Cisco Government Affairs E-Update

Volume 2, Issue 6

1 February 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

PRESIDENT GEORGE W. BUSH DELIVERS STATE OF THE UNION ADDRESS - In his first State of the Union address, President Bush unveiled spending priorities tailored to reflect the administration's goals of winning the war on terrorism and helping the U.S. economy to recover. http://www.whitehouse.gov/stateoftheunion/

FCC SPEECH - W. Kenneth Ferree, Chief Cable Services Bureau, Federal Communications Commission at the Broadband Outlook 2002 Conference - "How Do You Build The Information Superhighway?" - http://www.fcc.gov/csb/broadband_jan23.html

INTERNET CAUCUS CO-CHAIRMEN OUTLINE TOP TECH ISSUES IN CONGRESS - The co-chairmen of the Congressional Internet Caucus see high-speed Internet, privacy, class-action lawsuit reform and computer security as the top high-tech issues Congress will tackle in 2002.  In an interview with reporters from National Journal's Technology Daily, Reps. Bob Goodlatte, R-Va., and Rick Boucher, D-Va., also listed unsolicited commercial e-mail, Internet gambling, and intellectual property as other key industry issues that will be discussed in Congress this session.  Broadband is one of the first issues likely to be debated on the House floor this year, the lawmakers said. House Speaker Dennis Hastert, R-Ill., has promised that the broadband bill, H.R. 1542, sponsored by House Energy and Commerce Committee Chairman W.J. (Billy) Tauzin, R-La. and John Dingell, D-Mich., will be voted on in March. Internet Caucus: http://www.netcaucus.org/ (National Journal’s Tech Daily – www.nationaljournal.com)

TELECOM ASSOCIATION EYES BROADBAND AS TOP PRIORITY - The Telecommunications Industry Association (TIA) is looking to the FCC to fix regulatory problems the group sees as impediments to the deployment of high-speed Internet access, it said during a briefing this week. Without a new policy, the telecom sector and the economy will continue to suffer, the group said.  Policymakers should ease the regulations on the upgraded networks and new investments of incumbent providers, or regional Bell companies, said TIA President Matt Flanigan. "You have to have a regulatory policy that is going to allow the incumbents to have confidence" to invest in the next generation of products and technologies, he said.  The FCC has launched two proceedings governing broadband networks and another is in the works, so the group is focusing on the FCC and is shifting from the congressional fight over the Tauzin-Dingell bill, H.R. 1542.  "There is some optimism that things can be accomplished at the FCC" based on statements by FCC Chairman Michael Powell and other members of the commission, said Derek Khlopin, TIA's director of law and public policy.  (National Journal’s Tech Daily – www.nationaljournal.com)


BROADBAND BACKERS WANT FEDERAL HELP - Faced with tepid customer response, some of high tech's largest firms now want federal help expanding the high-speed Internet service on which their futures depend.  Expanding high-speed Internet service would greatly boost the fortunes of the companies involved, which have suffered through a devastating recession. And the idea of crafting a national policy to do it appears to have substantial support in Washington -- at least in principle. http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/01/25/BU77085.DTL

COMPUTER SECURITY BILL BACKED BY ITAA - An influential high-tech lobby group today told leadership in the House of Representatives that it supports a cybersecurity bill backed by Rep. Sherwood Boehlert, R-N.Y., that is "crucial" for increasing online security research.  Information Technology Association of America (ITAA) President Harris Miller in a letter to House leadership said that "because research and development are vital to the nation's critical information systems, we urge Congress to act now."  http://www.newsbytes.com/news/02/174130.html

SENATE BILL WOULD FUND CYBER-SECURITY - Concerns about computer attacks have once again drawn the attention of lawmakers on Capital Hill. Sen. John Edwards this week introduced twin pieces of legislation that would fund efforts to protect government computers from cyber-attacks. The bill would give $350 million over the next five years to the National Institute of Standards and Technology, which would spend the money researching and implementing efforts to fight computer hackers and viruses. http://www.msnbc.com/news/695517.asp?0si=-

FORMER AOL EXEC TO BE DEMS CTO - Former America Online Inc. executive Mark Walsh, 47, became the latest high-tech millionaire to turn to politics as he was named the Democratic National Committee's first-ever chief technology officer.  http://www.washingtonpost.com/wp-dyn/articles/A6232-2002Jan31.html

DNC TACKLES OWN DIGITAL DIVIDE - The technology era, well under way at the Republican Party, is dawning at last for Democrats.  The party of Bill Clinton, who frequently decried the "digital divide" between rich and poor, and Al Gore, the tech wonk who coined the phrase "information superhighway," is upgrading to the tune of $10 million.  In recent years, Republicans surged ahead of Democrats in all kinds of technology, including the ability to e-mail the party faithful and recruit volunteers online. It took Election Day 2000 to convince Democrats that they couldn't wait any longer. The Florida GOP sent close to 10,000 e-mails that day prodding people to vote and get their friends to the polls. Gore lost the state — and the presidency — by 537 votes.  http://www.usatoday.com/news/washdc/2002/01/31/usat-politech.htm

PENTAGON HAS LONG-TERM PLANS TO BOOST TECH SPENDING - The official in charge of the Pentagon's finances said Monday that a proposal to increase high-tech spending in the next defense budget is the first step in a long-term plan to incorporate more technology into all branches of the military.  Dov Zakheim, under secretary of defense and chief financial officer for the Pentagon, said the military's long-term goal is to increase science and technology spending from 2 1/2 to 3 percent of a defense budget that may grow next year to more than $375 billion -- an increase that would mean billions of extra dollars for high-tech goodies. http://www.siliconvalley.com/docs/news/svfront/defen012902.htm

SENATOR RE-INTRODUCES HIGH-TECH TAX PLAN - After the Senate on Friday rejected a proposal to boost the chamber's plan for accelerating the tax write-off for companies' assets, Sen. Gordon Smith, R-Ore., reintroduced his high-tech tax depreciation plan as a two-year tax break. http://www.newsbytes.com/news/02/173969.html

DEPT. OF EDUCATION TO GAUGE TECH ROLE IN THE CLASSROOM - Department of Education Secretary Rod Paige believes it's time to shift the focus of his agency away from closing the digital divide in the nation's schools toward a review of how technology can enhance learning in the classroom. "It's not enough now to have computers and Internet connectionsin schools, it's time for the next step," said Paige Friday at a national summit on technology in education. According to Paige, the agenda now should focus on using technology to improve the quality of education that students receive. He noted that the recently passed education reform bill commits $15 million for a five-year study on how technologies and programs can help teachers and students to learn more effectively. http://www.washtech.com/news/regulation/14900-1.html

ED-TECH IS NOT TECH BUT ED - John Bailey was recently appointed to direct the Office of Educational Technology (OET) at the Department of Education, replacing the Clinton administration's Linda Roberts. He is responsible for implementing educational technology policy at the national level. http://www.wired.com/news/school/0,1383,49768,00.html, OET: http://www.ed.gov/Technology/

RATING THE U.S. GOVERNMENT ONLINE - According to the Congress Online Project conducted by George Washington University and the Congressional Management Foundation, 35 US congressional websites were rated the "best" out of 605 US congressional, committee and leadership websites surveyed in 2001. The organizations awarded these websites with "gold" and "silver" mouse awards. All the websites were graded, and on a scale of A through F, only 10% received an 'A' or a 'B' and 58.8% received a 'C.'  http://www.congressonlineproject.org/webstudy2002.html, http://www.emarketer.com/estatnews/estats/edemographics/20020130_cong.html

This Week@INTERNATIONAL

INFORMATION AND COMMUNICATION TECHNOLOGIES CRUCIAL TO BUSINESS LOGISTICS, SAYS COMMISSION SURVEY - Information and Communication Technologies (ICTs) are bringing about a real revolution in business-to-business (B2B) relations. Although less apparent in business-to-consumer (B2C) transactions, their impact on enterprises is substantial. So says a survey, published by the European Commission today, about the impact of ICTs on the logistics of businesses across Europe. Based on replies from a sample of 180 companies in February-September 2001, the survey cites lower stocks, faster delivery times, changes in job profiles and a shift from competition to co-operation among enterprises as some of the most tangible effects of ICTs on B2B relations. http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/121|0|RAPID&lg=EN&display=

U.K. WEB USERS INCREASE - Almost one in two homes in the UK now has access to the internet, according to the latest figures. A total of 45% of homes are now online compared with 39% three months ago, said telecoms regulator Oftel on Tuesday.  And more than four million UK homes now have unmetered internet access. But analysts predict that the price of access to the internet may rise in the year ahead.

http://news.bbc.co.uk/hi/english/uk/newsid_1788000/1788072.stm

UK WARMS TO INTERNET, BUT TECHNOLOGY FAR FROM HOT - Britain's telecoms regulator reported a surge in Internet use, with almost half of the country's households now on-line, but Britons are still using decades-old technology to get connected. In terms of narrowband -- using traditional equipment and wires -- Britain's Web connections jumped by 50 percent to a total of 11 million households over the year to November, the new figures from the Office of Telecommunications (Oftel) show.  Oftel welcomed the latest numbers, but its own research also shows that broadband access -- using high-speed cables or equipment -- is used by less than one percent of the population, one of the lowest penetration rates in the industrialized world. http://dailynews.yahoo.com/h/nm/20020129/tc/tech_britain_internet_dc_1.html

BOOST FOR UNMETERED WEB ACCESS - UK telecoms regulator Oftel has set out measures designed to secure the future of unmetered internet access services.  Under proposals published on Monday, the former telecoms monopoly British Telecom would no longer be allowed to make rival operators using its network pay in advance for unmetered internet access.  At present, independent telecoms operators pay for metered access in arrears, but are obliged to pay up-front for popular unmetered internet services.  The easier payment terms are designed to encourage smaller telecoms service providers to continue offering unmetered internet packages.  "The proposals announced today further support the development of unmetered internet access in the UK by clarifying the obligations on BT," said Oftel director general David Edmonds.

http://news.bbc.co.uk/hi/english/business/newsid_1786000/1786292.stm

INTERNET ACCESS COSTS EXPECTED TO RISE IN EUROPE - The price of internet access in Europe is set to rise as the biggest providers strengthen their grip on the market and push for profitability, according to two of the industry's senior executives.  John Pluthero, chief executive of Freeserve, the UK's biggest internet service provider, told the Financial Times: "We are looking at pricing. We have not made a decision yet, but I think that all the pricing pressure in the market is upwards. I would be surprised if there were not price rises from a lot of players this year."  http://tm0.com/sbct.cgi?s=166389374&i=457463&m=1&d=2254475

TELECOM REGULATOR TO FORSAKE INDEPENDENT VOIP OPERATORS - Head of the Telecom Regulatory Office (URT), Kazimierz Ferenc, is soon expected to present the institution's official stance in the conflict between independent VoIP (Voice over Internet Protocol) providers and the telecom potentate TPSA, concerning the legal identity of international internet telephony.  http://globalarchive.ft.com/globalarchive/article.html?id=020201002283

PILOT ONLINE VOTING TO GET GO-AHEAD - Busy office workers, unable to slip out to a voting booth during elections, will soon be able to use the internet to vote in pilot schemes to be announced this week.  http://tm0.com/sbct.cgi?s=166389374&i=457463&m=1&d=2254477

FRENCH E-GOVERNMENT SITE LAUNCHES - The portal of the government, Service-public. fr, launched 29 January.  A nationwide ad campaign has also launched. This country aims to increase the notoriety of the site, and encourage people to use their main electronic interface with the government. The site has practical guides classified by theme, a civil service directory and public web sites directory and you can use the links to access the texts of laws, public reports and job offers in the civil service. The search engine will help you find information in all the gateway topics and on the public web sites. www.service-public.fr

CANADA NEEDS A NATIONAL BROADBAND PLAN - Is Canada going to lose out on the Internet? Since the election in 1993, the Liberals have declared it's their goal to make Canada one of the most connected nations in the world. This way, Canadians would not only gain the productivity benefits of the Internet but would become leaders in hardware, systems, software, applications and content. But now there are concerns the commitment to connectivity is waning, and Canada will start to fall seriously behind. A key test is how fast the entire country is connected with high-speed broadband, through fibre or wireless.  http://thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1012345839159&call_page=TS_News&call_pageid=968332188492&call_pagepath=News/News

TELEKOM MALAYSIA MAY BUY TRI - Mahathir Mohamad, the Malaysian prime minister, said that state-owned Telekom Malaysia was interested in taking over indebted Technology Resources Industries, the country's second-biggest wireless operator.  http://tm0.com/sbct.cgi?s=166389374&i=456223&m=1&d=2244297

BHARTI EQUITY OFFERING BREAKS GROUND IN BOMBAY - Bharti Tele-Ventures will on Monday launch the first initial public offering by an Indian telecommunications company in a landmark issue on the Bombay Stock Exchange that signals a step forward for the company and the sector.  http://tm0.com/sbct.cgi?s=166389374&i=456223&m=1&d=2244298

This Week@US STATES

STATE OF THE STATES ROUNDUP:

NEW HAMPSHIRE - Gov. Jeanne Shaheen stressed the need to expand high-speed Internet access to all areas of the Granite State in her address. New Hampshire has more fiber-optic cable per capita than any other New England state, Shaheen said, and 66 percent of residents have home Internet access.  The state also is among the top 10 in companies doing business online. New Hampshire has formed public-private partnerships to give rural businesses affordable high-speed Internet access and is replicating the effort in other communities. http://www.state.nh.us/governor/media/011702softhes.html (National Journal’s Tech Daily - www.nationaljournal.com)

MAINE - Boosting state investment in R&D is the "ticket to the next phase of economic life in Maine," Gov. Angus King said in his address. That will lead to production of marine technologies, sensors, software and other services "that today we can hardly imagine," he said.  Noting that the Pine Tree State's investment in R&D has gone from $2 million in 1994 to $32 million to date and the University of Maine reached $50 million research activity for the first time in history last year. http://www.state.me.us/governor/policy/my_position/02sos.htm (National Journal’s Tech Daily - www.nationaljournal.com)

DELAWARE - The newly created Department of Technology and Information in the First State will continue to drive e-government in Delaware through the 21st century, Gov. Ruth Ann Minner said in her address. "We have listened to the needs and desires of real people and put state government services on the Web in a way that is most useful to them," she said.  http://www.state.de.us/governor/speeches/2002/011702StOfState.htm (National Journal’s Tech Daily - www.nationaljournal.com)

MICHIGAN - Michigan needs to position itself as a high-speed Internet leader if it wants to retain and attract residents and businesses, Gov. John Engler and several industry experts said this week.  Speaking at a "broadband breakfast,” Engler noted that Michigan ranks 24th in the nation in terms of broadband growth rates and ranks last in per-capita capital investment in the medium. It holds 37th place in percentage of families and small businesses using high-speed lines, while only 4 percent of Michiganders are connected to broadband services at home.   Engler is attempting to convince state citizens and lawmakers to support his Michigan HiSpeed Internet Plan, which would create a statewide financing authority to fund broadband rollout in underserved areas, establish tax credits for firms that invest in broadband infrastructure, and establish a one-stop, right-of-way authority to eliminate delays in providing such services. (National Journal’s Tech Daily – www.nationaljournal.com)  Michigan Broadband Plan: http://www.michigan.gov/emi/1,1303,7-102--5330--,00.html

ARIZONA -Arizona Gov. Jane Dee Hull is working on an executive order to create an oversight group charged with finding "innovative, technology-driven solutions to break down the walls between agencies," she said in her address. "Through increased sharing of resources and information across traditional government boundaries, we can improve services while preserving limited resources." http://www.governor.state.az.us/sos/index.cfm (National Journal’s Tech Daily - www.nationaljournal.com)

NEW MEXICO - New Mexico has 20 charter schools online and 80 more ready to go, signifying that lawmakers there have "put our money where our mouth is" in terms of education spending, Gov. Gary Johnson said in his address. http://www.governor.state.nm.us/2002/news/jan/2002stateofthestate.htm (National Journal’s Tech Daily - www.nationaljournal.com)

NEW MEXICO - Lawmakers trying to post financial reports on Internet - In what campaign-reform advocates call "digital sunshine" legislation, Secretary of State Rebecca Vigil-Giron is pushing to require candidates for state office to file campaign-finance reports on the Internet.  This means anyone with Internet access could go to the secretary of state's Web site and look up campaign contributions and expense reports of anyone running for governor, state Legislature or other state offices. http://www.sfnewmexican.com/site/news.cfm?newsid=3072264&BRD=2144&PAG=461&dept_id=367954&rfi=8

NORTH DAKOTA - The Roughrider State is using technology to boost homeland security efforts and will continue to use it to bolster economic recovery, Gov. John Hoeven said in his address.  Last fall, a piece of the Virtual State Network linking state high schools, colleges, courthouses and government offices was completed. By September, every high school was linked to the Internet. North Dakota recently rose from 38th to eighth place in a survey measuring states' use of computer technology and e-government.  "We laid the foundation for industries throughout the state to connect to the world and, just as important, for the world to connect to North Dakota," Hoeven said. http://www.governor.state.nd.us/media/speeches/020116.html (National Journal’s Tech Daily - www.nationaljournal.com)

ALASKA - "We can stay on track by continuing a pro-business environment, encouraging investment, building transportation and providing essential services," Gov. Tony Knowles said.   Knowles heralded efforts by Lt. Gov Fran Ulmer to persuade the federal government to allow more affordable Internet access in rural Alaska and reduce the "digital divide," while helping propel The Last Frontier to first place in recent digital democracy surveys. http://www.gov.state.ak.us/speech/sos02.html (National Journal’s Tech Daily - www.nationaljournal.com)

HAWAII - Gov. Benjamin Cayetano is trying to make his state a place where more businesses can call home, and where research and development and production activities can thrive.  http://gov.state.hi.us/publicaddresses/sos_2001.htm  (National Journal’s Tech Daily - www.nationaljournal.com)

CALIFORNIA - California needs to stay ahead of the curve in technology innovation because its economic recovery depends on success in that realm, Gov. Gray Davis said last week at the Orange County Next Generation Internet and Technology World Wide Webcast.  Davis plans to provide one Internet-ready computer for every five high-school students and would like to expand technology in classrooms and training for teachers so they know how to use it. He also wants to ensure that advanced-placement courses are available online to all students. "I've worked hard to put the power of the Internet at the fingertips of every child," Davis said.  He also hailed the ability of the high-speed Internet2 to bring the research capability from the University of California system to students across the state. (National Journal’s Tech Daily – www.nationaljournal.com)

UTAH - Districts Differ on Leavitt Plan for High-Tech High Schools - Students of tomorrow could attend the Philo T. Farnsworth Engineering Academy, the Robert Jarvik Biotech High or the Ray Noorda Information Technology Center.  That's what Gov. Mike Leavitt is dreaming these days -- charter high schools named after prominent Utah scientists and engineers.  Dubbed "New Century Schools," the schools would offer students specialized training leading to a high school diploma, along with industry certification or an associate's degree in medicine, biotechnology, engineering, digital media or another emerging field.  http://www.sltrib.com/2002/Jan/01302002/utah/171997.htm

OTHER TECH STORIES OF THE WEEK

 

INTERNET POPULATION INCREASED NEARLY 20% LAST YEAR, AND OVER 700 MILLION USERS ARE PROJECTED BY 2004 - Despite the events of September 11th and the global economic downturn, the number of internet users worldwide will rise from 445.9 million in 2001 to 709.1 million in 2004, according to a new eMarketer report, eGlobal: Demographics and Usage.  "The recession hasn't stanched the desire to stay in touch. If anything, the events of 9/11 highlighted the value of e-mail and instant messaging applications,” says Dr. Nevin Cohen, eMarketer Analyst. “More people, from more places around the world, are communicating with one another and accessing information quickly, easily and economically. Why? Because now -- with the internet -- they can."  http://www.emarketer.com/ereports/eglobal/welcome.html

BATTLE OF THE BROADBANDS - The catfight between DSL and cable broadband providers reached a new point of ridiculousness late last year when SBC Communications (SBC) was forced to pull one of its television commercials that mocked cable-modem service and the slow speeds that its users often encounter during peak hours.  A U.S. District Court judge ruled that one ad in particular, in which a family has to use its cable-modem service in the middle of the night, was misleading and “simply not true,” because DSL is also susceptible to slowdowns.  http://www.upside.com/Upshot/3c51e1331.html

BROADBAND USAGE ON THE RISE - Most of us connect to the Internet through a dial-up modem, and most of us whine and complain that the connection is often slow and cranky.  Never mind that today's ordinary modems are a hundred times faster than the 300-bits-per-second ancestors that crawled ashore from the late-'70s digital sea. We are an impatient lot, and that has led at least 11 million of us to give broadband a shot.  As a stroll though online chat areas will tell you, many users found broadband shooting right back. High-speed Internet access through cable, satellite or DSL (digital subscriber line) service often meant difficult installations, software glitches and service interruptions. In fact, writing about a year ago about my own easy and seamless connection to Verizon's DSL offering brought a torrent of mail suggesting mental problems.  http://dailynews.yahoo.com/h/ap/20020128/tc/fea_hobbies_compubug_broadband_1.html

IS BROADBAND THE ANSWER? UNFORTUNATELY, NOT ALWAYS - Quick: What's so great about broadband? Sure, it's a speedy on-ramp to the Internet. But what can you actually do with a high-speed connection that you can't accomplish over a dial-up line? Not enough. And that's the problem. Most consumers don't see a compelling reason to shell out an extra $20 or $30 a month for a zippier Net link.  Somehow, in the technology industry's haste to make broadband a new national priority, that fact is being ignored. We're hearing a lot about tax credits and investment and building out networks -- and very little about why customers would clamor for these services.  "Build it, and they will come" is, in essence, the rallying cry of the broadband cheerleaders. But this time, it has been built, and the masses aren't coming. Until efforts to promote broadband begin to address demand instead of supply, the big broadband push isn't going anywhere.  http://online.wsj.com/article/0,4286,SB1012170461714514200,00.html?mod=tech (paid subscription only)

GLOBAL CROSSING FILES FOR BANKRUPTCY PROTECTION - Global Crossing, an ambitious fibre optic communications company once worth nearly $50bn, became the biggest casualty of the worldwide collapse in the telecommunications industry as it filed for bankruptcy.  http://tm0.com/sbct.cgi?s=166389374&i=457463&m=1&d=2254473

MSN BROADBAND DELAYED - Microsoft Corp.'s Internet unit MSN said on Thursday its plans to sell high-speed access to homes would be delayed by the recent woes of energy giant Enron Corp. ``While we hoped to deliver MSN Broadband to 90 percent of DSL-capable homes by the end of first quarter 2002, that will now most likely happen around mid-year 2002 to ensure we deliver the best consumer experience worldwide,'' said Lisa Gurry, MSN product manager. http://dailynews.yahoo.com/h/nm/20020131/wr/tech_msn_dc_1.html

U.S. BROADBAND NOT READY FOR HOLLYWOOD - Internet video-on-demand has been hyped as the coming wave in entertainment once high-speed Internet service is in enough homes, but experts say broadband services now available are not ready for prime time. Video-on-demand providers, such as privately held Intertainer Inc., have had to turn away customers because the broadband in many homes still falls short of the required minimum sustained bandwidth of 500 kilobits per second (Kbps) or more needed to deliver a movie, the companies said. http://dailynews.yahoo.com/htx/nm/20020130/en/television-broadband_1.html

TECH EXECS LAMENT DOWNLOADABLE SOUNDS OF SILENCE - Could the song be over for Internet companies hoping to score access to recording labels' new music?  That oft-debated question took on a renewed sense of anxiety for some dot-com entrepreneurs this week at the music industry's annual Midem festival on the French Riviera.  Ordinarily, the conference would be a prime venue for deal-making, but this year technology honchos left sunny Cannes collectively shaking their heads, no closer to securing the rights to a full range of hit tunes for their digital offerings.  http://dailynews.yahoo.com/h/nm/20020126/wr/music_online_dc_1.html

COMPANIES STILL STRUGGLE TO USE THE WEB FOR BUSINESS - A Web site, when used correctly, can be a critical part of a company's marketing, advertising and sales efforts. According to a new study by the Yankee Group, a lot of companies do not understand how to properly use the online channel to enhance their business.  Thousands of companies rushed to put up a Web site in the late 1990s to ward off a perceived threat from pure-play Internet companies, the study notes. In 2002, many of the dot-com high-flyers have dropped out of sight, leaving much of the corporate use of the Internet in the hands of traditional offline companies.  http://www.newsbytes.com/news/02/174047.html

COMPUTER INDUSTRY SKEWED TOWARD MALE PERSPECTIVE DESPITE USERS DEMOGRAPHICS - For all the strides that technology has made through the years, women have had little to do with designing the shoes.  Women make up the majority of Internet consumers, but play a smaller role in the actual creation of the technology. Even though it affects so much of their lives, they comprise less than 20 percent of the nation's computer science research graduates.  http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2002/01/30/BU61554.DTL, Also: http://www.siliconvalley.com/docs/news/svfront/women012902.htm

IBM NAMES SAM PALMISANO AS CEO-DESIGNATE - Louis Gerstner, who transformed IBM from an ailing mainframe giant into a massive IT services company, will step down as CEO. Samuel Palmisano, president and chief operating officer, will assume his position on March 1.  http://tm0.com/sbct.cgi?s=166389374&i=457462&m=1&d=2254445

FACTS AND STATS:

ELEARNING TO PICK UP IN EUROPE - Over twenty-seven percent of business skills training in Europe will be provided via elearning by 2005, according to IDC. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357583&rel=true

BROADBAND GAINS POPULARITY IN FRANCE - One in eight French households now has a broadband Internet connection, reports the BBC. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357574&rel=true

MORE AND MORE US WOMEN ONLINE - According to Nielsen NetRatings, the number of at-home female Internet users in the US increased more rapidly than the number of male users in 2001. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357576&rel=true

HALF OF US HISPANICS USE THE NET - Half of the adult Hispanic population in the US is now online, according to the Roslow Hispanic Internet Usage Study.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357594&rel=true

BANDWIDTH INCREASING IN MIDDLE EAST - Available Internet bandwidth in the Middle East grew by 154 percent to 1.9 Gbps between August 2001 and January 2002, according to the Arab Advisors Group.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357579&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

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