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Telecom/IT Policy Highlights

Volume: 4.05
May 2004

Microsoft Word version /May 2004 TiPH (233kB)

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Contents:
Overview
Policy / Legislative Activities
Regulatory Activities
Judicial Activities
Research / Reports
Events
Newsletter Info
  • Overview

    Washington stayed busy during the month of May, accompanied by increasing temperatures and the pervasive drone of cicadas. Congressional committees focused on numerous telecommunications and information technology issues, including the ongoing investigation into spam and spyware proliferation. The House Judiciary Committee leaders introduced a new antitrust bill [H.R. 4412] to “strengthen competition in the telecom marketplace.” The Judiciary Committee also focused on a number of information privacy initiatives related to the Internet. Meanwhile, the House Subcommittee on Telecommunications and the Internet brought its attention to the convergence of voice, video, and data services with a hearing focused on new technologies.

    The Federal Communications Commission (FCC) created a Wireless Broadband Access Task Force and held a forum on wireless broadband on May 19. Separately, the Commission issued a Notice of Proposed Rulemaking suggesting that unused portions of the TV spectrum could be used to facilitate broadband, as long as harmful interference was avoided. The FCC also acted to clarify rules regulating intercarrier exchange rates, intended to maintain competitive pricing for long distance services.

    A number of telecom/IT related reports were released this month, including one with statistics on recent telecommunications usage and another on wireless Internet readiness. An FCC report indicates that 2 million wireless numbers have been ported in the last six months, and a new report on wiretapping released by the U.S. federal courts shows that portable devices are the main focus of law enforcement. Separately, GAO studies report that federal agencies are mining data with personal information for a number of reasons and that both electronic voting systems and homeland security IT systems pose challenges to effective implementation.


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  • Policy / Legislative Activities

    Bill Would Promote Telecommunications Access for Native Americans
    05.04.04 – A bill proposed by Senator Daniel Inouye (D-HI) [S. 2382] would promote access to telecommunications and information technology services by Native Americans through the authorization of approximately $20 million in grants for Native American communities and households. The “Native American Connectivity Act” would channel money to Indian tribal governments, tribal entities, and Indian households for telecom/IT access. The grants would be administered by the National Telecommunications and Information Administration (NTIA) in the Department of Commerce. The bill has been referrred to the Senate Committee on Indian Affairs. For text of the legislation and other information, see [http://thomas.loc.gov/cgi-bin/query/z?c108:S.2382:]. [Source: Library of Congress]

    House Committee Leaders Introduce Antitrust Amendments to Telecom Act
    05.20.04 – House Judiciary Committee Chairman James Sensenbrenner (R-WI) and Ranking Member John Conyers, Jr. (D-MI) introduced the “Clarification of Antitrust Remedies in Telecommunications Act of 2004” [H.R. 4412] to strengthen the antitrust provisions of the Telecom Act of 1996. The initiative comes in response to recent federal court decisions which held that the Telecom Act’s language does not create any new antitrust provisions beyond those previously existing in the Clayton Antitrust Act. The proposed legislation would modify the Clayton Act so as to ensure that failure to comply with interconnection agreements or other Telecom Act provision would be considered an anticompetitive practice. Chairman Sensenbrenner commented “this legislation continues this Committee’s long-standing bipartisan effort to promote competition in the telecommunications industry by preserving an antitrust remedy for anticompetitive conduct.” To view the press release, see [http://www.house.gov/judiciary/news05202004.htm]. A copy of H.R. 4412 can be found at [http://thomas.loc.gov/cgi-bin/query/z?c108:H.R.4412:]. [Sources: Library of Congress, House Committee on the Judiciary]

    House Subcommittee Holds Hearing on Voice, Video, and Data Services
    05.19.04 – The House Subcommittee on Telecommunications and the Internet held a hearing entitled “Competition in the Communications Marketplace: How Convergence is Blurring the Lines Between Voice, Video, and Data Services.” The hearing featured testimony and demonstrations from a number of telecom companies; discussion focused on multiple serves are being merged by new technologies. Technologies discussed include broadband over power lines (BPL), voice over Internet Protocol (VoIP), and fiber to the home. Subcommittee Chairman Fred Upton (R-MI) noted that the hearing would help lay the framework for Congress when it revisits the Telecommunications Act during the next session. While this hearing focused solely on technology, Upton stated that there will be further hearings on competition in communications to focus on policy. This suggests that data services, which were not regulated by the 1996 Act, will be affected when Congress revises the Telecom Act. Future hearings on policy have not yet been scheduled. For more information or to view the webcast of the hearing, see [http://energycommerce.house.gov/108/Hearings/05192004hearing1278/hearing.htm]. [Source: House Committee on Energy and Commerce]

    Judiciary Committee Acts To Address Online Theft and Identity Fraud
    05.12.04 – The House Judiciary Committee held a markup session on a number of bills related to the protection of online identity and security. The Identity Theft Penalty Enhancement Act [H.R. 1731], which would impose mandatory minimum two-year prison sentences for aggravated identity theft, which involves unlawfully using another’s personal information in the commission of certain felonies. The Committee amended and approved the bill, which has already passed the Senate in a different form. The Fraudulent Online Identity Sanctions Act [H.R. 3754] was also amended and approved by the committee. This bill would increase the penalty for providing false information in connection with domain name registration. The Committee also passed S. 1301, the Video Voyeurism Prevention Act, which would prohibit improper photography of an individual in a private setting without the individual’s consent. For more information and to view the webcast of the hearing, look for “March 12, 2004” at [http://www.house.gov/judiciary/full.htm]. [Source: House Committee on the Judiciary]

    Senate Commerce Committee Hearing On Effectiveness of CAN-SPAM Act
    05.20.04 – The Senate Commerce Committee held a hearing to determine whether or not the CAN-SPAM Act passed by Congress late last year has been effective in curbing unsolicited emails to consumers. Federal Trade Commission (FTC) Chairman Timothy Muris gave a report on what the FTC is doing to implement the Act, and the committee also heard reports from the FBI and from industry. The subject of spam and the effectiveness of the CAN-SPAM Act have received a great deal of attention throughout Washington and in the mainstream media, although overall reports have been mostly negative.

    Industry estimates indicate that anywhere between 1 and 15 percent of email is CAN-SPAM compliant, a problem thought to be caused largely by the fact that most spam is generated outside U.S. borders. However, FTC Chairman Muris points out that very little is actually known about the origin of spam. “Even with incredibly painstaking, expensive, and time-consuming investigation, it is often impossible to determine where spam originates,” Muris noted at the hearing. The effectiveness of CAN-SPAM depends in part on the ability of the Federal Trade Commission to enforce its provisions, and the FTC has taken a number of actions against high-profile “kingpin” spammers. However, officials do not know whether this approach will ultimately be effective, and most experts agree that spam will continue to haunt inboxes until an international arrangement can be agreed upon. For more information, read testimony from Chairman Muris and other hearing panelists at [http://commerce.senate.gov/hearings/witnesslist.cfm?id=1199]. [Source: Senate Committee on Commerce, Science, and Transportation, GigaLaw.com]


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  • Regulatory Activities

    Comments Sought On Radio Frequency Identification Technology
    05.20.04 – The Federal Trade Commission (FTC) is seeking comment on applications and implications for consumers of radio frequency identification (RFID) technology. The FTC will hold a workshop on June 21 to address current and future uses of RFID tags and their impact on the market. Recall that last month the FCC adopted a Third Report and Order [FCC 04-98] allowing RFID tags to be used in conjunction with commercial shipping containers. However, RFID systems can also use radio signals to identify smaller items and track them electronically. Supply chain managers have been implementing RFID in order to improve shipping and receiving and recall management, and large retailers such as Wal-Mart have embraced the technology. However, privacy advocates worry that RFID tags, which can be scanned at medium-range distances, will allow stores to track merchandise even as it leaves the shelves and goes home with consumers.

    Last November, a group of privacy groups including the American Civil Liberties Union (ACLU) and the Electronic Frontier Foundation (EFF), issued a position paper on the use of RFID on consumer products. The paper, which can be found on an anti-RFID website at [http://www.spychips.com/jointrfid_position_paper.html], recommends regulating RFID technology so as to prohibit certain applications that might invade consumer privacy. The FTC Workshop is expected to look into these issues at its workshop. More information on the workshop may be found at [http://www.ftc.gov/rfidworkshop/]. The due date for comments has been extended to July 9, 2004. [Source: Federal Trade Commission]

    FCC Acts to Keep Long Distance Services Competitively Priced
    05.13.04 – The FCC released its Eighth Report & Order and Fifth Order on Reconsideration [FCC 04-110] with regard to rules governing interstate access services provided by competitive local exchange carriers (CLECs) to interexchange (long-distance) carriers (IXCs). The Order generally maintains rules adopted by the FCC in 2001 which stated that CLECs cannot charge more for access than a benchmark rate used by incumbent local exchange carriers. This means that switching rates will be equalized among local exchange carriers, which should result in fewer disputes between competing carriers. FCC Chairman Michael Powell said the Order removes a “regulatory quirk” and noted that the Commission’s action should benefit consumers. Chairman Powell’s remarks are available at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-110A2.txt]. The Order can be found at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-110A1.txt]. [Source: Federal Communications Commission]

    FCC Creates Wireless Broadband Access Task Force, Seeks Comments
    05.05.04 – The FCC has created a Wireless Broadband Access Task Force to identify potential policy changes that could facilitate more rapid deployment of wireless broadband services. Announcing the formation of the group, Commission Chairman Michael Powell said, “the overarching goal of this initiative is to take a hard look at what we can do to extend the reach of broadband services to underserved areas and to provide increased competition in areas that already have access to broadband.” See the FCC’s release at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-246852A1.txt]. The Task Force released a Notice [GN Docket 04-163] of twelve questions about wireless broadband on which it is seeking comment, covering topics from regulatory approaches to licensing issues and potential applications of wireless broadband technology. Comments are due June 3 and Reply Comments are due July 1, 2004. View the Notice and further information at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-04-1266A1.txt]. Note: This is not a rulemaking proceeding. The Task Force website is [http://www.fcc.gov/wbatf/]. [Source: Federal Communications Commission]

    FCC Recharters Media Security And Reliability Council
    05.26.04 – The FCC officially rechartered the Media Security and Reliability Council (MSRC), an advisory committee that reports to Chairman Michael Powell on the robustness of broadcast industries. MSRC II, as the committee will be known, is chaired by David J. Barrett, President and Chief Executive Officer of Hearst-Argyle Television, Inc. The Council also includes representatives from dozens of media companies, including Walt Disney Chairman & CEO Michael Eisner, News Corp. Chairman & CEO Rupert Murdoch, and former New York City Mayor Rudolph Giuliani. MSRC will convene for the first time on June 2, 2004 at FCC Headquarters in Washington, D.C. For more information, see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247617A1.txt]. [Source: Federal Communications Commission]

    FCC Reports on Local Number Portability
    05.13.04 – Just before Local Number Portability (LNP) requirements were implemented nationwide on May 24, three FCC bureaus reported on the status of LNP since wireless porting began in the top 100 markets last November. John B. Muleta, Chief of the FCC Wireless Telecommunications Bureau Chief John B. Muleta reported that over 2 million ports involving wireless carriers have occurred in the last six months. William Maher, Chief of the FCC’s Wireline Competition Bureau, reported that recent number porting activity was split roughly evenly between wireless-to-wireless and wireline-to-wireline porting. For more information, see the FCC’s release at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247162A1.txt]. [Source: Federal Communications Commission]

    TV Band Has Potential for Wireless Broadband, Says FCC
    05.13.04 – The FCC issued a Notice of Proposed Rulemaking [FCC 04-113] to propose allowing devices using unlicensed spectrum to operate in the parts of the TV Band that are not being used by TV stations. By opening up this spectrum for use by unlicensed devices, wireless Internet service providers (WISPs) could extend the range of their broadband services, especially in rural and underserved areas. The Commission also proposes to require unlicensed devices to incorporate “smart radio” features that enable them to identify the unused TV channels and to avoid interference with existing signals. The Notice further proposes classifying unlicensed broadband devices into two categories: lower power “personal/portable” devices (such as Wi-Fi cards in laptops) and higher power “fixed/access” devices operated from a fixed location (such as those used to provide commercial wireless broadband Internet access). The two classes of devices would require different requirements with respect to signal interference. For more information, read the press release at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247169A1.txt]. [Source: Federal Communications Commission]

    VoIP Systems Security Examined in Report By NIST, Comments Sought
    05.03.05 – The National Institute of Standards & Technology released a draft paper entitled “Security Considerations for Voice Over IP Systems” [NIST SP 800-58] in which it examines network security issues and their application to Voice over Internet Protocol (VoIP) systems. VoIP requires a higher performance than most data systems and adds complications to existing data networks when security issues are considered. The NIST report examines how firewalls, ciphering, session protocols, and other devices will affect VoIP deployment and makes a series of recommendations regarding VoIP networks. These include separating voice and data traffic, considering requirements for E911, increasing physical security to prevent access to VoIP servers and gateways which are vulnerable to outside observation, and installing VoIP-ready firewalls. The complete report can be found online at [http://www.csrc.nist.gov/publications/drafts/NIST_SP800-58-040502.pdf]. Comments are requested to be submitted to sp800-58@nist.gov by June 18, 2004. [Source: National Institute of Standards & Technology]


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  • Judicial Activities

    Court Rules School Bomb Threat Call Is Interstate, Can Be Prosecuted By Feds
    05.06.04 – The U.S. Court of Appeals for the 8th Circuit ruled that a telephone call made from one room in a school to another can consitute an “interstate activity” and therefore be subject to federal jurisdiction. The ruling comes in a criminal case, USA v. RJS, wherein a high school student phoned in a bomb threat to the principal’s office from another room in the school where he was being held in detention. The court ruled that because the phone calls were dialed using the ten-digit interstate telephone system and the parties were unavailable to outside interstate contact, there was sufficient interstate activity to fall under federal protection. To view the Court’s opinion, see [http://www.ca8.uscourts.gov/opndir/04/05/032855P.pdf]. [Source: U.S. Circuit Court of Appeals for the 8th Judicial Circuit]


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  • Research / Reports

    Data Mining Increasingly Used By Federal Government: GAO Report
    05.27.04 – A report by the General Accounting Office (GAO) indicates that federal agencies are increasingly using “data mining,” searching through public and private databases for statistical analysis. The report found that agencies most commonly data mine in order to improve service or performance, detect waste, fraud, or abuse, and analyze scientific research. Other uses involve management of human resources and detection of criminal activity or intelligence gathering. The survey of federal data mining found that 122 of 199 efforts involved personal information. To view the report, see [http://www.gao.gov/atext/d04548.txt]. [Source: U.S. General Accounting Office]

    FCC Releases 2004 Telephone Usage Report
    05.04.04 – The FCC released the 2004 report in its Trends in Telephone Service series, summarizing information that was released by FCC during the past 12 months. The report includes 29 new charts displaying trends in telecommunications usage, including information about universal service, local competition, subscribership levels, and more. The report indicates that advanced telecommunications service (broadband) lines increased 32% during the first half of 2003, with cable modems growing faster than DSL (digital subscriber lines). The repot also shows that international calls, of which there were 5.9 billion in 2002, cost American consumers an average of 28 cents per minute in that year, an eighty percent (80%) decrease from rates in 1980. The full report may be downloaded (PDF) from [http://www.fcc.gov/wcb/iatd/trends.html]. [Source: Federal Communications Commission]

    Federal Courts Release Wiretapping Information
    05.01.04 – The Administrative Office of the United States Courts released its “2003 Wiretap Report” indicating that there were 1,442 wire, oral, or electronic wiretaps authorized by federal and state courts in 2003, resulting in the conviction of 843 people by year’s end. Ninety-three percent (93%) of wiretaps were for telephone lines, although a large majority of these wiretaps involved cellular/mobile telephones. Only 4% of wiretaps in 2003 (49 cases total) involved electronic communications such as pagers, fax machines, or email. Overall, eighty-one percent (81%) of wiretaps were authorized for surveilling portable devices. The 2003 figures represent a six percent increase from 2002, most of which can be attributed to a rise in requests by federal authorities. Only 23 state courts reported wiretap activity in 2003, and seven states (NY, CA, NJ, PA, FL, MD, & IL) account for 90% of these wiretaps. To view the report for 2003 and for previous years, see [http://www.uscourts.gov/library/wiretap.html]. [Source: Administrative Office of the United States Courts]


    05.12.04 – GAO released a report [GAO-04-776T] on electronic voting systems attempting to identify the challenges and opportunities they present. The report identifies near-term challenges such as security and performance testing and long-term challenges such as establishing criteria on which to evaluate voting system effectiveness. The report provides background information on electronic voting systems and gives guidance to the Election Assistance Commission, which was established by the Help America Vote Act of 2002 to assist federal election administration. To view the report, see [http://www.gao.gov/atext/d04766t.txt]. [Source: U.S. General Accounting Office]

    Email Users Drive Less, According to Study
    05.01.04 – According to an article in the Summer 2004 edition of Social Science Computer Review (volume 22) by Bruce Tonn and Angela Hemrick, approximately 40% of survey respondents indicated that they made fewer trips as a result of using information technology such as email. Reductions in overall trips as well as trips during rush hour were noted by Internet users, although the authors note that the Internet can also affect new trip generation. For more information about Social Science Computer Review, see [http://hcl.chass.ncsu.edu/sscore/sscore.htm]. [Source: Social Science Computer Review]

    Homeland Security Needs Better IT Integration Plan, GAO Report Shows
    05.21.04 – The Department of Homeland Security (DHS) is currently working on a project to integrate information technology (IT) systems from federal agencies involved in homeland security. The project has made limited progress, which DHS attributes to a lack of sufficient staff and a wealth of other, more potentially successful priorities. However, a new General Accounting Office report suggests that DHS needs to clarify its integration strategy and define its IT framework before the project can be effectively integrated. To read the report, see [http://www.gao.gov/atext/d04509.txt]. [Source: U.S. General Accounting Office]

    Over One Fourth of American Adults “Wireless Ready”
    05.12.04 – A report by the Pew Internet & American Life Project indicates that more than a quarter of all Americans are using devices that can access the Internet wirelessly. According to the March 2004 survey, 28% of Americans have used a laptop or cell phone that lets them connect wirelessly to the Internet within the last month. That translates into approximately 56 million American adults. A February survey showed that younger generations are more likely to be wireless, and it indicated that about 10% of the wireless ready population (about 5 million people) access the Internet from somewhere other than home or work every day. To view the report, see [http://www.pewinternet.org/reports/toc.asp?Report=125]. [Source: Pew Internet & American Life Project]

    Return On Investment Wrong Analytic Tool For Information Security
    05.20.04 – According to an article in the May 2004 issue of Computer Fraud & Security (volume 2004) by Charles Wood and Donn Parker, return on investment (ROI) should not be used as a tool for evaluating information security projects. This, the authors argue, is because information security lacks solid benchmarks and has become more like the provision of human resources, central to a firm’s operations. Arguing that there should no longer be a need to financially justify investment in security, Wood & Parker suggest a due diligence approach, providing levels of IT security that are required by both external standards and the demands of the marketplace. Find more information about Computer Fraud & Security at [http://www.sciencedirect.com/science/journal/13613723]. [Source: Computer Fraud & Security]


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  • Events

    Freedom 2.0 Conference Addresses Digital Democracy
    05.22.04 – The Electronic Privacy Information Center (EPIC) held its Freedom 2.0: Distributed Democracy conference in Washington, D.C. on May 20-22. The event featured panel discussions on electronic surveillance, electronic voting, and the role of the Internet and the public voice. U.S. Senator Pat Leahy (D-VT) was given the EPIC Champion of Freedom Award, and the conference spotlighted several other officials, including Congressman Rush Holt (D-NJ), who introduced legislation that would require electronic voting machines to print paper receipts, and Vincent G. Cerf, president of the Internet Corporation for Assigned Names and Numbers (ICANN). For more information about the conference, see [http://www.epic04.org/]. [Source: Electronic Privacy Information Center]

    FCC Consumer Panel To Hold Meeting On Broadband, Homeland Security Issues
    05.19.04 – The FCC Consumer Advisory Committee (CAC) will hold its next meeting on Friday, June 18 at the Commission Headquarters in Washington, D.C. The agenda for the meeting includes panel discussions on truth in billing issues and on homeland security issues. The meeting will also feature reports from various FCC working groups, including reports on broadband and broadband accessibility. For more information, see the press release at [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-247374A1.txt] or visit the CAC webpage at [http://www.fcc.gov/cgb/cac/]. [Source: Federal Communications Commission]

    FCC Holds Wireless Broadband Forum
    05.19.04 – The FCC held a Wireless Broadband Forum to investigate new wireless technologies, business practices, and barriers to entry in the wireless broadband market. The all-day event featured technology demonstrations as well as a series of panels devoted to understanding the market for wireless broadband. In addition, the FCC took comments from members of the industry/community who were unable to attend. A list of comments received as well as information about the Forum can be found at [http://wireless.fcc.gov/outreach/2004broadbandforum/]. [Source: Federal Communications Commission]

    “State of Technology” Conference
    The Wireless RERC hosted a “State of Technology Conference on Mobile Wireless Technologies for Persons with Disabilities, May 11th and 12th, 2004, at the Georgia Centers for Advanced Telecommunications Technology (GCATT) Atlanta. The objective of the conference was to establish a national dialogue among researchers, users, and industry and to share knowledge about the current state and future directions of accessible technologies wireless technologies for people with disabilities. The conference was jointly sponsored by The National Institute on Disability and Rehabilitation Research (NIDRR), the Federal Communications Commission (FCC), and the National Center for Dissemination of Disability Research (NCDDR). [Conference website: http://www.wirelessrerc.gatech.edu/SOT/index.htm.] [Archived webcast: http://www.tvworldwide.com/events/georgia_tech/040511/]


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  • Newsletter Info

    Center for Advanced Communications Policy
    Telecom/IT Policy Highlights Volume 4.05
    May 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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