| Senate Commerce Committee
Holds Hearings on Bells and HR 1542 |
6/19. The Senate
Commerce Committee held a hearing on local phone
competition and HR 1542, the Tauzin Dingell bill. Senators
and witnesses criticized the Bell companies (Verizon,
BellSouth, SBC, and US West) for failing to comply with
the network opening requirements of the Telecom Act of 1996. Sen. Ernest Hollings
(D-SC), the Chairman of the Committee, said that HR 1542 has
no chance of passing in the Senate.
Sen. Hollings was blunt. He called the interlata data relief
provisions of HR 1542 "the biggest bunch of nonsense I
have ever heard of." As for its chance of passing in the
Senate, he said "tell our friend Billy that the tread has
come off." Rep.
Billy Tauzin (R-LA), the lead sponsor of HR 1542, is the
Chairman of the House Commerce Committee, which is currently
addressing the Firestone issue. Sen. Hollings also criticized
the Bell companies repeatedly for challenging the
constitutionality of Section
271 of the Telecom Act of 1996 as a bill of attainder.
This section provides that the RBOCs
must satisfy the FCC that they have opened their local
networks to competitors by complying with a 14 point checklist
before they can offer interlata long distance services. Sen.
Hollings recalled that there were numerous meetings with RBOC
representatives before passage of the 96 Act, that the Bells
participated in the drafting of the 96 Act, that the Bells
knew of its contents, and that then the Bells challenged its
§ 271 in court.
Sen. John McCain
(R-AZ), the ranking Republican on the Committee, was less
critical of the Bell companies. He stated that local phone
prices have gone up 12%, and blamed it on the lack of local
competition. Sen. Byron
Dorgan (D-ND) stated that "I don't think the Senate
is prepared to pass the Dingell Tauzin bill." He also
stated that he is concerned about broadband buildout to rural
areas, but that taking apart the 96 Act is not the answer.
Instead, "it will only happen when there is universal
service support."
Rep. Ed Markey
(D-MA) was the lead off witness. He was one of the leaders of
the opposition to HR 1542 on the House Commerce Committee. He
attacked the Bells for litigating the constitutionality of the
96 Act, for not complying with its market opening provisions,
and for consolidating from seven to four companies. He then
turned to HR 1542. He argued that "there is a regulatory
uncertainty that has been introduced into the market place by
the introduction of this bill" and that this is keeping
the competitive companies from raising capital. He also stated
that the bill "is unnecessary; there is competition in
the marketplace." He stated that "it is unfair"
to all the competitive companies that it will drive out of
business. He stated that "it is undigital", because
interlata data relief is impossible from a regulatory
standpoint, since data and voice traffic cannot be separated.
The Committee also heard testimony from eight outside
witnesses. Seven of the eight condemned the Bell companies and
their bill. See, prepared statements [PDF] of witnesses: Michael
Armstrong (AT&T), Margaret
Greene (BellSouth), Royce
Holland (Allegiance Telecom), Clark
McLeod (McLeod USA), David
Rolka (Rhoads & Sinon), Dave
Sullivan (State Senator, Illinois), and Gene
Kimmelman (Consumers Union). Sen. Hollings invited every
Bell company to send a witness. Only BellSouth agreed to
attend. McLeod said that "HR 1542 has no redeeming
qualities" and "moves us towards remonopolization."
Holland said that "it is about Bell companies wanting to
preserve their government granted monopolies." Armstrong
said that "Tauzin Dingell presents a serious threat to
local competition" and that "there must be
meaningful penalties and damages" for Bell companies that
violate the local competition provisions of the 96 Act. |
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| House Judiciary Committee
Report on HR 1542 |
| 6/18. The House
Judiciary Committee completed its report
on HR 1542, the Tauzin Dingell bill. The Judiciary Committee
amended the bill, and then reported it unfavorably on June 13. |
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| White House Fellows
Selected |
6/19. The White House Press office announced the selection
of 12 White House Fellows for 2001-2002. Two appointments are
notable for technology: Katherine White, an intellectual
property law professor, and Steven Poizner, President of
SnapTrack, a Qualcomm subsidiary.
Katherine White is an Assistant Professor of Law at
Wayne State University in Detroit. She teaches and writes
about intellectual property law.
Steven Poizner is President of SnapTrack, a subsidiary
of Qualcomm. He founded
and sold SnapTrack to Qualcomm in March 2000 for $1 Billion.
SnapTrack developed GPS based technology for portable wireless
devices such as cell phones and pagers. Qualcomm is now
shipping GPS capable microprocessors for cell phones to Japan.
The chips will be sold in devices in the U.S. later this year.
These devices provide new safety and other location related
services. They also raise privacy issues. |
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| Bush Addresses Disabilities
and Technology |
6/19. President Bush gave a speech
Washington DC regarding the Americans with Disabilities Act
and computer and Internet technology. He stated that "The
Internet brings a world of information into a computer screen,
which has enriched the lives of many with disabilities. Yet,
technology creates challenges of its own. The brilliant
graphics that add life to many web pages can make it difficult
for a visually impaired person to get the information he or
she needs from a web site. Video technology is turning many
computers into television sets. Yet, without closed
captioning, many see a picture and no words. And complex
keyboard commands make it difficult for a person with impaired
motor skills to tap a computer's full potential."
Bush also stated that "I'm pleased to announce that when
Section 508 of the Rehabilitation Act, offered by Jim Jeffords,
becomes effective for all federal agencies next Monday, there
will be more opportunities for people of all abilities to
access government information. Section 508 requires federal
agencies to make sure that the electronic and information
technology they use is accessible for people with
disabilities."
Bush said nothing about government regulation of the private
sector's use of computer equipment, software or web site
design. |
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| Muris Appoints More Top
Staff at FTC |
6/19. FTC Chairman Timothy
Muris made three staff appointments at the FTC. Ted Cruz will
be Director of the Office of Policy Planning. Sean Royall will
be Deputy Director of the Bureau of Competition, which handles
antitrust matters. Alden Abbott will be Assistant Director of
Policy & Evaluation. See, FTC
release.
Ted Cruz was briefly Associate Deputy Attorney General
at the Department of Justice. Before that, he was a Domestic
Policy Advisor on the Bush Cheney campaign. He also assisted
in the preparation of briefs for the U.S. Supreme Court and
Florida Supreme Court on behalf of George W. Bush during the
Florida election contest. Before that, he was an associate at
the Washington DC law office of Cooper Carvin &
Rosenthal. He also clerked for Judge Mike Luttig (4th Cir)
and Chief Justice William Rehnquist. Rehnquist was Asst. Atty.
Gen. in charge of the Office
of Legal Counsel in the Nixon administration. Luttig was
briefly head of OLC in the Bush administration. Cooper was
head of the OLC in the second Reagan administration, while
Carvin was his principal assistant.
Sean Royall was a partner in the Washington DC office
of the law firm of Gibson
Dunn & Crutcher, in its Antitrust and Trade Regulation
Practice Group. He has a law degree from the University of Chicago.
He has focused on antitrust litigation and counseling,
business litigation, intellectual property, and false
advertising. He is a Texan. He went to college at Texas
A&M, clerked for Judge Patrick Higginbotham (5th Cir), and
was an associate at Baker
Botts. See, GDC
bio.
Alden Abbott has worked at the Commerce Department
since 1994, most recently as Acting General Counsel. Prior to
that, he worked as an attorney advisor in the FTC's Office of
Policy Planning. He has also worked at the Justice Department,
Commerce Department, and as Associate Dean for Technology
Policy at George Mason University Law School. |
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| Location Privacy |
6/19. The Congressional
Internet Caucus Advisory Committee hosted a panel
discussion titled "Wireless Privacy and the Mobile
Internet". The speakers were Rep. Michael Honda (D-CA),
Robert Petit (Wiley Rein & Fielding), James Dempsey
(Center for Democracy & Technology), John Collins
(Mobility Technologies), Marci Weisler (Vindigo), Lori Fena (TRUSTe),
Jonas Niehardt (Qualcomm), and Steve Berry (CTIA).
At issue is the privacy of people who use cell phones, PDAs,
in car map and traffic services, wireless tollbooth collection
systems, Blackberry
e-mail pagers, Bluetooth
enabled devices, and anything else which can be embedded with
a GPS chip, or other technology, capable of generating
location data. Jonas Neihardt of Qualcomm stated that his
company has just started shipping GPS capable microprocessors
for cell phones to Japan; he added that similar cell phones
will go on sale in the U.S. later this year. Rep. Michael Honda
(D-CA) stated the problem: "what information will
wireless providers collect and with whom will they share
it." He added that Congress "should proceed slowly
in this area."
Steve Berry of the CTIA
spoke about the petition
[PDF] which it filed with the FCC
on Nov. 22, 2000, requesting a rule making proceeding
regarding location privacy. The FCC has noticed a rule making
proceeding, and received public comments. (See, WT Docket No.
01-72.)
The 106th Congress enacted, and President Clinton signed, the
Wireless Communications and Public Safety Act of 1999. This
bill was S
800, sponsored by Sen.
Conrad Burns (R-MT), and HR 438, sponsored by Rep. John Shimkus
(R-IL). It designated 911 as the universal emergency service
number, and promoted wireless 911 service. The bill also
amended Section 222 of the Communications Act to include cell
phone call location information in the definition of customer
proprietary network information (CPNI). However, the FCC has
authority to strictly regulate the use of CPNI by
telecommunications carriers only. (The FCC has another
proceeding concerning CPNI; see, Docket No. 96-115.) The FCC
does not have statutory authority to regulate the privacy
practices of many other entities that may obtain location data
from web enabled devices.
James Dempsey, an attorney with the Center for Democracy and Technology,
therefore recommended extending the CPNI requirements to
wireless service providers that obtain location data. He also
recommended legislation restricting government access to
location information. He stated that there should be a
probable cause and warrant requirement for the government to
obtain location information. Currently, neither statutory nor
case law address this subject, and the FBI may be able to
obtain location data simply by asking for it from wireless
service providers. Dempsey advocated passage of a bill like HR
5018 (106th Congress), which passed the House Judiciary
Committee last year, but did not become law. |
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| Forbes Defeats Lucas |
| 6/19. Republican Randy Forbes defeated Democrat Louise Lucas
in a special election to fill an open seat from Virginia which
had been held by former Rep. Norman Sisisky (D-VA), who died
in March. |
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| NIPC Advisory |
| 6/19. The FBI's NIPC
and the FedCIRC jointly issued an advisory
regarding a vulnerability in Microsoft's IIS web server. See,
also, Microsoft
Security Bulletin MS01-033. The NIPC advisory states that
"Attackers can remotely gain SYSTEM LEVEL ACCESS (root)
on any computer running Microsoft's IIS Web server software.
System-level access allows a user full access to the server,
so as to install malicious code, run programs, reconfigure,
add, change, or delete files." Microsoft has a patch
available for downloading. (Advisory No. 01-013.) |
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| Identity Theft |
| 6/19. Rep. Billy
Tauzin (R-LA), the Chairman of the House Commerce Committee,
wrote a letter
to Attorney General John Ashcroft regarding identity theft and
pretexting. The letter inquires regarding existing statutes
pertaining to identity theft and pretexting, and any
Department of Justice efforts to enforce these statutes. |
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| FCC EEO Rule |
| 6/19. The U.S. Court
of Appeals (DCCir) issued its opinion
in MD/DC/DE
Broadcasters Association v. FCC, denying
various petitions for rehearing of the court's decision
regarding Option B of the FCC's EEO rule. The Court denied
petitions for rehearing, in an opinion by Judge Ginsburg.
Also, the Court, en banc, issued an order denying petitions
for rehearing en banc. Finally, Judge Tatel, joined by Edwards
and Rogers, issued an opinion dissenting from the denial of
rehearing en banc. |
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| Wednesday, June 20 |
The House will meet at 10:00 AM for legislative business. No
tech bills are on the agenda. However, the agriculture
appropriations bill does include tech related funding for
distance learning, telemedicine, and other items.
9:30 AM. The FCC will hold a meeting. The agenda includes two
items. The FCC will consider a Notice of Inquiry seeking
information and comment for the Eighth Annual Report to
Congress on the status of competition in the market for the
delivery of video programming. The FCC will also consider a
Sixth Report concerning the status of competition in the
commercial mobile wireless industry. Location: FCC, Portals
II, 445 12th Street, SW, Room TW-C305 (Commission Meeting
Room), Washington DC. See, agenda.
9:30 AM. The Senate
Finance Committee will hold the first of two days of
hearings on granting the President trade promotion
authority. Location: Room 215, Dirksen Building.
Location Change. 10:00 AM.
The House Commerce
Committee's Subcommittee on Telecommunications and the
Internet will hold a hearing on campaign finance reform
proposals impacting broadcasters, cable operators and
satellite providers. The scheduled witnesses are Lillian
BeVier (University of Virginia Law School), Dwight Morris
(Campaign Study Group), Andrew Wright (Satellite Broadcasting
and Communications Association), Jack Sander (Belo
Corporation), Joshua Sapan (Rainbow Media Holdings), Paul
Taylor (Alliance for Better Campaigns). Location: Room 2322, Rayburn Building.
10:00 AM. The USITC
will hold a public forum on issues relating to electronic
filing and maintenance of documents. Location: Room 101, 500 E
Street SW., Washington, DC 20436. See, notice.
10:30 AM. House Republicans will announce their latest version
of their e-Contract with High Tech America. The
participants will include House Majority Leader Dick Armey (R-TX), Rep.
Billy Tauzin (R-LA), Rep. Dan Burton (R-IN), and Rep. James
Sensenbrenner. Commerce Secretary Don Evans will participate
via instant messaging. Location: Room HC-7, U.S. Capitol,
Washington DC.
10:30 AM. The House
Education and Workforce Committee's Subcommittee on 21st
Century Competitiveness will hold a hearing on HR
1992, the Internet Equity and Education Act of 2001.
Location: Room 2175, Rayburn Building. The scheduled witnesses
are Stanley Ikenberry (American Council on Education), Joseph
DiGregorio (Georgia Tech), Richard Gowen (South Dakota School
of Mines and Technology), and Omer Waddles (ITT
Educational Services).
11:00 AM. The House
Judiciary Committee will hold a meeting to mark up several
bills, including HR
1886 (a bill to provide for appeals by third parties in
certain patent reexamination proceedings), HR
1866 (a bill to clarify the basis for granting requests
for reexamination of patents), and HR __ (the "21st
Century Department of Justice Appropriations Authorization
Act.") Location: Room 2141, Rayburn Building.
11:30 AM. There will be a panel discussion on closing the
labor skills gap at the Department of Labor's National Summit
on 21st Century Workforce. The participants will included
Commerce Secretary Donald Evans, Steve Ballmer (CEO of
Microsoft), Harris Miller (President of the ITAA),
and James Vanderslice (P/COO of Dell Computer). Location: MCI
Center, 6th and G Street, Washington DC. See, notice.
12:00 NOON. FTC Commissioner Sheila Anthony will speak
at the American Council of Life Insurers e-Business
Conference. Location: J.W. Marriott, 1331 Pennsylvania Avenue,
NW, Washington DC.
12:00 NOON. The Internet
Freedom Rally will host a press conference. Location:
Zenger Room, National Press
Club, Washington DC.
Deadline to submit comments to the FCC in response to its Notice
of Proposed Rulemaking (NPRM) regarding Reform of Access
Charges Imposed by Competitive Local Exchange Carriers. |
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| Thursday, June 21 |
9:30 AM. The Senate
Finance Committee will hold the second of two days of
hearings on granting the President trade promotion
authority. Location: Room 215, Dirksen Senate Office
Building.
10:00 AM. The House
Commerce Committee's Subcommittee on Commerce, Trade, and
Consumer Protection will hold a hearing titled Information
Privacy: Industry Best Practices and Technological Solutions.
Room 2123, Rayburn Building.
10:00 AM. The Senate
Commerce Committee will hold a hearing on international
trade issues. Location: Room 253, Russell Building.
10:00 AM. The Senate Small Business Committee will hold a
hearing on S 856, the Small Business Technology Transfer
Program Reauthorization Act of 2001. Location: Room 428A,
Russell Building.
11:30 AM. The Senate
Finance Committee will hold a hearing on several
nominations. The nominees include Allen Johnson (Chief
Agricultural Negotiator, USTR), William Lash (Asst. Sec. of
Market Access and Compliance, DOC), and Brian Roseboro (Asst.
Sec. of Financial Markets, Treasury). Location: Room
215, Dirksen Building.
Sold Out. 12:00 NOON. The Federal Communications Bar
Association will host a lunch. FCC Chairman Michael
Powell will speak. Doors open at 12:00 NOON, the luncheon
starts at 12:30 PM, and Powell's remarks will begin at 1:00
PM. RSVP to Arlice Johnson at arlice@fcba.org.
Location: Congressional Senate Room, 2nd Floor, Capital
Hilton, 16th & K Streets, NW, Washington DC.
12:30 PM. A Privacy Task Force will hold a press conference.
For more information, contact Jake Lewis at 202-387-8030.
Location: West Room, National
Press Club, Washington DC.
1:00 PM. The House
Judiciary Committee's Subcommittee on Crime will hold a
legislative hearing and mark up session on HR
1877, the "Child Sez Crimes Wiretapping Act of
2001". Location: Room 2237, Rayburn Building. |
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