER ONLINE SERVICE - Nearly two-thirds of customer service communication in the high-tech industry is conducted online or via email, reports BizReport.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358275&rel=true

DOWNLOADS NOT TO BLAME FOR FALL IN MUSIC SALES - New research from Forrester indicates that online music downloads are not responsible for the drop in global music sales, but that they could be the solution to the music industry's problems.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358265&rel=true

RISE IN DIAL-UP SUBSCRIBERS IN AFRICA - The number of dial-up Internet subscribers in Africa has risen by 20 percent over the past year, according to a recent report on Africa Online.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358268&rel=true

CLOSE TO 18 MILLION REGULAR NET USERS IN UK - A new report from Continental Research has found that there are now 17.9 million adults in the UK who use the Internet on a regular basis from home and/or work. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358277&rel=true

NUMBER OF ONLINE HOUSEHOLDS IN JAPAN DOUBLES - eMarketer reports that at the end of June 2002, 26 million Japanese households had at least one computer and Internet access.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358278&rel=true

GERMANS GET ONLINE, BUT OTHER EUROPEANS DON'T - The number of Germans and Italians online increased slightly during the month of June, but Internet usage in other Western European countries dipped. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358266&rel=true

WORLDWIDE INTERNET POPULATION GROWS SLIGHTLY -More than 553 million people worldwide have Internet access, according to the latest study from Nielsen-Netratings. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358274&rel=true

AUSTRIAN INTERNET POPULATION DOUBLES - Telecom Paper reports that the number of Internet users in Austria has doubled over the past three years.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358255&rel=true

ALMOST EIGHT MILLION BRAZILIANS ONLINE IN JULY - The number of Brazilians that access the Internet from home at least once a month reached 7.8 million in July, reports World IT Report. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358269&rel=true

NEARLY SIX MILLION DSL LINES IN THE EU - The total number of DSL high-speed Internet connections in the European Union now numbers close to six million, according to a new survey from the European Competitive Telecommunications Group (ECTA). http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358276&rel=true

US HOUSEHOLDS SET TO EMBRACE BROADBAND - The number of residential broadband subscribers in the US will quadruple from 2001 to 2005, reports eMarketer.  http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358254&rel=true

BROADBAND ON THE RISE IN BRITAIN - The number of British Internet users with broadband access has risen by 60 percent over the last six months, according to new research from NOP. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358257&rel=true

GLOBAL BROADBAND SUBSCRIBER RATE SET TO BOOM - The number of broadband subscribers worldwide is expected to rise from just over 15 million in 2000 to over 117 million in 2004, according to a new eMarketer forecast. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358271&rel=true

AUSSIES PAY MORE FOR BROADBAND - ZDNet reports that Australians pay far more for their broadband services than their counterparts in the Asia-Pacific region. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358273&rel=true

NUMBER OF INTERNET CAFES IN UAE DOUBLES - The number of Internet cafes in the United Arab Emirates has risen substantially during the first half of 2002, reports Emirates Internet & Multimedia. http://www.nua.ie/surveys/index.cgi?f=VS&art_id=905358264&rel=true

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

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