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ADMINISTRATION: Investigating The Investigators

January 29, 2003






  Bill Curbing Anti-Terror Law Under Fire
  Va. Group Gets Tech-Related Grant
  Rep. Boucher Favors Telecom Reform
  Consumer Groups Blast FCC
  Sprint Sees Demand For Secure Intranet
  Texas Works On IT Blueprint
  Rep. Tauzin Questioned By Colleagues
 E-briefs




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Security
Bill To Curtail Anti-Terrorism Law Sparks Veto Threat
by Drew Clark

     The Bush administration on Thursday released a strongly worded threat to veto legislation aimed at curtailing some of the most controversial surveillance powers granted by the 2001 anti-terrorism law known as the USA PATRIOT Act.
     Introduced in October by Sens. Larry Craig, R-Idaho, and Richard Durbin, D-Ill., the bill targets three elements of the PATRIOT Act that have proved most objectionable to privacy groups, including several focused on electronic surveillance. In a letter to Senate Judiciary Committee Chairman Orrin Hatch, R-Utah, Attorney General John Ashcroft said the measure, S. 1709, "would make it even more difficult to mount an effective anti-terror campaign than it was before the PATRIOT Act was passed."
     The letter criticized each section of the legislation. The bill would require federal agents to meet a higher standard in foreign-intelligence investigations before obtaining electronic or physical records from libraries and businesses.
     The measure also would require delayed notice of "sneak and peek" searches after seven days and would force law enforcement to specify the targets of their "roving wiretaps," or wiretaps of the phone lines that might be used by unnamed suspects. And it would exempt libraries from complying with administrative subpoenas, which do not have to be approved by courts.
     The legislation "would undermine our ongoing campaign to detect and prevent catastrophic terrorist attacks," Ashcroft wrote. "We urge the Senate to reject this legislation and to keep in place the legal tools that investigators need to protect American lives and liberties."
     Ashcroft's letter came one week after Bush highlighted the significance of the PATRIOT Act in the war on terrorism in his State of the Union address. Some elements of the law are set to expire Dec. 31, 2005, but Bush urged Congress to renew those measures.
     The bill, on the other hand, would eliminate the sneak-and-peak provision -- and nationwide court orders and the ability for police to easily obtain the e-mail addresses of people corresponding with suspects -- by the end of 2005.
     At a press conference last October, Craig called his bill "a measured, reasonable and appropriate response" to civil-liberties concerns about the PATRIOT Act. He had hoped to attach it to the omnibus appropriations bill Bush signed into law last week, noting, "We believe the bipartisan support gives it the clout to move it this year" and to avoid drawing a veto from Bush.
     Although the Senate passed the PATRIOT act on a 97-1 margin, the statute has grown increasingly controversial among Americans of many political stripes. On Jan. 21, Los Angeles became the 237th local government to symbolically condemn the law.
     Some conservatives have been critical. Former House Speaker Newt Gingrich, R-Ga., wrote a column last year criticizing the Justice Department for using the PATRIOT Act in non-terrorism-related cases.
     The American Civil Liberties Union criticized the Thursday letter. "The attorney general's attack on the SAFE Act shows how out of step the Bush administration is with growing national concern over the PATRIOT Act," said Anthony Romero, ACLU executive director. "The veto threat also demonstrates that the SAFE Act is becoming an increasingly viable legislative measure."



Budget
Va. Tech Association To Get $1 Million For Business Center
by Ted Leventhal

     The Northern Virginia Technology Council (NVTC) plans to create a center for entrepreneurship thanks to a federal grant approved as part of the omnibus spending legislation that President Bush signed into law last week.
     Virginia Republican Frank Wolf, chairman of a House Appropriations subcommittee, secured a $1 million earmark for the project, and the two-year grant will be administered through the Small Business Administration.
     Programs offered through the center will cover activities ranging from education and youth outreach to business-oriented "incubator" services, including consulting and mentoring for northern Virginia startup companies. The center is expected to be up and running in late February or early March, timed to coordinate with an existing NVTC mentorship program with the Fairfax County school system.
     Christine Kallivokas, NVTC's vice president for operations and the leader of the entrepreneurship project, said the program is intended to be replicated elsewhere in Virginia and by technology councils in other states. She said NVTC's experience in mentoring projects played a part in the group getting the award.
     "We are the largest technology council in the nation and now in our 12th year," she said. "That is one of the key reasons we won this award."
     NVTC and Wolf have collaborated before on technology demonstration projects, most recently a one-and-a-half year telecommuting initiative. NVTC served as the regional administrator for a national pilot program.
     Kallivokas said the plan for the entrepreneurship center grew out of conversations between NVTC officials and Wolf's staff in November. "Congressman Wolf's office was the leader on the concept and the major pieces of the puzzle," she said. In November, Wolf asked NVTC to submit a proposal, and it became the foundation for the earmark in the spending bill, Kallivokas said.
     The educational component of the award will add an entrepreneur element to NVTC's existing "Job Shadow Day" with the Fairfax County school system, which pairs students with employees for a day at work in a Virginia technology company. "We want to add small-growth entrepreneurial companies so kids can understand that there is another side to it," Kallivokas said.
     The grant also will support "CEO Team Solutions," a business advisory service. Currently, startup companies can earn one-time, senior-level meetings with consultants on business matters. The new program will provide a range of consulting services for tech startups, including a one-on-one advisory service and a mentoring program with successful entrepreneurs.
     All services -- in addition to advice columns and business directories, such as a list of local venture capital firms -- will be accessible through the NVTC Web site. A "discount service center" will be created to provide legal counsel and other services to local companies that wish to become publicly traded, for example.



Telecom
Rep. Boucher Favors Push For Major Telecom Reform
by Teri Rucker

     A technology leader in the House on Thursday endorsed the idea of pursuing big telecommunications reforms next year, noting that policy needs to be reformed to ensure universal access to affordable services and to tackle technology changes.
     "The time has come to say universal service is an important principle" and to expand how many services contribute to the fund for ensuring the affordability of communications, Rick Boucher, D-Va., said at a National Consumers League forum on the high-speed Internet.
     Boucher said he expects resistance from big companies that do not pay into the fund but noted that social goals of universal service are too important and that the program must be sustained.
     As Congress begins the discussion on expanding the contribution base for the fund, Boucher also anticipates calls to expand the types of services eligible for universal service money to broadband. "I have some reservations about that," he said, because the fund is strained covering basic telephone service, education and healthcare programs, and it will be difficult to find the money to add services.
     Congress also will need to tackle what regulations should apply to Internet telephone service, Boucher said, adding that he is "very interested" in a proposal offered by Tom Tauke, Verizon Communications' senior vice president, that Boucher said calls for applying traditional regulation Internet telephony that uses the traditional phone network but no regulation for telephony that is purely Internet based.
     Boucher said that idea "is a very straightforward formulation that makes a great deal of sense and should be considered."
     While Congress re-evaluates telecom policy, it also should "clear the way for community networks," Boucher said, touting the approach his district took to bring fiber-optic networks to the most rural residents. In areas where the private sector will not deploy services, communities and local governments should be able to build their own networks, he said.
     Also at the event, Jessica Rosenworcel, a legal adviser to FCC Commissioner Michael Copps, said the FCC should examine the big picture and then craft a national broadband policy.
     It has been nearly three years since the FCC studied high-speed Internet service and how regulation effects the deployment as mandated by Congress, she said. Until the FCC studies the issue again, it should postpone making any major decisions on broadband, such as tentatively classifying broadband as an "information service," Rosenworcel said. She said the agency does not understand the implications of such a decision.
     Instead, the agency should do a study, determine what regulations pose barriers to broadband deployment and then refrain from imposing those regulations, Rosenworcel said. That approach is the statutory tool given to the FCC by Congress and is less risky from a legal perspective than regulatory classification, she noted.



Antitrust
Consumer Groups See Flaws In Media-Ownership Data
by Teri Rucker

     Consumer groups charged Thursday that the FCC relied on faulty data when it crafted its decision to relax media-ownership rules, saying that the agency overestimated the importance of consumers' use of the Internet as a news source and underestimated newspapers.
     The FCC used its data to set media-ownership thresholds, including relaxing the rule on newspaper-television cross ownership. But the FCC asked only one question and it was faulty, said Chris Murray, legislative counsel to Consumers Union.
     Instead of asking specific questions, the FCC asked what source of information the respondent used in the last seven days for local news and current affairs. A survey commissioned by consumer groups asked what sources of information were most important for national and local news.
     The survey of more than 1,000 people conducted by Opinion Research found that 61.3 percent of respondents identified newspapers as their most important source of information, compared with the FCC's finding of 28.8 percent.
     The FCC also was off base on its assumption about the Internet, the report says. The consumer survey found 2.2 percent of people named the Internet as their top news source, compared with the FCC's finding of 12.8 percent. The same goes for radio, with a 24.4 percent rating by the FCC and 7.5 percent in the consumer survey.
     The FCC's figures for television are similar to the new survey's findings, with 33.8 percent and 29.8 percent respectively.
     "The findings of the national, random sample survey lend significant support to consumer groups' legal challenge to the rules," said Mark Cooper, director of research for Consumer Federation of America.
     If the FCC had asked the right questions and gathered the proper data on local news markets, "it would have been forced to conclude that in these markets, the public interest will clearly be harmed if mergers between major local newspaper and broadcast TV stations are allowed," the report said.
     Results differ for sources of information for national and local news, according to the survey. Nearly 60 percent of respondents get their local information from newspapers, compared with about 30 percent for national news. Only 2 percent identified the Internet as the top source for local information, compared with 12 percent for national news.
     Younger people tend to favor the Internet but not as a source for local news, with only 6 percent of those between 18 and 24 years old going online for local news and 28 percent for national news.
     "Since newspapers are a much more important source for local news than the FCC gives them credit for, and TV is the second most important source, mergers between these two effectively eliminate diversity of viewpoints and competition of ideas in our local media, which is exactly what the FCC is supposed to protect," said Gene Kimmelman, Consumers Union's senior policy director.
     The survey also found that a majority of people thinks a merger between a TV station and newspaper would be bad for the community and diversity.



Cyber Security
Demand Grows For Isolated Inter-Agency Network
by William New

     They said it could not, and should not, be done. A call made after Sept. 11, 2001, for a closed government intranet, impenetrable to outside cyber attacks, withered after experts balked at the potential cost and said it would not include key non-federal players in the event of an attack.
     But two years later, Sprint built it anyway, and now demand is rising among federal agencies for the company's "Peerless IP," a "government grade" Internet-protocol-based intranet that in many ways resembles the original GovNet proposal.
     "The thought was, 'Gee, I don't think this could ever be done,'" said Anthony D'Agata, vice president and general manager of Sprint's government systems division. But the Sprint technology is "pretty consistent" with the GovNet idea, he said.
     The Bush administration has been pushing all federal agencies to utilize technology to help them communicate more freely, according to D'Agata. There always was interest in Internet protocol technology, but there was concern about the security of information traversing the system. So Sprint decided to create a private network for government, D'Agata said.
     The key to Sprint's system is that it has no connection to the public Internet, so there can be no possible intrusions, D'Agata said in an interview. The absence of links, "peering points" or gateways in the system allows agencies to communicate within themselves and with specific agencies also on the network. It is both physically and virtually private, he said.
     Since the late summer launch of Peerless IP, Sprint has been awarded all three federal contracts for Internet protocol network services from the National Guard, the FBI and an agency the company cannot disclose. Sprint is hopeful about several more bids in the pipeline in coming months, D'Agata said.
     Agencies can modify the system that Sprint provides to add levels of security for particular information, he said. The key question each agency must decide in joining the network is what information it wants to share and at what level.
     Richard Clarke, former director of the White House Office of Cyber Security, proposed GovNet shortly after the 2001 terrorist attacks as a way to ensure that the government could communicate with less vulnerability to attack.
     But skeptics such as Scott Charney, a former senior cyber-crime official at the Justice Department, pronounced GovNet too costly and questioned the need for a closed network. He said the government must include the other actors who would respond to a terrorist attack, such as emergency, state and local authorities. Charney suggested a focus on better authentication tools and encryption.
     The Bush administration decided to seek a minimal amount of funding for GovNet and otherwise put the idea away for further study. Then early in 2003, after noticing increased agency interest in Internet-protocol-based products and services, Sprint unveiled its new system. And the contracts have been signed ever since.



E-Government
Texas Tries To Reshape Its Information Technology System
by Maureen Sirhal for Technology Daily

AUSTIN, Texas -- Following in the footsteps of federal government, the state of Texas is moving forward on a plan to develop a statewide information-technology blueprint for managing communications, data and technology investments.
     Officials in the Information Resources Department began exploring the development of the framework, or "enterprise architecture," in 2001, just as the Bush administration launched an e-government program to standardize a federal IT infrastructure. The goal is to reduce duplicative software and technology purchases while ensuring that agency systems can work together.
     Mel Mireles, a director with Enterprise Operations at the Texas Information Resources Department, told an audience of local and county government IT officials on Wednesday that by next week, his agency should conclude the first phase of a statewide blueprint for IT systems. He spoke here at a conference sponsored by the Texas Association of Counties.
     The overall goal of the project, Mireles said, is to ensure that state agencies can leverage resources and communicate with one another, and to ensure that technology investments suit the needs of agencies. "When I talk about blueprint, it's more in the sense that we have to get to a standardized level of operations ... a standard way of doing IT business," he said. "We want the business to drive the technology, not the other way around."
     Texas is one of several states working toward integrating its IT infrastructure in order to foster efficiency and reduce the cost of technology investments. The push for the enterprise architecture follows actions taken by the Bush administration and other state governments to overhaul their management of information technology.
     "We're borrowing a lot from what the federal government has already done," said Stan Reid, director of the Texas County Information Resources Agency, which is assisting in the project.
     Texas' system, known as the Architecture Components for the Enterprise (ACE), will link all of the state's agencies and organizations into a unified system for managing data security, for example. It also seeks to ensure that when agencies purchase new software or other devices that those products will work within the IT framework.
     "Once we lay the architecture ... [localities] can begin to comply with that," Mireles added.
     Texas officials are looking to similar models in other states and those developed by the National Association of State Chief Information Officers, a trade association for government IT leaders. The group just released a new tool last month designed to help state and local governments assess their progress in developing enterprise architectures.
     Mireles said the Information Resources Department aims to begin a major portion of the project next week, when experts begin "classifying" technologies to help state agencies understand the lifecycle of IT products and services.
     The framework "gives us a vision of where we need to go," he said. "We need to be investing dollars" into emerging technologies. "That to us is where we think we're going to get the best bang for our buck in the state."



On The Hill
Colleagues Question Rep. Tauzin Over Lobbying Job
by Mark Wegner and Richard E. Cohen, CongressDaily

     The prospect that House Energy and Commerce Committee Chairman W.J. (Billy) Tauzin is entertaining a job offer from the Pharmaceutical and Research Manufacturers of America (PhRMA) created a buzz within the House Republican Conference and will be a topic of discussion this week at the party's retreat in Philadelphia, GOP leaders said on Thursday.
     "It's a free country and he's welcome to consider whatever he would on that, but I think he will get an earful from his colleagues," Republican Conference Chairwoman Deborah Pryce of Ohio told reporters.
     Pryce said she did not know what prospects Tauzin may have but said she thought he would discuss with fellow GOP leaders the reports that PhRMA has approached him about a job. Pryce suggested that such reports could make it more difficult for Republicans to talk up the recently passed Medicare prescription-drug benefit -- legislation that Tauzin had a key role in drafting.
     "I don't know that it will help or hurt re-election efforts," she said. "I just think it might hurt some of the issues we've worked so hard on."
     House Minority Leader Nancy Pelosi, D-Calif., and other Democrats, who vigorously opposed the GOP drug bill, have seized upon reports of Tauzin's job discussions with PhRMA, charging that it is a conflict of interest for Tauzin to discuss job offers with groups with business before his panel. At least one Democratic presidential contender -- former Army Gen. Wesley Clark -- called the possible job offer a "payoff" for passing a pro-industry drug bill.
     Through a spokesman, Tauzin earlier this week said he is not negotiating with PhRMA. His spokesman on Thursday declined to comment on what discussion Tauzin might have with members at the retreat, which runs through Saturday.
     Tauzin last week reportedly rejected an offer from the Motion Picture Association of America to head that group. Tauzin also oversees issues affecting the media and technology industries.
     Asked to comment on Tauzin and PhRMA, House Majority Whip Roy Blunt, R-Mo., said he does not think Tauzin was talking to the pharmaceutical group while also negotiating the Medicare bill. "I have the highest level of confidence in Chairman Tauzin's integrity. I'm sure he was doing whatever [was] ... needed to be done during the discussion of that bill, and [he] will continue to do the right thing," Blunt said. "The timing is never perfect. I think it's been well understood that Chairman Tauzin was considering outside options for a long time."
     A well-placed GOP source said House Republicans remain unconcerned about broader political impact. Of greater concern to Republicans is that the timing of Tauzin's widely expected resignation be announced so that the resulting special election is scheduled advantageously for Louisiana Republicans.
     They reportedly want to make sure that Democratic Gov. Kathleen Blanco does not schedule the election the same day as the March 9 Louisiana presidential primary, which would increase Democratic turnout.





Today's Feature: State Roundup
State legislators headed back to their state capitals this month, introducing technology-related measures that touched on topics such as Internet-based databases, e-voting and purchases of prescription drugs from Canada. Every Thursday, read the State Roundup by Staff Reporter Chloe Albanesius.



E-briefs



Telecom:   House Energy and Commerce Committee Chairman W.J. (Billy) Tauzin on Thursday complained that the FCC has yet to address the question of what charges for accessing telecommunications networks apply to Internet telephone service. "The commission's silence on the question has been deafening," Tauzin, R-La., wrote in a letter to the FCC. Because the agency has not acted on a petition AT&T filed 15 months ago, Tauzin wants answers by Feb. 5 on whether access charges apply to the long-distance service that is part Internet, part regular telephone call. Tauzin noted that he is not seeking answers on pure Internet calls or whether the FCC plans to change the access-charge rules but on whether those fees apply "today under the commission's existing rules." AT&T said in a statement that the answer will show whether FCC Chairman Michael Powell intends to refrain from regulating Internet telephony, as he has advocated.

Telecom:   The National Telecommunications Cooperative Association (NTCA) on Wednesday warned the Senate that completely exempting Internet telephone service could harm funding for the program that seeks to ensure universal communications services to Americans. As lawmakers decide how to address Internet telephony, NTCA urged in a letter that they consider how the service affects social policy goals. Carriers that use Internet-based services touching traditional telephone networks should have to pay fees to access those networks, said the letter authored by Michael Brunner, the group's CEO. The definition of "telecommunications service" compels the FCC to classify Internet telephony as a telecom service subject to contributions to the universal service fund and to access charges that apply to those types of services, the letter said. An exemption from universal service "would create a regulatory arbitrage incentive for all telecommunications providers to remove all traffic" from the traditional phone networks, the letter said.

Security:   A new visa system at the nation's borders is catching more immigration and criminal violators, but has yet to uncover suspected terrorists, Government Executive reported. Critics say the US Visitor and Immigrant Status Indicator Technology program is stretching thin the workload for an already overloaded border workforce and does not appear to be making the country safer from potential terrorists. Asa Hutchinson, undersecretary of border and transportation security for the Homeland Security Department, said Tuesday that US VISIT has increased the number of people being caught for charges such as immigration violations, drug trafficking and fraud. Hutchinson later said, however, that no one has yet been caught on terrorism-related charges. The program requires visitors with nonimmigrant visas to give border agents biometric information in the form of two fingerprints and a digital photo, along with data. The information is entered into a database and compared to watch lists.

E-Government:   Sun Microsystems Chairman and CEO Scott McNealy on Thursday called on state and local governments to think mobile. "The most important application ... is mobility," he told an audience of state and local information technology officials at a government tech conference in Austin, Texas. Citizens want access to online services in a secure mobile environment, he said. To that end, e-government services need to focus on networked applications that let citizens and government workers access distinct information remotely. McNealy described how Sun is deploying its Sun Ray systems, which let individuals carry their computer files and desktop applications anywhere and at a savings to users. "We've taken offices away for about one-third of our employees. ... "We save $2 million to $3 million a year in energy costs alone," he said. He also advised state governments to seek adaptable commercial technologies rather than custom-built software.

Antitrust:   The Justice Department should approve Oracle's bid for PeopleSoft, said Jonathan Zuck, president of Association for Competitive Technology, lambasting competitors' attempts to use competition law against successful competitors. He cited News Corp.'s successful campaign against EchoStar's proposed acquisition of DirecTV, travel agents' unsuccessful quest against Orbitz, and Microsoft rivals. "I think the majority of antitrust enforcement has been a cartoon," Zuck said at the Cato Institute on Thursday. Ed Black, CEO of the Computer and Communications Industry Association, defended the continued relevance of antitrust issues to the high-tech economy, but took no position on the Oracle proposal. "Our goal is to preserve a dynamic, open competitive industry," said Black. "We don't see anything in the deal if approved, or if not approved, that has any impact on that." Fred Smith, president of the Competitive Enterprise Institute, urged caution in pursuing antitrust claims because they would "be used in Europe to castigate our industries."

Campaigns:   The advocacy provider Capitol Advantage on Thursday unveiled an updated version of its Capwiz Election Guide, which now features contributions from the League of Women Voters and Meetup.com. The site is appealing to the "educated electorate," Capitol Advantage founder Bob Hansan said during a Thursday press conference. "When we look back at the legacy of the 2004 elections, [it will be] the voter-education tools we were able to provide online," he said. The updated version is unique because it partners with media outlets like Fox News and C-SPAN for additional exposure, said Sean Murphy, Capitol Advantage's chief operating officer. Users will be able to check the backgrounds of candidates from the presidential to the state levels, get voter-registration information, or learn how to volunteer and donate to a particular. "The goal of the site is to be one click away from every citizen this year," Murphy said.

Net Governance:   The Internet Corporation for Assigned Names and Numbers (ICANN), which oversees the Internet-addressing system, has released a list of questions and answers on the proposed launch of an advisory group for country-based Internet addresses. The proposed Country-Code Name Supporting Organization would fall under ICANN's established structure. The supporting organizations are internal working committees whose primary purpose is to make policy recommendations to ICANN's board. ICANN has a mandate from the Commerce Department to develop relationships with the managers of country-code domains and has struggled in that task.

E-Government:   State and federal education officials were on hand at the National Press Club Thursday to unveil a new Web site that will provide detailed information on U.S. public-school performance. The 2002 education law pledged to "make education more accountable and transparent," and this site is a step in the right direction, Education Secretary Roderick Paige said. SchoolResults.org currently features information on six states but expects to have details on all 50 states and Puerto Rico by the end of the summer. The initial $54 million cost of implementing the site was covered by the Education Department and a donation from The Broad Foundation. After the first two years, states will have to contribute to the site's upkeep, but officials said that cost would be minimal. Virginia Gov. Mark Warner said he is intrigued by the idea because of the "lack of good data" on school performance.

Net Governance:   Register.com, a New York-based register of Internet addresses and Internet service provider, on Thursday said a court action has prevented a Web-hosting company from mining Register.com's customer information for marketing purposes. The 2nd U.S. Circuit Court upheld a preliminary injunction against Verio, a Colorado-based company and a subsidiary of NTT Communications. Verio used Register.com's "Whois" data, the contact information for Web sites, to send unsolicited e-mail and direct mail and to call people. Register.com also recently obtained an injunction against Domain Registry of America, which was found to be confusing customers into believing that Domain Registry was their existing registrar rather than Register.com. All registrars must provide public access to their customers' contact information, which is known as the Whois record. Register.com brought the case after receiving complaints about Verio.

E-Commerce:   The FTC on Thursday joined forces with 26 other countries to try to reduce the flow of unsolicited commercial e-mail, or spam, via insecure servers. Such "open relays" or "open proxies" allow any computer in the world to "bounce" or route e-mail through servers of other organizations, disguising the real origins of the e-mails and making it more difficult to track spammers. Participants in Operation Secure Your Server will send letters to vulnerable organizations, urging them to protect their servers, and the FTC unveiled a Web site with information on how to do so. Howard Beales, director of the FTC's Consumer Protection Bureau, touted the program's "international cooperation." In other news, most e-mail marketers are complying with the new, federal anti-spam law, but some remain confused over administrative aspects of the law, according to a survey of 100 marketers conducted by EmailLabs.

Crime:   The Financial Services Roundtable and BITS on Thursday announced the formation of the Identity Theft Assistance Corporation. The new group will manage the Identity Theft Assistance Center (ITAC), a support services center that will aid victims of identity theft when it opens this summer. "We are heartened that so many of the nation's leading financial institutions are stepping up in an unprecedented collaborative effort to protect our customers from this crime, and assist them in recovering should they fall victim to it," said Stan Ommen, chairman of the ITAC board of directors. Forty-seven financial institutions have committed to the establishment of the center.

Telecom:   The wireless communication industry is expected to grow 7.6 percent in 2004, according to data released by the Telecommunications Industry Association (TIA). The group predicts that U.S. spending on the service will hit $144.7 billion this year. The report also predicts wireless spending to hit $190.8 billion by 2007. TIA expects the subscriber growth rate to dip, but overall industry growth will be fueled by new applications, such as wireless Internet access, text messaging, games and Wi-Fi technology services. Spending on wireless handsets will increase so consumers can take advantage of the new services, TIA predicts, estimating that purchases will total $10.2 billion in 2004. "With the introduction of new applications such as Wi-Fi technologies and more sophisticated communications products, we'll see an increase in carrier revenue," TIA President Matthew Flanigan said.

 

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