Cisco Government Affairs E-Update

Volume 2, Issue 7

8 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

ITALY ANNOUNCES BROADBAND PLAN – Italy formally announced its broadband plan recently, leaving the U.S.A. as the only G-7 nation without a federal broadband strategy.  The stated purpose of the Italian Broadband Task Force was “to conduct a survey of broadband communications infrastructure, to identify steps that should be taken to foster the broad-based and balanced development of uses of the infrastructure and to identify problems in the field and specify appropriate remedies for them”. 
Italian Broadband Task Force Report: http://www.mininnovazione.it/broadband/documenti_pdf/rapporto_completo_eng.PDF (Adobe file)

This Week@WASHINGTON, DC

FCC: BROADBAND GREW STEADILY IN FIRST HALF 2001 -  U.S. households and small businesses signed up for high-speed Internet access at a steady clip in the first half of 2001, according to a U.S. government report released Thursday.  The Federal Communications Commission (FCC) found that 9.6 million customers had signed up for high-speed, or "broadband," Internet access by the end of June 2001, an increase of 36 percent over Jan. 2001 figures.  Broadband connections are now widely available, the FCC said, with 78 percent of the nation's zip codes serviced by at least one provider and 58 percent serviced by multiple providers.  "Advanced telecommunications capability is being deployed in a reasonable and timely manner," the FCC said in a release.  Residential and small-business subscriptions grew at a 51 percent rate during the same period. Seven percent of U.S. households had signed up for broadband services by June, the report said, up from 4.7 percent in January.  Broadband users access the Internet through satellite, cable-TV, or telephone connections at speeds five to 50 times faster than a regular dial-up connection.
FCC Press Release: http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2002/nrcc0201.html
FCC Report (Adobe file): http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-02-33A1.pdf
News story: http://story.news.yahoo.com/news?tmpl=story&u=/nm/20020207/tc_nm/tech_broadband_dc_5


DEPARTMENT OF COMMERCE REPORT - A NATION ONLINE: How Americans Are Expanding Their Use Of The Internet - Few technologies have spread as quickly, or become so widely used, as computers and the Internet.  These information technologies are rapidly becoming common fixtures of modern social and economic life, opening opportunities and new avenues for many Americans.  A Nation Online: How Americans Are Expanding Their Use of the Internet shows the rapidly growing use of new information technologies across all demographic groups and geographic regions.  Not only are many more Americans using the Internet and computers at home, they are also using them at work, school, and other locations for an expanding variety of purposes.  http://www.ntia.doc.gov/ntiahome/dn/nationonline_020502.pdf (Adobe file)

FCC CHIEF POWELL BELIEVES IN FREE MARKET - Michael Powell, the USA's top communications regulator, might be mistaken for a cold-hearted stock analyst as he schmoozes with a clutch of phone industry executives. The conversation turns to the woes of regional Bell rival XO Communications, and someone suggests that if XO can restructure, "they'll survive." "It's going to be hard," responds a grimacing Powell, chairman of the Federal Communications Commission and son of Secretary of State Colin Powell. The exchange, which took place at a recent conference, seems to capture Powell's hands-off approach to regulation, one that says companies should rise or fall on their merits.  "There's this tendency to think that I'm somehow the puppet master and because, oh, the economy's down and these guys are hurting, so I'm going to do a little something for them," Powell says in an interview in his corner office. "My religion is the market."  http://www.usatoday.com/life/cyber/tech/2002/02/06/fcc-powell.htm

SPEECH: FCC COMMISSIONER KEVIN MARTIN – Martin recently gave a speech to the Federal Communications Bar Association in Washington DC. Among the issues he addressed were spectrum management and copy protection. http://www.fcc.gov/Speeches/Martin/2002/spkjm201.html

BUSH BUDGET BOOSTS I.T. SPENDING - The Bush administration's proposed 2003 federal budget includes an 11 percent spending increase on information technology--a bright spot in an otherwise gloomy tech-spending environment.  The budget would give the U.S. federal government--already the world's biggest IT spender--a $50 billion IT budget next year if approved by Congress. Federal IT spending grew from $32.9 billion in 1999 to $45 billion in 2002, according to the Office of Management and Budget.  Increasing IT expenditures would support the nation's war on terrorism, its homeland security efforts and an ongoing attempt to streamline government operations, according to the proposal. It's also a helping hand to the beleaguered computer industry, which had seen a dramatic decline in business last year as companies tightened purse strings on corporate spending. http://zdnet.com.com/2100-11-829484.html
2003 BUDGET - http://www.whitehouse.gov/omb/budget/fy2003/

BILL CREATES SHOW-AND-TELL FOR BROADBAND IN SCHOOL - Rep. John Larson, D-Conn., Monday introduced legislation that would create a National Science Foundation program that would concentrate on bringing broadband technology to public schools. The NSF would design demonstration projects for schools using broadband technology. It also would allow the agency to perform research projects that would develop what Larson called "novel uses" for high-performance computer networks in elementary and secondary math and science education.  "Broadband is the most advanced form of Internet connection and it is critical that our students are well versed in its uses," Larson said in a statement. "Bringing the most advanced and modern tools into classrooms is a critical step in ensuring that American students are well equipped with the skills and knowledge they will need as they enter the job market." http://www.newsbytes.com/news/02/174251.html

TECH INDUSTRY PUSHES GOVERNMENT TO PUSH BROADBAND - Technology industry lobbyists have swooped down on Washington, seeking to influence any broadband strategy that may emerge.  A top federal regulator stunned participants at a broadband conference last month by predicting that high-speed Internet usage would be driven by a concept unveiled at the 1964 World's Fair: video phones. "If you want to sell broadband to someone like my mother, you could do it by telling her that she could use it to speak face to face with her granddaughter," said Kenneth Ferree, chief of the Federal Communication Commission's cable services bureau.  Many participants at the Washington gathering shook their heads in disagreement, believing that downloaded music, online gaming, and video on demand will play a bigger part in making broadband more than a fringe market. http://www.newsfactor.com/perl/story/?id=16211

THE INTERNET AS CLASSROOM - Newton N. Minow, former head of the Federal Communications Commission, and Lawrence K. Grossman, former president of NBC News and PBS, have proposed to Congress that it use $18 billion from upcoming FCC auctions of radio spectrum to fund the digitization of educational material. A major goal of their Digital Opportunity Investment Trust [DO IT] proposal is to put material from universities, museums, and libraries on the Internet. In an interview with BusinessWeek Correspondent Darnell Little Minow and Grossman explained how their plan could revolutionize K-12 formal education and lifelong learning."[The government is] spending $2 billion a year to connect every classroom to the Internet, but we spend virtually nothing on content," said Grossman. "So when they connect to the Internet, the uses of it for educational purposes are extremely limited. And certainly the training of teachers is virtually nonexistent."

http://biz.yahoo.com/bizwk/011208/z84e9yszp3yhcddzgaacsq_1.html

COMMERCE TO HOST SPECTRUM SUMMIT - The Commerce Department will host a summit in Washington, D.C., on April 4-5, to help identify the best solutions to challenges posed by management of the nation's airwaves, U.S. Secretary of Commerce Don Evans announced today.  The "Spectrum Summit," to be hosted by the Commerce Department's National Telecommunications and Information Administration (NTIA), will address spectrum allocation and efficiency, the spectrum requirements of new technologies, and regulatory processes. It is a key step through which NTIA, the Federal Communications Commission and federal agencies are working together to make spectrum management processes more effective.  http://www.ntia.doc.gov/ntiahome/press/2002/20702summitpr.htm

'DIRTY DOZEN' BILLS REVEAL A TECH-ACTIVIST CONGRESS - Judging from the intent and sheer volume of tech-centric bills introduced in 2001, lawmakers in the 107th Congress appear far less reluctant to regulate the Internet economy and emerging technologies, according to a report released today by the libertarian Cato Institute. The study - titled "The Digital Dirty Dozen," - takes aim at what Cato deems the 12 most misguided tech-specific bills so far this Congress. The report also holds up the several hundred tech measures introduced last year as evidence that Congress has largely abandoned an early bipartisan consensus to exempt the emerging tech sector from knee-jerk regulations.  http://www.newsbytes.com/news/02/174175.html

GOVT, TECH ALLIANCE PROMOTE HOME COMPUTER SECURITY - A group of high-tech companies and U.S. government agencies announced on Thursday a new campaign to educate home computer users and small businesses about ways to keep hackers and viruses at bay.

At the core of the Stay Safe Online Campaign is a Web site (http://www.staysafeonline.info) with information and tips people can follow to protect the security of their computers.

The campaign is aimed at home users and small businesses, who are increasingly vulnerable to attack because many of them use so-called "always on" cable and digital subscriber line Internet connections. In addition, home and small business computer users lack the money and dedicated security staff that corporations have to secure their systems. http://dailynews.netscape.com/mynsnews/story.tmpl?table=n&cat=50380&id=200202071925000299790

 

OMB COACHES TECH ON HOW TO SELL TO GOVERNMENT - A senior Bush administration official coached a select group of technology vendors Tuesday on how to sell to the federal government, which will spend more than $52 billion on information technology in fiscal 2003. “We’re clearly going to ramp up the demand for your services,” said Mark Forman, associate director for information technology and e-government at the Office of Management and Budget, at a briefing on the fiscal 2003 budget for IT vendors and the press.  He warned industry officials that the fiscal 2003 budget reflects a change in how the federal government will purchase IT and IT-related services. “The federal government has become a solutions buyer,” Forman said, and is no longer “just putting PCs on desks.” http://www.govexec.com/dailyfed/0202/020602j1.htm

USDA REAPS I.T. INCREASE - President Bush's fiscal 2003 budget request for the Agriculture Department includes a 13 percent hike in spending on information technology and more than doubles the money for the Common Computing Environment.  Greg Parham, the acting deputy chief information officer at USDA, said the budget increase would be earmarked to continue the flow of money mostly to existing programs as well as expanding CCE. CCE is the Web-based program that is expected to bring the latest technology to farmers and USDA workers in the field. http://www.fcw.com/fcw/articles/2002/0204/web-usda-02-06-02.asp

SENATORS PROBING ENRON WILL TRY TO REPEAL STOCK-OPTION TAX RULE - Leaders of the Senate's investigation of the collapse of Enron Corp. are moving to repeal a tax law that encourages companies to issue stock options, saying the energy company's financial dealings show the provisions are being abused. Under current law, firms are allowed to claim tax deductions for stock options while not counting them as expenses on annual financial statements. Sen. Carl Levin (D., Mich.) complained the rule allows firms to effectively hide their long-term obligations, and he and Sen. John McCain (R., Ariz.) will introduce legislation next week that would deny the tax benefits of stock-option expenses that aren't reflected on company books. http://online.wsj.com/article/0,4286,SB1013035703148740360,00.html?mod=politics%5Fprimary%5Fhs (Paid subscription only)

HOUSE PASSES CYBER R&D BILL - The House voted to provide colleges and research groups with $800 million over the next five years to figure out new ways to protect computers against hackers. The bill, fueled in part by the Sept. 11 terrorist attacks and a new focus on weaknesses in business and government computer security, passed 400-12. http://www.wired.com/news/politics/0,1283,50296,00.html

BUSH PLAN 'DIGITAL DISTORTION'  - The Bush administration has responded to progress in bridging the digital divide by cutting technology funding for low-income communities.  In the budget proposal released on Monday, the Bush administration seeks to eliminate some programs aimed at closing the gap between digital haves and have-nots. The biggest cut is to the Technology Opportunities Program (TOP), a federal grant program designed to bring aid to communities that are lagging in access to digital technologies. http://www.wired.com/news/politics/0,1283,50279,00.html

This Week@INTERNATIONAL

CHINA'S INTERNET POPULATION NEARS 34 MILLION - By the end of December 2001, China had 33.7 million Internet users, according to a regular report on the development of China's Internet industry by the China Internet Network Information Center (CNNIC).  China's Internet users numbered only 620,000 in October 1997, according to previous studies. By January 2000, the number had jumped to 8.9 million and, following a period of rapid growth, China had 22.5 million at the end of January 2001.  This remarkable growth continues while developed Western countries are seeing their Net populations level out.  The report breaks down China's Internet population, estimating some 21.33 million dial-up modem users, 6.72 million leased-line connections, 5.65 million with both, and 1.18 million who use mobile terminals or other Internet appliances. http://www.newsbytes.com/cgi-bin/udt/im.display.printable?client.id=newsbytes&story.id=174299

VOLUNTARY SINGAPORE WEB CODES TO PROTECT PRIVACY - A Singapore Internet advisory body has launched two voluntary industry codes to protect the privacy of consumers and regulate online content in the hopes of offering consumers greater peace of mind when online.  The National Internet Advisory Committee (NIAC), an independent body appointed by the Ministry of Information and the Arts, launched its Model Data Protection Code for the Private Sector and Industry Content Code Tuesday.  ``The two codes are....in line with the NIAC's call that there should be greater industry self-regulation and any such regulation should be voluntary,'' NIAC Chairman Bernard Tan told a news conference. http://dailynews.yahoo.com/h/nm/20020205/wr/singapore_internet_code_dc_1.html

BROADBAND USE IN HONG KONG SET TO SKYROCKET - Hong Kong is expected to rank third in broadband penetration within the Asia region with 38 per cent of Internet subscribers using high-speed Internet access by 2004. The SAR will follow South Korea and Singapore, according to a report by The Yankee Group. The group predicted the number of cable and ADSL (asymmetric digital subscriber line) subscribers would reach 712,500 this year and 1.3 million by 2004. The figures included an 88 per cent growth in the number of ADSL subscribers from 486,890 to 915,950, as well as a 75 per cent increase in cable modem subscribers from 225,650 to 395,000.  Agatha Poon, senior analyst for convergence communications at Yankee, said: "Currently, 100 per cent of Hong Kong's commercial buildings have broadband coverage, as do 80 per cent of its households. http://technology.scmp.com/techmain/ZZZK0O1H5XC.html (free registration required)

KOREA TELECOM: A MOST UNLIKELY VICTOR - The telecommunications wars of the 1990s are over, and as the dust clears from the fallout of mega-mergers gone awry, bankruptcies and misplaced strategic thrusts, Korea Telecom seems to have emerged as a most unlikely victor.  In an interview at the World Economic Forum here, Sang-Chul Lee, chief executive of KT, as Korea Telecom is now known, outlined plans to complete the company's privatization and take its place on the global telecommunications stage.  "We used to benchmark ourselves vs. AT&T, BT (Group) and NTT and see what they were doing. Once they were doing well with a service we would follow them," Lee said.  http://zdnet.com.com/2100-1105-829779.html

UN LOOKS TO NARROW TECH GAP - Bolivia, Mozambique and Tanzania are to be first among a dozen developing countries to receive teams of high-tech consultants bent on boosting the information technology infrastructure of those nations.  The two-year Global Digital Opportunity Initiative, announced Tuesday by the United Nations Development Program and the Markle Foundation, aims to bolster health care, education and business development with the latest computer and communications equipment.  ``New technologies, deployed appropriately, offer an unprecedented opportunity to meet global development challenges,'' said Zoe Baird, president of the Markle Foundation.  The initiative has attracted requests for help from 45 other countries; 12 will be selected, Markle officials said. Partners in the two-year project have already committed an initial $10 million to fund the work. SUN, Cisco, HP, AOLTW and others are participating in this program. http://dailynews.yahoo.com/h/ap/20020205/tc/global_tech_gap_1.html

U.K. E-LEARNING TASK FORCE FORMED - A new task force that will look look at how e-learning can enhance opportunities for young people in colleges and lifelong learning, has been unveiled.  The work of the Task Force will link into with the Department of Education and Skills e-Learning Strategy Unit and with the Learning & Skills Council Distributed and e-Learning Group (DELG). http://www.number-10.gov.uk/news.asp?NewsId=3530&SectionId=30

BRITAIN VOWS TO MAKE SCOTLAND AN IT LEADER - The UK Government has stressed its commitment to placing Scotland at the forefront of the "information technology revolution".  The importance of the "new economy" to businesses north of the border has been highlighted by Scottish Secretary Helen Liddell.  And she has encouraged Scottish companies to take the lead in areas such as the use of smart cards, e-business and mobile commerce.  http://news.bbc.co.uk/hi/english/uk/scotland/newsid_1798000/1798797.stm

BT CUTS BRING BROADBAND BRITAIN CLOSER TO REALITY - BT Group's plans to cut the cost of high-speed internet access have raised hopes that the UK government's dream of "Broadband Britain" might at last start to live up to the hype.  http://tm0.com/sbct.cgi?s=166389374&i=461986&m=1&d=2279650

BROADBAND TOO DEAR, SAY EUROPEANS - The anticipated boom in European demand for high-speed internet access is unlikely to materialise until subscription prices fall, according to the research firm GartnerG2.  Consumers in Europe's main internet markets - the UK, France and Germany - are not prepared to pay fees up to twice as high as the cost of traditional internet connections, GartnerG2 said.  "The industry has assumed that broadband would set consumers on fire," said Adam Daum, vice president and chief analyst at GartnerG2.  "However, speed alone is not enough of an enticement."  http://news.bbc.co.uk/hi/english/business/newsid_1800000/1800139.stm

FRANCE: FRENCH MINISTER FOR PUBLIC ADMINISTRATION, Michel Sapin, has announced  and awarded the winners of the most innovative e-government applications award. Of 92 candidate projects, 20 have been retained. To look at the projects descriptions: http://www.atica.pm.gouv.fr/evenements_ateliers/electrophees2001.shtml

THE MOST ADVANCED CITY IN FRANCE - For someone who has written a book titled Ces Imbéciles Qui Nous Gouvernent (These imbeciles who govern us), André Santini clearly considers himself a breed apart from the common political herd.  And in one respect at least, the cigar-loving mayor of Issy-les-Moulineaux, a city of 53,000 on the southwestern outskirts of Paris, seems entirely justified in adopting a holier-than-thou pose to other elected officials.  Information technology is Mayor Santini's badge of distinction -- and one he wears with pride. Back in the mid-1990s, when most other French politicians and business leaders were studiously ignoring the then largely Anglophone Internet, Santini was spearheading a campaign to turn Issy-les-Moulineaux into a "digital city" par excellence. Mayor’s website: http://www.andre-santini.net/; News Story: http://www.wired.com/news/culture/0,1284,49996,00.html

NORDIC TELECOMS STUCK IN THE GLOOM - Nokia and Ericsson may be experiencing deeply divergent operational fortunes, but neither company's stock price seems able to escape the gloom which has settled so firmly over the telecoms equipment sector this year.  http://tm0.com/sbct.cgi?s=166389374&i=461988&m=1&d=2279724

COMMISSION LAUNCHES OPEN CONSULTATION ON E-ECONOMY - A wide-ranging online consultation on the EU policy agenda for helping European enterprises to take full advantage of the e-Economy will be open from 1 February 2002 on the enterprise pages of the European Commission's EUROPA web site.  The "e-dimension" needs to be systematically included in all policies affecting enterprises. The Commission's e-Economy priorities include, inter alia, accelerating the creation of a clear and predictable framework for e-business, fostering full participation by small and medium-sized enterprises (SMEs) in the e-Economy, and improving the availability of risk capital and market-based financing. All e-Economy stakeholders are invited to submit their contributions by 31 March 2002. http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/200|0|RAPID&lg=EN

ONLINE TECHNOLOGY MARKETPLACE PROMISES NEW BUSINESS OPPORTUNITIES - The European Commission launched the Technology Marketplace, a new CORDIS service, on 1 February 2002. This multilingual facility, which is part of a wider drive to stimulate innovation and investment in new knowledge, offers the results of European research for market exploitation. It is intended as an attractive and user-friendly tool, providing users and promoters of research results with free access to the latest and most competitive technologies. It also includes an 'offer of the week' in the areas of biology and medicine, energy, the environment, information technology, telecommunications and industrial applications. The Technology Marketplace offers the contact details of technology owners, technology tips, business advice, and reader-friendly digests of new scientific achievements. http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/199|0|RAPID&lg=EN

This Week@US STATES

SILICON VALLEY SUPPORTING MEASURE E:  Voters in San Jose, CA are being asked to vote for Measure E -- a bond measure that will raise funds for the Mission Valley school district's infrastructure and technology improvements. Please view the Measure E website at:  www.wvm-yes-on-e.org for more information.

GATES BLAMES HIGH PRICES FOR US BROADBAND LAG - The high prices charged for broadband internet access in the US mean it was likely to lag behind other countries in the development of high-speed residential communications for the next "five to six years," Bill Gates, chairman of Microsoft, warned recently.  Mr Gates' comments, made at the World Economic Forum in New York, pointed the finger of blame squarely at communications companies for not doing enough to stimulate demand for their broadband service.  Rather than cut prices, US telephone and cable television companies had actually raised them in recent months, further slowing the development of the service, he said.  However, a spokesman for Verizon Communications, one of the biggest US telecoms companies, denied that prices were excessive. "At the moment, broadband isn't a money-making proposition for any of us," he said.   http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT34DES99XC&live=true&tagid=FTDDMJNIFEC&subheading=internet%20and%20e-commerce


VIRGINIA'S ELECTRONIC COMMUNICATION BILL ADVANCES - Localities could provide service  - A state Senate subcommittee approved a bill yesterday that would let localities provide telecommunications services, including phone, cable television and high-speed Internet.  The bill, by Sen. William C. Wampler Jr., R-Bristol, would help extend high-speed services to parts of Virginia that existing companies have failed to serve.  Representatives of Verizon and Sprint, two of the state's largest local phone companies, opposed the measure.  Supporters say the bill would improve the quality of life and economic-development prospects for rural Virginia and other areas that now lack those telecommunications services.  Local governments are interested in providing a service, compared with commercial companies that are interested in making a profit, Jim Bowie, a lawyer for the city of Bristol, told the subcommittee.  http://www.timesdispatch.com/vametro/genassembly/MGBRFDCU6XC.html

AMERICAN WEB USAGE REACHED 54% GOVERNMENT STUDY SAYS - Internet use continued to grow rapidly last year, with new government data showing that the number of Americans using the Web in 2001 passed 50% of the population for the first time. The Commerce Department report, set for release Tuesday, found that 143 million Americans, or 54% of the country, were using the Internet as of September. The number was up 26% from a year earlier.  The government numbers are slightly higher than many private-sector estimates.  Nielsen/NetRatings, for instance, estimated that Internet usage hit 115.2 million in October, up 15% from a year earlier.  Despite concerns that interest in Internet usage might cool as many dot-com businesses vanished, the government report put new users at two million per month in 2001. E-mail continues to be the nation's favorite online activity, and 45% of the population now uses it regularly, up from 35% in 2000.  The report found 174 million Americans, or 66% of the population, were using computers as of September, with those numbers substantially higher among children and teenagers. The data show that 48 million Americans between age five and age 17, 90% of that population, use computers. http://online.wsj.com/article/0,,SB1012789793162132080,00.html?mod=technology_main_whats_news (paid subscription required)

STUDY: AMERICANS TURNED TO E-MAIL AFTER SEPT. 11 - Americans used the Internet more like a greeting card than a newspaper after the Sept. 11 attacks, the first national crisis since the advent of the Web and e-mail, according to a survey released on Thursday. More than 100 million Americans -- about 57 percent of e-mail users -- sent or received e-mail expressing concern after the attacks, with nearly 23 percent receiving e-mail from overseas, the study by the University of California, Los Angeles (UCLA) found.  "The most interesting thing was that a whole new type of communication emerged out of Sept. 11, the first national crisis since the Internet and e-mail," said Jeffrey Cole, director of the UCLA Center for Communication Policy and founder of the UCLA Internet Project. http://dailynews.netscape.com/mynsnews/story.tmpl?table=n&cat=50380&id=200202070021000276918

IBM TO FINANCE U MD. E-GOV STUDY - IBM Corp. has agreed to fund the study of electronic government for a three years at the University of Maryland, the company announced Feb. 5.  The research will be carried out by the Robert H. Smith School of Business' Center for e-Service. The contribution was made by IBM Global Government Industry Group, a unit of IBM Corp. of Armonk, N.Y.  IBM and the university declined to disclose the financial terms of the agreement.  http://www.washtech.com/news/govtit/15015-1.html

NEW YORK GOVERNOR PATAKI CREATES KEY STATE TECHNOLOGY POSITION - Former Acting Labor Commissioner James Dillon Named State CIO - Governor George E. Pataki today announced the creation of the position of Chief Information Officer (CIO) of the State of New York, a position to be filled by former Acting Commissioner and Executive Deputy Commissioner of Labor James T. Dillon.  As CIO, Mr. Dillon will be responsible for the oversight and supervision of the Office for Technology, and will coordinate the technology policies of all State government agencies and public authorities. http://www.state.ny.us/governor/

OTHER TECH STORIES OF THE WEEK

 

TRENDS SHOW DIAL-UP SPEED GETTING SLOWER - Even as the Internet's core backbone renders faster data speed to those who can tap into the high-speed Internet, the reverse is true for the dial-up customers who still constitute the majority of U.S. Internet users. According to figures compiled by Web-measurement firm Keynote Systems since October 1999, dial-up users connecting to major U.S. consumer sites like Yahoo.com, Excite.com and Travelocity.com have gradually seen page downloads slow down.  "The choke point is still the dial-up line," said Eric Siegel, principal Internet consultant Keynote Systems. "So to some degree, the guy at home on the phone doesn't really see that the backbone has gotten a lot faster." http://www.newsbytes.com/news/02/174210.html

STUDY: CONSUMERS GO WIRELESS AT HOME - Consumers are pulling the plug on traditional phone lines at home as wireless service and broadband connections become cheaper, according to a recent survey from Forrester Research.  New communication services, such as those offered by AT&T Wireless and Sprint's PCS business, have already replaced landline service in 1.7 percent of households.  By 2006, more than 5 million U.S. homes will start using mobile and high-speed broadband networks as their primary connection, according to Forrester. That would make wireless services the primary means of communications in 11 percent of households.  http://news.com.com/2100-1033-825104.html

BILL GATES SAYS 3G WILL CREATE HUGE OPPORTUNITIES - Microsoft Corp. Chairman Bill Gates expressed confidence on Thursday that advances in mobile technology will create "huge opportunities" for the software industry and said his company was poised to take advantage of them. Gates, who was in Stockholm to accept an honorary doctorate from Sweden's Royal Institute of Technology, said he was optimistic that so-called third-generation mobile networks would be successful. "There are some financial challenges for the people making the big investments, but I have no doubt that 3G will be pervasive and a very positive thing for personal computing," he told reporters after the 30-minute award ceremony. http://www.nandotimes.com/technology/story/244209p-2315911c.html

INTERNET VOTING IN THE NEAR FUTURE? - Well before the 2000 presidential election, government, academics and industry were testing the Internet as a medium for casting and recording votes. The Florida debacle, with its butterfly ballots, contested chads and equipment failures, gave new impetus to this research. But despite the clamor for more reliable voting systems that arose from the bitter Bush vs. Gore contest, experts say security and infrastructure problems make Internet elections a distant prospect, at best. http://www.msnbc.com/news/701210.asp

HIGH-TECH FOR SMALL BUSINESS A LOW PRIORITY - With customers queued up, phones ringing and employees needing guidance on matters urgent, James Ogburn, owner of Little Jim & Tim's auto repair in Los Angeles, has hardly a nanosecond to discuss his e-commerce strategy.  He doesn't think he has a Web site to promote his 15-year-old business. His assistant corrects him. He does, sort of. It's part of a larger automotive-services cybermall, on which it's nearly impossible to find information about Little Jim & Tim's.  How about getting his own Web site? "We're still thinking about it," Ogburn said, noting that such matters would have to wait, because more pressing upgrades are needed around the shop. While American small business has been struggling to keep the doors open during the economic recession, the rapid development of electronic commerce has raised the stakes for companies such as Ogburn's that remain ambivalent about investing in technology. http://www.latimes.com/technology/la-000009007feb05.story?coll=la%2Dheadlines%2Dtechnology

SURVEY IS DOWNBEAT ABOUT IT SPENDING RECOVERY - US corporate information technology spending is projected to continue to be below "normal" levels this year, said Goldman Sachs, which released the results of a survey of top IT executives at large US companies.  http://tm0.com/sbct.cgi?s=166389374&i=461358&m=1&d=2275359

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 current broadband services 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.  The emerging services allow consumers to start, pause and resume a film any time they want, typically on a personal computer.  http://zdnet.com.com/2100-1105-828869.html

BASEBALL ABANDONS CONTRACTION UNTIL 2003 - Major League Baseball accepted what was looking increasingly inevitable; that its plan to eliminate two teams will not happen until next season.

http://tm0.com/sbct.cgi?s=166389374&i=460706&m=1&d=2271273

FACTS AND STATS:

BROADBAND AROUND THE WORLD - According to a recent GartnerG2 report, a mere 10% of households in France, Germany and the UK will have high-speed internet connections by 2005. GartnerG2 finds that by the end of 2001, there were 500,000 households with broadband in France, 1 million in Germany and 200,000 in the UK. Story also includes a graph on worldwide broadband penetration and projections. http://www.emarketer.com/estatnews/estats/broadband/20020205_gart.html

ONLINE ADS TO OUTPERFORM OTHER MEDIA - Online advertising in the US is forecast to grow 8.8 percent this year, reports CyberAtlas.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357599&rel=true

HALF OF US USERS BOUGHT ONLINE IN 2001 - Eighty-four percent of US Internet users have bought online at least once, but less than a third buy online regularly, according to the Internet Commerce Briefing from the Intermarket Group.  http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357609&rel=true

HALF OF EUROPEANS NOW ONLINE - According to IDC, almost half of all Europeans went online in the past month. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357608&rel=true

TEENS PREFER INTERNET TO TELEPHONE - CyberAtlas reports on a new survey from AOL which has found that the Internet is now the primary communication tool for US teenagers. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357613&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

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

CISCO.COM/GOV AND E-UPDATE FEEDBACK

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