New orders for computer and electronic products fell 10.8% to $30.1 billion in Nov., primarily involving communications equipment, which dropped 40% to $5.8 billion, a Dept. of Commerce report on durable goods said. “This was the largest percent decline in computers and electronic products since July 2000,” it said. It said shipments of computer and electronic products dipped 0.5% to $36.4 billion, and those of communications equipment 1.4% to $6.7 billion. The report said for computer and electronic products, unfilled orders and total inventories remained the same at $131.6 billion and $47.1 billion, respectively, while for communications equipment, unfilled orders decreased 1.7% to $53.5 billion and total inventories rose 1.1% to $11.1 billion.
The 9 Democratic candidates for President seldom, if ever, mentioned the term “UNE-P” on the campaign trail, nor are local phone competition issues addressed. While telecom policy isn’t a central issue in the candidates’ stump speech, universal broadband frequently is championed. Former Vt. Gov. Howard Dean (D) also sparked a great deal of attention with recent comments suggesting a need for telecom “re- regulation.” Retired U.S. Army Gen. Wesley Clark has vowed to eliminate NTIA and fold its essential operations into the Commerce Dept.’s Technology Administration.
Now that the World Summit on Information Society (WSIS) is over, the U.S. needs to think about how to “play an active role” in the working group on Internet governance and the Task Force on the digital solidarity fund, said David Gross, who represented the U.S. at the Geneva summit. Under the declaration of principles and the action plan adopted by 176 govt. delegations, the 2 groups under the leadership of United Nations Secy. Gen. Kofi Annan will produce reports to prepare for the 2nd phase of WSIS scheduled for 2005 in Tunis. Gross clarified, however, that the reports would result in action in Tunis only “if appropriate.”
President Bush issued an Executive Order Wed. clarifying the role of various federal agencies in protecting critical infrastructure and enhancing cybersecurity, while acknowledging that potential terrorist targets, such as telecom networks, were largely owned privately. Bush’s action came after a Markle Foundation-led task force urged him to clarify critical infrastructure protection by Executive Order (CD Dec 3 p5).
The Commerce Dept. said information technology (IT) was helping lead a revitalizing economy, but the lagging telecom sector continued to trail. In releasing its “Digital Economy 2003” report Tues., Undersecy. of Technology Philip Bond said growth in the macro-economic sector was driven by IT spending. He said the report showed “promising signs for the tech sector.” Undersecy. of Economic Affairs Kathleen Cooper said that after “two tough years, we are seeing signs of renewed strength.” Of the 2.9% of “real U.S. economic growth” predicted for 2003, IT-producing industries were expected to contribute 0.8 percentage points, said the report, based on data through the 3rd quarter. IT industries are expected to supply 8% of gross domestic product (GDP), the report said, and the growth rate of the IT sector is estimated at 6.4%. Performance varied by IT sector, and the struggling telecom sector continued to lag. While IT service industries and computer and semiconductor manufacturers were rebounding from their moderate pace in the early 2000s, communications and other telecom equipment manufacturers were continuing to fight for sales, the report said. IT unemployment continued to remain a problem. Since 2000, the sector has lost 11.2% of its jobs, compared with 2% of the overall economy. IT job loss, originally concentrated in manufacturing and low-skill positions, has spread to almost all levels. One growing problem -- IT outsourcing to other countries -- isn’t tracked in the report. Cooper said Commerce was working on developing better statistics on outsourcing and probably would work more closely with the Labor Dept. to determine how it was affecting the IT economy.
Protecting communications during critical infrastructure threats such as blackouts, hurricanes and terror attacks requires dedicated spectrum and freedom from cybersecurity mandates, a coalition of trade groups told Congress last week. The United Telecom Council (UTC) and other members of the Critical Infrastructure Communications Coalition (CICC) wrote members of 3 key House committees last week, urging promotion and protection of private telecom services used by the electric, gas, water, oil and railroad industries.
U.S. Commerce Dept. investigators are meeting TV manufacturers in China in an effort to check production costs at local factories, China Daily reported. Commerce officials were expected to meet with Sichuan Changhong Electric, Xiamen Overseas Chinese Electronic (Xoceco), Konka Group and TCL Holdings as a follow-up to the department’s decision in Nov. to impose antidumping duties of up to 47% on TV sets imported from China. Commerce selected 4 companies of the original 12 named in a complaint filed by Five Rivers Electronic Innovations in May because it lacked the resources to visit all the companies involved in the case, China Daily said. “They are coming to us to check some original data to see whether or not their calculations are right,” an unidentified spokesman at one of the companies being visited by Commerce investigators told the newspaper. Commerce is asking the companies to furnish documents certifying production costs, commodity prices and staff salaries, the spokesman said. Commerce officials weren’t available for comment. Chinese TV manufacturers were fully prepared for the investigation, a spokesman said. “We expect this trip can help change their preliminary ruling on our costs, which is entirely unjustified,” the spokesman said, saying that his company’s costs were lower than those of Funai, whose plant in Malaysia was named in the complaint. Commerce’s preliminary decision imposed a 0.03% duty on Funai’s imports. It’s expected to issue its final decision in the case April 12.
Sen. Lott (R-Miss.) placed a hold on the nomination of Michael Gallagher to be NTIA dir., several sources confirmed Thurs. On its final day of action before adjourning for the year, the Senate confirmed about 50 nominees. But even though Gallagher had been cleared by the Commerce Committee, the Senate didn’t consider his nomination. Sources said Lott put the hold on Gallagher as retaliation for an unrelated NOAA regulation on bill fishing. It was unclear what -- if any -- relation Gallagher had to the issue other than both NTIA and NOAA were in the Commerce Dept. Before becoming acting NTIA dir., Gallagher had been deputy chief of staff for policy and counselor to Commerce Secy. Donald Evans. He oversaw some NOAA activities in that assignment. Sources said Sen. Hutchinson (R-Tex.) also was involved and that there was a dispute between her and Lott, with the subject unclear. NTIA officials declined to comment.
Federal spectrum users stressed to an NTIA forum Tues. the delicate balance between creating incentives for more efficient govt. spectrum use and protecting existing systems such as GPS. Several spectrum experts told the daylong forum at the Commerce Dept. that while secondary markets might have some applications for govt. spectrum, congressional budget and other policies didn’t always create incentives for more efficient use. “It’s harder than you might think to get the incentives right,” Treasury Dept. economist Adele Morris said.
FCC Comr. Adelstein, 3 FTC commissioners and at least 6 federal legislators are among the govt. officials expected to attend the Consumer Electronics Show (CES) in Las Vegas Jan. 8-11, organizer CEA said. Attendees are expected to include Reps. Bilirakis (R-Fla)., Buyer (R-Ind.), Doolittle (R-Cal.), Green (D-Tex.), Ramstad (R-Minn.) and Terry (R-Neb.). FTC commissioners include Pamela Jones-Harbour, Orson Swindle and Mozelle Thompson. Commerce Dept. attendees are to include Philip Bond, Undersecy. for Commerce & Technology, Michael Gallagher, NTIA dir., and James Rogan, Undersecy. for Intellectual Property. International govt. attendees are to include Korean Minister of Information & Communication Daeje Chin, Laurent Sorbier, technical counselor to the French Prime Minister, and Matthias Kurth, pres. of the German Regulatory Authority for Telecom & Posts.