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Friday, Aug. 15, 2008


ONLINE EXCLUSIVE

McCain Plugs In On Technology

Republican Looks To Shake Image Of Running Second In Tech Race, But Policy Differences Are Narrow

Some 24 hours after John McCain released his technology plan on Thursday, a visitor to his campaign Web site wouldn't have found it listed under the drop-down "Issues" menu. Click on "Issues" and there it is -- halfway down the page.

The Republican presidential candidate has faced a number of challenges on the tech front. Although tech policy has not been on the forefront of either campaign's agenda, McCain has recently been criticized for his lack of familiarity with personal technology. By comparison, Democrat Barack Obama's campaign has embraced new media; he plans to announce his choice of running mate by text message to his supporters. McCain's new technology policy and innovation strategy may be an attempt to dispel fears that he isn't tech-savvy enough to lead a nation that depends on its innovation economy.

What could be a lingering issue for McCain is his lack of Internet experience.

It's not too late for McCain, said James Lucier, a managing director of Washington-based research firm Capital Alpha Partners. "This is the perfect time for candidates to release detailed policy positions, because this is when the campaign is really beginning in earnest," he said.

And for the direction of those policy positions? Chris Israel, former U.S. coordinator for international intellectual property enforcement, said in an e-mail it's worth noting "that the first element of Obama's tech plan is focused on areas of government regulation [such as media ownership, net neutrality, and privacy] whereas McCain's first area of focus is on unleashing R&D and investment. I think that is an interesting ranking of priorities."

But both Obama's and McCain's plans claim to support innovation, education, protection of intellectual property, privacy, trade, a skilled workforce, openness, electronic government initiatives, regulation when they believe it is needed and greater broadband penetration. Obama said he does not support regulation as a way to address concerns about Internet security and pornography online. McCain says he is focused on keeping "the Internet and entrepreneurs free of unnecessary regulation."

For all their similarities, the candidates have chosen hard lines on the exceptionally divisive policy issue of net neutrality, which relates to the concept that Internet providers must treat all legal Internet traffic equally.

"McCain will focus on policies that leave consumers free to access the content they choose; free to use the applications and services they choose; free to attach devices they choose, if they do not harm the network; and free to choose among broadband service providers," McCain's plan says. The Arizona senator "does not believe in prescriptive regulation like 'net-neutrality,' but rather he believes that an open marketplace with a variety of consumer choices is the best deterrent against unfair practices."

Obama's plan, released last year, says he "strongly supports the principle of network neutrality to preserve the benefits of open competition on the Internet." The Illinois senator "supports the basic principle that network providers should not be allowed to charge fees to privilege the content or applications of some web sites and Internet applications over others" and "believes that the nation's rules ensuring diversity of media ownership are critical to the public interest."

Republican consultant David All, a member of the Open Internet Coalition, said that McCain has "drawn the line in the sand" by addressing net neutrality.

Lucier said he doesn't think net neutrality legislation is likely to come any time soon. "If it is never going to happen," he said, "you might as well express a candid opinion."

McCain's technology plan emphasizes taxes more than Obama's, though both are in favor of a research-and-development tax credit. McCain's agenda would make the credit "equal to 10 percent of wages spent on R&D" and permanent. McCain would also seek to reduce the corporate tax rate to 25 percent to retain investment in U.S. technologies, and he would "allow companies to expense the costs of new equipment or technology in the first year." McCain opposes "new state and local discriminatory taxes and fees on wireless services."

Commenting on behalf of the Obama campaign Thursday afternoon, former Federal Communications Commission chairman William Kennard said in an e-mail, "McCain's technology plan doesn't put Americans first -- it is a rehash of tax breaks and giveaways to the big corporations and their lobbyists who advise the McCain campaign."

Lucier sees a big bonus for the tech sector in McCain's call for companies to be able to expense the costs of new equipment or technology in the first year. Obama's plan also talks about the need for diversity in media ownership, which McCain's plan does not address.

But what could be a lingering issue for McCain is his lack of Internet experience. It bothers All that McCain is not terribly tech-savvy, and he said he hopes the candidate will work to address this so that he can effectively communicate with the American people. Josh Ackil, a former Clinton White House staffer and tech advisor to former Senate Majority Leader Tom Daschle, said Obama himself is "somewhat of a disruptive technology. He is new. He has new ideas and a new way of doing things." But Lucier does not think it is a concern that McCain is not a tech geek, given his solid experience in technology issues in Congress. McCain is past chairman of the Senate Committee on Commerce, Science and Transportation.

"One thing I think the tech industry is in dire need of is a vision and plan, and making tech a priority," Ackil said. According to Ackil, the current administration hasn't "talked about technology in that special way" that acknowledges the important role it plays in the economy and every other industry. Israel said he thinks more emphasis has been placed on technology policy in the 2008 campaign than in 2004.

Lucier said the tech sector has "been kind of disappointed to see technology kind of recede from the spotlight it enjoyed in the dot-com boom." He said he believes tech policy has received much less attention since the Sept. 11, 2001, terrorist attacks, and any discussion of tech policy should be welcome.

"The tech community wants a relatively light regulatory hand," and both candidates have shown signs of that, Lucier said.

Google spokesman Dan Martin said in a statement that his company is just glad both candidates are thinking about technology. "While Google as a company is not taking sides in this campaign, we are happy to see that both Senator Obama and Senator McCain have emphasized their commitment to technology issues," he said. "We think it is ultimately a good thing when the presidential candidates debate over who is the most friendly to the growth of the Internet."