Telecom/IT Policy Highlights
September 2002
Microsoft Word version / September, 2002 TiPH (237kB)
Adobe PDF version / September, 2002 TiPH (127kB)
Contents:
Overview
Legislative Activities
Policy / Regulatory Activities
Judicial Activities
Other Activities and Items of Interest
International
Research/ Reports
OTP Bookshelf
Newsletter Info
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Overview
September saw continuing battles over broadband policy in the U.S. The Small Business Administration (SBA) sent a letter to the FCC criticizing their planned changes to the classification of telephone line-based broadband services. The proposed rule changes would make Digital Subscriber Line (DSL) service an “information” rather than a “telecommunications” service, thereby releasing it from certain federal regulations. These regulations, part of the 1996 Telecom Act, require larger, incumbent providers to open their networks to competitors, such as those smaller providers represented by the SBA. The letter predicts a loss of $8 billion by more than 7000 companies should the rules be changed.
Also on the broadband scene were public releases by the Commerce Department and the President’s Council of Advisors on Science and Technology that suggested a different approach to the problem. The Commerce Department released a report that found while almost all American households have broadband in their area, only around 10 percent actually subscribe to the service. Both the Commerce Department and the President’s Council of Advisors suggest that the problem does not lie in regulatory changes, but in more advanced online content that benefit from broadband Internet speeds.
The Internet Corporation for Assigned Names and Numbers (ICANN) received a renewal of 1 year on its contract by which it has the authority to administrate the Internet’s central addressing system. ICANN was established in 1998 as a non-profit international corporation and had its charter renewed by the U.S. Department of Commerce in 2000, 2001 and now again in 2002. ICANN has been under fire recently for lacking openness and not including individual users in its processes. Some were skeptical about the contract being renewed. Despite this, Nancy Victory, head of the National Telecommunications and Information Administration (NTIA), stated that she was pleased with ICANN’s current internal reform processes, though the NTIA would be keeping a watchful eye on the organization.
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Legislative Activities
Digital TV Mandate Proposed by Congressman
9.19.02 – Rep. Bill Tauzin (R-LA), Chairman of the Energy and Commerce Committee, has proposed requiring broadcasters to switch to digital signals in 2006, with a complete conversion from analog by the end of that year. A major roadblock has been reluctance by programmers to broadcast digitally without copyright protections. Equipment manufacturers are wary of devices that have too many restrictions, fearing lack of consumer demand. The Tauzin proposal would require by law the conversion, originally scheduled for 2007, which has faltered during industry negotiations. The plan also calls upon the FCC to set the standards and enforce compliance. The release can be viewed at: http://energycommerce.house.gov/107/news/09192002_731.htm .The Consumer Federation of America (CFA) has taken a strong stance against the plan put forth by Rep. Tauzin and others in Congress. In their report A Consumer-Friendly Industrial Policy for the Transition to Digital Television the CFA argues that the transition to digital TV will not be sped up by efforts to mandate conversion. Further, the plan presented is anti-consumer, forcing users to pay more for digital quality while reducing the functionality through copyright controls. Also it will raise the price of hardware such as televisions for everyone by requiring digital tuners in every one produced, though currently only 10 percent of viewers rely on a broadcast tuner to get their signal. Also of issue to the CFA is the proposed “broadcast flag,” a copyright protection designed to restrict the ways in which users can record programming. The CFA says that this is a rollback of traditional and established consumer “fair use” policies and it treats every user like a “thief.” http://www.consumerfed.org/092402cooper_digitaltv.html. [Source: Yahoo! News]
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Policy / Regulatory Activities
FCC, SBA Disagree on Broadband Approach
9.03.02 – In a letter (http://www.sba.gov/advo/laws/comments/fcc02_0827.html) sent to Chairman Michael Powell, the U.S. Small Business Administration (SBA) criticized the proposed FCC policy for broadband deregulation. The SBA claims that over 7000 small service providers could lose more than $8 billion in revenue as a result of a policy that favors larger, established companies. In his Economic Forum in August President Bush hailed federal regulators for pushing the deregulation agenda as a means to expanding broadband adoption in the U.S. The policy in question is over the classification of broadband services provided over telephone lines, known as Digital Subscriber Lines (DSL). Currently DSL is subject to telecommunications regulations that provide for access and interconnection to the larger companies networks which allows for smaller providers to compete in the marketplace. The FCC has proposed classifying DSL as an “information service,” which would exempt incumbent service providers from conforming to current open network and non-discrimination regulations, thus making it harder for small businesses to compete. [Source: Center for Digital Democracy, Washington Post]ICANN Cracks Down on Verisign Practices
9.03.02 – The Internet Corporation for Assigned Names and Numbers (ICANN) threatened to revoke Verisign’s control over the .com registry for alleged violations of their contract. Verisign is the Internet’s largest domain name registrar. In a letter sent to Verisign (http://www.icann.org/correspondence/touton-letter-to-beckwith-03sep02.htm ), ICANN Vice-President Louis Touton detailed 17 reported violations of Verisign’s contractual requirement to keep an accurate public database of the owners of domain names (WHOIS database). The letter claims Verisign was negligent in correcting inaccuracies even in light of ICANN requests. ICANN gave Verisign 15 days to correct the problem. 8 days later Verisign responded with a letter that claims the problems have been corrected and new processes have been implemented to prevent the problem in the future. (http://www.icann.org/correspondence/mitchell-letter-to-touton-11sep02.htm ) [Source: Washington Post]ICANN Contract to Manage Domain Name System Renewed by Commerce Dept.
9.20.02 – ICANN and the U.S. Department of Commerce announced (http://www.icann.org/announcements/announcement-20sep02.htm ) that their contract, which allows for ICANN’s administration of the Internet’s system of domain names, will be extended for another year. ICANN has held this role under agreement with the Commerce Department since 1998. The new agreement will run until September 30, 2003. ICANN has been plagued by criticism in recent months, especially following a decision earlier this year by the ICANN Board of Directors to do away with user elections of board members. Critics, who include members of the U.S Congress, have called for reform to increase user participation and transparency of decision-making within ICANN. Nancy Victory, head of the National Telecommunications and Information Administration (NTIA), has expressed positive views of the current internal ICANN reform process. The new contract calls for ICANN to improve their openness in decision making and requires quarterly reports to the Commerce Department. [Source: Washington Post, NY Times]Long Distance Granted to BellSouth in 5 States, Qwest Withdraws Applications
9.18.02 – BellSouth was granted Section 271 entry into the long distance markets of Alabama, Kentucky, Mississippi, North Carolina and South Carolina. Section 271 of the Telecom Act of 1996 allows for incumbent providers such as BellSouth to re-enter long-distance markets after meeting certain requirements to facilitate local competition. Qwest Communications withdrew their Section 271 applications for 9 Western and Midwestern states. The FCC stated that the Qwest application is very close to satisfactory, but not quite acceptable. Qwest plans to refile with the FCC soon. [Source: FCC, Qwest]Telecom Providers Freed from FCC Auction Debt
9.13.02 – The Federal Communications Commission is considering eliminating the obligation of major wireless carriers to pay $16 billion bid in the troubled auction of spectrum formerly owned by the now bankrupt NextWave Communications. After the bids were made a Federal Court ruled against the FCC and ordered the spectrum returned to NextWave. The case is scheduled to be heard by the Supreme Court in October.There have been two FCC proposals for moving forward with this effort, one which allows companies to be absolved of all debt, and one which allows them to pursue certain licenses if they wish. The FCC is seeking public comment on this issue (See release: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-02-248A1.txt). With the wireless telecommunications industry facing economic troubles and lack of capital, this action has been hailed by some as a step to relieve some of the pressure on service providers. [Sources: CTIA, Wall Street Journal]
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Judicial Activities
Argument Against Recording Industry Filed by Online Advocacy Groups
8.30.02 – A number of groups filed a “friend of the court” brief against the recording industry in the RIAA v. Verizon case. The Recording Industry Association of America (RIAA) is seeking a court action against Verizon to force the company to release the personal information of one of its users who the RIAA accuses of online copyright theft. The non-profit groups, which include the Electronic Frontier Foundation and the Electronic Privacy Information Center, claim that the law the RIAA is relying on is unconstitutional. They say that the Digital Millennium Copyright Act (DMCA) violates user’s basic rights to privacy and anonymity online by allowing for the action that the RIAA is attempting. See the brief at: http://www.eff.org/Cases/RIAA_v_Verizon/20020830_eff_amicus.html . Up until now, copyright holders such as the music industry have relied on going after companies they accused of subverting their rights. This case marks one of the first attempts to go after an individual user, which seems to be part of the new strategy of the entertainment industry. [Source: CNET News.com]Duke Law School Receives $1 Million to Fight Copyright Law
9.04.02 – An anonymous gift of one million dollars was given to Duke Law School with the purpose of stopping recent developments which have expanded copyright law in the U.S. Duke’s stated goal for the funds is to create a center for research and advocacy, focusing on the “proper balance between intellectual property rights and material that should be in the public domain.” The new center will focus on, and likely be critical of, laws such as the Digital Millennium Copyright Act (DMCA) which expanded intellectual property rights in light of new digital technologies. [Source: CNET News.com]FCC Line-Sharing Rule Remains Overturned, Review Next January
9.05.02 – An FCC rule that requires local phone companies to share lines with competitors for services such as high-speed Internet remains overturned. A federal appeals court refused to reconsider the decision they made last May. A rehearing has been scheduled for Jan. 2003, with the intention of giving the FCC time to develop new rules. Currently a review is underway of many FCC policies that deal with competition among local telecommunications and information service markets. [Source: SiliconValley.com]Lawsuit Against Microsoft Given Go Ahead in Florida
9.03.02 – Users of Microsoft products in Florida have had their proposed class-action lawsuit approved for further action by a judge. Claimant can include any Florida resident who bought certain Microsoft product, including Windows, after Nov. 15, 1995. The suit alleges anti-competitive and unfair practices in violation of state law. California, Kansas, Minnesota, North Dakota and South Dakota have similar suits pending. A case in Michigan was rejected last month. [Source: SiliconValley.com]
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Other Activities and Items of Interest
Napster Saga Continues, New Companies Bid for Assets
9.18.02 – Over a year after being crippled by a lawsuit from the music recording industry, the story of the famed online file-swapping service Napster continues. On Sep. 3, in a decision that effectively ended the company, a federal bankruptcy court blocked the sale of Napster’s assets to German recording giant Bertelsmann for $8 million. This came on the heels of a failed auction where investors attempted to get $25 million for the company. That day the remaining Napster employees were laid off and their homepage read simply, “Napster Was Here.” On Sep. 12, however, Private Media Group, a Spanish-based pornography publisher, offered approximately $2.4 million for Napster with the stated intention of using the service to provide adult content. Since then almost a dozen new potential buyers have surfaced. The court extended the deadline to Sep. 27 for a buyer to be selected. As of that date Napster said they signed a non-binding letter of intent to sell their assets. Though the buyer was not named, it was stated that Private Media Group was not considered. The estimated buying price was $11 million.Napster has now ceased to be a player in the world of online file-trading, which it had a major role in creating. Major copyright holders, most notably the Recording Industry Association of America, successfully disabled Napster as a viable system. They have now set their sights on more truly decentralized peer-to-peer computing systems such as Kaaza and Morpheus whose users now number in the hundreds of millions. These systems also have greater capacity for distribution of copyrighted materials beyond music, including digital movies and computer software. But Napster and its future are still of great importance to the debate over intellectual property in the U.S. As the first program to bring file-trading capability to a substantial number of Internet users, the ultimate fate of Napster is of symbolic and historical importance. Obviously there is value in the name itself, which is the major target for buyers currently seeking Napster’s assets. What happens to Napster will still serve as an indicator of what the future holds for intellectual property on the Internet. [Source: PCWorld, CNET News.com, Silicon Valley.com]
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International
Net Radio Cannot Survive Under Current Royalty Plan, Says Report
9.05.02 – A report released by Jupiter Research claims that if Internet radio stations are required to pay the currently proposed royalties to copyright holders then they will not survive. They predict that the rate is so high that a station could never make the necessary advertising revenues to subsist. Many radio sites have already stopped broadcasting in light of the proposed fee, which is about 1/14 of a cent per song, per listener. Some Internet radio providers, such as talk and sports radio, do not have this copyright fee overhead and are predicted to be more viable in the near future. [Source: CNET News.com]
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Research/ Reports
Chinese Gov’t Attempts to Block Google.com, Then Backs Down
9.12.02 – After being reported as inaccessible to Chinese Internet users on September 2, the popular search engine website Google was again made available by Chinese authorities. It was speculated that access was blocked due to the upcoming Communist Party congress in China where major leadership changes are expected. Those attempting to access Google from China were rerouted to other sites. Then a mirror site under the name elgooG (Google backwards) appeared, where all searches must be entered in reverse, but the tactic fooled the Chinese filtering system. Eventually Google was unblocked, though the government’s reasons for it being taken down or eventually being restored were not conclusively established. [Sources: News.com, NewScientist.com]Free Internet Service Offered in Egypt
9.08.02 – Residents of Cairo, Egypt now have the ability to dial-up to the Internet for free. They pay only the local phone charges, with the connection fees being picked up by Egypt Telecom, the state-run phone company, and the Internet service provider the person is using. This plan has reduced dial-up costs by up to 59 percent and is said to be spurring local ISP competition as they focus on improved service to lure customers. [Source: Philadelphia Inquirer]Annual Common Carrier Report Issued by FCC
9.24.02 – The Annual Statistics on Communications Common Carriers was released by the FCC in electronic form. The main page for the report is: www.fcc.gov/wcb/stats. The print version will be available from the Government Printing Office in December. The report covers many aspects of the telecommunications system and market, including costs, usage, revenue and pricing. [h ttp://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-226563A1.doc]Broadband Demand Low, Boost Needed, Says Commerce Dept. and White House
9.23.02 – A number of studies were compiled by the U.S. Department of Commerce that show while almost all families have broadband Internet available in their area, only 10 percent subscribe to the service. The report Understanding Broadband Demand, also notes that many other countries such as Taiwan, South Korea and Canada have higher penetration rates. Cost was shown to be a major prohibitive factor, with broadband lines costing approximately twice as much as traditional dial-up connections. A major factor cited for the lack of demand is lackluster content on the Internet. The report can be found at: http://www.ta.doc.gov/reports/TechPolicy/Broadband_020921.htm.The President’s Council of Advisors on Science and Technology agrees that online content geared toward broadband connections is the way to boost the number of users. This solution is different than many existing proposals that have focused on overhauling federal telecommunications regulations, primarily focusing on giving the Bell operating companies such as BellSouth and Verizon more freedom in deploying broadband service. It also puts them at odds with major copyright holders, such as the motion picture industry, who are reluctant to make advanced content available online for fears of piracy. [Source: Washington Post, LA Times]
Broadband Study Released by Brookings Institution
5.31.02 – Charles Ferguson addresses the problems facing broadband deployment in the U.S. in a working paper for the Brookings Institution. Entitled The United States Broadband Problem: Analysis and Policy Recommendations, the paper blames the structure of telecommunications power, including the monopolistic tendencies in industry and the regulatory framework provided by government, for the poor state of advanced Internet service. The paper cites the Telecommunications Act of 1996 as a major cause. Adverse affects of the current situation could include declining economic productivity as well as hampered security and safety efforts, according to the report. Ferguson then calls for a more open and interconnected system and efficient regulation as a solution. [http://www.brookings.edu/comm/policybriefs/pb105.htm ]e-Government Report Released by University of Albany Group
July 2002 – The Center for Technology in Government (CTG), a research center for government technology based at the University of Albany in New York, released a report encouraging the use of information technology by local governments. Research for the report, Making a Case for Local E-Government, was conducted among various government groups in the State of New York. CTG found that local governments in the state were overcoming challenges and deploying new technologies. Much of the report also focuses on defining e-government along with its goals, uses and benefits. The report is available online in PDF form only at: http://www.ctg.albany.edu/egov/making_a_case.pdf.Internet Access in Public Schools, Report Issued
9.17.02 – The National Center for Education Statistics issued a report that details certain aspects of Internet access in U.S. public schools for the years 1994-2001. Highlights include data on overall school connectivity as well as the ratio of students to Internet enabled computers. Also included are details on the quality and speed of connections, laptop availability, after-hours use, software and computer quality. The report, entitled Internet Access in U.S. Public Schools and Classrooms: 1994-2001, can be found at: http://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2002018.Internet Restrictions OK in Some Cases But Not All, Say Americans
9.5.02 – A survey by the Pew Internet and American Life Project shows that two-thirds of Americans felt it is alright to remove certain government information from the Internet, though overall most (47 percent) do not feel it will help in the fight against terrorism. Since Sep. 11, 2001 many agencies have removed some public information from the Internet, such as maps, emergency response plans and details of chemical plants, telecommunication structures and water systems. These materials are believed to have potential to aid terrorists in planning attacks. When asked if the government should monitor e-mail and other online activities however, 47 percent said no, compared to 45 percent saying yes. The report, entitled One Year Later: September 11 and the Internet, can be found at: http://www.pewinternet.org/reports/toc.asp?Report=69. [Source: Washington Post]Wireless Usage to Nearly Double by 2006, According to Study
9.17.02 – The Yankee Group, a Boston-based consulting firm, has released a report that finds an almost two-fold increase in wireless usage per user by 2006 compared to 2001. In terms of wireless minutes per month, Americans used 109 in 1994, 356 in 2001 and will use 641 in 2006. The increase is credited to users making more calls from wireless phones that traditionally were made from land-line phones. According to the Yankee Group, 3 percent of Americans currently use a wireless unit as their only phone. The study also sees an increase in percentage of Americans with wireless phones from the current level of 50 percent to 70 percent by 2006. [Source: Reuters]
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OTP Bookshelf
Hugh Brown, Geert Lovink, Helen Merrick, Ned Rossiter, David Teh, Michele Willson (eds). 2001. The Fibreculture Reader: Politics of a Digital Present: An Inventory of Australian Net Culture, Criticism and Theory. Melbourne: Fibreculture Publications.
Established in January 2001, fibreculture is a forum for Australian net culture and research, encouraging critical and speculative interventions in the debates concerning information technology, the policy that concerns it, the new media for(u)ms it supports and its sustainable deployment towards a more equitable Australia. The fibreculture network comprises theorists, critics, journalists, academics, artists, activists, policy developers and all sorts of media producers, designers and other information-workers. The inaugural Fibreculture Reader is an encounter with some of these dialogues in process: offering not conclusions or closures but rather an invitation to further reflection, debate, and action.
Caso, Olindo. 2000. The City, the Elderly, and Telematics. Design Aspects of Telematics Applications in a Residential Neighbourhood. Philadelphia, Pennsylvania: Coronet Books.
This work explores a specific research area within the domain of city-telecommunications relationships. The design aspects related to the introduction of telematics applications are researched within the spatial reference framework of the Network City.
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Newsletter InfoCenter for Advanced Communications PolicyTelecom/IT Policy Highlights
September 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