10/24. The General Accounting Office (GAO) released a study [94 pages in PDF] titled "Telecommunications: Issues Related to Competition and Subscriber Rates in the Cable Television Industry". The report finds that competition, whether from other wire based cable operators, or from direct broadcast satellite (DBS), leads to lower prices and better quality service.

The report states that "Competition from a wire-based provider -- that is, a competitor using a wire technology, such as a second cable operator, a local telephone company, or an electric utility -- is limited to very few markets. However, in those markets where this competition is present, cable rates are significantly lower -- by about 15 percent -- than cable rates in similar markets without wire-based competition."

It adds that "Since 1999, when DBS operators acquired the legal right to provide local broadcast stations (such as affiliates of ABC, CBS, Fox, and NBC), these companies have emerged as important competitors to cable operators. In particular, in areas where subscribers can receive local broadcast stations from both primary DBS operators, the DBS penetration rate -- that is, the percentage of households that subscribe to satellite service -- is approximately 40 percent higher than in areas where subscribers cannot receive local broadcast stations from both primary DBS operators. In addition, the DBS provision of local broadcast stations has induced cable operators to improve the quality of their service by providing their subscribers with approximately 5 percent additional cable networks." (Parentheses in original.)

The GAO report also assesses the Federal Communications Commission's (FCC) cable rate reports. It concludes that these do "not appear to provide a reliable source of information on the cost factors underlying cable rate increases or on the effects of competition. GAO found that cable operators did not complete FCC’s survey in a consistent manner, primarily because the survey lacked clear guidance. In particular, GAO found that 84 of the 100 franchises it surveyed did not provide a complete or accurate accounting of their cost changes for the year. Also, GAO found that FCC does not initiate updates or revisions to its classification of competitive and noncompetitive areas. Thus, FCC’s classifications might not reflect current conditions." (Parentheses in original.)

The GAO also addresses cable rates. It finds that "During the past 3 years, the cost of programming has increased considerably (at least 34 percent), driven by the high cost of original programming, among other things. Additionally, cable operators have invested large sums in upgraded infrastructures, which generally permit additional channels, digital service, and broadband Internet access."

The report also finds "Technological, economic, and contractual factors explain the practice of grouping networks into tiers, thereby limiting the flexibility that subscribers have to choose only the networks that they want to receive. An à la carte approach would facilitate more subscriber choice but require additional technology and customer service. Additionally, cable networks could lose advertising revenue. As a result, some subscribers’ bills might decline but others might increase.

Finally, the report comments that "Although reregulation of cable rates is one option, promoting competition could influence cable rates through the market process."

The GAO is an arm of the Congress. It prepared this report at the request of Sen. John McCain (R-AZ), the Chairman of the Senate Commerce Committee.

Sen. McCain stated in a release that "The GAO Report confirms that competition matters. Competition brings lower rates, improved service quality, and more choices for consumers. According to the report, consumers in the few markets with a choice of a second cable company pay 15 percent less for cable."

He added "The apparent implication for all other consumers is that they continue to be fleeced by their cable operators. Consumers benefit from more choices -- the choice of video distributors, the choice of cable networks, and the choice not to pay for multiple channels that they do not watch."

He also stated that "The Report addresses numerous issues ripe for examination by the Committee, including doubts about the reliability of the FCC's assessment of cable competition, increased sports and other programming costs, the impact of ownership affiliation on cable carriage, and a la carte programming options. Moreover, it discusses numerous options for policy makers to consider in addressing escalating cable rates. These are complex issues, and I look forward to reviewing the report more closely at a hearing of the Commerce Committee in the near future."

Rep. Billy Tauzin (R-LA), the Chairman of the House Commerce Committee, stated in a release that "I am committed to ensuring that consumers reap the benefits of a robust media and telecommunications marketplace. Today's GAO report confirms that competition from satellite and other multichannel television services is increasing, and that the cable industry is responding. The result is better service to consumers at rates that are 15 percent lower where competition is present."

Rep. Tauzin added that "The report indicates that 'taking steps to promote competition' and 'leveraging the normal workings of the marketplace' will yield additional benefits. With this in mind, I will continue to work with Telecommunications and Internet Subcommittee Chairman Fred Upton to further accelerate competition in the media marketplace, spur innovation and promote even better service to consumers."

Robert Sachs, P/CEO of the National Cable Telecommunications Association (NCTA), stated in a release that "GAO's analysis confirms that cable price increases reflect significant investments by cable operators in infrastructure and programming, which have improved the quality and consumer value of cable television. The report also shows, significantly we believe, that proposals to reregulate cable program service would not benefit consumers. Rather, forcing cable operators to package programming a la carte, would produce a net loss for many cable customers, who would end up paying higher prices for fewer channels."

Randolph May of the Progress and Freedom Foundation (PFF) stated in a release that "the factors that have contributed most to increasing cable rates are the huge sums invested, around $75 billion since 1996, to upgrade cable infrastructure and increasing program costs." He added that "these investments have led to more consumer choice and the availability of widespread broadband Internet service". He recommended that the government should "ensure that all broadband technology platforms, whether cable, telephone, satellite, wireless are not subject to public utility-type rate or other regulation."

10/24. The Office of the U.S. Trade Representative (USTR) released a report [59 pages in PDF] titled "Annual Reform Recommendations from the Government of the United States to the Government of Japan under the U.S.-Japan Regulatory Reform and Competition Policy Initiative". It addresses, among other topics, information technology, intellectual property, communications, competition policy, and transparency.

Information Technology. The USTR report recommends that Japan "Expand nationally and make permanent the Special Zones to promote IT and e-education; remove existing barriers that impede B-to-B and B-to-C e-commerce; increase private sector input at all stages of the IT policy-making process."

The report also recommends that Japan "Support private sector self-regulatory mechanisms for privacy and Alternative Dispute Resolution" and "ensure transparency and inter-ministerial coordination in the implementation of guidelines and standards for Japan’s new privacy law and network security".

It also recommends that the government of Japan "Implement reforms in IT procurement procedures based on the principles of open competition, technological neutrality, transparency, and private sector-led innovation."

Intellectual Property Rights (IPR) Protection. The report recommends that Japan extend the copyright term for sound recordings, and "strengthen protection of digital content and the enforcement system against IPR infringement."

Communications. The report offers several communications related recommendations. It recommends an independent regulatory agency, and an end to the "Ministry of Public Management, Home Affairs, Posts and Telecommunications (MPHPT) control over NTT’s business decisions." It also recommends increased public participation in, and judicial review of, the MPHPT's regulatory decisions.

It also recommends deregulation of non-dominant carriers, but reinforced "dominant carrier safeguards to prevent abuses by carriers with market power."

The report also offers recommendations regarding wireline interconnection rate methodology, and mobile termination rates.

10/25. President Bush proclaimed October 26 through November 1 to be "Protection From Pornography Week". He issued a proclamation in which he reviewed the recently enacted Dot Kids bill, the PROTECT Act of 2003, and DOJ prosecutorial efforts.

The Dot Kids Implementation and Efficiency Act of 2002, HR 3833 in the 107th Congress, Public Law No. 107-317, required the National Telecommunications and Information Administration (NTIA) to create a second level domain within the .us country code domain that is restricted to material that is not harmful to minors. Bush called it "child-friendly zone on the Internet".

The Prosecuting Remedies and Tools Against the Exploitation of Children Today Act of 2003 (PROTECT Act) is S 151 (108th Congress). Bush signed the bill on April 30, 2003. It is now Public Law No. 108-21. This bill includes several tech related items, including a ban on use of certain misleading domain names, provisions pertaining to computer generated images, and an expansion of the list of offenses that may serve as a predicate for the issuance of a wiretap order.

Bush stated that "We have committed significant resources to the Department of Justice to intensify investigative and prosecutorial efforts to combat obscenity, child pornography, and child sexual exploitation on the Internet. We are vigorously prosecuting and severely punishing those who would harm our children. Last July, the Department of Homeland Security launched Operation Predator, an initiative to help identify child predators, rescue children depicted in child pornography, and prosecute those responsible for making and distributing child pormography."

Said Bush, "we are making progress in protecting our children from pornography".

10/24. Clay Johnson, Deputy Director of Management, Office of Management and Budget, announced his intent to appoint Samuel Bodman as Chair of the E-Government Committee of the President's Management Council (PMC). Bodman is the Deputy Secretary of the Department of Commerce. See, OMB release [PDF].

10/24. The Securities and Exchange Commission (SEC) announced the reappointment of Charles Niemeier to the Public Company Accounting Oversight Board (PCAOB), for a five year term. See, SEC release.

10/24. The Senate confirmed Paul Atkins to be a member of the Securities and Exchange Commission (SEC) for a term expiring on June 5, 2008.

10/24. The Senate confirmed Ben Bernanke to be a be a member of the Board of Governors of the Federal Reserve System for a term of fourteen years from February 1, 2004. This is a renomination.

10/24. The Senate confirmed Roger Ferguson to be Vice Chairman of the Board of Governors of the Federal Reserve System for a term of four years. This is a renomination.

10/22. The Senate confirmed Thomas Hardiman to be a Judge of the U.S. District Court for the Western District of Pennsylvania.

10/24. President Bush gave a speech in Honolulu, Hawaii in which he addressed class action reform legislation pending in the Congress. He stated that "we need to cut down on the frivolous lawsuits which increase the cost of medicine. People who have been harmed by a bad doctor deserve their day in court. Yet the system should not simply reward lawyers who are fishing for rich settlements. Frivolous lawsuits drive up the cost of health care and they, therefore, affect the federal budget. Medical liability reform is a national issue that requires a national solution. The House of Representatives has passed a good bill to reform the system. The bill is now stuck in the United States Senate. The Senate must act on behalf of the American people. Senators must understand no one has ever been healed by a frivolous lawsuit." The House has passed the bill. The Senate failed to end a filibuster last week.

10/24. Attorney General John Ashcroft gave a speech to the International Association of Chiefs of Police (IACP) in Philadelphia, Pennsylvania in which he touched on some of the surveillance provisions of the USA PATRIOT Act. He stated that "Under the Patriot Act, we have been able to use the proven tactics and technologies used in the fight against organized crime and drug smugglers. With the common-sense reform of "roving wiretaps," we have been able to track the communications of those terrorists who switch phones to avoid detection. Under the Patriot Act, we can ask for important business records that might lead to important clues. And thanks to the Patriot Act, under a federal judge's supervision in critical cases, we can conduct an initial search of a terrorist organization without tipping off members of the operation."

10/21. Rep. Bill Shuster (R-PA) introduced HR 3368, a bill to establish "a pilot grant program for the purpose of awarding grants to eligible vocational and career technology schools for retraining displaced workers in high technology fields". It would authorize the appropriation of $50 Million for fiscal year 2005. It would only apply to the state of Pennsylvania. It was referred to the House Committee on Education and the Workforce. See also, Shuster release.

The House will not meet. See, Republican Whip Notice.

The Senate will meet at 12:00 NOON to resume consideration of HR 2800, the Foreign Operations Appropriations Act, Fiscal Year 2004. At 2:00 PM it will resume consideration of the nomination of Michael Leavitt to be Administrator of the Environmental Protection Agency (EPA).

9:00 AM - 12:00 NOON. The American Enterprise Institute (AEI) will host a pair of panel discussions titled "Saving Free Trade: The Case against Antidumping". See, AEI notice. Location: AEI, 12th floor, 1150 17th St., NW.

11:00 AM. Carnegie Mellon University will host a panel discussion titled "Cyber Security Journalism Panel". For more information, contact Chris Swaney at 412 268-5776  Location: First Amendment Lounge, National Press Club, 529 14th St. NW, 13th Floor.

12:00 NOON. Deadline to submit comments to the Office of the U.S. Trade Representative (USTR) regarding countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. Section 182 of the Trade Act of 1974 requires the USTR to prepare a report. Section 182, which is codified at 19 U.S.C. § 2242, is also referred to as "Special 301". This is an out of cycle review. The USTR announced that this review will focus on Korea. However, it added that "Additional countries may also be reviewed as a result of the comments received pursuant to this notice, or as warranted by events." See, notice in the Federal Register, October 3, 2003, Vol. 68, No. 192, at Page 57503.

RESCHEDULED FOR OCTOBER 28. 2:00 PM. The House Ways and Means Committee will meet to mark up HR 2896, the "American Jobs Creation Act of 2003". This bill would, among other things, replace the FSC & ETI tax regimes that the WTO held to be illegal export subsidies. Location: Room 1100, Longworth Building.

5:30 - 7:30 PM. The American Enterprise Institute (AEI) will host a book forum. Charles Murray will discuss his book titled Human Accomplishment: The Pursuit of Excellence in the Arts and Sciences, 800 B.C. to 1950. See, Amazon page. See also, AEI notice. Location: AEI, Twelfth floor, 1150 17th St., NW.

6:00 - 8:15 PM. Intellectual Property Section of the D.C. Bar Association will host a CLE course titled "Transactions Involving Intellectual Property, Part II: Intellectual Property in Financings and Bankruptcy". Prices vary. For more information, call 202 626-3488. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 level.

6:00 PM. Carnegie Mellon University will host an event titled "Cyber Security Journalist Reception & Dinner". For more information, contact Chris Swaney at 412 268-5776. Location: Holeman Lounge, National Press Club, 529 14th St. NW, 13th Floor.

Deadline to submit nominations to the Federal Communications Commission's (FCC) Wireline Competition Bureau for positions on the Board of Directors of its Universal Service Administrative Company (USAC). See, FCC notice [PDF].

Deadline to submit written comments to the Internal Revenue Service (IRS) regarding its notice of proposed rulemaking (NPRM) regarding computation and allocation of the credit for increasing research activities for members of a controlled group of corporations or a group of trades or businesses under common control. The rules implement the research and development tax credit codified at 26 U.S.C. § 41. See, notice in the Federal Register, July 29, 2003, Vol. 68, No. 145, at Pages 44499 - 44506.

The House will meet at 12:30 PM for morning hour and at 2:00 PM for legislative business. Votes will be postponed until 6:30 PM. The House will consider will consider HRes 395, regarding National Chemistry Week, and HConRes 279, regarding commitment to support the use of science in governmental decision making. The other items on the agenda are not tech related. See, Republican Whip Notice.

9:00 AM. The House Ways and Means Committee will meet to mark up HR 2896, the "American Jobs Creation Act of 2003". This bill would, among other things, replace the FSC & ETI tax regimes that the WTO held to be illegal export subsidies. Location: Room 1100, Longworth Building. This mark up was previously scheduled for Monday, October 27.

10:00 AM. The Senate Judiciary Committee will hold a hearing on the nominations of Claude Allen (to be a Judge of the U.S. Court of Appeals for the 4th Circuit) and Mark Filip (to be Judge of the U.S. District Court for the Northern District of Illinois). See, notice. Press contact: Margarita Tapia (Hatch) at 202 224-5225 or David Carle (Leahy) at 202 224-4242. Location: Room 226, Dirksen Building.

12:00 NOON. The Cato Institute will host a book forum. Charles Murray will discuss his book (due for release on October 21) titled Human Accomplishment: The Pursuit of Excellence in the Arts and Sciences, 800 B.C. to 1950. See, Amazon page. Lunch will follow the program. Location: Cato, 1000 Massachusetts Ave., NW.

6:00 - 9:15 PM. The Intellectual Property and International Law sections of the D.C. Bar Association will host a CLE course titled "Practical Guide to U.S. Implementation of the Madrid Protocol". Prices vary. For more information, call 202 626-3488. Location: D.C. Bar Conference Center, 1250 H Street NW, B-1 level.

Deadline to submit comments to the Office of Management and Budget (OMB) regarding its proposal "to issue new guidance to realize the benefits of meaningful peer review of the most important science disseminated by the federal government regarding regulatory topics." See, OMB document [14 pages in PDF] titled "Peer Review and Information Quality".

The House will meet at 10:00 AM for legislative business. See, Republican Whip Notice.

10:00 AM - 5:30 PM. Day one of a two day event hosted by the Federal Communications Commission (FCC) titled "E911 Coordination Initiative". The event will address legal, regulatory, technical, and financial issues that arise in the implementation of wireless enhanced 911 services. See, letter [PDF] from Chairman Powell, and FCC release [PDF]. The event will be webcast. Location: FCC, Commission Meeting Room, 445 12th St., SW.

10:00 AM - 12:00 NOON. The Department of State's (DOS) Advisory Committee on International Communications and Information Policy (ACICIP) will meet. Ambassador David Gross, U.S. Coordinator for International Communications and Information Policy, is scheduled to attend. The agenda includes "communications policy issues, future directions of the Committee's work, discussion regarding countries of particular interest to the ACICIP, preparations for the World Summit on the Information Society, and consultation regarding the most important emerging technologies". See, notice in the Federal Register, October 10, 2003, Vol. 68, No. 197, at Page 58744. Location: Room 1107, Harry S. Truman Building, 2201 C Street, NW.

12:00 NOON. The Federal Communications Bar Association's (FCBA) Online Communications Practice Committee will host a brown bag lunch on wireline broadband issues. The speaker will be Jessica Rosenworcel, Legal Advisor to FCC Commissioner Michael Copps. RSVP to heidi@fcba.org. Location: Cole Raywid & Braverman, 1919 Pennsylvania Ave., NW, Suite 200.

12:15 PM. The Federal Communications Bar Association's (FCBA) Young Lawyers Committee will host a brown bag lunch titled "Current Issues in Broadband Deployment". The speakers will include Kyle Dixon, Deputy Media Bureau Chief and Special Counsel to the Chairman on Broadband Policy. Location: Wilkinson Barker & Knauer, 2300 N Street, NW, Suite 700.

12:30 - 4:30 PM. The Executive Office of the President's (EOP) Office of Science and Technology Policy's (OSTP) National Science and Technology Council's (NSTC) Critical Infrastructure Subcommittee will hold a meeting. This meeting is closed to the public. For more information, contact John Hoyt. Location: White House Conference Center, Eisenhower Room, 726 Jackson Place, NW.

2:00 PM. The Senate Judiciary Committee will hold a hearing on the nominations of James Comey to be Deputy Attorney General. See, notice. Press contact: Margarita Tapia (Hatch) at 202 224-5225 or David Carle (Leahy) at 202 224-4242. Location: Room 226, Dirksen Building.

The House will meet at 10:00 AM for legislative business. See, Republican Whip Notice.

8:30 AM. The Republican Technology Council (no web site) will host a panel discussion titled "SPAM: A Public Policy Response". The speakers will include Sen. Conrad Burns (R-MT) and Rep. Heather Wilson (R-NM). To registration, contact David Miller at 202 467-0045 or Miller@fedgovlink.com. Location: Capitol Hill Club, 300 First St., SE.

POSTPONED. 8:30 AM - 3:30 PM. The U.S. Chamber of Commerce will host a conference titled "21st Century Criminal Networks: Intellectual Property Theft and Counterfeiting". See, notice. Location: U.S. Chamber of Commerce, 1615 H. Street, NW.

9:00 AM - 12:00 NOON. The American Enterprise Institute (AEI) will host a pair of panel discussions titled "Class Action Reform: The Why and the Who". The speakers will be Richard Epstein (University of Chicago), David Rosenberg (Harvard), Judge Lee Rosenthal, Todd Zywicki (FTC), John Beisner (O'Melveny & Myers), Mark Perry (Gibson Dunn & Crutcher). See, AEI notice. Press contact: Veronique Rodman at 202 862-4871 or vrodman@aei.org. Location: AEI, Twelfth floor, 1150 17th St., NW.

9:15 AM - 5:15 PM. Day two of a two day event hosted by the Federal Communications Commission (FCC) titled "E911 Coordination Initiative". The event will address legal, regulatory, technical, and financial issues that arise in the implementation of wireless enhanced 911 services. See, letter [PDF] from Chairman Powell, and FCC release [PDF]. The event will be webcast. Location: FCC, Commission Meeting Room, 445 12th St., SW.

10:00 AM. The Senate Commerce Committee will hold a hearing on the "preservation and advancement of universal service, including the impact of competition and the emergence of new technologies and services". Sen. John McCain (R-AZ) will preside. Michael Powell, Chairman of the Federal Communications Commission, will testify. The hearing will be webcast. See, notice. Press contact: Rebecca Hanks (McCain) at 202 224-2670 or Andy Davis (Hollings) at 202 224-6654. Location: Room 253, Russell Building.

10:00 AM. The House Commerce Committee's Subcommittee on on Commerce, Trade, and Consumer Protection will hold a hearing titled "E-Commerce: The Case of Online Wine Sales and Direct Shipment". See, notice. Press contact: Ken Johnson or Jon Tripp at 202 225-5735. Location: Room 2123, Rayburn Building.

12:00 NOON - 2:00 PM. The House Science Committee's Subcommittee on Research will hold a hearing titled "Implementation of the Math Science Partnership Program: Views from the Field". Committee contacts: Kara Haas (Republican) and Jim Wilson (Democrat). Location: Room 2325, Rayburn Building.

1:30 - 3:30 PM. The American Enterprise Institute (AEI) will host a panel discussion titled "The Patriot Act and Civil Liberties: Too Far or Not Far Enough?" The speakers will be Bob Barr (American Conservative Union), Alice Fisher (Latham & Watkins), and John Yoo (AEI). See, notice. Press contact: Veronique Rodman at 202 862-4871 or vrodman@aei.org. Location: Twelfth floor, 1150 17th St., NW.

2:00 PM. The House Ways and Means Committee will hold a hearing titled "United States - China Economic Relations and China's Role in the Global Economy". See, notice. Location: Room 1100, Longworth Building.

? 3:00 PM. The House Select Homeland Security Committee's Subcommittee on Cybersecurity, Science, and Research and Development will hold a hearing. Assistant Secretary of Homeland Security Parney Albright will testify. Location: Room 210, Cannon Building.

Day one of a three day convention of the American Intellectual Property Law Association (AIPLA). Location: Grand Hyatt Washington.

The Cato Institute will host a conference titled "Telecom and Broadband Policy: After the Market Meltdown".

The House will meet at 9:00 AM for legislative business. See, Republican Whip Notice.

9:00 AM. The House Ways and Means Committee will continue its hearing titled "United States -- China Economic Relations and China's Role in the Global Economy". See, notice. Location: Room 1100, Longworth Building.

Deadline for the telemarketers to submit their brief to the U.S. Court of Appeals (10thCir) in FTC v. Mainstream Marketing Service, No. 03-1429. This is the telemarketers' constitutional challenge to the FTC's do not call registry. See, October 8, 2003 order [24 pages in PDF] staying the District Court's opinion, and setting an expedited schedule.