Georgia Institute of TechnologyCenter for Advanced Communications Policy
Atlanta SkylineTechnology Square at night

Telecom/IT Policy Highlights


November 2002

Microsoft Word version / November, 2002 TiPH (204kB)

Adobe PDF version / November, 2002 TiPH (97kB)

Contents:
Overview
Legislative Activities
Policy / Regulatory Activities
Judicial Activities
Other Activities and Items of Interest
Research/ Reports
OTP/GCATT Activities
Newsletter Info
  • Overview

    Despite being in a “lame duck” session after the mid-term elections, Congress approved the largest federal government restructuring since the creation of the Department of Defense. HR 5005, a bill to create a cabinet-level Department of Homeland Security, has already received the signature of President Bush. Along with this proposal are many major changes in national information technology policy, specifically on the issue of cybersecurity. In addition to beefing up national efforts to combat criminal activity online, major funding for cybersecurity research was approved by the legislature. As a last-minute addition to the Homeland Security Act, the Cyber Security Research and Development Act (HR 3394) was approved, providing $903 million for research in cybersecurity issues.

    Jonathan Adelstein received Senate approval to fill the vacant seat on the Federal Communication Commission. The former aide to Sen. Tom Daschle will fill a spot on the 5-seat board that has been open since September 2001. His appointment brings the Republican-Democrat balance on the Commission to 3-2.

    There was a good deal of policy action at the FCC this month in the areas of broadband and spectrum management. A letter was sent to the FCC by the Coalition of Broadband Users and Innovators, which includes companies such as Microsoft and Yahoo. They urged the FCC to consider requiring open access by competitors to the high-speed networks of major telecommunication providers, an issue the FCC currently has under consideration. Also this month the FCC’s Spectrum Policy Task Force released their final report on wireless spectrum policy in the U.S. The Task Force was formed by the FCC in June of 2002 with the specific purpose of examining spectrum management and reporting their findings and recommendations. The central theme of the report is to move the U.S. into a more flexible and market-based regulatory scheme for spectrum management.

    The FCC is seeking comments on the recent Spectrum Policy Task Force Report.
    Comments Due: January 9, 2003
    Reply Comments Due: February 10, 2003
    See item under “Regulatory Activities” for more details.


    BACK TO TOP OF PAGE
  • Legislative Activities

    Cyber Security Bill Enacted
    11.27.02 – After winning Congressional approval earlier in November, the Cyber Security Research and Development Act (HR 3394) was signed by President George W. Bush. It authorizes $903 million for cybersecurity research in government, industry and among universities. The appropriation is for 5 years and will distribute funds in the form of scholarships, grants and other incentives. Funds will be controlled by the National Science Foundation and the National Institute of Standards and Technology.

    This bill is an addition to HR 5005, which will create a cabinet level Department of Homeland Security (www.whitehouse.gov/homeland). The Homeland Security bill deals extensively with information technology issues, such as giving broader government oversight into criminal activity online. This includes surveillance, stiffening penalties for cybercrime and allowing greater freedom to exchange information between ISPs and government entities. This bill, the largest government reorganization since the creation of the Department of Defense under President Truman, will consolidate operations from 22 agencies and will affect 170,000 federal employees. Tom Ridge was nominated by President Bush as head of the department. [Source: Wired News, CNET News.com]

    Internet Radio Royalty Bill Approved by Congress
    11.15.02 – After battling for a good portion of the year over royalty rates for online broadcasting (see Oct. Highlights at www.gcatt.org/otp/highlights/1002.htm), the recording industry and small webcasters had their dispute settled by Congress. The Small Webcaster Amendments Act of 2002, HR 5469, establishes a separate royalty payment plan for smaller Internet broadcasters. Specifically, it allows a mediator, SoundExchange, to negotiate rate plans for Internet broadcasters instead of stations paying the proposed flat rate. While the recording industry had complained that the previously proposed rate plan was not fair compensation for using their copyrighted works, small webcasters said that the rates would put a majority of them out of business. The bill affects only small webcasters, not the larger stations such as AOL and Yahoo. [Source: USA Today, SiliconValley.com]

    Internet Sales Tax Plan Approved by States
    11.12.02 – After over two years of operation, the Streamlined Sales and Use Tax Agreement was approved by a coalition of states. This undertaking, known as the “Streamlined Sales Tax Project,” is designed to simplify the disparate sales tax systems nationwide so that an Internet sales tax is more feasible. It includes a shift from a location-based tax to a destination-based tax, so that taxes can be more easily levied on interstate commerce on the Internet. It also requires that each participant state (and the localities in those states) must pass standard sales tax rates by 2006. Nothing about the project is binding, as each individual legislature must approve the plan for it to be enacted. 35 states were participants in the project, with non-participating states deemed as “observers.” These observer states include Georgia, California, Massachusetts, New York and Virginia. The agreement can be found online (PDF form only) at: http://66.28.69.53/sline/Final%20SSTIS%20Agreement%2011-12-02.pdf

    The Streamlined Sales Tax Project began as a result of the reported loss of billions of dollars in tax revenue each year due to a sales tax free Internet. Congress has twice passed on this issue, instead enacting moratoriums on Internet taxes. Part of the problem is that, with so many tax rates nationwide (approximately 7,500), there was no way to track and collect these taxes. States entered this pact in order to reduce the complexity of the system, thereby paving the way for eventual taxation of the Internet. Critics of the plan argue that it is flawed and will actually wind up increasing the number of tax rates and hindering Internet growth. Either way, the plan involves interstate commerce, thus requiring Congressional approval for final implementation. [Source: CNET News.com]


    BACK TO TOP OF PAGE
  • Policy / Regulatory Activities

    AT&T – Comcast Merger Approved
    11.13.02 – A $52 billion cable-television merger between AT&T and Comcast received FCC and Justice Department approval this month. The FCC is requiring a divestiture by the new company, AT&T Comcast, of all interest in Time-Warner as a stipulation of the merger. The FCC voted 3-1 in favor, with Commissioner Michael Copps dissenting. Consumer groups are protesting the decision as anti-competitive. [Source:Bloomberg]

    New Top-Level Domains Planned by ICANN
    11.08.02 – The CEO of the Internet Corporation for Assigned Names and Numbers (ICANN), Stuart Lynn, has proposed the creation of three new top-level domains (TLDs). Top level domains are domains such as .com or .org that represent large groupings of Internet addresses. The proposal, however, calls for new “sponsored” TLDs, meaning domains that are particular to specific organizations, such as .aero or .gov. The specific domains are not decided upon, and ICANN expects to solicit opinion from various sources as to what TLDs are needed. [Source: The Register] Release at: http://www.icann.org/committees/ntepptf/new-gtld-action-plan-18oct02.htm

    New FCC Commissioner Confirmed by Senate
    11.14.02 – Jonathan Adelstein, a former aide to Sen. Tom Daschle on communication and technology issues, was confirmed by the U.S. Senate to the position of Commissioner for the Federal Communications Commission. He will fill the seat left open by Commissioner Gloria Tristani who left to run for Senate in New Mexico. The seat has been vacant since September 2001. Partisan struggles held up the nomination and eventual confirmation for this post, one of five spots on the Commission. Adelstein, a Democrat from Rapid City, South Dakota, will bring the Commission to a 3-2 balance in favor of the Republicans. His term will expire in June 2003. [Source: Yahoo! News]

    Spectrum Policy Report Released by FCC
    11.15.02 – The Spectrum Policy Task Force (SPTF) of the FCC, organized in June of 2002 by Chairman Powell, released its final report to the Commission. The SPTF report contains the group’s findings and recommendations on national wireless spectrum policy. Policy recommendations revolve primarily around achieving a more flexible and market-based system of regulation. The FCC is currently calling for public comment on the report, with filings due by January 9. Report online at: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-228542A1.doc , and
    Requests for Comments at:
    http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-02-322A1.doc


    BACK TO TOP OF PAGE
  • Judicial Activities

    Internet Restrictions for Libraries Under High Court Review
    11.12.02 – The Supreme Court has agreed to hear a challenge to the Child Internet Protection Act. The law requires libraries to install pornography filters on their computers in order to receive federal funding. About $200 million per year is distributed in order to help libraries connect to the Internet. In May 2002 the Court of Appeals in Philadelphia struck down the law as an unconstitutional abridgement of First Amendment rights. The CIPA is Congress’ third attempt to make a law of this sort that will pass judicial scrutiny. A decision from the high court is expected mid-2003. [Source: CNET News.com]

    Microsoft Antitrust Case Comes to a Close
    11.01.02 – In what Judge Colleen Kollar-Kotelly called a “conditionally approved” final judgment, the claims against Microsoft brought by individual states were largely rejected. This was done by the judge’s approval of the proposed Microsoft/Department of Justice settlement. While Kollar-Kotelly found wrongdoing on the part of Microsoft, she said that the solution offered by the states was beyond the scope of the law.

    The tougher sanctions sought by the states were mainly discarded. They had asked for the court to require Microsoft to sell a more compact version of its Windows operating system, without programs such as Internet Explorer. Additional sanctions were added, however, which include a quicker disclosure of protocols, and stiffened oversight of Microsoft compliance with the settlement. Microsoft is required to provide these protocols so that competitors may make products compatible with Microsoft’s. [Source: CNN.com, SiliconValley.com]
    Settlement: http://www.usdoj.gov/atr/cases/f200400/200451.htm
    Stipulation: http://www.usdoj.gov/atr/cases/f200400/200448.htm

    Internet Search Warrant Affirmed by Appeals Court
    11.18.02 – The 8th Circuit Court of Appeals ruled that police do not have to be present when issuing a search warrant to an Internet service provider. In U.S. v. Bach the court ruled that the Fourth Amendment was not violated when a search warrant was faxed to Yahoo requesting e-mails from the online account of a suspect in a child pornography investigation. Yahoo complied with the request and the defendant argued that his Constitutional rights were violated as a result. The court found that a strict physical presence by a law enforcement officer was not a Constitutional requirement for the search. [Source: SiliconValley.com] Opinion online in PDF form only at: www.ca8.uscourts.gov/opndir/02/11/021238P.pdf


    BACK TO TOP OF PAGE
  • Other Activities and Items of Interest

    High-Tech Group Pushes Change in Broadband Policy
    11.18.02 – A collection of high-tech companies announced that they plan to send a letter to the Federal Communication Commission urging a change in broadband policy. The group, known as the Coalition of Broadband Users and Innovators, cites concern over broadband providers possibly showing preference for certain Internet resources. They fear the blocking of websites at the discretion of the service provider. The group claims broadband deployment and the Internet as a whole would be harmed should this occur. They urge the FCC to force competitive access to high-speed networks to ensure this will not happen. The letter comes as the FCC is currently debating the issue. Broadband ISPs say the concern is unwarranted. Companies signing the letter include Microsoft, Apple, Disney, Yahoo and eBay. [Source: NY Times] Letter online in PDF form only at: http://www.itaa.org/isec/docs/itaa111802cbui.pdf

    BACK TO TOP OF PAGE
  • Research/ Reports

    Candidates Move Online, Content is Still Lacking
    11.01.02 – According to a recent report on online campaigning, 64% of candidates for governor and offices on the national level had websites for this year’s mid-term elections. Despite this, the report found that the features of the sites were lacking. Only 60 percent of these sites allowed for online recruiting, and only 44 percent offered an e-mail newsletter. A summary of the report can be found at: http://www.politicalweb.info/thisweek.html

    Politicalweb.info is produced by researchers at the Center for Communication and Civic Engagement, University of Washington, and at the SUNY Institute of Technology, as part of a broader project investigating the role of the Internet in the 2002 elections. The project is sponsored by a grant from The Pew Charitable Trusts. A variety of other publications can be found on their site at: http://www.politicalweb.info/publications/publications.html
    [Source: PoliticalWeb.info]

    Parents More Likely to be Online, Says Study
    11.18.02 – In a study released by the Pew Internet and American Life Project, it was found that 70% of parents are online, compared to only 53% of non-parents. They were also more likely to be excited about technology. Despite this, non-parents spent more time per day online (92 minutes) versus parents (81 minutes). “Parents” were defined by the study as those with children 18 or under. The report can be found online at: http://www.pewinternet.org/reports/toc.asp?Report=75

    Spectrum Use Hindered by Policy, Not Shortage
    11.25.02 – Much of the wireless spectrum in the U.S. was assigned to government, radio and television use throughout the 1900’s. A vast amount of this spectrum now goes unused or is used inefficiently, according to a recent Article by Forbes Magazine. For example, while 15 percent of prime spectrum is used by television broadcasters to serve 11 million homes, half as much spectrum is used by cellular carriers to serve 137 million users. Archaic analog technologies used by local governments use 10 times more spectrum than they should. Given this, claims that there is a shortage of wireless spectrum are unfounded, according to Forbes columnist Scott Woolley. He calls for an examination of these existing rules and a move towards more flexible policy for regulating the spectrum that incorporates new technologies.
    Article online at: http://www.forbes.com/forbes/2002/1125/138_print.html


    BACK TO TOP OF PAGE
  • OTP/GCATT Activities

    November 2002 Public Policy Luncheon Series: “Ensuring Reliable Public Safety Communications.”
    11.15.02 GCATT and the Atlanta Chapter of the Federal Communications Bar Association’s November Public Policy Lunch Series focused on public safety radio communications. The panel discussed the changing expectations for public safety communications in light of the concerns generated by increased need for homeland security. The panel also discussed the FCC's ongoing efforts to address interference to public safety radio communications. The speakers included Bob Hightower, Commissioner, Georgia Department of Public Safety, Carl Povelites, Executive Director of External Affairs, Cingular Wireless, Michael Smith, General Manager of Government Sales, Southern LINC, and Gary McConnell, and Executive Director, Georgia Emergency Management Agency. Information on the GCATT/FCBA Public Policy Lunch Series is available at [http://gcatt.org/otp/policylunch/index.htm]


    BACK TO TOP OF PAGE
  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights
    November 2002

    The focus of this publication is to present legislative, regulatory, legal, and other activities that are germane to technology policy news, events or products. For additional information regarding the information provided in this report, or if there are newsworthy items that should be included in future editions, please feel free to contact , Director of Research and Editor in Chief.
    BACK TO TOP OF PAGE