Cisco Government Affairs E-Update

Volume 2, Issue 5

25 January 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

MORE HIGH-TECH SUPPORT FOR BROADBAND DEPLOYMENT - Chief executives from some of the nation’s leading information technology companies brought their case to Washington this week as they met with U.S. policymakers to provide specific recommendations on the development of an advanced wired and wireless information infrastructure that will support the applications of the future. The executives – Michael Dell of Dell, Craig Barrett of Intel, Christopher Galvin of Motorola, Lou Gerstner of IBM, Lars Nyberg of NCR and Larry Weinbach of Unisys – are members of the Computer Systems Policy Project (CSPP), a coalition of CEOs from U.S. computer hardware and systems companies.  During meetings with Bush Administration officials and Members of Congress, the executives discussed the importance of universally available, wired and wireless broadband to future economic development and offered specific recommendations as a starting point for the nation’s leaders.  Their vision is outlined in a report released by CSPP, “Building the Foundation of the Networked World:  A Vision for 21st Century Wired and Wireless Broadband.”  
CSPP proposes that:
· By year-end 2003, 80% of U.S. homes should be able to get at least 1.5 Mbps broadband
capacity and 50% of U.S. homes should be able to get 6 Mbps from at least two providers.  By the end of the decade, 100 million homes and small businesses should be able to get up to 100 Mbps affordable broadband capacity.  
· The U.S. make available in the marketplace 120 MHz of spectrum by 2004, with another 80
MHz made available by 2010, to be harmonized with global spectrum use to the maximum extent possible.  The U.S. should implement a process to make additional licensed and unlicensed spectrum available beyond 2010 in a way that is consistent with an effective, long-term vision for its management, the organization says.

Both the report and an archived webcast of the event are available at www.cspp.org.
The report: http://www.cspp.org/reports/networkedworld.pdf (Adobe required)

HIGH-TECH CEOs PITCH BROADBAND TO CHENEY, HASTERT, OTHERS - A group of high-tech executives asked senior government officials this week to help beef up the nation's high-speed Internet infrastructure, echoing recent efforts by other high-tech lobbying groups. The executives want the U.S. government to help by easing regulations that slow broadband construction efforts, making more wavelength available for wireless Internet systems, and encouraging more research and development efforts.  http://dailynews.yahoo.com/h/nm/20020124/wr/tech_broadband_dc_2.html

BUSH ADMINISTRATION MUST TACKLE HOW TO DEFINE 'BROADBAND' - Possibly the most vexing problems the Bush administration faces in crafting high-speed Internet policy are defining "broadband" and identifying why more people do not have it, panelists said at this week’s Broadband Outlook 2002 Forum.  "A well-defined problem is half the solution," said Dale Hatfield, a former chief of the FCC's Office of Engineering and Technology and the chairman of the Interdisciplinary Telecommunications Department at the University of Colorado at Boulder.  Depending on whom you ask, the problem with broadband is either that there are few incentives for carriers to invest or no compelling reasons for consumers to subscribe. Bob Pepper, chief of the FCC's Office of Plans and Policy, noted that high-speed internet service is available to most households, and after four years, the adoption rate is 10 percent. That adoption rate is higher than for the videocassette recorder, which only hit 10 percent penetration after 10 years, and color television, which took about a dozen years to hit that mark, he said.  So policymakers must determine why more people are not buying broadband services. "We need to be very clear: Is there a problem the government needs to address and fix?" Pepper asked. (National Journal’s Tech Daily – www.nationaljournal.com)
(Related: see Cisco’s Broadband Primer: http://www.cisco.com/gov/networks/broadband_deploy.html)

WHITE HOUSE BROADBAND PANEL ANNOUNCED - The White House announced that North Carolina State University Chancellor Marye Anne Fox will oversee a panel that will develop recommendations on high-speed Internet policy for President Bush.  The panel is one of four created by the President's Council of Advisers on Science and Technology (PCAST), which develops science and technology policies for the Bush administration. Fox's panel is titled Infrastructure for the 21st Century.  "Internet technologies have been a major reason for our outstanding economic performances of the 1990s," Fox said in a Wednesday news briefing outlining the PCAST panels. "It is quite important that we identify the [regulatory] barriers" to broadband deployment.  High-tech members that will be part of Fox's panel include Autodesk CEO Carol Bartz, Semiconductor Industry Association President George Scalise, Microsoft Executive Vice President Robert Herbold and Dell Computer CEO Michael Dell. (National Journal’s Tech Daily – www.nationaljournal.com)
PCAST: http://www.ostp.gov/PCAST/pcast.html

COMMERCE’S BOND ADDS ROLE - Phil Bond, the Commerce Department's undersecretary for the Technology Administration, will be assuming the added role of Commerce's chief of staff, replacing Laurie Fenton, who is returning to the private sector. The move increases the profile of technology issues within the Bush administration and will increase Commerce Secretary Donald Evans' understanding of high-tech issues, industry sources said. (National Journal’s Tech Daily – www.nationaljournal.com)

NTIA CHIEF SPEECH ON BROADBAND - National Telecommunications and Information Administration (NTIA) chief Nancy Victory gave a speech titled "The New Medium for a New Media?" at the Broadband Outlook 2002 Conference in Washington DC. She stated that the administration does not yet have a broadband policy. http://www.ntia.doc.gov/ntiahome/speeches/2002/outlook_012302.htm

NEW FEDERAL CTO LAYS OUT HIS STRATEGY - The federal government’s new chief technology officer laid out his plans for defining and putting in place a technology architecture for agencies in a telephone interview with journalists.  Norman Lorentz, the former CTO of Dice Inc., said he would focus his attention on two areas. First, he’ll help agency officials managing the 24 e-government projects sponsored by OMB define the overall architecture of their projects. Second, Lorentz said he’d help agencies find the right technology products for their homeland security needs and develop architectures for them as well.  http://www.govexec.com/dailyfed/0102/011802h1.htm

GOVNET DECISION NEAR - The White House is almost ready to make its decision on whether to go forward with the GovNet secure intranet for critical federal applications, a top federal official said Jan. 23.  Within the next two weeks, federal security experts will brief Richard Clarke, President Bush's cyberspace security adviser, on the assessment of more than 160 industry proposals for building GovNet, said Sallie McDonald, assistant commissioner for information assurance and critical infrastructure protection at the General Services Administration's Federal Technology Service. http://www.fcw.com/fcw/articles/2002/0121/web-govnet-01-24-02.asp

GOVNET: WHAT IS IT GOOD FOR? - GovNet, the pet project of Richard Clarke, special assistant to the president for cyberspace security, has yet to stir much excitement from either government or industry. Clark pitched the project to President Bush in October 2001, saying it was necessary to have a protected, ultra-reliable network through which government agencies could share information. Clarke's outline for GovNet called for a massive, completely private Intranet for government agencies and authorized users. But critics say identical protected networks are already available for use by federal agencies, and Clarke's efforts would be better directed at revamping and revitalizing the existing systems. Forrester Research released a report in October saying that GovNet was a "pipe dream" that "simply won't work" due to the complexity of the proposed project. GovNet, however, is not dead yet; more than 170 proposals have been received from vendors who want to be involved in the networks creation. (http://www.wired.com/news/politics/0,1283,49858,00.html)

CIO COUNCIL TO PUSH TECH STANDARDS - A CIO Council committee, with help from several agencies involved in President Bush's e-government agenda, plans to release a report soon recommending that all divisions of the federal government use certain technical standards as they build new computer systems and applications. The potential benefits of using such standards include greater interoperability among systems, lower total cost for computer systems through bulk purchasing and centralized support services, and perhaps even a reduction in the number of systems governmentwide as agencies with similar business requirements team up on projects. http://www.fcw.com/fcw/articles/2002/0121/pol-cio-01-21-02.asp

HHS PREPPING FOR E-GRANTS PORTAL - The Department of Health and Human Services is seeking help in launching a Web portal for electronic grant applications — one of the Bush administration's 23 cross-agency e-government initiatives. HHS sent a notice for information to streamline the federal grant application process using desktop computers, commercial-off-the-shelf software and Web-based applications. The idea is to handle federal grants across government swiftly and electronically instead of on paper. HHS is the lead federal agency in the effort to streamline the process.  HHS also seeks software that can create a package of forms and documents that are secure from tampering and can use electronic signature software to verify a person's identity.  http://www.fcw.com/fcw/articles/2002/0114/web-hhs-01-18-02.asp

H-1B VISAS JUMP IN 2001 - Demand for skilled foreign workers reached an all-time high in fiscal 2001--despite a recession and massive layoffs of American workers.  The U.S. Immigration and Naturalization Service (INS) received 342,035 applications for H-1B visas between Oct. 1, 2000, and Sept. 30, 2001--a 14.4 percent increase from fiscal 2000, according to a survey released Tuesday by VisaNow.com. H-1B visas allow foreigners with college degrees and relevant job experience to work in the United States, usually for technology firms looking for programmers and engineers.  The survey, based on public data supplied by the INS, is one of the first to demonstrate that the recession hasn't necessarily dented demand for controversial H-1B visas. A flurry of news reports in the past year have concluded that demand may be shrinking because the INS issued only about 163,000 H-1B visas in the 2001 fiscal year--far short of the federal cap of 195,000. http://news.com.com/2100-1017-820302.html

This Week@INTERNATIONAL

A REGULATORY REMEDY FOR EUROPEAN BROADBAND - The European Union’s hope of creating a digital society with widespread broadband access to the Internet has stalled. Saddled with debt, many incumbent telecommunications operators are cutting back on capital expenses.  Meanwhile, the upstarts that were supposed to break down the gates of Europe’s entrenched monopolies are finding entry much tougher than planned. As a result, many new companies that were in the vanguard of the push for faster, more efficient access to the Internet are teetering on the verge of financial ruin. Added to this, upgrading cable television systems has been more expensive and more complicated than expected. http://www.mckinseyquarterly.com/article_page.asp?tk=346251:1158:38&ar=1158&L2=38&L3=98 (Free registration required)

SLOVAKIA IN 3G LICENCE TENDER - The Slovak government launched a tender to sell three third-generation

mobile telephone licences for Sk1.5bn (E35m, £22m) each. http://tm0.com/sbct.cgi?s=166389374&i=453591&m=1&d=2227944

AN ODD BROADBAND OFFER IN OZ - Virtual private networks, cable TV, video on demand, networked gaming, telephony and high-speed Internet access -- all offered by different providers via one high-capacity digital pipe to the home.  This is broadband the way it should be -- a competitive free-for-all on the content side, but delivered through a monopoly data carrier that sweats the technical details.  At least, that's the "open-access" business model broadband provider Transact Communications is betting $100 million on in the sleepy Australian national capital of Canberra.   http://www.wired.com/news/business/0,1367,49853,00.html

CHINESE NET POPULATION GROWING - The number of Internet users in China grew by almost 50 percent to

33.7 million in 2001, reports the South China Morning Post. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357563&rel=true

KENYA BRAVES THE MOBILE INTERNET - Kenyan companies are launching mobile internet services, anticipating greater demand for these services than has so far been seen in the West. Swift Global, an internet service provider, and KenCell Communications, a mobile phone company, have launched a joint mobile internet service aimed at increasing internet access, especially in rural areas.  The joint deal with KenCell Communications means that all KenCell Yes customers can connect to the internet, either using a WAP-enabled mobile phone or a computer. http://news.bbc.co.uk/hi/english/business/newsid_1778000/1778062.stm

INTERNET RETURNS TO SOMALIA - A new telecommunications company has opened its doors in Somalia, two months after the country's only internet provider and a major telecommunications company were closed down for allegedly supporting terrorism.  The firm, NetXchange, opened its business on Wednesday with an attractive charge of 60 US cents per minute for all its telephone calls, lower than the existing prices in the Somali capital, Mogadishu. http://news.bbc.co.uk/hi/english/world/africa/newsid_1775000/1775865.stm

 

This Week@US STATES

BROADBAND OUTLOOK FOR 2002 - Although approximately 68% of U.S. homes have access to broadband connections, only 9% to 10% of those households subscribe to high-speed Internet services, according to research conducted by the Consumer Electronics Association (CEA).  That disparity was one of the central topics during panel discussions and speeches at the Broadband Outlook 2002 conference, held here Wednesday. Members of the telecommunication and media industry, as well as policymakers, debated whether the threat of government regulation, a lack of consumer interest, or deployment glitches are standing in the way of greater broadband adoption across the country.  Most speakers at the conference agreed that something is wrong when only a small fraction of potential broadband users take advantage of the service, which has been in existence in the form of cable modems or DSL for about four years. However, CEA offered some hopeful news: the group estimates that by the end of 2002 the number of broadband connections in the U.S. will have doubled to roughly 20% of the potential base, said Sean Wargo, a senior industry analyst with CEA.  http://www.nwfusion.com/news/2002/0123bband.html

GROWTH OF NET USE IN S.F. LEVELING OFF - Move aside, Silicon Valley: Pittsburgh actually had the fastest-growing Internet surfing population last year, according to Nielsen/NetRatings.  Also topping the list were Salt Lake City, Phoenix and Raleigh, N.C.  Growth in San Francisco, Seattle and New York, which have some of the largest numbers of home Internet users total, is leveling off because those markets are more saturated relative to other metropolitan areas, said Jarvis Mack, a senior media analyst at Nielsen/NetRatings.  http://news.com.com/2100-1017-822591.html   

AEA STATE AGENDA ANNOUNCED - The electronics group AeA this week will firm up its positions on various policies that state legislatures will debate this year and that could affect the technology industry.  AeA's State Policy Action Network (SPAN) meT in Santa Clara, Calif., this week and gave special attention to the effects state budget deficits could have on industry.  SPAN's agenda will include: broadband deployment; tech companies' opportunities within state economic stimulus packages and tax policies; e-government and state and local procurement for information technology services; online security and privacy; environmental regulations aimed old computers and other electronic waste; and workforce development and education.  (National Journal’s Tech Daily – www.nationaljournal.com)

APATHY GREETS BROADBAND PLAN - Michigan's biggest problem with the Internet isn't a lack of high-speed access, as Gov. John Engler and his broadband boosters would have us believe.  The reason more people aren't clamoring for a fast connection to the Web is a lack of compelling content. Add to that an excess of junk e-mail, intrusive and obnoxious advertising, proliferating pornography and Web sites with questionable privacy standards that demand too much personal information. http://dailynews.yahoo.com/h/nm/20020124/wr/tech_broadband_dc_2.html

FOOD STAMPS TO BE DELIVERED ONLINE - Most states will make the Oct. 1 deadline for having a statewide system in place for delivering food stamp benefits electronically, according to a recent General Accounting Office report. GAO found that 46 of the 53 jurisdictions that are required to implement electronic benefits transfer (EBT) systems to deliver food stamp benefits likely will meet the deadline. The jurisdictions are the 50 states, Washington, D.C., Guam and the U.S. Virgin Islands. http://www.fcw.com/geb/articles/2002/0121/web-food-01-22-02.asp

OTHER TECH STORIES OF THE WEEK

 

POPE SAYS INTERNET 'WONDERFUL' BUT NEEDS REGULATING - The Internet caters to the best and worst of human nature and needs regulation to stop depravity flooding cyberspace, Pope John Paul said this week.  The 81-year old Pontiff, who last year sent his first message over the Internet, praised it as a ``wonderful instrument'' that should be used to spread the word of God and encourage global peace.  http://dailynews.yahoo.com/h/nm/20020122/wr/pope_internet_dc_1.html

NET IMPACT STUDY UPDATED - Cisco sponsored the Net Impact study which was designed to measure the current and anticipated cost savings and revenue increases that organizations believe have been created by their investment in Internet business solutions. It was updated in Dec. 2001. The study contains valuable information on the economic benefits of the Internet in the U.S.

Some of the key findings in this study are:

-- U.S. organizations that are currently deploying Internet business solutions have realized a cumulative cost savings of $155 billion dollars over the 3-5 years since they have introduced these systems.

-- U.S. organizations that are currently deploying Internet business solutions expect to realize one half trillion dollars in cumulative cost savings once all Internet businesses solutions have been fully implemented by 2010.

-- The .36 percent impact on the productivity growth rate generated by Internet business solutions has the potential to drive forty percent of the projected increase in U.S. productivity from 2001 - 2011 over the 1974 - 1995 growth rate. 
You can view the study at: http://www.netimpactstudy.com/

DIGITAL DIVIDE: RACISM'S NEW FRONTIER - "If we have racism," writes Robin Chandler, "a digital divide is its new colonial frontier." He suggests that IT has become an important site of struggle for democracy and social and economic justice. "The future of linking students and teachers in networked learning communities around the globe represents the best hope for a peaceful century," says Chandler, who

suggests that IT is key for better jobs and better lives. He likens the digital divide to structural inequalities such as poverty, lack of access and unequal educational opportunities. http://www.guardian.co.uk/Archive/Article/0,4273,4336861,00.html

TECHNOLOGY BARRIERS SAID TO HURT TELECOMMUTING - While reluctance on the part of federal managers is often touted as the biggest barrier to expansion of telecommuting across the federal government, more practical matters, such as retrieving office e-mail from home, can also keep employees from using their homes as satellite work sites, the Office of Personnel Management says.  According to OPM, just 2.6 percent of the 1.7 million civilian federal employees telecommute at least once a week. That percentage rises slightly when you include employees who telecommute less than once a week. Some of the barriers that keep federal workers from telecommuting include the reluctance of managers, budget restrictions, concerns about computer security, technology hurdles and fears by employees that they’ll become out of touch with the workplace.  http://www.govexec.com/dailyfed/0102/012402t1.htm

NEW GUIDELINES TO HELP DEAL WITH DOCTOR-PATIENT E-MAILSAfter filling a prescription for an antibiotic, Diane McElhany read about possible side effects and e-mailed her doctor, Karen Ilika, to ask if there were alternatives. In her electronic reply, Dr. Ilika explained why that drug was best and urged her to start taking it right away. Ms. McElhany has become so accustomed to communicating with Dr. Ilika online that she even e-mailed her from Italy recently to report that a medication prescribed for the trip had worked just fine. "I feel very plugged in to my doctor, and I can always get the answer in one day to nonurgent questions, without being a pain in the neck or playing phone tag with a nurse," says Ms. McElhany, a Seattle chemist. Using the secure messaging system on Dr. Ilika's Web site, part of a network of doctor sites run by Medem Inc., Ms. McElhany can also make appointments and request prescription refills. Dr. Ilika says she won't ever charge for routine e-mails, but will consider charging fees for more detailed consultations later this year, when Medem adds the option to bill patients via credit card for online consults. http://interactive.wsj.com/articles/SB1011907875956131160.htm (Paid subscription required)

CATCH IT BEFORE IT SPREADS - New Web-based systems could alert public health officials to disease

outbreaks nearly in real time. The Walter Reed Army Medical Center is testing a surveillance system that is intended to mine data on multiple health indicators across a population, helping epidemiologists spot trends

and spikes that a single hospital, doctor or pharmacist might not see. If the new tools work as planned, they could cut the human cost of naturally occurring disease outbreaks and biological attacks by 50 percent to 90

percent, estimates Dr. Alan Zelicoff, a senior scientist at Sandia National Laboratories in Albuquerque. http://www.washtech.com/news/biotech/14779-1.html

OFFLINE GIANTS EAT UP WEB AD SPACE - Major advertisers are increasingly taking a shine to the Web as a promotional tool for their wares--a possible sign for recovery in the lackluster online ad market.  This week, Frito-Lay, the maker of Doritos, said it bagged its annual Super Bowl advertising and tripled its investment in Internet marketing to an estimated $2 million, a move aimed at complementing its broader initiative to reach teens.  http://news.com.com/2100-1023-822569.html

TECH FIRMS FORM GROUP FOR MOBILE PAYMENT STANDARDS - U.S. and European technology companies said this week they had formed a consortium to set standards for payments with mobile phones. The consortium, named PayCircle, is set up by U.S. computer to printer group Hewlett-Packard, telecom equipment maker Lucent Technologies, software firm Oracle, computer and software company Sun Microsystems and Germany's telecom equipment maker Siemens. ``The consortium aims to provide mobile device users worldwide a standard means of making mobile payments, regardless of the payment systems used by merchants or service providers,'' the new group said in a statement.  Until now, the large number of incompatible payment systems has hindered the spread of m-commerce, it said. PayCircle intends to define open and uniform interfaces based on existing standards, without the need to install any new software. http://dailynews.yahoo.com/h/nm/20020124/tc/tech_mobile_payments_dc_1.html

RESURRECTING BROADBAND – MSNBC OP-ED - …we hear that the White House is going to put its weight behind a proposal that in part harks back to the Space Race Era mentality of putting a man on the moon before the end of the 1960s in an effort to “beat the Russians.” The Technology Network (TechNet), an organization of some 300 high-tech CEOs, has called on the government to adopt a goal of “100 megabits per second to 100 million homes and small businesses by the end of the decade.” How JFK of them.  “The United States led the world in developing the information economy. If we want to keep our leadership role, we need a high bandwidth network that will give U.S. citizens access to the enormous promise of 21st century technology,” said TechNet CEO Rick White on the day he announced the proposal. http://www.msnbc.com/news/693047.asp

CONSORTIUM OF 12 UNIVERSITIES BEGINS PROJECT TO DELIVER ACADEMIC E-BOOKS - Academic libraries and university presses at Big Ten universities and the University of Chicago have teamed up in an e-publishing venture that aims to put hundreds of scholarly books in electronic form.  Last month, leaders of the 12 universities committed from $50,000 to $100,000 to develop a prototype for the joint e-publishing venture, says Tom Peters, director of the consortium's center for library initiatives. The institutions have worked together for decades as part of a group called the Committee on Institutional Cooperation. http://chronicle.com/free/2002/01/2002012301t.htm

FACTS AND STATS:

E-LEARNING IN WESTERN EUROPE - IDC projects the European business skills training market will reach $13 billion in revenue by 2006 with a five-year compound annual growth rate (CAGR) of 14.9%. IDC estimates that over 27% of business skills training content will be provided through e-learning by 2005. The UK, Netherlands and Scandinavia are the most advanced regions in adopting and developing e-learning.

UK BUSINESSES MAKING BROADBAND CONNECTIONS - According to a survey conducted among readers of the UK business magazine Computing, as of January 2002 one in five businesses in the UK cannot access broadband services. Computing reports that two-thirds of its readers have broadband internet connections, and 18% plan to implement broadband over the next year.

WIDESPREAD DSL IN JAPAN - Newsbytes reports that according to the Japanese government, there were 1.52 million digital subscriber line (DSL) connections in the country in 2001 - up from just 9,732 DSL lines in operation at the end of 2000. The Ministry of Public Management, Home Affairs, Posts and Telecommunications finds that 320,000 connections were added between November and December 2001.

HIGH DEMAND FOR ON-DEMAND - According to Cahners In-Stat/MDR, the number of worldwide households using "on-demand" services (such as video-on-demand and personal video recording) will leap from 1.3 million in 2001 to more than 33 million in 2005. Cahners believes that video-on-demand will gain much popularity in North America, with service revenues in the region rising from $86 million in 2001 to more than $1.75 billion in 2005.

GLOBAL ACCESS DEVICE MARKET HEALTHY - The global market for all Internet access devices will grow by 41.6 percent between 2000 and 2005, according to Cahners In-Stat.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357549&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.

CISCO GOVERNMENT AFFAIRS@2001

Cisco’s top policy focuses for 2001 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

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