Government Affairs

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This week’s blog entries:
- IT’S AMAZING WHAT A LITTLE COMPETITION CAN DO – “Lost in all the debate over whether Verizon will charge Google to use FiOS or AT&T will charge eBay for selling goods over Project Lightspeed is the fundamental change in the nature of the broadband market over the past year.” lhttp://blogs.cisco.com/gov/2006/01/its_amazing_what_a_little_comp.html
- WHEREFORE ART THOU, BROADBAND? – “With apologies to Billy Shakespeare...what's going on with the goal of making the US #1 in the world in broadband penetration?” http://blogs.cisco.com/gov/2006/01/wherefore_art_thou_broadband.html

IT GENERATES 40 PERCENT OF EU'S PRODUCTIVITY GAINS, SAYS OFFICIAL— Viviane Reding, the European Union's director of Information Society and Media, said in a speech yesterday that while information and communication technology (ICT) represents a modest, but growing 6 percent of the EU economy, it generates 25 percent of the EU's growth and 40 percent of its productivity gains http://www.govtech.net/magazine/channel_story.php/98068

UNCLE SAM GIVES TIPS ON OUTSMARTING ID CROOKS — Consumers with questions about identity theft can now get educated by watching a DVD. The Treasury Department released a DVD entitled "Identity Theft: Outsmarting the Crooks" that explains the topic and includes ways to protect against the fraud as well as what to do when victimized. http://news.com.com/Uncle+Sam+gives+tips+on+outsmarting+ID+crooks/2110-1029_3-6031551.html

U.S. DROPS SANCTIONS THREAT ON PAKISTAN OVER PIRACY — The United States has dropped a threat to cut off trade benefits for Pakistan because of steps that country has made to crack down on the piracy of U.S. music, movies and software, the U.S. Trade Representative's office said. The announcement came shortly before President Bush was due to meet with Pakistani Prime Minister Shaukat Aziz. http://news.com.com/U.S.+drops+sanctions+threat+on+Pakistan+over+piracy/2100-7348_3-6030427.html

GOVERNMENT STUDY: VOIP, VIDEO CAN BE TAXED— State and local governments may be able to tax certain aspects of Internet use under an existing federal law designed to ban such fees, government auditors said this week. The comments came in a new Government Accountability Office study commissioned by Congress to examine a law known as the Internet Tax Freedom Act. http://news.com.com/Government+study+VoIP%2C+video+can+be+taxed/2100-1028_3-6031256.html

RIM INJUNCTION HEARING SET FOR FEBRUARY— A hearing on a possible injunction shutting down most U.S. sales and service of the BlackBerry e-mail device has been scheduled for Feb. 24, according to a court notice posted. http://news.com.com/RIM+injunction+hearing+set+for+February/2100-1047_3-6031195.html?tag=nefd.top

EMEA REGION BECAME LARGEST PC MARKET IN 2005— In 2005, the Europe, Middle East and Africa (EMEA) region surpassed the United States for the first time as the largest PC market in terms of shipments, according to figures from technology market research firm Gartner. PC shipments in EMEA totaled 72.6m units in 2005, while PC shipments in the US reached 67.2m units. http://www.dmeurope.com/default.asp?ArticleID=12842

U.K. CYBERCRIMINALS THREATENED WITH 10-YEAR TERM— Cybercriminals in the United Kingdom face the prospect of tougher sentences and modernized laws to ensure a greater number of convictions for computer-related crimes. http://news.com.com/U.K.+cybercriminals+threatened+with+10-year+term/2100-7348_3-6031435.html

BROADBAND DIVIDE WIDENS IN U.K.— Research firm Point Topic has warned that the use of high-speed Internet access in the U.K. is still skewed in favor of prosperous urban areas, and the problem may be getting worse. Figures released showing the top 10 areas for broadband use indicated that areas in and around London still dominate the charts, even though BT's DSL (digital subscriber line) broadband is available to about 99 percent of the population http://www.nytimes.com/cnet/CNET_2100-1034_3-6029344.html?_r=1

YORKSHIRE HITS 100 PER CENT BROADBAND COVERAGE — Yorkshire has followed London and Northern Ireland into the enviable position of having all its local exchanges enabled for broadband. Despite popularized images of a traditional society more used to whippets than Wi-Fi, Yorkshire has hit the coveted milestone of 100 per cent broadband availability. http://news.zdnet.co.uk/communications/broadband/0,39020342,39245553,00.htm

DUTCH CABLE COMPANIES COMBINE VOIP NETWORKS— Five Dutch cable companies have agreed to interconnect their IP networks to share all VoIP traffic. The agreement makes calls between the operators free, since they eliminate the interconnection fees associated with the traditional phone network. The companies expect the move to drive down telephony costs in the country and provide more competition to Dutch incumbent telco KPN. http://www.dmeurope.com/default.asp?ArticleID=12934

SWISS GOVERNMENT PROCEEDS IN SALE OF STAKE IN SWISSCOM— The Swiss Federal Council has published the consultation document for the disposal of the Swiss federal government's majority holding in Swiss incumbent telco Swisscom. http://www.dmeurope.com/default.asp?ArticleID=12950

MOZAMBIQUE-AGREEMENT ON EXPANDING TELECOMMUNICATIONS NETWORK— The Nordea Bank of Denmark on Friday signed an agreement for a loan of 12.7 million euros (about 15.2 million US dollars) to be used in extending the fibre-optic National Transmission Network of Mozambique's telecommunications company, TDM. http://allafrica.com/stories/200601270473.html

AFRICA: GETTING CONNECTED AT LAST— An undersea cable system will help more than 15 countries along Africa's eastern coast access efficient, cheaper telecommunications and internet services by the end of 2007.The Eastern African Submarine Cable System (EASSy) is the result of collaboration among all the state-owned and some private telecommunications companies in the region. http://allafrica.com/stories/200601240524.html

SOUTH AFRICA- MUNICIPALITY TO INTRODUCE E-EDUCATION— The Ukhahlamba District Municipality in the Eastern Cape is to introduce electronic education (e-Education) for teachers and pupils in the municipality. This is in line with the e-Education White Paper that sets out government's response to a new information and communication technology environment in education. http://allafrica.com/stories/200601240262.html

ARGENTINA-ANALYST: IT MARKET TO GROW AT LEAST 20% IN 2006 — The Argentine IT market is expected to grow at least 20% in 2006, from the 7.63bn pesos (US$2.5bn) the industry recorded last year, Prince & Cooke analyst and associate director Pablo Tedesco told BNamericas. The local IT market saw sales rise 29.3% in 2005 compared to 2004 with the largest contribution coming from the hardware segment, which increased its sales by 49.5% to 3.14bn pesos http://www.bnamericas.com/story.jsp?idioma=I&sector=1&noticia=342387

BRAZIL-VEGASTREAM EYES LOCAL MANUFACTURING PLANT— British VoIP gateway manufacturer Vegastream plans to study whether to build a manufacturing plant in Brazil in 2006, the company's sales VP for Latin America Denis Letsinger told BNamericas. Vegastream currently has manufacturing plants in the UK and Canada. http://www.bnamericas.com/story.jsp?idioma=I§or=2¬icia=342464

CHILE-IT SALES HIGHEST SINCE 1997— Chile's IT sector saw sales grow to US$1.12bn in 2005, according to preliminary figures compiled by IT industry association Acti, the highest annual total since 1997, Acti general manager Aldo Signorelli told reporters. During 2005, the services sector accounted for 56% of IT sales, followed by hardware with 25% and software with 19%. Overall, the industry's sales were up 5.4% compared to 2004. http://www.bnamericas.com/story.jsp?idioma=I&sector=1&noticia=342256

MEXICO-MVS NET PLANS MID-2006 EXPANSION TO NEW CITIES — Mexican broadband service provider MVS Net plans to launch wireless broadband in several new cities in the country by mid-2006, MVS chief administrator Jesús Herrera told BNamericas. The company is currently finalizing construction of its wireless broadband networks in Mexico City, Guadalajara, Monterrey, Toluca and Mexcali, where it generates an average call volume of 1.6 million calls per month, or over 3.7 million VoIP minutes per month, Herrera said. http://www.bnamericas.com/story.jsp?idioma=I&sector=2&noticia=342226

MICROSOFT: LATAM TO SEE IPTV SERVICES OFFERED IN 2006— Latin America will start to see commercial success with internet TV (IPTV) services in 2006, Renato Cotrim, regional business manager for Microsoft's TV products unit in the southern cone told BNamericas. US IT giant Microsoft is working with the major telcos in the region on IPTV projects varying from research and development, to trials and proof of concept, Cotrim said. http://www.bnamericas.com/story.jsp?idioma=I§or=2¬icia=342399

TELSTRA FACES SUIT ON 'IMPROPER' DISCLOSURE— Australia's Telstra has been hit with a A$300 million ($223.89 million) legal action by shareholders who alleged the company failed to fully inform the Australian Stock Exchange about its true financial position. Plaintiff law firm Slater & Gordon filed the action at the Federal Court in Sydney. The law firm said it has been contacted by about 50 angry shareholders in regard to the action, but this number could grow to several thousand in coming weeks http://www.telecomasia.net/telecomasia/article/articleDetail.jsp?id=284984

VIA TO WORK WITH INDIA TO MAKE `RURAL FRIENDLY' COMPUTERS — Via Technologies Inc, Taiwan's biggest maker of personal computer chipsets, said it will work with an Indian technology university to make computers that rural consumers can afford. The company, in partnership with a school of the Indian Institute of Technology, Mumbai, will focus on making a computer that can withstand erratic power supply and the heat and dust of India's rural hinterland, Via President Chen Wen-chi said. http://www.taipeitimes.com/News/biz/archives/2006/01/27/2003290939

CHINA LIFTS RESTRICTION ON ONLINE SERVICES — China's Ministry of Information Industry (MII) has lifted its restriction on two online value-added services including Internet virtual special network and online data processing and exchange processing. Large basic telecom service providers like China Mobile, China Unicom, China Netcom, and China Telecom and small ISPs including Linktone, Tom Online, Kongzhong and Netease.com are expected to benefit from the move http://www.telecomasia.net/telecomasia/article/articleDetail.jsp?id=285224

S. KOREA, CHINA SIGN PACT ON MOBILE BROADCASTING — South Korea and China have agreed to accelerate their cooperation in the fast-developing mobile broadcasting sector, South Korea's Ministry of Information and Communication said.The ministry said South Korea's Electronics and Telecommunications Research Institute and China's Beijing Jolon Digital Media Broadcasting has signed a memorandum of understanding for cooperation in digital multimedia broadcasting (DMB). http://www.telecomasia.net/telecomasia/article/articleDetail.jsp?id=285222

INDIA TO SET UP BODY TO LOOK INTO SPECTRUM ALLOCATION — India is planning to set up a top-level government body to decide on spectrum availability, allocation and pricing, a source at the Department of Telecom said. The source said the government will be setting up a "Group of Ministers" that would comprise of the usual member ministries like the Department of Defense, Finance, Law and Telecom, among others. http://www.telecomasia.net/telecomasia/article/articleDetail.jsp?id=284987

SILICON VALLEY PLANS REGIONAL WIRELESS NETWORK— A group of Silicon Valley civic and business leaders don't think the high-tech center is connected enough, so they are looking to build a regionwide wireless networks. The Smart Valley coalition, which is made up of the San Mateo County Telecommunications Authority, chipmaker Intel and a high-tech civic group called Joint Venture: Silicon Valley Network, said it has a plan to solicit bids from Internet providers to create a wireless high-speed data canopy to cover the region. http://news.com.com/Silicon+Valley+plans+regional+wireless+network/2100-1039_3-6031965.html

COMING TECH TRENDS FOR 2006 — This year's top six telecom tech trends in Asia and elsewhere. You don't need a crystal ball or a crack telecoms consultancy forecast to tell you that telecoms in 2006 is going to be mainly about wireless. And VoIP. All you really need for that was to have paid attention during 2005. Last year's growing push behind 3G and wireless broadband as near-future paradigms of multi-access broadband, and the arrival of Internet companies like Yahoo, Google, MSN and even eBay (via Skype) as serious if not quite formidable telco voice challengers virtually assured that they would dominate much of the conversation amongst industry players in 2006. http://www.telecomasia.net/telecomasia/article/articleDetail.jsp?id=281838

U.N. BODY BACKS $100 LAPTOP FOR WORLD'S KIDS — The United Nations has thrown its weight behind a project to place $100, hand-cranked laptop computers in the hands of millions of schoolchildren around the globe. The United Nations Development Programme will sign a partnership agreement with the head of the project, Massachusetts Institute of Technology's Nicholas Negroponte, in the Alpine ski resort of Davos on Saturday, officials said. http://news.com.com/U.N.+body+backs+100+laptop+for+worlds+kids/2100-1044_3-6031445.html

SIEMENS, IBM SIGN PACT ON VOIP— Siemens and IBM are teaming up to offer Internet phone calls launched from email or instant messaging applications, a Reuters report said. The two companies plan to embed Siemens HiPath softswitches for VoIP into IBM's Lotus Notes and Domino business software. http://www.telecomasia.net/telecomasia/article/articleDetail.jsp?id=296573

WORLDWIDE VOIP SEMICONDUCTOR MARKET TO REACH €2BN IN 2009— As VoIP appears to be shedding its early image and entering a new phase in the market's evolution, the worldwide VoIP semiconductor market is expected to reach €2bn in 2009, with a compound annual growth rate of 38.9 per cent from 2004-2009, according to a report from market advisory firm IDC. However, both opportunities and threats are emerging for current semiconductors selling into VoIP systems http://www.dmeurope.com/default.asp?ArticleID=12878

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