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Telecom/IT Policy Highlights

Volume: 4.03
March 2004

Microsoft Word version /March 2004 TiPH (220kB)

Adobe PDF version /March 2004 TiPH (112kB)

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

    The Federal Communications Commission (FCC) had a busy month of March, addressing a wide range of issues. It released the Notice of Proposed Rulemaking covering Internet-enabled communications services. The Notice addresses public interest issues such as safety and disability access, universal service, and consumer protection. The Commission also tackled a number of public interest issues by holding summits on 911/E911 and disability access, as well as launching an investigation into broadband deployment.

    Spam reemerged as a key issue, with the Federal Trade Commission announcing regulations to implement the CAN-SPAM Act. The FCC also acted to examine ways to stop unwanted messages on mobile phones. Unfortunately, a series of reports released this month indicate that spam continues to be a significant problem for American email users.

    The Federal courts remained active as well, striking down rules from the FCC related to local telephone competition. The FCC had been closely divided over rules requiring Bell Operating Companies to lease their networks to competitors at discount rates. The Commission appeared united at the end of the month in seeking a settlement. In other judicial news, the Supreme Court ruled that states can bar municipalities from providing telecommunications services, and an appellate court struck down an Internet pornography law in Virginia on free-speech grounds.


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  • Policy / Legislative Activities

    Senators Propose Legislation to Fight Spyware
    03.23.04 – After demonstrating its penchant for acronyms by passing the CAN-SPAM (Controlling the Assault of Non-Solicited Pornographic And Marketing) Act in December, Congress has turned its attention to another computer threat: spyware. The Software Principles Yielding Better Levels of Consumer Knowledge (SPY BLOCK) Act [S. 2145], introduced in late February by Senator Conrad Burns (R-MT), would target invasive computer programs that hijack processing power to collect information about users and generate advertising. The bill would make it illegal to install software on a computer without receiving express consent from the user. It would also require downloads to give notice about any advertising or information collection features associated with them and to allow for easy removal.

    The Senate Commerce, Science, and Transportation Subcommittee on Communications held a hearing on the subject in late March. Testimony focused on the appropriateness of restrictions on otherwise legitimate commercial activity. Information about the hearing can be found at [http://commerce.senate.gov/hearings/witnesslist.cfm?id=1125]. In its current form, the bill follows much the same approach as the CAN-SPAM Act in its enforcement, treating violations as unfair or deceptive practices to be regulated by the Federal Trade Commission (FTC). The bill would allow the FTC to impose fines and civil penalties against violators. To view the text of the legislation, search for “S 2145” at [http://thomas.loc.gov]. [Source: Library of Congress]

    Committee Examines Progress on Government IT Solutions
    03.24.04 – Government-wide information technology initiatives were examined in a hearing held by the House Government Reform Subcommittee on Technology, Information Policy, Intergovernmental Relations and the Census. The hearing included testimony from officials in the General Accounting Office (GAO) and the Office of Management and Budget (OMB). GAO Information Management Issues Director Linda Koontz testified that progress on e-government initiatives has been mixed. Her testimony and report is available at [http://www.gao.gov/atext/d04561t.txt]. OMB’s Administrator for E-Government and IT, Karen Evans, also addressed the committee, discussing security issues in management.
    Her testimony is available (PDF) at [http://www.whitehouse.gov/omb/legislative/testimony/evans/karen_evans031604.pdf]. [Source: Office of Management and Budget, General Accounting Office, House Government Reform Committee]


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  • Regulatory Activities

    FCC Proposes Action to Prevent Mobile Phone Spam
    03.11.04 – The FCC adopted a Notice of Proposed Rulemaking and Further Notice of Proposed Rulemaking [FCC 04-52, CG Dockets 04-53 and 02-278] related to protecting mobile phone users from receiving spam and unauthorized telemarketing calls. The FCC is required by the recently-enacted CAN-SPAM Act to ensure that consumers are protected from unwanted commercial messages on their wireless devices. In order to implement these protections, the Commission is asking for comment on how senders can comply with the Act, how consumers can refuse to receive messages, and whether or not cellular providers should be exempt. In the second proposed rulemaking, the Commission is seeking comment on how to protect telemarketers from violating do-not-call requirements when a number is ported from a wireline to a wireless phone. The Telephone Consumer Protection Act prohibits autodialed calls from being placed to services where the party called is charged. The Commission is considering changing its safe harbor provision for telemarketers who call mobile phones in harmony with a recent decision by the Federal Trade Commission. To view the press release associated with these actions, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244843A1.doc]. [Source: Federal Communications Commission]

    Broadband Access To Be Studied by FCC Inquiry
    03.11.04 – The FCC adopted a Notice of Inquiry (NOI) [FCC 04-55, WC 04-54] in which it will examine whether or not broadband is being deployed to all Americans in a timely fashion. The inquiry will attempt to gather information about the effect of broadband deployment on America’s role in the global economy, availability of broadband in different markets, and economic considerations that support deployment of advanced telecommunications capabilities. The FCC will conclude its inquiry and report to Congress within 180 days. To view a press release, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244841A1.txt]. [Source: Federal Communications Commission]

    VoIP Rulemakings Released
    03.10.04 – The FCC released its Notice of Proposed Rulemaking [FCC 04-28, WC 04-36] concerning VoIP and other Internet-enabled communications services this month. Adopted at the Commission’s February 12th meeting, the NPRM asks for comment on how the Commission should proceed with respect to the regulation of VoIP. For details, see last month’s edition of Telecom/IT Policy Highlights (4.02) . Text of the NPRM can be found at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245354A1.txt]. [Source: Federal Communications Commission]

    FTC Proposes Rule To Implement CAN-SPAM Act
    03.11.04 – The FTC proposed a rule that would define spam and create reporting requirements and other rules to implement the CAN-SPAM Act. The Advanced Notice of Proposed Rulemaking [16 CFR Part 316] seeks comment on how the FTC should exercise its authority under CAN-SPAM, whether or not it should change the 10-day opt-out period, how it should designate practices as “aggravated violations” requiring higher penalties, and how it should define a number of terms left unclear in the legislation. Comments are due April 12, 2004. To read the FTC’s release about the Notice, see [http://www.ftc.gov/opa/2004/03/canspam.htm]. For the Notice itself, see
    [http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/04-5500.htm]. [Source: Federal Trade Commission, Federal Register]

    FCC Eliminates “Operate Independently” Rule to Promote Competition
    03.11.04 – The FCC retired a rule adopted in 1996 to implement separate affiliate requirements in Section 272 of the Telecommunications Act. Under the Report & Order [FCC 04-54, WC 03-228], Bell Operating Companies (BOCs) will no longer be required to provide separate operating, installation, and maintenance (OI&M) services for their local and long distance services. In a statement, Commission Chairman Michael Powell said “the time for requiring the prohibition on OI&M sharing has passed.” [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244842A2.txt]. The Commission hopes the action will provide efficiency gains and save consumers millions of dollars per year. To read the press release, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244842A1.txt]. [Source: Federal Communications Commission]

    Comments Requested On Electronic Records Policy
    03.08.04 – The National Archives and Records Administration’s Electronic Records Policy Working Group is asking for public comment on issues relating to the implementation of the E-Government Act of 2002. The Working Group is seeking suggestions on how to define “government information on the Internet,” how to effectively manage information, and guidance on overcoming barriers to implementation. Comments are due April 5. To read the Notice [FR Doc. 04-5091], see [http://edocket.access.gpo.gov/2004/04-5091.htm]. [Source: Federal Register]

    Commissioner Copps Calls for “Always-On” Campaign For Consumers
    03.11.04 – In a speech before the Consumer Federation of America, FCC Commissioner Michael Copps called for an “always-on and always-aggressive campaign for consumers.” Copps said that the FCC does not always take actions that are consumer-friendly, and he noted the Commission’s duty to “take only actions that are in the public interest.” In order to help consumers, he called for five specific actions: protecting consumers from false and confusing line items on their bills, making phone rates transparent and comparable, requiring wireless carriers to give detailed service maps to customers, giving consumers access to information so they can make smart choices, and fighting soaring cable rates. To read the speech in its entirety, see
    [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244855A2.txt]. [Source: Federal Communications Commission]


    03.18.04 – The FCC conducted a “Solutions Summit” to address crucial public safety issues associated with Internet-based communications services such as Voice over Internet Protocol (VoIP). Speaking at the summit, Commissioner Adelstein said, “There is no higher calling or higher priority for us at the Commission than improving 911 and E911 services.” The commission heard presentations from experts and discussed the problem with an interdisciplinary panel. The summit was the first in a series to be held over the next months to discuss Internet-based communications. For more information on the summit and to view a webcast of the proceedings, see
    [http://www.fcc.gov/ipwg/]. [Source: Federal Communications Commission]

    Disability Issues Discussed at FCC Summit
    03.25.04 – The FCC held a summit on emergency communications and the disability community, discussing barriers to emergency services faced by people with disabilities during national emergencies and terrorist attacks. Panel sessions focused on the role of technology, outreach efforts by the Commission, and defining emergency alternatives. FCC Chairman Michael Powell said that the summit would help as the Commission seeks to “create and enforce policies to ensure that all Americans—including the disability community—have equal access to communications services in an emergency.” [Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245354A1.txt]. [Source: Federal Communications Commission]


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  • Judicial Activities

    Court Strikes Down FCC Rules Requiring Network Competition
    03.02.04 – The U.S. Court of Appeals for the D.C. Circuit made a key ruling that strikes down FCC regulations that require Bell Operating Companies (BOCs) to lease their networks to competitors at discounted rates. The rules were instituted with the goal of increasing competition in the local telephone market. FCC Chairman Michael Powell, an opponent of the regulations, praised the ruling, saying that it will allow consumers to “enjoy the increased capabilities, innovation, and lower prices of advanced wireline broadband services for decades to come.” [Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244539A1.txt]. However, Commissioners Copps, Martin, and Adelstein opposed the ruling, saying that the local competition rules “preserve competition in a manner that is lawful.” [Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-244538A1.txt]. In a statement released at the end of the month, all five members of the Commission agreed to encourage commercial negotiations among telecommunications providers so that litigation would not destabilize the market. [Statement: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-245631A1.txt]. The FCC has asked for a stay of the Court’s decision until these negotiations are completed. To view the Court’s decision in US Telecom Association v. FCC [00-1012b] (PDF), see [http://pacer.cadc.uscourts.gov/docs/common/opinions/200403/00-1012b.pdf]. [Source: U.S. Court of Appeals for the D.C. Circuit, Federal Communications Commission]

    Supreme Court Says States Can Block Municipal Broadband
    03.24.04 – The U.S. Supreme Court ruled this month that states are not required to allow municipalities to provide telecommunications services under the Telecommunications Act of 1996. In an 8-1 decision, the Court held that the Act’s pro-competition language allowing “any entity” to provide telecommunications services does not change the power of states to set their own rules restricting local governments. In the case, Nixon v. Missouri Municipal League [02-1238], Missouri’s law forbidding its cities from selling telecommunications services was challenged at the FCC by municipally owned utilities. With its decision, the Supreme Court upheld the law. To view the opinion (PDF), see [http://www.supremecourtus.gov/opinions/03pdf/02-1238.pdf]. [Source: U.S. Supreme Court]

    Online Child Pornography Law Struck Down
    03.27.04 – The U.S. Court of Appeals for the Fourth Circuit struck down a Virginia law designed to prevent juveniles from accessing pornographic material on the Internet. The Court, in a 2-1 ruling, held that the law was too broad in its restrictions, preventing adults from viewing material they have the right to access. Free-speech advocates have heralded the ruling as a victory for the First Amendment. The Court cited the lack of geographic restrictions on the Internet as a justification for overturning the Virginia’s legislature’s prohibition on sexually explicit material. To read a copy of the opinion (PDF), see [http://pacer.ca4.uscourts.gov/opinion.pdf/012352.P.pdf]. [Source: U.S. Court of Appeals for the Fourth Circuit, Washington Post]


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  • Research / Reports

    Internet Reaches 200 Million Americans
    03.18.04 – A telephone survey conducted by the Internet measurement service Nielsen//NetRatings in February indicated that 204.3 million Americans have access to the Internet. The survey showed that nearly 75% of Americans above the age of two live in a household with Internet access. Those numbers an increase from the February 2003 report in which only 66% of Americans had access. The survey also indicated that women are slightly more likely to use the Internet than men. To view a copy of the report (PDF), see [http://www.nielsen-netratings.com/pr/pr_040318.pdf]. [Source: Nielsen//NetRatings]

    Report Describes Internet Use By Older Americans
    03.25.04 – A report released by the Pew Internet & American Life Project shows that only 22% of American seniors (age 65 and older) report having access to the Internet, up from 15% in February 2000. By contrast, access among Americans age 50-64 was reported at 58%, while nearly three-fourths of 18-49 year-olds have access. The survey found that a majority of online seniors had used the Internet to seek medical or health information, conduct product research, and visit government websites. However, the study also reports that many seniors not online are far removed from the Internet and do not know anyone who uses computers regularly. To find more information about the report, see [http://www.pewinternet.org/reports/toc.asp?Report=117]. [Source: Pew Internet & American Life Project]

    CAN-SPAM Not Aiding Email Users
    03.17.04 – A report by the Pew Internet & American Life Project indicates that 29% of Internet users have decreased their overall use of email because of spam. The survey, conducted by telephone in February, indicated that “the impact of CAN-SPAM is mixed, but not very encouraging so far.” The survey also found that 46% of users were aware that Congress had passed legislation to fight spam. The report also evaluates the social impacts of spam, noting women were more likely to distrust email than men. To read the report, see [http://www.pewinternet.org/reports/toc.asp?Report=116]. [Source: Pew Internet & American Life Project]

    Telecommunications Policy Issue Focuses on Growth in Mobile Communications
    03.01.04 – The March edition of Telecommunications Policy is a special issue on the growth in mobile communications. Reports include an analysis of global development patterns, a study of the effects of customer loyalty and satisfaction on the telecom market in Korea, an article on consolidation and changing market structures, and an examination of the economic versus the technical approaches to spectrum management. For more information on accessing Telecommunications Policy, see [http://www.elsevier.com/locate/telpol]. [Source: Telecommunications Policy]


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  • Items of Interest

    Forum Discusses “Network Neutrality”
    03.26.04 – At an event hosted by the Consumer Federation of America, Internet rights activists called for government policies to ensure that broadband providers would not discriminate against certain kinds of content or applications. Proponents of “network neutrality” say they want to prevent broadband providers from banning the use of applications such as Wi-Fi or virtual private networks. FCC Commissioner Michael Copps spoke at the event, which also included Internet law professor Lawrence Lessig and industry spokespeople. Several industry members said there was a lack of evidence that discrimination is occurring, and many preferred a market approach to the problem. For more information on network neutrality, refer to the “Reports” section of Telecom/IT Highlights (4.01). [Source: Consumer Federation of America, IDG News Service]

    First Computer Wiretapping Case Emerges
    03.24.04 – A man in Huntington Beach, CA was indicted in the nation’s first computer wiretapping case. Larry Lee Ropp was indicted by a federal grand jury in Los Angeles for wiretapping when he illegally recorded keystrokes on someone else’s computer. The device Ropp used, a “Key Katcher”, records every keystroke on the computer on which it is installed. It is often used by parents to monitor their children’s activities online, and it is lawful when used on personal property. It is believed that Ropp was trying to acquire confidential information for use in a class-action lawsuit. [Source: Los Angeles Times]

    President Bush Sets National Goal For Universal Broadband Access
    03.26.04 – In a speech before a group of first-time homebuyers in Albuquerque, New Mexico, President Bush strayed from the topic of homeownership to discuss the economic impact of broadband technology. “This country needs a national goal for broadband technology,” said Mr. Bush, calling for “universal, affordable access” by the year 2007. The President emphasized the potential for broadband access to improve health care and education and to give America a competitive edge in the global economy. President Bush also focused on the importance of competition among broadband carriers and came out strongly against taxing broadband access. A full text of the President’s remarks can be found at [http://www.whitehouse.gov/news/releases/2004/03/20040326-9.html]. [Source: The White House]

    VoIP Debate Affects Georgia
    03.01.04 – In the March/April edition of TechLINKS Magazine, Walt Sapronov (Gerry & Sapronov LLP) discusses the current of evolution of VoIP in Georgia. The article includes a discussion of related topics such as public safety, universal service, and access for people with disabilities. To find out more about TechLINKS, see their website at [http://www.techlinks.net]. [Source: TechLINKS, March/April 2004]


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 4.03
    March 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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