Lobbying
A Summer Of Sales Pitches Over Network Neutrality
     People who are still neutral on network neutrality probably have not heard of it yet. Over the August congressional recess, opponents and proponents of legislation to prohibit high-speed Internet providers from potentially slowing competitors' content worked to change that. Both sides took their arguments into the heartland. Opponents of net neutrality used cable television, and supporters of the concept used the Internet itself to make their case, with thousands of petitions delivered to Senate offices in 25 cities. The National Cable and Telecommunications Association began airing advertisements in some cable markets in August and took the campaign nationwide Sept. 1. "We don't have any big ad buys planned," countered Craig Aaron, the spokesman for Save the Internet. "We can't compete with the hundreds of millions of dollars spent inside the beltway (by opponents), and we don't want to. We've found the most effective way is using the Internet to save the Internet."

Telecom
Democrats Block Efforts To Move Telecom Bill
     Democratic senators are blocking Republicans from potentially using a pending "enhanced 911" bill as a vehicle for passing major telecommunications legislation, multiple Capitol Hill sources said. In early August, a few Democrats anonymously placed procedural "holds" on the E911 bill when efforts were made to pass it by voice vote shortly before Congress adjourned for the summer. The goal is to keep the E911 measure from potentially being conferenced with House-passed telecom legislation. Such a maneuver would bypass the need for Senate floor action on a broader telecom measure spearheaded by Commerce Committee Chairman Ted Stevens, R-Alaska. The panel narrowly approved that language earlier this year, but it appears stalled now. Stevens' spokesman did not return phone calls seeking comment on the issue. Daniel Inouye of Hawaii, the top Democrat on Senate Commerce, is rumored to be among the senators blocking the bill. The Hawaiian has been a frequent critic of Stevens' telecom proposal.

Lobbying
Business Groups Seek Action On Competitiveness
     Congressmen received red lunch boxes from the Business Roundtable as they returned to work this week, with reminders on which competitiveness issues still need a vote this session. With just days remaining in the current legislative session, the campaign is an effort to boost mathematics and science education, and the research and development tax credit. The campaign also includes radio and print advertisements, as well as in-person meetings with lawmakers. The roundtable hopes to capitalize on momentum gained during the August congressional recess when staffers of key Senate committees met to develop a competitiveness package that could move this year. The components that technology lobbyists and organizations want to see enacted are: a strengthened R&D tax credit; better visa programs for skilled, foreign-born workers; better math and science education in elementary and secondary schools; and more science and engineering fellowships and scholarships for college students.

Business
Resources To Probe Backdated Stocks Called Adequate
     Securities and Exchange Commission Chairman Christopher Cox told lawmakers that his agency does not need additional legislation or resources in its probe of corporate executives whose stock options allegedly were backdated to increase their financial value. In testimony before the Senate Banking Committee, Cox said the SEC has the personnel and legal authority to target companies that used the practice to boost the value of executive stock options. Backdating is not necessarily illegal unless it is not disclosed to investors. So far, the SEC has brought civil actions against executives at Brocade Communications Systems and Comverse Technology. "The approach I heard the committee taking today is the right one, which is, keep a [sharp] eye to the question of whether our existing laws work," Cox said. "So far, my experience at the agency is that they do and they are adequate. We are not here today asking for new legislation."

Security
New Anti-Terrorism Strategy Emphasizes Technology
     President Bush issued an updated strategy for combating terrorism that emphasizes how extremists are increasingly using technology and media to further their goals. The plan does not outline specific timelines for achieving objectives but does say the United States wants to deny terrorists the use of the Internet. In a televised speech to the nation, Bush said the al Qaeda terrorist network is taking advantage of the Internet to recruit and plan. The outline builds on one the White House issued in early 2003. "The Internet provides an inexpensive, anonymous, geographically unbounded and largely unregulated virtual haven for terrorists," it says. The strategy also notes that terrorists remain intent on exploiting vulnerabilities in transportation networks in order to travel, and it pledges to close those gaps with the help of technology.

Telecom
Officials Discuss Progress On Emergency Systems
     Homeland Security Department officials said the department is ready for the current hurricane season, but more needs to be done to improve the ability of emergency responders to communicate with each other. "I'm very comfortable where we sit going into the hurricane season," Coast Guard Chief Adm. Thad Allen told the Senate Homeland Security Appropriations Subcommittee. The season began in June and runs through November. Sen. Mary Landrieu, D-La., said she is concerned that emergency responders still do not have communications that work across jurisdictions. "Unless we get this fixed, I could just see this scenario happening again with good plans in place but without anybody being able to talk to anyone," she said. Allen said the "significant challenge" is interoperability between land mobile and maritime mobile systems.

Security
Science And Tech Directorate Frustrates Lawmakers
     House lawmakers indicated that the new leader of the science and technology directorate at the Homeland Security Department faces a challenge in trying to fix what critics describe as a troubled agency. Washington Republican Dave Reichert, the chairman of a key House subcommittee, said Congress has grown "increasingly frustrated" with the performance of the directorate. The complaints include a lack of transparency in strategic planning, inadequate explanations for budgetary increases, accounting inconsistencies, and failure to rapidly develop technologies. The directorate also has struggled with turnover and has many vacancies for high-level positions, resulting in low morale. "I ask that you judge me by my actions and not my words," new directorate chief Jay Cohen said. He noted that spending considerable sums on research is worthwhile, even if many projects fail to result in breakthroughs.

Cyber Security
California Targets Unencrypted Wireless Connections
     Wireless Internet "piggybackers" in California soon may have fewer opportunities to surf the Internet for free on unencrypted connections paid for by others. Lawmakers in the Golden State have passed legislation to require that manufacturers of wireless routers include warnings to consumers that their networks can be accessed without authorization if certain security procedures are not implemented. The state Assembly voted unanimously for the bill. The measure now needs only final authorization from Gov. Arnold Schwarzenegger. The legislation would require warnings on the ports of routers and in the software that consumers must use to configure the devices. It also would require companies to make customers decide whether to secure their wireless networks. Critics said the legislation exaggerates the state's problems with people accessing unencrypted wireless networks. They also said it would discourage people who want to leave their wireless networks unencrypted in order to share with others.