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Telecom/IT Policy Highlights

Volume: 4.04
April 2004

Microsoft Word version / April 2004 TiPH (242kB)

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Contents:
Overview
Policy / Legislative Activities
Regulatory Activities
Judicial Activities
Research / Reports
Items of Interest
Events
Newsletter Info

  • Overview

    Although April began with few developments in telecommunications and IT policy, President Bush drew notice later in the month by announcing new technology initiatives for healthcare and communications. The President has put renewed emphasis on broadband access, coming out strongly against Internet access taxes, currently being debated in the U.S. Senate. Senators began considering amendments to the Internet access tax bill, although it appears that the Senate may pass a limited compromise measure instead of the full ban the President requested.

    The Federal Communications Commission (FCC) considered a number of issues in April, focusing on broadband with inquiries into deployment, data gathering, and spectrum allocation. It also made another ruling on Voice over Internet Protocol (VoIP), stating that AT&T’s IP backbone did not exempt it from a duty to pay access charges. The FCC also took steps to finalize digital radio standards.

    Other governmental agencies also considered IT issues. The Federal Trade Commission grappled with spyware at a workshop it held, and the U.S. Sentencing Commission issued guidelines to Congress on sentences for violators of the CAN-SPAM Act. Meanwhile, the General Accounting Office issued two reports related to government information management.


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  • Policy / Legislative Activities


    04.26.04 – Speaking before the American Association of Community Colleges Annual Convention, President Bush unveiled a series of technology initiatives covering a range of topics including energy, health care, and communications. Highlights from the President’s proposals include:

    • • A plan to ensure that Americans can have electronic health records within the next 10 years to reduce errors and ease sharing of information across medical providers;
    • • Adopting health information standards for secure transmission of medical records;
    • • Fostering the adoption of health information technology by increasing funding for pilot projects, utilizing IT in government programs, and coordinating health IT with a new sub-Cabinet level post at the Department of Health and Human Services (HHS);
    • • Making the ban on Internet access taxes permanent;
    • • Reforming federal rights-of-way to streamline the process of allowing broadband providers to get access to Federal lands to build infrastructure;
    • • Setting standards in the Department of Commerce to enable the rollout of broadband services such as Wi-Fi, WiMAX, and broadband over power lines (BPL).

    These initiatives are summarized in the report released by the White House, available at [http://www.whitehouse.gov/infocus/technology/economic_policy200404/toc.html]. The President has said he intends to focus on technology as a policy priority during the coming months. Text of the President’s remarks can be found at [http://www.whitehouse.gov/news/releases/2004/04/20040426-6.html]. [Source: The White House]


    04.27.04 – The U.S. Senate moved forward this month on S. 150, the Internet Tax Non-discrimination Act, intended to ban states from levying access taxes on Internet services. President Bush and a number of Congressional sponsors had called for a permanent ban, but a number of Senators were concerned about the impact of the ban on state budgets. Neither side could come to a compromise until this month, when Senator John McCain (R-AZ) proposed extending the tax moratorium for four years and exempting VoIP from the ban, protecting the collection of funds for universal service subsidies and for emergency communications. The Senate adopted the McCain proposal and passed S. 150 with a vote of 93-7. The Senate will now have to compromise with the House, which last year passed a permanent ban that did not exempt Internet telephony. To view the record of the Senate bill and its amendments, enter “S. 150” at [http://thomas.loc.gov]. [Sources: The Library of Congress, The Washington Post]

    Senate Commerce Committee Reviews U.S. Telecommunications Policy
    04.27.04 – The Senate Committee on Commerce, Science, and Transportation held two full hearings on the state of U.S. telecommunications policy. The first hearing, “Telecommunications Policy Review: Lessons Learned from the Telecom Act of 1996,” featured testimony from the CEOs of AT&T, Qwest, and Cbeyond Communications. Committee Chairman John McCain stated that “today’s uncertain telecommunications policy landscape, wrought largely by rapidly developing technology, an outdated statutory framework unable to keep pace, and federal regulations mired in litigation from their outset, requires us to reexamine the very assumptions under which the Telecommunications Act of 1996 was put into law. Witness testimony and other recorded remarks can be found at [http://commerce.senate.gov/hearings/witnesslist.cfm?id=1164]. The Committee also held a hearing entitled “Telecommunications Policy: A Look Ahead,” in which policy experts and former regulators testified as to how telecommunications regulation might be revised. Testimony from that hearing can be found at [http://commerce.senate.gov/hearings/witnesslist.cfm?id=1166]. [Source: Senate Committee on Commerce, Science, and Transportation]

    Spyware, Kids on Internet the Focus of House Committee Hearings
    04.29.04 – The House Committee on Energy and Commerce’s subcommittee on Commerce, Trade, and Consumer Protection held a hearing entitled “Spyware: What You Don’t Know Can Hurt You” to investigate the spyware phenomenon. Prepared testimony and other information can be found at [http://energycommerce.house.gov/108/Hearings/04292004hearing1255/hearing.htm]. The Subcommittee on Telecommunications and the Internet has scheduled a hearing on “The ‘Dot Kids’ Internet Domain: Protecting Children Online.” The hearing will take place on May 6 at 9:30 am and will investigate how Congress can help make the Internet more friendly for children. More information and a link to the webcast can be found at [http://energycommerce.house.gov/108/Hearings/05062004hearing1262/hearing.htm]. [Source: House Committee on Energy and Commerce]

    Telehealth Bill Introduced By Senator Edwards
    04.21.04 – Introduced by Senator John Edwards (D-NC), the Telehealth Improvement Act of 2004 [S.2325] would expand the qualified list of facilities that receive telehealth coverage from Medicaid. The legislation cites that 36 million individuals lack access to health care because transportation costs are expensive or unavailable. It also cites the competitive advantage the Department of Commerce has over exports of telehealth technologies. Facilities that would be added include assisted living facilities, community health clinics, and community mental health centers. View legislation by searching for “S. 2325” at [http://thomas.loc.gov]. [Source: Library of Congress, Office of Senator John Edwards]


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  • Regulatory Activities

    Comments Due for FCC Inquiry Into Deployment of Advanced Telecom Services
    04.16.04 – The FCC set comment dates for the Notice of Inquiry into broadband access it released last month [04-55, WC 04-54]; see Telecom/IT Policy Highlights 4.03 for more information. The notice was published in the Federal Register on April 8, and comments are due May 10, with reply comments due May 24. [Source: Federal Communications Commission]

    Digital Audio Broadcasting Explored in FCC Inquiry
    04.15.04 – The FCC, seeking to forward the progress of digital audio broadcasting (DAB) technology, issued a Further Notice of Proposed Rulemaking and Notice of Inquiry [FCC 04-99, MB 99-325] to ask for comment on rule changes necessary to facilitate it. In October 2002 the FCC adopted in-band, on-channel (IBOC) as the technology of choice for DAB and allowed AM and FM radio stations to begin broadcasting on an interim basis using the IBOC system. The FNPRM seeks to finalize operations requirements and licensing changes related to digital audio. Additionally, the NOI asks about digital radio more broadly, seeking comment on what services radio stations should be able to offer, how public interest rules should be applied, and how the FCC can encourage broadcasters to eventually convert their analog-only services to all-digital services. To view the press release for the FCC’s action, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246150A1.doc]. [Source: Federal Communications Commission]

    FCC Adopts Rules to Boost Electronic Security Tags
    04.15.04 – In a move intended to increase homeland security and improve commercial shipping operations, the FCC adopted a Third Report and Order [FCC 04-98, ET 01-278] allowing radio frequency identification (RFID) systems to be used in conjunction with commercial shipping containers. RFID systems use radio signals to identify items and may be used to electronically collect tolls, inventory items, and mark containers with anti-theft tags. The Order loosens the restrictions on RFID systems, increasing the signal level permitted and the duration of transmission allowed. The action should allow RFID systems to be used more extensively throughout the nation, increasing efficiency and tightening security. To view the Order, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-98A1.txt]. [Source: Federal Communications Commission]

    FCC Holds Third Wireless E911 Initiative Meeting
    04.28.04 – The FCC held its third meeting of the Enhanced 911 Coordination Initiative this month, featuring policymakers and industry officials in a series of roundtable discussions. FCC Chairman Michael Powell delivered the keynote address, and his remarks can be found at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246491A1.txt]. For more information about the E911 Coordination Initiative, visit [http://wireless.fcc.gov/outreach/e911/index.html]. [Source: Federal Communications Commission]

    FCC Proposes Using 3650-3700MHz for Unlicensed Wireless Broadband
    04.15.04 – In response to demand for more spectrum from wireless Internet service providers (WISPs), the FCC issued a Notice of Proposed Rulemaking [FCC 04-100, ET 04-151, ET 02-380, ET 98-237] to open up the 3650-3700 MHz band for wireless broadband. WISPs had been clamoring for the spectrum, which would enable them to use higher power devices to more economically back up their networks and provide service to rural areas. The FCC’s proposal would allow unlicensed devices to operate in the 3650 MHz band as long as they meet cognitive technology safeguards and adopt other measures to avoid harmful interference. The NPRM can be viewed online at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-81A2.txt]. [Source: Federal Communications Commission]

    FCC Rules AT&T Not Exempt from Access Charges for its IP Services
    04.21.04 – The FCC issued a ruling [FCC 04-97, WC 02-361] stating that AT&T’s Phone-to-Phone IP Telephony services are telecommunications services and that they are not exempt from the assessment of interstate access charges. AT&T sought a ruling that their service, in which calls are routed by Internet protocol (IP) along the network’s backbone but are converted to circuit-switched network at both ends, be classified differently so as to be exempt from access charges. The Commission, however, took the position that since there is no special equipment and no added functionality associated with the service, it should be treated like any other telecommunications service. Chairman Michael Powell emphasized that the ruling was made on very narrow grounds and that the Commission is still examining many aspects of VoIP. Text of the ruling is available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-97A1.txt]. [Source: Federal Communications Commission]

    FCC Seeks Comment on Data Gathering Program
    04.19.04 – The FCC released a Notice of Proposed Rulemaking [FCC 04-81, WC 04-141 & CC 99-301] to ask for comments on how to improve the Commission’s data gathering program on the deployment of broadband services and the development of local telephone service competition. This program was established in 1999 and it will expire in March 2005 unless the Commission acts to extend it. The FCC is asking for comment on what reporting requirements to adopt and how to utilize the data it collects. View the Notice at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-81A1.txt]. [Source: Federal Communications Commission]

    FTC Holds Workshop On Spyware
    04.19.04 – The Federal Trade Commission (FTC) conducted a workshop entitled “Monitoring Software on Your PC: Spyware, Adware, and Other Software.” The workshop featured panels discussing the issues of how to define spyware, understand security and privacy risks, and to examine industry responses and best practices. As Congress prepares to investigate the issue, the FTC workshop was designed to focus attention on practical solutions to the problem, which is blurred by questions about which applications should be classified as performing illicit activities and which should not. For more information on the FTC’s workshop, including background information and a draft transcript (when available), see [http://www.ftc.gov/bcp/workshops/spyware/index.htm]. [Source: Federal Trade Commission]

    Sentencing Commission Suggests Tough Penalties for Spammers
    04.11.04 – The U.S. Sentencing Commission approved guideline changes to allow for the implementation of the CAN-SPAM Act. The Act creates a new felony offense that allows for up to five years of jail time in severe cases. The Sentencing Commission recommended a sentence enhancement of 25% if a defendant improperly obtains email addresses for spamming and an automatic 25% increase for use of spam in mass marketing. The Commission’s guidelines also allow judges to take the number of victims and extent of the loss to be considered in sentencing. The guidelines will become law unless Congress amends them before November 1, 2004. [Source: U.S. Sentencing Commission]


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  • Judicial Activities

    ACLU Challenges PATRIOT Act Electronic Record Provisions
    04.28.04 – The American Civil Liberties Union (ACLU) has challenged the constitutionality of provisions of the PATRIOT Act that revised the Electronic Communications Privacy Act. Under the provisions, the FBI has the power to demand the disclosure of information from “electronic communication service providers” without judicial review by issuing a “National Security Letter.” The ACLU contends that this and other provisions violate the First, Fourth, and Fifth amendments, and has filed suit in a New York federal court to overturn these provisions. Due to the security aspects of the case, only limited information has been released. The ACLU has versions of its briefs and motions in the case available on its website. For more information, see [http://www.aclu.org/SafeandFree/SafeandFree.cfm?ID=15543&c=262]. [Source: American Civil Liberties Union]

    Ninth Circuit Refuses to Reconsider Broadband Decision
    04.01.04 – The U.S. Court of Appeals for the Ninth Circuit refused to reconsider its decision in Brand X Internet Services v. FCC [see Telecom/IT Policy Highlights 4.01], in which it struck down the FCC’s declaration that Internet service via cable modem is an “information service.” FCC Chairman Michael Powell said he was disappointed with the decision not to rehear the case, arguing that it “effectively stops a vitally important policy debate in its tracks.” [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245687A1.txt] The Court issued a stay of its decision until June 30 to allow for appeal to the Supreme Court. [Sources: Federal Communications Commission, U.S. Court of Appeals for the Ninth Circuit]

    Utah Anti-Spyware Statute Challenged in Court
    04.12.04 – The State of Utah’s “Spyware Control Act,” enacted last month [see http://www.le.state.ut.us/~2004/bills/hbillenr/hb0323.htm] has been challenged in Utah court by advertising software maker WhenU, whose products deliver pop-up advertisements to Internet users. WhenU argues that the law violates the Utah constitution because it goes too far in its prohibition of online software applications. The suit has delayed the implementation of the law, which was supposed to begin May 3, 2004, until after a hearing has been held to review WhenU’s motion for a preliminary injunction against the statute. Utah is the only state to have passed an anti-spyware law, and many advertisers have criticized it for being too broad. [Sources: State of Utah, News.com]


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  • Research / Reports

    Broadband Use Up Dramatically, Report Says
    04.19.04 – A new report by the Pew Internet & American Life Project shows that broadband use is rising and is reaching an increasingly large number of Americans. The report indicates that 55% of all adult Internet users (34% of all adults in the U.S.) have access to high-speed Internet either at home or at work. The survey also indicated that 39% of Internet users have high-speed connections at home, a 60% increase since March 2003 fueled by a rise in digital subscriber line (DSL) access. The survey found that DSL is gathering an increasing share of the broadband market, increasing to 42% from 28% in March. The survey found that the top reason for switching to broadband at home was frustration with a slow connection. A copy of the report is available at [http://www.pewinternet.org/reports/toc.asp?Report=120]. [Source: The Pew Internet & American Life Project]

    GAO Says Effective Emergency Communication Requires Greater Collaboration
    04.16.04 – The U.S. General Accounting Office (GAO) issued a report on the progress of Project SAFECOM, an e-government initiative managed by the Department of Homeland Security with the goal of achieving interoperability among emergency-response communications among all levels of government. GAO found that Project SAFECOM has made only limited progress in meeting its objectives, due partly to management shuffles in recent years. The report included a recommendation to establish written agreements with the major stakeholders and find a stable funding mechanism. GAO says these shortcomings must be addressed before SAFECOM can improve government handling of emergency communication. To view the report, see [http://www.gao.gov/atext/d04494.txt]. [Source: U.S. General Accounting Office]

    GAO Analyzes Information Sharing Efforts
    04.22.04 – The General Accounting Office issued a report analyzing the effectiveness of information-sharing efforts involved with protection of critical infrastructure. Federal policy has encouraged the creation of Information Sharing and Analysis Centers (ISACs) to facilitate private sector involvement in infrastructure protection. GAO found that a number of challenges to the success of these efforts remain. GAO suggested that roles need to be clarified and relationships need to be strengthened between government and industry leaders. The Department of Homeland Security is currently developing a plan to implement these recommendations. To view the report (PDF), see [http://www.gao.gov/new.items/d04699t.pdf]. [Source: U.S. General Accounting Office]

    Scientists Find Limit To Data Storage
    04.21.04 – According to an article published in Nature (“Applied Physics: Speed Limit Ahead”) by C.H. Back and Danilo Pescia, there is an absolute limit to the speed at which data can be stored on disks. Although data storage methods continue to improve, the results of tests run at Stanford University’s particle accelerator reveal that data can only be stored at a speed about 1,000 times faster than current methods. The limit stems from electromagnetic interference that distorts bits of data when transmitted at high speeds. The article was published in the April 22, 2004 edition of Nature. [Sources: Nature, The Washington Post]

    Study Forecasts Development of Wireless Broadband Market
    04.28.04 – Senza-Fili Consulting and BWCS have published a report entitled “Wi-Fi, WiMAX, and 802.20 – The Disruptive Potential of Wireless Broadband.” The report addresses many key issues involving these three technologies, including cost assessments and compatibility issues involved with each. The report includes industry forecasts and predicts that WiMAX will be worth billions of dollars before the end of the decade. For more information about this report and how to purchase a copy, see [http://www.bwcs.com/report_detail.cfm?id=3944]. [Source: BWCS Consulting]


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  • Items of Interest

    Electronic Frontier Foundation Fights Restrictive Patents
    04.19.04 – The Electronic Frontier Foundation (EFF) has launched a campaign to fight patents it says are illegitimate. A number of software and Internet patents are threatening non-commercial personal use, according to EFF, which wants to correct patents that are “having negative effects on Internet innovation and free expression.” EFF has already released a white paper outlining the problems from patents issued for things such as one-click online shopping, they hyperlink, pop-up windows, and paying with a credit card online. The Foundation hopes to convince the U.S. Patent and Trademark Office to reconsider its decisions on these types of patents. For more information on “The Patent Busting Project,” see [http://www.eff.org/Patent/20040419_eff_pr_patent.php]. [Source: Electronic Frontier Foundation]

    IDT to Offer Wi-Fi Cell Phones at Low Cost
    04.20.04 – IDT Corporation announced its plan to deploy the first commercial Wi-Fi phone service in America. IDT’s Wi-Fi phones would allow users to bypass local phone companies and make calls over the Internet. IDT plans to roll out its service in Newark, New Jersey, where it will provide Wi-Fi coverage in selected neighborhoods. Service is expected to begin in a few months. To read the company’s press release, see [http://www.idt.net/corporate/press/releases/984.asp]. [Source: IDT Corporation]


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  • Events

    “Solutions Summit” Scheduled on Disability Access for Internet Services
    04.02.04 – The FCC will hold a “Solutions Summit” on Friday, May 7 to address disability access issues related to the proliferation of Internet-Protocol-based communications platforms. This is the second summit to address the impacts of IP-enabled services, it will focus on the challenges and opportunities they present for people with disabilities. The agenda for the summit can be viewed at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1051A1.txt], and more information about the FCC’s investigation into IP services can be found at [http://www.fcc.gov/voip/]. [Source: Federal Communications Commission]

    “State of Technology” Conference
    04.30.04 - The Wireless RERC on Mobile Wireless Technologies for Persons with Disabilities will hold its State of Technology Conference on May 11-12, 2004. To receive a copy of the Wireless RERC State of the Technology Conference 2004 registration information in the mail, please send your name and mailing address to Jennifer Staley at jennifer.staley@gcatt.gatech.edu. More information may also be found at [http://www.wirelessrerc.gatech.edu/SOT/index.htm].


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 4.04
    April 2004
    Alan Bakowski, Editor

    Telecom/IT Policy Highlights presents legislative, regulatory, legal, and other items of interest pertinent to information, telecommunications, and related technology policy and research. For additional information regarding the information provided in this report, or if there are newsworthy items that should be included in future editions, please contact , Research Specialist, or , Associate Director of Research.
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