Cisco Government Affairs E-Update

Volume 2, Issue 36

11 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

 

If you have news or announcements that you would like other e-update subscribers to see, please send them to jearnhar@cisco.com.

 

 

This Week@WASHINGTON, DC

 

SENATORS URGE QUICK ACTION ON NATIONAL BROADBAND POLICY - Sens. John Breaux, D-La., and Don Nickles, R-Okla., sponsors of legislation to deregulate the regional Bell operating companies, urged FCC Chairman Michael Powell on Wednesday to expedite the creation of a national broadband policy "that achieves regulatory parity" for all providers of broadband services, CongressDaily reports. "There is simply no public policy justification for regulating the non-dominant players in this emerging and competitive market while the dominant players are completely unregulated," the senators wrote in a letter to Powell. (National Journal’s Tech Daily – www.nationaljoural.com)

LAWMAKERS TUNING IN TO NEW MEDIA ISSUES - Rep. Howard L. Berman has a daughter who's a big fan of downloading music online, but the Mission Hills Democrat is sponsoring a bill that might block file-swapping. And Sen. Ernest F. Hollings (D-S.C.) made a fan of Walt Disney Co. by introducing a bill requiring anti-piracy devices in new technology, but he's the entertainment industry's staunchest foe in blocking big media mergers.  As Hollywood starts to take center stage again in Washington, lawmakers--for different reasons--are promoting legislation that would have a significant effect on consumers' everyday activities, including buying TVs, taping favorite programs and downloading songs. http://www.latimes.com/technology/la-fi-mediapols6oct06,0,4033449.story?coll=la%2Dheadlines%2Dtechnology

BABY BELL RIVALS TO TAKE CASE TO WHITE HOUSE - Executives from upstart telecommunications firms are scheduled to go to the White House Friday to lobby senior officials to maintain tough restrictions on what services the Baby Bell telephone giants can offer. Executives from firms competing with Verizon and other regional phone companies are expected to tell White House Chief of Staff Andrew Card and special adviser Karl Rove that they should not kowtow to Baby Bell requests that the government kill regulations that tell them where they can sell Internet service.  http://www.washingtonpost.com/wp-dyn/articles/A7032-2002Oct10.html

 

FCC LEVIES RECORD FINE AGAINST SBC - The FCC fined SBC Communications $6 million on Wednesday for failing to open its landline telephone network to competing companies. The fine is the

highest ever imposed by the FCC, which had made sharing a condition of SBC's 1999 merger with Ameritech. "Instead of sharing, as the law requires, SBC withheld and litigated, forcing competitors to expend valuable time and resources to exercise their rights under the FCC's order," FCC Chairman Michael Powell said, adding that "[s]uch unlawful, anti-competitive behavior is unacceptable." http://news.com.com/2100-1033-961491.html?tag=fd_top_7

 

HOUSE APPROVES WEB RADIO ROYALTY DEAL - A last-minute change enabled the US House of Representatives to approve a royalty-payment deal between small Internet broadcasters and the music industry. The deal would allow Webcasters to pay a percentage of revenue or expenses to artists and record labels whose songs they use, rather than pay the flat rate set by the Library of Congress this summer.  Webcasters claimed that the rate, .07 cents per listener per song, could drive many of them out of business, exceeding revenue from advertising or other sources. Small Webcasters are defined as those who will have taken in less than $1 million in total from 1998 until the end of 2002. Trade groups for both sides expressed satisfaction with the outcome.

http://www.usatoday.com/tech/news/techpolicy/2002-10-07-web-radio-update_x.htm  

 

 

 

This Week@EMEA

 

BROADBAND "TAKING OFF IN THE UK" - An upcoming study by the Organization for Economic Co-operation and Development shows that broadband access in the UK is growing faster than other European countries. The UK government wants to make their country one of the most competitive places for broadband access by 2005, and is very close to having one million people connected to the Internet.  Much work has been done to get people online in the UK, but the country is still well behind Germany, France, Japan, Canada and the United States.  http://news.bbc.co.uk/2/hi/technology/2295697.stm

 

UK GOVERNMENT TO PUSH E-VOTING - Next year your local council could ask you to vote online, by mobile phone, digital TV or at a touch-screen kiosk - The UK government is calling on councils to conduct electronic voting trials in the next local elections, which will take place in May 2003.  Schemes that allow voting via the Internet, by mobile phone, digital TV, at a touch-screen kiosk or by post will all be welcomed, local government minister Nick Raynsford has indicated.  http://news.zdnet.co.uk/story/0,,t269-s2123453,00.html

 

TELECOM ITALIA TAKES EUROPE'S BIGGEST STEP IN VOICE OVER IP (VOIP) WITH CISCO SYSTEMS AND ITALTEL - 100% of Telecom Italia's national Rome-Milan voice calls and 50% of its international European voice calls now run over a converged "Voice over IP/MPLS " network - 100% of Telecom Italia's telephone calls made between Italy's capital city, Rome, and its industrial capital, Milan, as well as 50% of all Telecom Italia's International European telephone calls, travel over the Internet Protocol (IP) network. This represents over 3 billion minutes of telephone calls a year running over a Voice over IP (VoIP) solution based on technology from Cisco Systems and implemented by Italtel. http://newsroom.cisco.com/dlls/prod_100902.html

 

HIGH-LEVEL E-GOVERNMENT CONFERENCE SETS GOALS FOR ON-LINE PUBLIC SERVICES AND LAUNCHES NEW PAN-EUROPEAN PORTAL - E-government services must cater for Europe's linguistic diversity and be delivered as close as possible to the customer. These were key conclusions of the recent IDA (Interchange of Data between Administrations) conference: "Pan-European e-government services for citizens and enterprises: the role of IDA", in Brussels. The conference focused on the needs of cross-border users of e-government services. For citizens, these services include advice on living in another country (health care, driving licence, school, retirement, opening a bank account, finding employment etc). For enterprises, they include advice on accounting regulations, funding opportunities, human resources, employment laws, international trade, duties and procedures. To improve the current situation, the Conference saw the launching of the web-portal "Public-Services.eu" aimed at providing information and services to assist citizens and enterprises carry out cross-border activities with public administrations across Europe. http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/1435|0|RAPID&lg=EN

 

COLLEGES IN 16 COUNTRIES WORK TO CREATE VIRTUAL MEDICAL SCHOOL - Led by Scotland's University of Dundee, an international group of medical schools is trying to create the world's first online medical school. More than 50 institutions in 16 countries have helped plan the International Virtual Medical School, which its organizers plan to open in the summer of 2004. The institutions include all five of Scotland's medical schools, at the Universities of Aberdeen, Dundee, Edinburgh, Glasgow, and St. Andrews. Initial financing for the project, amounting to $140,000, came from the Scottish Higher Education Funding Council. http://chronicle.com/free/2002/10/2002100901t.htm

 

SPEECH - Prof. Mario Monti EU Commissioner for Competition Analytical Framework of merger review International Competition Network Inaugural Conference Naples, 28-29 September 2002 - http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/473|0|RAPID&lg=EN

 

SPEECH - Mr Erkki Liikanen Member of the European Commission, responsible for Enterprise and the Information Society "Enterprise Policy in Europe, in particular the role of SMEs" CEN (The European Committee for Standardization) Annual Meeting "European Standardisation - opportunity or threat for SMEs?" Lisbon, 10 October 2002 - http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/475|0|RAPID&lg=EN

 

BARRIERS TO BROADBAND ADOPTION IN IRELAND - An ODTR survey indicates that 39% of Irish adults are not likely to subscribe to broadband internet, and just 8% of net users cite its speed and immediacy as a key feature. http://www.emarketer.com/news/article.php?1001708&ref=ed

 

COMMISSION TO LAUNCH NANOTECHNOLOGY INDUSTRIAL PLATFORM - "Smart dust" computers are the size of a grain of sand. "Lab-on-a-pill" devices can surf our bloodstream. Nanotech products are extremely small so small they can save raw materials, energy and time. To discuss nanotech's potential, Mr Helge Sander, Danish Minister of Science, Technology and Development Innovation, and EU Research Commissioner Philippe Busquin today held a conference in Copenhagen, Denmark. The meeting brought together nanotechnology experts, researchers and policy-makers. As a next step, the Commission will launch a Nanotechnology Industrial Platform in 2003 - a forum gathering all major nanotech stakeholders at EU level.  http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/1434|0|RAPID&lg=EN

 

NIGERIA VOTE: PEACE THROUGH TECH? - Nigerian officials are investing $30 million in technology that they hope will allow the country to have a peaceful presidential election next April.  The upcoming election will be the first to be conducted by a civilian government in Nigeria's 42 years of statehood, and officials are particularly anxious to ensure that all goes well.  http://www.wired.com/news/politics/0,1283,55702,00.html

 

 

This Week@Asia/Pac

 

TAIWAN REJECTS U.S. COPYRIGHT DEMANDS - Taiwan has turned down a U.S. demand on Friday to extend copyrights on works including earlier Walt Disney movies for another 20 years as negotiators on both sides held talks on intellectual property rights.  Taiwan told a delegation led by Joseph Papovich, assistant U.S. trade representative, that it would not extend copyright protection to 70 years from 50 years, a Taiwan Ministry of Economic Affairs official said.  http://www.siliconvalley.com/mld/siliconvalley/4260499.htm


CISCO SELECTED FOR CHINA TELECOM'S "CHINANET" IP BACKBONE NORTHERN NETWORK - Cisco Systems, Inc. announced that China Telecom has selected Cisco technology and products for the construction of its northern ChinaNet IP backbone network expansion. The network will connect 10 provinces, including Beijing and Tianjin, and will maintain China Telecom's competitiveness across China, while maintaining service for its already large customer base in the north.  http://newsroom.cisco.com/dlls/prod_101002b.html

 

 

 

This Week@US STATES

 

STOPPED AT THE STATE LINE - CABERNET-AND-CONTACTS COALITION FIGHTS RESTRICTIONS ON E-COMMERCE  -  A native Californian, Washington lobbyist and wine lover Bob Moss has a short list of home-state favorites, many from wineries so small he can't find their labels in local stores. But ordering over the Internet for direct shipment to his home in the District is implausible because a local law permits consumers to receive only one quart of wine a month from out-of-state wineries. "It's very frustrating," Moss said.  Recently, however, such limits on shipping wine and other products -- including contact lenses, mortgages, cars and caskets -- across state lines are being challenged. A growing number of business owners, academics and government officials say these restrictions on Internet sales have become anti-competitive because they are hindering, if not outright blocking, business opportunities.  http://www.washingtonpost.com/wp-dyn/articles/A57272-2002Oct7.html

 

54 MEGABITS AND NOTHING ON - Ask anyone who's going through the process of building a first home network and they'll probably tell you they're doing it because of their job or to help the kids with their homework. But let's face it, the only thing that will really sell consumers on the idea of stringing category-five Ethernet cable around their baseboards is better entertainment.  http://www.forbes.com/2002/10/09/1009homenet.html

 

OTHER TECH STORIES OF THE WEEK

 

BROADBAND BECOMES ULTIMATE PIRACY TOOL - Broadband technology is becoming the greatest threat to software and entertainment companies battling copyright piracy in Asia, industry executives say.  Traditional copyright piracy continues to worsen in developing countries including China, Malaysia and Indonesia, where illegal optical-disc factories produce millions of music, video and software discs each year. Developed Asian countries, where broadband penetration is the highest, are adding fronts to the piracy war.  "As broadband becomes more accessible and home PCs become more pervasive, the Internet is evolving as a whole new canvas for piracy," said Sanjay Mirchandani, Southeast Asia president for Microsoft Corp. He and other executives were speaking during a panel discussion at the World Economic Forum here.  http://online.wsj.com/article/0,,SB1034042124444014600,00.html (Paid subscription required)

 

COURT FINDS COPYRIGHT CASE A TOUGH ONE - After intense oral arguments this week, the U.S. Supreme Court appeared torn as to the ultimate outcome of the Eldred v. Ashcroft copyright extension case. The high court's ruling will determine whether Congress faces any real limits in giving authors and artists exclusive control of their work – a matter made murkier by the Internet's ability to facilitate the spread of works in the public domain. "I can find a lot of fault with what Congress did here... [b]ut does it violate the Constitution?" asked Justice Sandra Day O'Connor, adding that it might not have been good policy to keep so much art from public use. Stanford Law professor Lawrence Lessig answered Justice O'Connor's question in the affirmative, arguing that the 20-year extension exceeds Congress's power to set "limited times" and also violates the First Amendment. While Lessig focused on potential users of artistic works, Solicitor General Theodore Olson defended the creators, suggesting that Congress intended to give artists a wide window to benefit from a work's distribution. http://www.usatoday.com/tech/news/techpolicy/2002-10-09-net-copyright_x.htm

 

BROADBAND SPEED AT DIAL-UP PRICES? - Artera Group has launched a service called Artera Turbo that promises to boost dial-up speeds by an average of five times, at just $10 a month--and offers a free two-week trial for skeptics.  Artera Turbo works by routing your Internet connection through its own servers, which automatically shrink images, block pop-up and banner ads, and cache popular Web pages. On your PC, Artera Turbo client software performs a handful of other tricks to accelerate surfing, such as optimization of modem settings and additional caching of Web pages on your hard drive so the sites you visit regularly will load even faster.  http://story.news.yahoo.com/news?tmpl=story&u=/pcworld/20021010/tc_pcworld/105795

 

HOW FAST CAN WIRELESS GET? - Wireless data transfer speeds hold the promise of moving from today's dial-up pace to hundreds of kilobits per second, but that promise has a high price tag attached, and demand so far has been flimsy. Given the prohibitive expense and the current yawning response from consumers, the speed of wireless tech is not likely to max out anytime soon.  http://story.news.yahoo.com/news?tmpl=story&u=/nf/20021008/bs_nf/19609

 

CRAZY FOR A CONNECTED KITCHEN? - For the last week or so, the potential customers at the P.C. Richard & Son electronics store on Manhattan's Upper East Side have had a true novelty catching their eyes just a few feet inside the street-level entrance. The first thing they notice is the 15-inch LCD TV screen, usually tuned to an all-news channel. It's not particularly large nor is the picture quality all that remarkable. What gets the attention is the fact that the screen is built into the front of a refrigerator. Ask a salesman a few questions about it and you'll get a sales pitch that's sprinkled with the pride of a new father bragging about his kid. The touch-sensitive screen can also be used for Internet access. It connects to the Internet via an Ethernet networking port. Running Microsoft's Windows CE, it can retrieve e-mail, display Web sites and even has a 20-gigabyte hard drive.  http://www.forbes.com/2002/10/08/1008homenetwork.html

 

WHY THE POOR NEED TECHNOLOGY – (commentary) There are more than 600 million people in the world who have access to the Internet, yet an estimated 5.5 billion are not online. Most of these people live outside developed Western countries. Though over half of UK households are online, only 0.1% of homes in Bangladesh are on the Net. The Internet creates greater opportunities for communities and schools, but many developing countries continue to weigh the value of integrating technology versus other pressing social problems such as access to healthcare and clean water. Development experts, however, are beginning to see the Internet as an important gateway to other resources, as well as to self-reliance. Author Bill Thompson suggests an update to the old adage "If you give me a fish, you feed me for a day. If you teach me to fish you feed me for life. " He proposes: "If you give me information, you answer one of my questions. If you get me online, you let me answer my questions for myself." http://news.bbc.co.uk/2/hi/technology/2295447.stm

 

 

FACTS & STATS

 

KIDS KNOW MORE ABOUT INTERNET THAN BOOKS - Children in the UK know more about the Internet than they do about books, reports the BBC. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358419&rel=true

 

NO NEW CONFIDENCE IN INTERNET - The latest Yahoo/AC Nielsen Internet Confidence Index shows that overall confidence in the Internet remained flat during the third quarter. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358415&rel=true

 

WEB-BASED SHOPPING STILL UNPOPULAR IN EU - eMarketer reports that only 35 percent of Internet users in the European Union have purchased products or services online for personal use.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358388&rel=true

 

ECOMMERCE ACTIVITY IN CANADA ON THE RISE - New research from Statistics Canada indicates that 2.2 million Canadian households spent close to CAD2 billion(USD1.27 billion) on online shopping in 2001.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358400&rel=true

 

OVER 60 BILLION DAILY EMAIL MESSAGES TO BE SENT - The total number of email messages sent daily will exceed 60 billion worldwide by 2006, according to an IDC forecast. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358417&rel=true

 

GROWTH IN NUMBERS SEEKING HEALTH INFO ONLINE - The BBC reports that more people are turning to the Internet to look for health information for themselves and their families. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358381&rel=true

 

HONG KONG TOP FOR MOBILE/NET TECHNOLOGIES - Hong Kong and Denmark rank best in terms of mobile and Internet technologies, according to the International Telecommunications Union's (ITU) Mobile/Internet Index.

http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358390&rel=true

 

HIGH-SPEED ACCESS COSTS TOO HIGH FOR US USERS - The price of high-speed Internet access is too high for most US users, according to a report by the Office of Technology Policy.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358404&rel=true

 

SPANISH BROADBAND COSTS TO FALL NEXT YEAR - Broadband costs in Spain are set to get cheaper, claims a report from Europemedia.net.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358410&rel=true

 

US BROADBAND SUBSCRIBER MARKET SET TO GROW - The Yankee Group predicts that the US broadband subscriber market will grow 361 percent by the end of 2007. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358398&rel=true

 

NEARLY FOUR MILLION DSL SUBSCRIBERS IN JAPAN - The number of DSL connections in Japan continues to rise with an additional 310,000 subscribers being added at the end of July, reports AsiaBizTech.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358382&rel=true

 

BROADBAND GETTING MORE POPULAR IN THE UK - The number of Internet connections in the UK rose by 16.5 percent from July 2001 to July 2002, according to the Office of National Statistics. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358396&rel=true

 

MORE BROADBAND SUBSCRIBERS IN EUROPE - Almost six percent of Europeans have access to broadband services, up from four percent six months ago. With 56 percent of subscriptions,  xDSL technologies have become the lead access mechanism for the first time. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358402&rel=true

 

HIGH-INCOME GROUPS FUEL BROADBAND TAKE-UP - Nearly 30 percent of US households with incomes over USD100,000 have broadband Internet service at home, according to Leichtman Research. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358389&rel=true

 

INTERNET USE INCREASING IN AFRICA - Reuters reports that Internet use is taking off in Africa. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358408&rel=true

 

HUNGARIAN WOMEN GET ON THE NET - The number of Hungarian women going online has almost tripled over the past three years, reports Europemedia.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905358386&rel=true

 

 

 

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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