Cisco Government Affairs E-Update

Volume 2, Issue 35

04 October 2002

Brought to you by Cisco Government Affairs Online: http://www.cisco.com/gov

This Week@Cisco in Government Affairs

Cisco's E-Update keeps you up to date on the major policy news of the week. Focusing on broadband, education and e-government areas, but covering high-tech and telecom in general, the E-Update is a great source of information for state, federal and international policymakers. To subscribe, send a message with “subscribe” in the subject line to “Subscribe-eUpdate@cisco.com

This Week@WASHINGTON, DC

NEW BILLS AIM TO PROTECT CONSUMERS' USE OF DIGITAL MEDIA - The battle being waged in Washington over copyright in the digital age ratchets up a notch this week as new legislation is introduced aimed at clarifying consumer rights.  Rep. Zoe Lofgren, D-San Jose, plans to introduce the ``Digital Choice and Freedom Act,'' Silicon Valley's response to a host of Hollywood-backed bills tilted in favor of copyright holders.  http://www.siliconvalley.com/mld/siliconvalley/4193841.htm

CONGRESS VOWS TO PASS HOMELAND SECURITY BILL - Senate and House leaders promised to keep their members in session for as long as it takes to pass homeland security legislation, even though there was no sign that the two sides are any closer to ending a five-week impasse in the Senate. http://www.washtimes.com/national/20021004-205239.htm

GOVERNMENT CONTRACTORS TAKE ADVANTAGE OF TECH BUST TO ACTIVELY COURT WALL STREET - Market analysts are taking note of the expected flood of information technology spending by the federal government. According to FSI, an IT market research firm in McLean, roughly $52.5 billion of President Bush's proposed fiscal year 2003 budget is slated for IT-related systems and services. That is an increase from $44.9 billion pegged in the budget submitted for fiscal year 2002. Higher government spending on technology was prompted in part by the Sept. 11 terrorist attacks. A good deal of that money is expected to be spent on cybersecurity efforts and high-tech weapons and the systems that make them work.  http://www.washingtonpost.com/wp-dyn/articles/A39865-2002Oct3.html

CHARLES A. JAMES TO STEP DOWN AS ASSISTANT ATTORNEY GENERAL OF
THE ANTITRUST DIVISION - Attorney General John Ashcroft announced that Charles A. James, Assistant Attorney General for the Antitrust Division, will step down from his position to pursue an opportunity in the private sector.  http://www.usdoj.gov/atr/public/press_releases/2002/200287.htm

LAWMAKERS STILL HOPE TO PASS AN E-GOV BILL THIS YEAR - House lawmakers are making a late push to give agencies more than $200 million in e-government funds and to establish some type of government-wide IT manager. The Government Reform Subcommittee on Technology and Procurement Policy tomorrow will mark up the E-Government Act of 2002 by replacing it with a manager’s amendment—a revised version of the Senate-passed S 803. http://www.gcn.com/vol1_no1/daily-updates/20133-1.html

“NEW YORKER” PROFILE ON FCC CHAIRMAN MICHAEL POWELL - http://www.newyorker.com/fact/content/?021007fa_fact

FCC CHAIRMAN SAYS NEW WIRELESS POLICY IMMINENT - The chairman of the Federal Communications Commission said that the agency expects to announce later this month major changes in wireless spectrum policies and is nearing other decisions that will shape the telecommunications and media industries. http://www.commsdesign.com/news/tech_beat/OEG20021003S0023

A LONE VOICE FOR REGULATION AT THE F.C.C. - In a steel band, Michael J. Copps would play the violin.  The lone Democrat at the top of the Federal Communications Commission, Mr. Copps has sounded a broad regulatory theme at a time when his other colleagues are playing a deregulatory trio. His views, attuned to what for decades was the mainstream approach to regulation of the nation's broadcasters and telephone companies, are now seen by his colleagues as out of step with the new economy.  http://www.nytimes.com/2002/09/30/business/30COPP.html?ex=1034385520&ei=1&en=7840e885c472a580  (Free registration required)

MORE ENGAGING ONLINE CONTENT URGED - A White House panel studying ways to boost demand for high-speed Internet access is expected next week to encourage Hollywood and others to offer more online content. The report also will recommend that more workers use high-speed lines to telecommute from home.  After intense lobbying by industry groups, the President's Council of Advisors on Science and Technology sidestepped calls for an overhaul of the nation's telecommunications networks, such as backing the regional Bell phone companies' bid to scale back laws that regulate their ability to compete in the market for high-speed Internet access, or broadband.  http://www.latimes.com/business/custom/cotown/la-fi-broadband24sep24(0,4494672).story?null)

This Week@EMEA

BRANSON RAISES BRITAIN’S BROADBAND STAKES - Virgin's decision this week to offer fast "always on" access to the internet for only £24.99 a month is an important milestone in the long running drama to build Broadband Britain. Virgin undercuts BT and other competitors and undermines Freeserve's complaint that BT's recent decision to cut its own prices made it uncompetitive for rivals trying to break into BT's monopoly of the network (all of the rival broadband providers use BT's network and its approved modem). http://www.guardian.co.uk/internetnews/story/0,7369,804073,00.html

CHILDREN LEARN NET SKILLS WITH PARENTS - Schools across the UK are hosting computer workshops this week as part of a government initiative to make parents aware of the educational benefits of the net. The Department for Education hopes that the week's activities will spark long-term commitment from schools to provide out-of-hours net support for parents.  http://news.bbc.co.uk/2/hi/technology/2288620.stm

EU, U.S. AUTHORITIES REACH PACT ON ANTITRUST REVIEWS - In a pact with far-reaching implications for cross-border mergers, European Union and U.S. antitrust authorities have agreed to vet big transactions simultaneously on both sides of the Atlantic.  In an increasingly global economy, the world's top trustbusters are going to extraordinary lengths to avoid situations in which one jurisdiction gives companies its approval to tie the knot, while another one refuses its blessing.  Under the pact, companies that agreed to cooperate with antitrust authorities in Europe and the U.S. could benefit from nearly parallel regulatory reviews, meeting in so-called "triangular" sessions with both sets of authorities simultaneously. http://online.wsj.com/article/0,,SB1033330039490842353,00.html (Paid subscription required)

SPEECH: Mr Erkki Liikanen Member of the European Commission, responsible for Enterprise and the Information Society "Creating an entrepreneurial Europe" - Vlerick Leuven Gent Management School - http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/443|0|RAPID&lg=EN

FRANCE TELECOM NAMES A NEW CHIEF - France Télécom reshuffled its board, naming Thierry Breton, the chairman of Thomson Multimedia, to run the company and find a way to lighten its crushing $70 billion debt load.  Board members representing labor unions and employees said that Mr. Breton, who will be both chairman and chief executive, told them he had received assurances that the French government will play a major role in any financial overhaul. The state owns 56 percent of France Télécom.  http://www.nytimes.com/2002/10/03/business/worldbusiness/03FRAN.html (Free registration required), http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1031119865934&p=1012571727260

JORDAN PUTS EGGS IN TECH BASKET - In a region where governments control almost everything, Jordan has become a poster child for successful public-private business partnerships. And technology is the rallying cry. Technology and business leaders from around the world will convene in Amman this week to evaluate three years of work spearheaded by Jordan's King Abdullah II.  http://www.wired.com/news/business/0,1367,55418,00.html

U.N.:  INTERNET AND MOBILE PHONES TAKING OFF IN AFRICA - Internet and mobile phone usage is taking off in Africa even as information technology falters in much of the rest of the world, a U.N. task force aiming to bridge the digital divide between rich and poor nations reported.  The number of dial-up Internet subscribers in Africa rose 20 percent over the past 18 months, and cell phone activations are soaring, according to the report by the U.N. Information and Communication Technologies Task Force.  http://story.news.yahoo.com/news?tmpl=story2&cid=581&ncid=581&e=6&u=/nm/20020930/tc_nm/tech_un_dc

This Week@Asia/Pac

CABLE TO STRETCH NET CONNECTION TO ISLANDS - The Pacific islands of Palau and Yap will soon receive broadband Internet access thanks to a planned underwater fiber optic cable running from Guam.  The 800-mile cable, to be deployed by the end of 2004, will allow the remote islands to implement high-speed telemedicine and distance learning initiatives. "This project will connect Palau to the world, thus bridging the digital divide," Palau president Tommy Remengesau Jr. said in a written statement.

http://www.guampdn.com/news/stories/20021004/localnews/212551.html

WHO’S ONLINE IN CHINA - Liu Hong reckons she's an addict: "I am becoming more and more dependent on the internet."  Three days is the longest the 30-year-old civil servant can last without logging on to swap gossip and photos with her friends and browse through online fashion magazines.   Internet use has rocketed since China threw open its networks to the world wide web in 1994.  As part of its drive to modernise the economy, China's government wants to see 5% of economic growth coming from information technology by 2005.  http://news.bbc.co.uk/1/hi/business/2269161.stm

This Week@Americas/International
 

INDUSTRY CANADA TABLES REPORT ON COPYRIGHT ACT - A report was tabled in Parliament on the provisions and operation of the Copyright Act. The report, entitled Supporting Culture and Innovation, provides the basis for parliamentarians to engage in a dialogue on public policy issues that underpin the Copyright Act. As steps are taken to modernize Canada's copyright law, Parliament and Canadians will have the opportunity to engage in a discussion on specific amendments to the Copyright Act. http://www.industriecanada.com/cmb/Welcomeic.nsf/261ce500dfcd7259852564820068dc6d/85256a220056c2a485256c48003eeaa0!OpenDocument

QUÉBEC RESIDENTS BENEFIT FROM A NETWORK OF 31 NEW PUBLIC INTERNET ACCESS CENTRES -

Claude Duplain, Member of Parliament for Portneuf, on behalf of Industry Minister Allan Rock, announced the official launch of a network of 31 public Internet access centres in Québec City, hosted by the Mérici Network. Industry Canada's Community Access Program (CAP) has contributed $527 000 towards these centres. http://www.industriecanada.com/cmb/Welcomeic.nsf/261ce500dfcd7259852564820068dc6d/85256a5d006b972085256c3f004a2c07!OpenDocument

CALGARY IN CONSIDERATION FOR WORLD'S TOP INTELLIGENT COMMUNITY - Already on the list of the world's Top Seven Intelligent Communities, Calgary is now being considered for the title of World's Top Intelligent Community. The distinction recognizes communities that work to create the information and telecommunications infrastructure needed to gain a competitive edge in the economy of the 21st century.  http://biz.yahoo.com/ccn/020925/cb270d8b3fa3fc89b43f65f1b9f38859_1.html

This Week@US STATES

OHIO LAUNCHES BROADBAND INITIATIVE - Gov. Bob Taft  announced the Ohio Broadband Initiative, which is designed to provide businesses with affordable access to high-speed data lines. The initiative "will make the high-speed information superhighway accessible and affordable for Ohioans across the state and make citizens aware of how using this new technology can dramatically improve our lives," Taft says.  http://www.business-journal.com/LateSept02/OhioBroadband.html

STUDY: DIGITAL TOWN HALL: HOW LOCAL OFFICIALS USE THE INTERNET AND THE CIVIC BENEFITS - Fully 88% of local elected officials use the Internet in the course of their official duties and many say their online activities have helped them learn more about local public opinion, stay in touch better with community groups, and encounter new voices in local civic life. The first-ever survey of mayors and city council members of the National League of Cities by the Pew Internet & American Life Project shows a surprisingly high level of online activity at the local level: Some 90% of wired local officials use email in their official duties at least weekly and 79% of all municipal officials in this survey say they have received email from citizens or local groups about civic issues.  http://www.pewinternet.org/reports/toc.asp?Report=74

VIRGINIA GOVERNOR WANTS STATE TO BECOME 'E-DEMOCRACY' - Gov. Mark Warner touted his technology-based strategy to transform state government - a plan he says will turn the Old Dominion into the "Bold Dominion."  "It's time for the birthplace of democracy to move more boldly into e-democracy," Warner said. http://www.roanoke.com/roatimes/news/story137175.html

INTERNET IS NEW TOOL OF GOVERNMENT TRADE - Cities across the USA are harnessing the power of the Internet to try to rein in scofflaws and clean up crime-infested neighborhoods. It's the newest trend in the rush to e-government that lets citizens interact with City Hall and the county courthouse without actually being there. But rather than merely post dry council agendas and calendars of local events, cities are capitalizing on what they call "the shame factor," using the Internet as a weapon against crime and civil misbehavior. http://www.usatoday.com/tech/news/techinnovations/2002-09-29-e-govt_x.htm

CALIFORNIANS SEEK SPAM SHELTER - In an attempt to crack down on unsolicited commercial e-mail, California Attorney General Bill Lockyer is asking residents of the Golden State to send him samples of the illegal spam clogging their inboxes.  The state plans to use the spam samples to prosecute bulk e-mailers operating out of California, a Lockyer spokeswoman said.  http://www.wired.com/news/business/0,1367,55529,00.html

CALIFORNIA TO REVAMP ONLINE TAX FILING - The software industry lost a round when the state tax agency reversed itself and voted to upgrade California's free electronic tax-filing system.  To the dismay of a small band of high-tech industry lobbyists, the board voted to revamp the state's file-by-computer system so that it does simple arithmetic for taxpayers and automatically calculates taxes owed.  http://www.latimes.com/technology/la-me-taxes2oct02,0,7244630.story?coll=la%2Dheadlines%2Dtechnology

CALIFORNIA GOVERNOR VETEOS PC RECYCLING FEE - Legislation that would have put California at the forefront of recycling scrapped electronics was rejected by Gov. Gray Davis, underscoring the political clout of Silicon Valley's high-tech companies.  California would have become the first state to assess a recycling fee -- $10 per electronic product -- on new computers and televisions sold to residents.  http://www.siliconvalley.com/mld/siliconvalley/4186758.htm

OTHER TECH STORIES OF THE WEEK

REPORT: “UNLEASHING THE POTENTIAL OF THE HIGH-SPEED INTERNET” – As recently as 10 years ago, it would have been hard to imagine the phenomenal growth of the Internet. The Internet has led to a host of new and exciting applications -- email, the World Wide Web, instant messaging, digital file sharing, e-commerce, and many more. Yet for all the changes that the digital economy has brought, the potential of the Internet is greater still. The Internet has yet to fulfill its promise of a true revolution as more ubiquitous use and the development of powerful new applications and services are limited by a lack of bandwidth.
Summary: http://www.ppionline.org/ppi_ci.cfm?knlgAreaID=140&subsecid=292&contentid=250894; Full report: http://www.ppionline.org/documents/Broadband_0902.pdf (Adobe file)

BROADBAND USERS BELIEVE IN THE NET - According to the Yahoo!/ACNielsen Internet Confidence Index, in Q3 2002, broadband consumers' level of confidence in the internet stood at 156 -- 28 points higher than that of their narrowband counterparts and 43 points higher than general consumer net confidence.  http://www.emarketer.com/news/article.php?1001660&ref=ed

WHAT THE NET IS DOING TO YOU - In 1949 Chinese communist leader Chou En-lai was asked about the importance of the 1789 French Revolution. After thinking for a moment he replied: "It is too soon to say."  The effect of the internet on the lives of its users is just as hard to determine.  More difficult is working out how life might be different years from now as we adapt to these changes.  http://news.bbc.co.uk/2/hi/technology/2288598.stm

A CASE TO DEFINE THE DIGITAL AGE - So far, there's little doubt who's winning the digital copyright wars. In the courts, the Big Five record labels have squashed Napster and copycat file-sharing services Aimster and Audio Galaxy. On Capitol Hill, Hollywood has launched a lobbying assault to pass two bills, one that would mandate copyright protection in all new consumer electronics and another that would permit copyright owners to hack into consumers' personal computers if the copyright holders suspect illegal activity. Their strategy is straightforward: Follow our rules, or we destroy you. http://www.businessweek.com/technology/content/sep2002/tc20020927_7367.htm

BURN VICTIM TREATED BY E-MAIL - Doctors in Australia carried out specialist burns care on a teenager over 1100kms away by using his parents' computer. The boy, who lived in a remote area of Queensland, suffered a 2% full thickness burn on his leg from a motor bike exhaust and needed nearly five months of treatment.  http://news.bbc.co.uk/2/hi/health/2284734.stm

AMERICA'S WORST PHONE SERVICE, AND SOME UNEXPECTED OPTIONS - For flailing phone companies, luring new customers has become a game of seduction: MCI gives out DVD coupons and T-Mobile (the former VoiceStream) offers up a glossy-lipped Catherine Zeta Jones inviting you to "get more." One discount provider, Working Assets, even promises a year's supply of free ice cream.  But the party ends quickly. As the industry crumbles under slowing growth, criminal-fraud probes and the largest bankruptcy in history, consumers are feeling the aftershocks. The Federal Communications Commission received 10,182 complaints from consumers frustrated with wireless and long-distance service in the first quarter of this year alone. http://online.wsj.com/article/0,,SB1033582649526441313,00.html (Paid subscription required)

BROADBAND BACKUP ABCs - The Internet makes telework possible and small or remote offices productive. Fast Internet connections erase the feeling of isolation from company workflow, and when organized correctly, you can hardly tell the difference between working in a cubicle in the office and a home office.  When your Internet connection stops, however, you may as well be home with the flu. At least with the flu, you'd have an excuse for not getting any work done. If you run your small business communications via the Internet, losing your connection hangs an "Out of Business" sign on your electronic door.  http://www.nwfusion.com/net.worker/columnists/2002/0930gaskin.html

RELUCTANT SNOOPS: FOR INTERNET SERVICES, WAR AGAINST TERROR MEANS FLOOD OF SUBPOENAS - Internet service providers are often called gatekeepers, the companies that open up the online world to a computer user. It is this very role, however, that has placed them in an uncomfortable position in a post-Sept. 11 world. As law-enforcement authorities ratchet up efforts to track and combat terrorist and other criminal activity online, ISPs are walking a treacherous tightrope between complying with international privacy laws and meeting investigators' mounting requests for information. http://seattletimes.nwsource.com/html/businesstechnology/134545290_cybersecure30.html

CONSUMERS SEE DEALS IN INTERNET CALLING - Telephone calling via the Internet has come a long way from the days fives year ago of crackling walkie-talkie conversations, and U.S. consumers now have a range of choices that trade higher quality for cost.  http://story.news.yahoo.com/news?tmpl=story2&cid=581&ncid=581&e=8&u=/nm/20020928/tc_nm/column_pluggedin_dc

AT&T APPOINTS BETSY BERNARD AS PRESIDENT - AT&T  completed the senior management reshuffle caused by the sale of its broadband unit to Comcast when it named Betsy Bernard to replace CEO-elect David Dorman as president of the US telecommunications group. http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1031119807201&p=1012571727260

8TH ANNUAL WORLD ELECTRONICS FORUM ADVOCATES NATIONAL BROADBAND STRATEGY FOR EACH GLOBAL ECONOMY - A gathering of CEOs and electronics association leaders from around the globe at the Eighth Annual World Electronics Forum (WEF) this week adopted principles encouraging every government to develop a national plan for broadband deployment. In addition, the Forum’s official communiqué – circulated by WEF Secretariat and Electronic Industries Alliance (EIA) President Dave McCurdy – advocates technology-neutral rollout of high-speed Internet and policy incentives by government when necessary. http://www.eia.org/news/pressreleases//2002-09-26.86.phtml

HOLLYWOOD, IT HAVE COMMON GOALS - Hollywood and the IT industry have differing philosophies about how to go about securely delivering films over the Internet, but they need each other. So said Jack Valenti, CEO at the Motion Picture Association of America, Monday during a session on Hollywood's digital transition at InformationWeek's Fall Conference in Tucson, Ariz.  http://story.news.yahoo.com/news?tmpl=story&u=/cmp/20020923/tc_cmp/iwk20020923s0009

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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