Cisco Government Affairs E-Update

Volume 2, Issue 9

15 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

FCC LAUNCHES PROCEEDING TO PROMOTE WIDESPREAD DEPLOYMENT OF HIGH-SPEED BROADBAND INTERNET ACCESS SERVICES - The Federal Communications Commission (FCC) adopted a major rulemaking to promote greater deployment of broadband services. The Notice of Proposed Rulemaking (Notice) is poised to resolve outstanding issues regarding the classification of telephone-based broadband Internet access services and the regulatory implications of that classification. The additional clarity brought by the resolution of these issues will promote greater investment in the nation's broadband infrastructure.  In the Notice adopted today, the FCC tentatively concluded the wireline broadband Internet access services - whether provided over a third party's facilities or self-provisioned facilities - are information services, with a telecommunications component, rather than telecommunications services. Information services include such services as voice mail and e-mail, which ride over telecommunications facilities.  http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2002/nrcc0202.html

FCC MAY TAX INTERNET ACCESS - The Federal Communications Commission's (FCC) Notice of Proposed Rulemaking (NPRM) regarding regulatory classification of services also addresses the FCC's universal service programs. Under this NPRM the FCC will also consider whether broadband Internet access providers should be taxed to support the FCC's telecommunications subsidy programs.  The FCC stated in its release the NPRM seeks comment "on whether facilities based broadband Internet access providers should be required to contribute to support universal service." The release also states that the FCC seeks comment on "whether the Computer Inquiry network access requirements should be modified or eliminated".  One of the four Commissioners dissented. Kevin Martin wrote in his separate statement that "I dissent from this item's discussion of universal service obligations of providers of broadband Internet access. In particular, I object to its determination that we will consider imposing what is essentially an Internet access tax, extending universal service contribution obligations to non-wireline broadband Internet access providers, such as wireless, cable, and satellite providers. Unlike wireline providers, these providers have not been required to make universal service contributions on the basis of their broadband services."  (Tech Law Journal – www.techlawjournal.com)
Release: http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2002/nrcc0202.html
Martin statement: http://www.fcc.gov/Speeches/Martin/Statements/2002/stkjm206.html

FCC LAUNCHES BROADBAND DEBATE - Federal regulators this week launched what will likely be a fierce debate over what rules should govern high-speed Internet service across traditional telephone lines, a proceeding that could affect the speed of its rollout across the United States.  The agency tentatively proposed that the service, known as broadband and specifically digital subscriber line (DSL), be labeled as an information service, which could subject it to fewer regulations and thus, some argue, faster deployment.  http://www.wired.com/news/politics/0,1283,50440,00.html

FCC ALLOWS ULTRAWIDEBAND USE - Federal regulators gave a tentative go-ahead yesterday for a new wireless technology that would make it possible for home machines to "talk" to one another, for federal agents to locate hidden or lost people behind walls, and for cars to stop automatically before hitting a pedestrian.  Start-up companies, the Department of Commerce and analysts hailed the Federal Communications Commission's decision as a victory for consumers and the industry.  "It is the biggest technology decision of [Michael] Powell's [FCC] chairmanship, and probably of the Bush administration," said Scott Cleland, an analyst with market-research firm Precursor Group. "This is 'Star Trek' stuff."  http://www.washtech.com/news/regulation/15193-1.html
FCC Release: http://www.fcc.gov/Bureaus/Engineering_Technology/News_Releases/2002/nret0203.html
Statement of Commerce Secretary Evans: http://www2.osec.doc.gov/public.nsf/docs/Evans-FCC-Ultra

ADELSTEIN TO BE NOMINATED FOR FCC - The President intends to nominate Jonathan Steven Adelstein to be a Commissioner of the Federal Communications Commission for the remainder of a five-ear term expiring June 30, 2003.  Adelstein has been a Legislative Assistant for Senator Tom Daschle since 1995 where he has been involved in the field of telecommunications and technology.  Before joining Senator Daschle's staff, Adelstein was a member of the Senator David Pryor's staff. From 1987 to 1989, he was a Legislative Assistant to Senator David Riegle. Adelstein has been a teaching fellow in Harvard College's Department of History and a Communications Consultant to Stanford University's Graduate School of Business.  A South Dakota native, he received a bachelor's degree and Master's degree from Stanford University and completed graduate study in public policy from the Kennedy School of Government at Harvard University. http://www.whitehouse.gov/news/releases/2002/02/20020208-6.html

PAUL KOLODZY TO BE APPOINTED OET SENIOR SPECTRUM POLICY ADVISOR AND CHAIR, FCC SPECTRUM POLICY TASK FORCE - http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-219906A1.doc

SPEECH: Commerce Assistant Secretary Nancy J. Victory Before the National Association of Regulatory Utility Commissioners Committee on Telecommunications Washington, D.C. February 12, 2002  “TOGETHER ON THE RIGHT TRACK: MANAGING ACCESS TO PUBLIC ROADS AND RIGHTS OF WAY” - http://www.ntia.doc.gov/ntiahome/speeches/2002/naruc021202.htm

SPEECH: Commerce Assistant Secretary Nancy Victory delivered at the Alliance for Public Technology Broadband Symposium Washington, D.C.  February 8, 2002 “CREATION OF A BROADBAND UNIVERSE: A "BIG BANG THEORY" - http://www.ntia.doc.gov/ntiahome/speeches/2002/apt_020802.htm

U.S. DISAPPOINTED BY EU MOVE ON DIGITAL TAXES - The Treasury Department this week reacted negatively to a European Union move to require non-EU companies to impose a tax on products delivered online to consumers, such as downloaded software or music.  "We are disappointed with the EU's decision to move ahead with the directive to tax e-commerce," said Mark Weinberger, Treasury's assistant secretary for tax policy. "We will continue to reach out to countries in Europe and reiterate our concerns." On Wednesday, the EU Council of economic and finance ministers gave its OK to a European Commission proposal on applying the value-added tax, or VAT, to so-called digital products. Those products could include computer games and software, as well as radio or television broadcasting, delivered online. http://story.news.yahoo.com/news?tmpl=story&cid=582&u=/nm/20020214/wr_nm/economy_treasury_digital_dc_1

EPA ENCOURAGES DATA SHARING - The Environmental Protection Agency has launched a new state and tribal grant program and is seeking proposals for a system to facilitate electronic data sharing. EPA received $25 million for fiscal 2002 -- with $2.5 million set aside for tribes -- for the National Environmental Information Exchange Network Grant Program.  The money will go toward data modernization and integration efforts in support of the National Environmental Information Exchange Network, a developing Internet-based system that links states and the federal government.  http://www.fcw.com/fcw/articles/2002/0211/web-epa-02-13-02.asp

SOFTWARE EASES WORKLOAD FOR APPOINTMENT PROCESS - A new software package has eliminated one of the biggest headaches faced by all new political appointees: filling out the slew of background forms required to work for Uncle Sam.  The Nomination Forms Online software was unveiled last week by officials with the White House 2001 project, an initiative to simplify the presidential transition process. The software contains electronic copies of all the documents appointees are required to complete, including the SF-86 FBI Form and the SF-278 financial disclosure statement required by the Office of Government Ethics.  http://www.govexec.com/dailyfed/0202/021202p1.htm

AGENCIES RISK LOSING I.T. FUNDS - Despite a double-digit increase in the federal government's information technology budget in 2003, many agencies risk losing the funding because they don't meet security and performance standards, officials say.   Out of 2,900 IT projects included in the federal IT budget in 2003, 400 are on a "watch list" because they haven't satisfied all the requirements the Bush administration is enforcing this year, according to Mark Forman, associate director for IT and e-government at the Office of Management and Budget. Bush unveiled his budget proposal last week.  Laws governing federal IT spending require that projects meet federal information systems security standards, increase agency productivity, result in improved service, and are guided by a management plan for staying on schedule and on budget. The agencies proposing projects on the watch list, which account for $10 billion of the total $52 billion IT budget for 2003, have until October, the beginning of the 2003 fiscal year, to comply with the rules. http://zdnet.com.com/2100-1105-834742.html

ONLINE EDUCATION BECOMES TECH SUCCESS STORY FOR D.C. AREA - While telecom and dot-com companies across the region were flaming up and out in the past few years, another tech sector -- online education -- quietly took root and is now beginning to emerge as a stable and potentially lucrative industry.  More than just helping eighth-graders with homework, online education and training is used heavily by corporations and government agencies. The industry, a $4.5 billion market in 2001, is predicted to be worth $11 billion by 2005, according to Eduventures.com Inc., a research and consulting firm.  The Greater Washington Initiative, a regional economic development organization, identified 65 local companies that offer e-learning products and services, prompting it to call Washington the global e-learning capital.  http://www.washingtonpost.com/wp-dyn/articles/A60674-2002Feb11.html

SPEECH ON TPA: Sen. Max Baucus (D-MT) gave a speech titled "A New Trade Policy for New Democrats" to the Democratic Leadership Council. http://www.ndol.org/ndol_ci.cfm?kaid=106&subid=122&contentid=250197

BATTLING BUSH'S DIGITAL DIVIDE - Prominent civil rights organizations held an emergency meeting to combat a Bush administration proposal to eliminate two programs the groups say are "small but crucial" to reducing the digital divide. The Leadership Conference on Civil Rights (LCCR) and the Benton Foundation convened a host of civil rights groups to discuss ways to save the Opportunities Program (TOP), administered by the Department of Commerce, and the Community Technology Center initiative, administered by the Department of Education. The programs, which Bush proposed axing as part of the fiscal 2003 budget, help bring technology to low-income and underserved communities. "After years of building up successful public investments to expand technology opportunity, the administration's decision to pull out comes at an unfortunate time," said Tony Wilhelm, senior director at the Benton Foundation. Brian Komar, director of strategic affairs for the LCCR said the "Both programs enjoy tremendous bipartisan support."  He said the recent meeting is "just the beginning of what (could) be a fairly large-scale campaign." http://news.com.com/2100-1023-834645.html

GAO Report: "TELECOMMUNICATIONS: FEDERAL AND STATE UNIVERSAL SERVICE PROGRAMS AND CHALLENGES TO FUNDING" - The report provides an in depth review of existing universal service programs. It also offers the suggestion that providers of various Internet services be taxed to subsidize the government's universal service programs. http://www.gao.gov/new.items/d02187.pdf

ITAA NOTES TELECOM ACT ANNIVERSARY - The Information Technology Association of America (ITAA) marked the sixth anniversary of the signing of the Telecommunications Act of 1996 by celebrating widespread U.S. adoption of the Internet and Internet access, while cautioning that consumer demand for high speed access is faltering. http://www.itaa.org/news/pr/PressRelease.cfm?ReleaseID=1013548099

This Week@INTERNATIONAL

INDEPENDENT CHAIRMAN TO LEAD U.K. BROADBAND ADVISORY GROUP - E-Commerce Minister Douglas Alexander and the BSG today announced the appointment of former ICL chief executive Keith Todd as chairman of the Government's key advisory committee on broadband (high-speed, always-on internet access), the Broadband Stakeholders Group (BSG).  The Government's comprehensive Broadband Strategy, published in December last year, drew heavily on the Broadband Stakeholder Group's first report and recommendations.  The Government will continue to draw on the front line experience and expertise of Stakeholder group members in developing future
Government policy, and the appointment of Mr Todd marks the next stage in the group's development. http://www.nds.coi.gov.uk/coi/coipress.nsf/2b45e1e3ffe090ac802567350059d840/b466f50fd19c194680256b5d004d35e5?OpenDocument
The Government's Broadband Strategy was published by Douglas Alexander on 3 December and can be found at http://www.e-envoy.gov.uk/ecommerce/broadband/bbsgrep_menu.htm

EUROPE FAILS TO OPEN UP LOCAL TELEPHONE NETWORKS - Attempts to foster competition in Europe's local telephone networks have failed, with Britain among the worst offenders in opening up the market.  European Union laws to make incumbents open up their exchanges came into force a year ago, but a study published on Monday shows that virtually no progress has been made.  Figures produced by the European Competitive Telecommunications Association, the telecoms trade body, reveal that less than 0.01 per cent of European "local loop" lines have been unbundled to new entrants.  Britain is among the least advanced. Although Patricia Hewitt when she was e-commerce minister set a target of "widespread unbundling" by July, only 164 of BT Group's 29m lines are in the hands of competitors.  http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT30GR15JXC&live=true&tagid=IXLUCLOJQBC

EU VOTES TO TAX ONLINE COMMERCE - European ministers have backed a law on internet sales which would remove a handicap for EU companies.  But the plan could trigger a new trade war between the Europe and the US.  The law obliges non-EU suppliers to impose a sales tax on software, music and other so-called virtual sales to European consumers.  It was agreed in a preparatory meeting last year and was rubber stamped by the 15 finance ministers meeting in Brussels on Tuesday.  http://news.bbc.co.uk/hi/english/business/newsid_1817000/1817110.stm

BRUSSELS WARNS OF PLATEAU IN EU INTERNET TAKE-UP - The European Commission on Tuesday warned that growth in internet use in the European Union is in danger of halting, two years after Brussels began a drive to "accelerate Europe's transformation into an Information Society".   In a review of the EU's "eEurope Action plan", the Commission said that while internet penetration of EU households rose from 18 per cent in March 2000 to 36 per cent in June 2001, it was only 38 per cent in December 2001.  "This means the rapid take-up during 2000 and early 2001 may have reached a plateau [below the US level]," it said. "Available national statistics seem to confirm this trend."  Greater internet use is a central part of the EU's ambition, unveiled at the 2000 Lisbon summit, to make the region the world's most dynamic economy by 2010.  http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3KLTY4MXC&live=true&tagid=FTDDMJNIFEC

SPEECH - Mr Erkki Liikanen Member of the European Commission, responsible for Enterprise and the Information Society "Creating a Dynamic Marketplace: EU telecoms policy in the framework of eEurope" 13th Annual European Communications Conference London, 14 February 2002 - http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=SPEECH/02/64|0|RAPID&lg=EN

TELECOMS PACKAGE WILL BRING BETTER DEAL FOR CONSUMERS - The Council of Ministers today adopted the Telecoms package. Member States now have 15 months to implement this package into their national laws. The Telecoms package is a major overhaul of the regulatory framework for communications services, aimed at bringing more competition in this crucial sector for the European economy. Welcoming the adoption of the package Information Society Commissioner Erkki Liikanen stated: "This pro-competitive package completes the internal market for the information society, delivering a better deal for consumers in terms of price, quality and value for money. It also provides greater transparency and legal certainty for all players operating in the internal market." http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/02/259|0|RAPID&lg=EN

AZNAR CALLS FOR BARCELONA SUMMIT TO GIVE DEFINITIVE PUSH FOR REFORM TO MAKE EUROPE THE MOST COMPETITIVE AREA IN THE WORLD  - Address by the President of the European Council on "Economic reform and progress with the Lisbon Process" at the Conference organised by the Foundation for Social Studies and Analysis and the Wilton Park Foundation, in San Lorenzo de El Escorial (Madrid). http://ue2002.es/DetalleNewsletters.asp?idioma=ingles&opcion=1&subopcion=1&id=550

NIGERIA'S $1.3BN TELECOMS DEAL IN JEOPARDY - Sub-Saharan Africa's largest telecommunications deal, the $1.3bn (£920m) sale of a controlling stake in Nitel, Nigeria's state telecoms company, is in danger of collapsing after the chosen bidder failed to meet a payment deadline.  http://tm0.com/sbct.cgi?s=166389374&i=464586&m=1&d=2294710

CANADIAN INDUSTRY MINISTER OFFERS FOUR-POINT PLAN FOR PROMOTING INNOVATION - Minister of Industry Allan Rock says broadband access is still an important component if Canada is to transform itself into a world leader in innovation.  Rock delivered the message at a luncheon hosted by the Canadian Chamber of Commerce in downtown Toronto on Tuesday.  His comments indicated a strategy that does not deviate far from that of his predecessor, Brian Tobin, who left politics last month. While as a country we've enjoyed some success, Rock pointed to Canada's debt to GDP ratio, which was 74 per cent about 10 years ago but will dip below 50 per cent next year -- a 17 year low -- and a tumbling capital gains tax.  While this is progress, he deemed it "not good enough.  "The time has come to take things to next level. To address the chronic questions about our economic performance," he told an audience of about 150.  http://www.itbusiness.ca/userredirect.asp?linkid=15312&userid=5

MEXICO'S TELECOM MARKET IS UNFAIR, U.S. TRADE OFFICIALS TO SAY AT WTO - The U.S. is set to press on with its case against Mexico at the World Trade Organization over allegations that Mexico has unfairly kept U.S. companies from competing in its $12 billion telecommunications market.  After long threatening such a move, U.S. trade officials will formally ask for a WTO panel to investigate the issue in the coming days, according to people familiar with the matter. If the panel rules in favor of the U.S., Washington could slap trade sanctions on Mexico, its second-biggest trading partner. Officials of the U.S. Trade Representative declined to comment.  http://online.wsj.com/article/0,4286,SB1013557876367000520,00.html?mod=politics_primary_hs (paid subscription required)

VSNL SALE GIVES INDIAN PRIVATISATION A BOOST  - India's slow pace of privatisation has abruptly shifted gear, shoring up market sentiment to fuel a minor equities rally.  Encouraged by the sale this month of stakes in VSNL, the monopoly provider of international telecommunications services, and Indo-Burma Petroleum, which owns a network of 1,500 petrol stations, the government hopes to sell up to nine more companies by the end of the financial year on March 31.  Although this would push up privatisation receipts to Rs70bn to Rs80bn ($1.42bn to $1.64bn), it would still be less than two-thirds of the Rs120bn target for this financial year. But beneath the headline disappointment, the government and markets are pleased.  http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT305QDUOXC&live=true&tagid=ZZZPCGI2B0C

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.

BROADBAND IN THE U.S. - The latest high-speed study from the US Federal Communications Commission (FCC) reports that there were roughly 9.6 million high-speed lines in the US in June 2001 -- a whopping 250% increase since August 2000. The FCC collects its high-speed data from standardized information from advanced telephony providers like wireline telephone companies, cable companies, wireless providers and satellite providers. Data is based on 250 or more high-speed service lines (or wireless "lines") in a given US state. The latest FCC study finds that the number of high-speed residential and small business lines in particular grew by 51% between December 2000 and June 2001 -- from roughly 5.2 million to 7.8 million. http://www.emarketer.com/estatnews/estats/broadband/20020211_fcc.html

POLL: USERS WILL PAY EXTRA FOR SOME BROADBAND ITEMS - A new survey suggests that people will pay extra for certain broadband content, especially entertainment services delivered over the Internet. But the findings contrast other viewpoints that basic high-speed connections are already too expensive. Sage Research Inc. of Massachusetts conducted the random survey of 600 U.S. households for Cisco Systems Inc., the huge networking equipment maker. Nearly 45 percent of Sage survey respondents said they'd pay for some entertainment delivered online - including music libraries, television shows and movies on demand. http://www.timesdispatch.com/frontpage/MGBLGCNIMXC.html

USERS COOL ON PAYING FOR 'DUMB PIPE' BROADBAND -  Despite a mixed record of success, people are willing to pay for high-speed Internet services, but selling access to a "dumb pipe" might not be the way to go, according to a survey to be released today. The survey finds that American consumers are willing to pony up a total of $25 billion annually for the services, with the biggest share of that going to purchase various entertainment products.  "The dumb pipe has been a hurdle people have struggled with," said Sage President Kathryn Korostoff. "What this says is there is an opportunity for content. Maybe the model is more like selling razor blades: Gillette did not make a fortune charging for the handle; they made money selling the blades. Maybe companies should charge for things people value and give away the pipe for free."  http://www.hollywoodreporter.com/hollywoodreporter/convergence/article_display.jsp?vnu_content_id=1336774 (paid subscribers only)

TAFT TO SEEK BOND ISSUE IN HIGH-TECH PLAN FOR OHIO - Gov. Bob Taft will ask Ohio voters to help conquer the next frontier. The governor yesterday outlined his $1.6 billion plan to transform Ohio's economy by investing in high-tech research, world-class scholars and innovation that will translate into jobs. That plan includes a $500 million bond issue that voters would pass judgment on next year. If voters say no, a key component of the plan - to recruit and pay top scholars - could be shelved.  The 10-year plan, dubbed the Third Frontier Project, was the centerpiece of Taft's fourth State of the State address. The speech, focused largely on the future, also marked the unofficial kickoff of the governor's re-election campaign.  http://www.cleveland.com/news/plaindealer/index.ssf?/xml/story.ssf/html_standard.xsl?/base/news/101299146012696161.xml


OFFICIALS CHART COURSE FOR STATE'S (KANSAS) ECONOMIC RECOVERY - Building a stronger Kansas often has required a little heavy lifting. During the 1930s, public works programs gave thousands of Kansans jobs constructing roads, parks and municipal buildings. Such work helped keep the state afloat during the Great Depression. Sixty years later, a $7 billion highway program kept the economic engine moving while surrounding states struggled. And now, with Kansas mired in a recession, state officials again look to infrastructure projects to rejuvenate the economy. But this time, the roads won't lead from Kansas City to Kanorado, but from Liberal to Lawrence to London -- through broadband Internet connections.  http://www.cjonline.com/stories/021002/kan_ksrecovery.shtml

STATES COMPETE IN E-LEARNING PROGRAMS - In his State of the State address last month, Kentucky Gov. Paul Patton boasted that his state leads the nation in using computer technology in the classroom.  "Our children have more opportunities to learn to use the tool of the future, the computer, than the children of any other state. It makes chills run up my spine to realize that in the area that very well may determine the destiny of our nation, Kentucky is the leader," Patton said.  According to education policy analyst Mike Griffith, Patton was not just blowing smoke.  "Kentucky is out in front in distance learning. It offers high school courses … using the Internet. A lot of states are talking about modeling programs after Kentucky's," says Griffith, an official of the Education Commission on the States. Florida and Illinois also have online high schools and Pennsylvania is experimenting with putting some of its alternative public schools -- charter schools -- online. http://www1.stateline.org/story.do?storyId=222290

IOWA PUTS COURT RECORDS ONLINE - Iowa's court system went to the Web at the end of January, and for the first time the state's judiciary system is providing online public access to basic court information from all of the state's 99 counties and its appellate courts.  The site (www.iowacourtsonline.org) provides basic information on such things as child support payment histories, criminal and traffic records, and the disposition of cases that have come before the courts. Later this year, a $25 monthly subscription service will be introduced. Users will be able to get more detailed information, including trial and hearing dates, and judgment liens. http://www.fcw.com/geb/articles/2002/0211/web-iowa-02-14-02.asp

BILL WOULD FORCE ISPS TO GIVE CUTOFF NOTICE – California State Sen. Debra Bowen, D-Redondo Beach (Los Angeles County), has proposed legislation to bar Internet service providers from cutting off customers' service without 30 days' notice.  The move comes two months after ExciteAtHome abruptly pulled the plug on 850,000 AT&T cable modem subscribers. And last year, NorthPoint Communications of Emeryville abruptly shut off service to 100,000 customers nationwide, including 40,000 in California. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2002/02/13/BU99754.DTL

OTHER TECH STORIES OF THE WEEK

HOLD THAT OBIT, THE INTERNET REVOLUTION LIVES - Lately, reading tech industry news has been like reading the obituaries, with a stream of reports detailing the demise of once-promising firms and initiatives, and with lots of pessimism about broadband take-up rates.  But someone forgot to tell consumers that the Internet revolution had been suspended, and reports just issued by the Commerce Department and the FCC show that more people than ever are using the Internet and advanced broadband services.  The studies also show that the much-feared “digital divide” is shrinking. http://www.cei.org/gencon/016,02391.cfm

W3C BACKS XML-BASED DIGITAL SIGNATURE - The premier Web standards body this week recommended a way of signing documents using XML, calling its new digital signature guidelines a key tool for Web services infrastructure.  The World Wide Web Consortium's ( W3C) XML Signature recommendation, developed in conjunction with the Internet Engineering Task Force ( IETF), provides a standard way of signing XML documents so that recipients can verify the identity of the sender and the integrity of the data. http://zdnet.com.com/2100-1106-838335.html

BT SAYS THEY OWN HYPERLINK PATENT - British Telecom (BT) had set out to prove in a U.S. federal court that it developed and holds a patent for the hyperlink technology now used to whisk Web surfers from one site to another.  Judge Colleen McMahon voiced numerous doubts over British Telecom's claims during this week’s preliminary hearing, but the case is far from settled. Legal experts said it's unlikely, but not impossible, that BT will prevail as the case wends its way through the legal system. http://www.wired.com/news/business/0,1367,50361,00.html

INTERNET CAR EXPERIMENT LAUNCHED IN TOKYO METROPOLITAN AREA - The Internet ITS Research Group started on Feb. 8 its pilot program for the intelligent transportation system (ITS) that leverages the next-generation Internet protocol version 6 (IPv6) in Kawasaki, Kanagawa Prefecture. The members of the joint research group are the Keio Research Institute at SFC, Toyota Motor Corp., Denso Corp. and NEC Corp.  This program is the second large-scale experiment of the Internet ITS Project conducted by the group, and 70 monitored vehicles will run in the city of Kawasaki until the end of March. These cars will be equipped with a specially developed terminal consisting of a small server, communication devices, a settlement terminal, a display and other equipment.

http://www.nikkeibp.asiabiztech.com/wcs/leaf?CID=onair/asabt/news/169843

FORMER SEC CHIEFS URGE REFORM - Five former chairmen of the Securities and Exchange Commission told the Senate Banking Committee yesterday that the collapse of Enron Corp. has exposed flaws in the accounting and financial reporting system and will require major reform to restore investor confidence. In calling for changes, the chairmen, whose leadership at the SEC spanned all but eight years between 1975 and 2000, conceded that some of the practices they put in place during their tenure were no longer adequate, including the Public Oversight Board, an industry-funded group charged with regulating the accounting profession. http://www.washingtonpost.com/wp-dyn/articles/A1612-2002Feb12.html

AFTER ENRON, TECH SECTOR ACCOUNTING UNDER SCRUTINY  - While the Enron debacle puts the spotlight on accounting practices at other companies, a technology industry notorious for tweaked profit reports still has a few tricks up its sleeve. Pricey payments for stock options that show up nowhere on income statements. Massive asset write-downs that help inflate future earnings. Specially designed profit reports that mask the ugly details. These methods and more are hallmarks of a sector facing new demands for a return to the hefty revenue and profit gains that tech companies bragged about before the bust.  "I don't think there is an Enron type of story, but there are certainly a variety of very commonly used techniques in technology companies that exaggerate a company's profits," said Howard Schilit, director of a Maryland-based accounting watchdog, the Center for Financial Research & Analysis. http://story.news.yahoo.com/news?tmpl=story&cid=581&u=/nm/20020209/tc_nm/tech_accounting_dc_1

AIRLINES STILL WANT HIGH-SPEED INTERNET ACCESS - Airlines battered by a steep slide in air travel remain interested in Boeing Co.'s Connexion airborne Internet venture but significant revenues are several years away, the unit's chief said on Monday.  Though three top U.S. airlines backed out of a commitment to invest in Connexion after the Sept. 11 attacks, a working group of 17 carriers is discussing the embryonic high-speed service with Boeing, despite their financial woes.  "If I said (talks with airlines were) 'encouraging' it would be a gross understatement," Connexion President Scott Carson told a small group or journalists.  Carson concedes the market is developing slowly for the proposed satellite-based service, but he remains convinced that demand will develop over time.  Http://story.news.yahoo.com/news?tmpl=story&cid=582&u=/nm/20020212/wr_nm/transport_boeing_internet_dc_1

FACTS AND STATS:

INTERNET HELPS REKINDLE THE OLD FLAME - Personal networking service Classmates Online questioned Classmates.com users in January 2002 and found that 61% of respondents had thought of their high school sweetheart in the past year. The study also found that 36% of respondents have used the internet to look up or to reconnect with an old sweetheart. Additionally, the study found that 15% had an online romance in the past five years, 10% have had a date with someone they met or reconnected with online and 69% think that more people will look online to find love in 2002. Classmates Online surveyed 1,011 US adults between age 18 and 75 on Classmates.com.

54 PERCENT OF US NOW ONLINE - MSNBC reports that 143 million people, or 54 percent of the total population, are now online in the US, up 26 percent on last year. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357626&rel=true

GLOBAL ONLINE POPULATION STILL GROWING - According to eMarketer, the global Internet population will reach 709.1 million in 2004, up from its estimate of 445.9 million last year. http://www.nua.com/surveys/index.cgi?f=VS&art_id=905357630&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

As we continue to build out Cisco’s Government Affairs web site, as well as this service, this E-Update, we welcome comments, criticisms, praise and suggestions.  Please send any feedback to John Earnhardt at jearnhar@cisco.com.

To contact any member of the Government Affairs team, please visit our “Contact Us ” page. http://www.cisco.com/gov/contact/index_ext.html

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