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December 9, 2003, 9:00 AM ET, Alert No. 795.
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FCC Commissioner Abernathy Addresses Competition and Regulation

12/8. Federal Communications Commission (FCC) Commissioner Kathleen Abernathy gave a speech [3 pages in PDF] in Geneva, Switzerland, in which she discussed her views about regulation.

She participated in a panel discussion on universal access. She stated that "The goal of providing high quality telecommunications services to all consumers in the United States at affordable rates is a cherished principle of U.S. telecommunications policy and law." She added that a "fully functioning competitive markets deliver greater value and services to consumers than those that are heavily regulated. Despite the noblest of intentions, government simply cannot allocate the resources, punish and reward providers, and encourage innovation as efficiently as markets."

Kathleen AbernathyAbernathy (at right) then discussed three topics: competition, transparency and consumer education.

While she said that she has faith in markets, she also stated that "it is necessary for regulators to intervene when structural or competitive barriers impede the development of competition. Therefore, as markets transition from a monopoly to a competitive model, it is important for the regulators to craft narrowly tailored regulations aimed at curtailing the anti-competitive behavior of incumbents."

She also said that universal service goals "are unlikely to be advanced in the marketplace absent regulatory intervention".

She next discussed "transparency". She stated that "I believe that transparency is best achieved through the creation and publication of clear rules. However, for the regulatory regime to be successful, these rules must also be strictly enforced."

She did not reference, in her prepared text, some of the elements of transparency that are often raised by U.S. companies and trade negotiators when complaining about lack of transparency in other nations' regulation, such as open procedures for promulgating rules, notice and opportunity to comment, impartial regulators, and an opportunity for judicial review. Nor did she assert that the FCC conducts its affairs in a transparent manner.

She did assert that "the U.S. regulatory model has only been successful when the FCC has enforced its rules vigorously. Failure to enforce rules sends the inappropriate signal that companies may engage in anticompetitive behavior or other unlawful conduct with impunity."

She added that "I also find strict enforcement of narrowly tailored rules to be more effective than broad prescriptive rules, which prohibit whole categories of conduct, only some of which may be problematic. By relying more on enforcement mechanisms, the FCC has been able to tailor its intervention to particular circumstances, thereby allowing markets to operate with minimal regulatory distortion."

Finally, she said that regulators "must ensure that consumers have access to the information they need." She said that the FCC does this by "issuing newsletters".

FCC Fines Infinity for Broadcasting Garbage

12/8. The Federal Communications Commission (FCC) released a Forfeiture Order [11 pages in PDF] in its proceeding titled "In the Matter of Infinity Broadcasting Operations, Inc. Licensee of Station WKRK-FM Detroit, Michigan". The FCC adopted this order on November 24, 2003, but did not release it until December 8, 2003.

This order fines Infinity $27,500, the maximum fine for a single utterance, for violation of 18 U.S.C. § 1464 and section 73.3999 of the FCC's rules.

The FCC issued a Notice of Apparent Liability (NAL) in this proceeding back on April 4, 2003. A transcript Infinity's garbage is in the NAL.

FCC Chairman Michael Powell wrote in a separate statement [PDF] that "Broadcasters should take this latest action as yet another sign that the Commission will continue to rigorously enforce our indecency regulations." FCC Commissioner Michael Copps wrote in a dissent [PDF] that "a fine of $27,500 is not even a slap on the wrist to Infinity". FCC Commissioner Kevin Martin, noting that the talk radio program included nine separate calls, argued that the FCC should have fined Infinity for nine violations, for a total fine of $247,500.

This Forfeiture Order is FCC 03-302 in File No. EB-02-IH-0109.

This is not the only proceeding against Infinity for garbage broadcasting. See, story titled "FCC Fines Infinity for Indecent Broadcasts" in TLJ Daily E-Mail Alert No. 752, October 3, 2003.

GAO Recommends That DOD Delay Start of Transformational Satellite Acquisition Program

12/5. The General Accounting Office (GAO) released a letter [21 pages in PDF], dated December 4, 2003, to Secretary of Defense Donald Rumsfeld, regarding "Space Acquisitions: Committing Prematurely to the Transformational Satellite Program Elevates Risks for Poor Cost, Schedule, and Performance Outcomes".

This letter states that "In a multibillion-dollar effort, the Department of Defense (DOD) plans to build a space-based communications system that leverages technologies never before used in space. Such a system would enable DOD to transform how information is collected on potential U.S. adversaries and how military forces are warned of hostile action. The backbone of this system will be the Transformational Satellite (TSAT), which is expected to play a pivotal role in connecting communications networks on the ground, in the air, on ships, and in space. TSAT represents a potential leap forward in communications speed, security, and availability. The Air Force, which heads up DOD’s space programs, intends for TSAT to be interoperable with similar systems being acquired for the National Aeronautics and Space Administration (NASA) and the intelligence agencies."

It concludes that "the DOD has embarked on a new transformational communications architecture to take advantage of emerging technologies and to remove communications constraints from combat. The department has told the warfighter and Congress that TSAT is a key system that is necessary to achieve this architecture. Responding quickly, the Air Force has set an imminent deadline of December 2003 to start the TSAT program. By starting the program so soon, the Air Force is moving ahead without mature technologies and early design studies -- two pillars of knowledge that would help program officials to reliably establish cost, schedule, and performance goals. This knowledge is not expected to be available until 2006. Our work over the years has found that when programs have been started without the requisite knowledge, program managers and contractors are later burdened by unreasonable expectations about cost, schedule, and performance. Problems usually arise later that lead to cost increases, delays in delivering needed capability to the warfighters, and performance shortfalls."

The letter recommends that the DOD "delay the start of the TSAT acquisition program until technologies have been demonstrated to be at an acceptable level of maturity (at least TRL 6) and until the developing contractor has determined through systems engineering that the design is feasible and producible."

The letter is signed by Robert Levin, Director, Acquisition and Sourcing Management, GAO.

Supreme Court Denies Certiorari in Raritan Computer v. Apex

12/8. The Supreme Court denied certiorari, without opinion, in Raritan Computer v. Apex, a patent infringement case involving computerized switching systems (aka KVM switches) technology. See, Order List [PDF], at page 2.

Apex filed a complaint in the U.S. District Court (SDNY) against Raritan Computer alleging infringement of its U.S. Patent Nos. 5,884,096, 5,937,176, and 6,112,264. The District Court held that the patents were not infringed, and dismissed the complaint. The District Court opinion is published at 187 F. Supp. 2d 141.

The Court of Appeals (FedCir) issued its opinion on April 2, 2003, vacating and remanding on the grounds that the District Court erred as a matter of law in the construction of the disputed claim limitations of the patents.

This case is Raritan Computer, Inc. v. Apex, Inc., Supreme Court No. 03-326, a petition for writ of certiorari to the U.S. Court of Appeals for the Federal Circuit, A.C. No. 02-1303

More Supreme Court News

12/8. The Supreme Court denied certiorari, without opinion, in Western Wireless Corporation v. South Dakota Department of Revenue, Supreme Court No. 03-539. See, Order List [PDF], at page 3.

12/8. The Supreme Court announced that it will take a recess from Monday, December 15, 2003, until Monday, January 12, 2004. See, Order List [PDF], at page 10. When the Court returns on the 12th it will hear oral argument in Nixon v. Missouri Municipal League, regarding 47 U.S.C. § 253(a) and state statutes that prohibit political subdivisions from offering telecommunications services. See, stories titled "Supreme Court Grants Certiorari in Nixon v. Missouri Municipal League" in TLJ Daily E-Mail Alert No. 687, June 25, 2003, and "Briefs Filed With Supreme Court in Nixon v. Missouri Municipal League" in TLJ Daily E-Mail Alert No. 776, November 11, 2003.

People and Appointments

12/8. Secretary of Homeland Security Tom Ridge announced several new appointments to the Department of Homeland Security's (DHS) Private Sector Senior Advisory Committee (PVTSAC) of the Homeland Security Advisory Council (HSAC). The list of appointees includes George Vradenburg and Houston Williams. Vradenburg was previously an EVP at AOL Time Warner, and before that, at AOL. Williams is Ch/CEO of Pacific Network Supply, a telecommunications company that he founded in 1987. Before that, he worked for Pacific Bell and for Honeywell Communications. Ridge also named representatives from the aircraft manufacturing, airline, chemical, cruise ship, nuclear energy and retail industries. See, DHS release.

12/8. Secretary of Homeland Security Tom Ridge announced several new appointments to the Department of Homeland Security's (DHS) Academe and Policy Research Senior Advisory Committee (APRSAC) of the Homeland Security Advisory Council (HSAC). The list includes Victoria Haynes, CEO of the Research Triangle Institute. Previously, she was VP of the Advanced Technology Group and CTO at BF Goodrich. See, DHS release.

More News

12/8. The Bureau of Industry and Standards (BIS) published an item in its web site pertaining to changes in its deemed export license applications process.

12/5. The Federal Communications Commission (FCC) adopted an Order [3 pages in PDF] on December 4, 2003, which it released on December 5, 2003, that amends Part 15 (regarding radio frequency devices) and Part 76 (regarding multichannel video and cable television services) of the FCC's rules.

12/8. The Office of the U.S. Trade Representative (USTR) published a notice in the Federal Register requesting comments on the operation and effectiveness of, and the implementation of and compliance with, the World Trade Organization (WTO) Basic Telecommunications Agreement, other WTO agreements affecting market opportunities for U.S. telecommunications products and services, the telecommunications provisions of the North American Free Trade Agreement (NAFTA), Chile FTA and Singapore FTA, and other telecommunications trade agreements. Comments are due by January 5, 2004. Reply comments are due by January 23, 2004. The notice further states that the USTR will conclude this review on March 31, 2004. See, Federal Register, December 8, 2003, Vol. 68, No. 235, at Pages 68444 - 68445.

12/3. The Department of Justice (DOJ) filed a motion to exclude testimony of an expert witness with the U.S. District Court (DC) in USA v. First Data. On October 23, 2003, the DOJ, seven states, and the District of Columbia filed a complaint [28 pages in PDF] against First Data Corporation and Concord EFS, Inc., alleging that First Data's planned acquisition of Concord would combine two of the largest point of sale (POS) personal identification number (PIN) debit networks, in violation of Section 7 of the Clayton Act. See, story titled "DOJ Sues to Stop Merger of PIN Debit Networks" in TLJ Daily E-Mail Alert No. 765, October 24, 2003. This case is United States of American, et al., v. First Data Corporation and Concord EFS, Inc., D.C. No. 1:03CV02169, Judge Rosemary Collyer presiding.

12/4. A trial jury of the U.S. District Court (CDCal) returned guilty verdicts against William Sutcliffe on thee counts of making interstate threats to injure or kill and five counts of transferring Social Security Numbers (SSNs) with the intent to aid and abet another felony . The U.S. Attorneys Office stated in a release that Sutcliffe was a computer technician employed by Global Crossing until he was fired in September 2001. Sutcliffe created a web site and published in it personal information, including SSNs, dates of birth, and home addresses, of Global Crossing employees. He also provided hyperlinks to other web sites that contained information on identity theft.

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House Passes Bills

12/8. The House passed the conference report on HR 2673, the Consolidated Appropriations Act for Fiscal Year 2004, by a vote of 242-176. See, Roll Call No. 676. The Senate has yet to pass this conference report. It may do so on Tuesday, December 9.

12/8. The House passed S 877, the "Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003", also known as the "CAN-SPAM Act of 2003", by unanimous consent. This is the same version that the Senate passed on November 25, 2004. The bill is thus ready for President Bush's signature.

Washington Tech Calendar
New items are highlighted in red.
Tuesday, December 9

The House may take up conference reports. See, Republican Whip Notice.

The Senate will return from recess at 10:00 AM. It will take up HR 2673, the Consolidated Appropriations Act for Fiscal Year 2004.

Day one of a two day meeting of the Executive Office of the President's (OEP) Office of Science and Technology Policy's (OSTP) National Science and Technology Council's (NSTC) Committee on Science's Subcommittee on Research Business Models regarding the policies, procedures, and plans relating to the business relationship between federal agencies and research performers. See, notice in the Federal Register, September 16, 2003, Vol. 68, No. 179, at Pages 54225 - 54226. Location: Department of Agriculture, 1400 Independence Ave., SW.

2:00 PM EST / 11:00 AM PST. Federal Communications Commission (FCC) Chairman Michael Powell will speak at the University of California, San Diego (UCSD) on the subject "Charting the Future of the Telecom Industry". The event is at the Robinson Auditorium, UCSD, but will also be webcast; see, www.calit2.net, www.irps.edu, or www.jacobsschool.ucsd.edu. Powell will also tour Indian reservations that have high speed internet access facilities, including Wi-Fi; however, this will not be webcast.

8:25 AM - 5:15 PM. The National Institute of Standards and Technology's (NIST) Visiting Committee on Advanced Technology will meet. Some of the meeting will be closed to the public. The agenda includes a NIST update on current NIST programs; strategic plan and program priorities; human resources, safety, and diversity; and program implementation and evaluation. The deadline to register is December 4. Contact Carolyn Peters at 301 975-5607 carolyn.peters@nist.gov. See, notice in the Federal Register,  November 25, 2003, Vol. 68, No. 227, at Pages 66074 - 66075. Location: NIST, Employees Lounge, Administration Building, Gaithersburg, MD.

8:30 AM - 3:15 PM. The American Enterprise Institute (AEI) will host a conference titled "Competition versus Cooperation in Global Tax Policy" See, notice. Location: AEI, 12th Floor, 1150 17th Street, NW.

9:00 AM - 4:30 PM. The Department of Commerce's (DOC) National Telecommunications and Information Administration (NTIA) will hold the first in a series of public meetings on government management of spectrum. The speakers will include Samuel Bodman (Deputy Secretary of Commerce), Michael Gallagher (acting head of the NTIA), John Muleta (Chief of the FCC's Wireless Telecommunications Bureau), and Ed Thomas (Chief of the FCC's Office of Engineering & Technology). See agenda. See also, notice in the Federal Register, November 24, 2003, Vol. 68, No. 226, at Page 65893. For more information, contact Joe Gattuso at 202 482-1880 or jgattuso@ntia.doc.gov. Location: Room 4830, Hoover Building, 1401 Constitution Avenue, NW.

10:00 AM. The Senate Governmental Affairs Committee will hold a hearing "to examine the impact of shifting global economic forces on the federal government's ability to negotiate, monitor and enforce trade agreements". Location: Room 342, Dirksen Building.

10:00 AM. Rep. Adam Putnam (R-FL), Chairman of the House Government Reform Committee's Subcommittee on Technology, Information Policy, Intergovernmental Relations and the Census will release a report titled "2003 Federal Agency Computer Security Scorecard". This caries on the annual reporting begun by his predecessor, former Rep. Stephen Horn (R-CA). For more information, contact Bob Dix at 202 225-6751. Location: Room 2154, Rayburn Building.

12:00 NOON. The Federal Communications Bar Association's (FCBA) Common Carrier Practice Committee will host a brown bag lunch. The topic will be the MFJ decree, the Section 271 process, and the effectiveness of the 20-year experiment with line of business restrictions, and pending FCC proceedings regarding structural and non-structural safeguards. The speakers will be Bernard Wunder, James Harralson, and Richard Metzger. RSVP to Cecelia Burnett at 202 637-8312 or cmburnett@hhlaw.com. Location: Hogan & Hartson LLP, 555 13th St., NW. lower level.

1:20 PM. Brian Roseboro, the Department of the Treasury's (DOT) Acting Under Secretary for Domestic Finance, will deliver remarks on the Next Generation Financial Services Information Sharing and Analysis Center. Location: DOT, Room 4121, 1500 Pennsylvania Ave, NW.

5:00 PM. Technology Administration (TA) Under Secretary Phil Bond will deliver opening remarks on IT outsourcing and manufacturing at roundtable discussion titled "What Will Made in America Look Like in the Future". Location: Baltimore Museum of Industry, Baltimore, MD.

Wednesday, December 10

The House may take up conference reports. See, Republican Whip Notice.

8:15 - 11:30 AM. The National Institute of Standards and Technology's (NIST) Visiting Committee on Advanced Technology will meet. Some of the meeting will be closed to the public. The agenda includes a NIST update on current NIST programs; strategic plan and program priorities; human resources, safety, and diversity; and program implementation and evaluation. The deadline to register is December 4. Contact Carolyn Peters at 301 975-5607 carolyn.peters@nist.gov. See, notice in the Federal Register,  November 25, 2003, Vol. 68, No. 227, at Pages 66074 - 66075. Location: NIST, Employees Lounge, Administration Building, Gaithersburg, MD.

9:00 AM. The Department of Commerce's (DOC) Bureau of Industry and Standards's (BIS) Regulations and Procedures Technical Advisory Committee will hold a public meeting. The agenda includes, among other topics, "Discussion on technology controls, including proposed rule on computer and microprocessor technology", and "Discussion on deemed export licensing". See, notice in the Federal Register, November 20, 2003, Vol. 68, No. 224, at Page 65437. Location: Room 3884, Hoover Building, 14th Street between Constitution and Pennsylvania Avenues, NW.

9:30 - 11:00 AM. The Progressive Policy Institute (PPI) will host a panel discussion titled "Is There Really A Manufacturing Job Crisis?" The speakers will be Robert Atkinson (PPI's Technology and New Economy Project), Bob Baugh (AFL-CIO), Stephen Moore (Cato Institute and Club for Growth). See, notice. Location: 600 Pennsylvania Avenue, SE, Suite 400.

12:15 - 1:45 PM. The New America Foundation will host a panel discussion titled "Should Last Mile Broadband Connection to the Home be Universal? Should the Government Build the Infrastructure to make it Happen?" The speakers will be Reed Hundt (former FCC Chairman), Harold Furchtgott-Roth (former FCC Commissioner), and William Lehr (MIT). See, notice. RSVP to Jennifer Buntman at buntman@newamerica.net or 202 986-4901. Location: 1630 Connecticut Ave., NW, 7th Floor.

4:00 PM. The Cato Institute will host a book forum. James Bovard will discuss his book titled Terrorism and Tyranny: Trampling Freedom, Justice and Peace to Rid the World of Evil, and Philip Heymann will discuss his book titled Terrorism, Freedom, and Security: Winning Without War. See, notice. The event will be webcast. Location: Cato, 1000 Massachusetts Avenue, NW.

Day one of a two day conference hosted by the Department of Commerce (DOC) titled "Workshop on Optics and Photonics in Transportation and Infrastructure". Different notices state that at 8:30 AM or at 10:30 AM Ben Wu (Deputy Under Secretary of Commerce) will give opening remarks. Other scheduled speakers include Jeffrey Shane (Under Secretary of Transportation for Policy) and Stephen McHale (Deputy Administrator, Transportation Security Administration). See, event web site. For more information, contact Connie Correll at 202 482-1065. Location: DOC.

Day one of a two day symposium hosted by the National Institute of Standards and Technology (NIST) titled "Building Trust and Confidence in Voting Systems". The topics to be addressed include computer security. See, notice and symposium web site. The registration deadline is December 2. Location: NIST, Red Auditorium, Building 101.

Day two of a two day meeting of the Executive Office of the President's (OEP) Office of Science and Technology Policy's (OSTP) National Science and Technology Council's (NSTC) Committee on Science's Subcommittee on Research Business Models regarding the policies, procedures, and plans relating to the business relationship between federal agencies and research performers. See, notice in the Federal Register, September 16, 2003, Vol. 68, No. 179, at Pages 54225 - 54226. Location: Department of Agriculture, 1400 Independence Ave., SW.

TIME? On December 10-12 there will be a conference hosted by many government agencies titled "Perspectives on Employment of Persons with Disabilities". On December 10 Ben Wu (Deputy Under Secretary of Commerce) will speak on the Department of Commerce's Assistive Technology Initiative. For more information, contact Connie Correll at 202 482-1065. Location: Hyatt Regency Bethesda Hotel, Bethesda, MD.

Deadline for AT&T Wireless to respond to the December 4 letter [PDF] of John Muleta, Chief of the Federal Communications Commission's (FCC) Wireless Telecommunications Bureau (WTB), regarding the extent of AT&T's compliance with the FCC's number portability rules that went into effect on November 24, 2003.

Thursday, December 11

The House may take up conference reports. See, Republican Whip Notice.

Day two of a two day symposium hosted by the National Institute of Standards and Technology (NIST) titled "Building Trust and Confidence in Voting Systems". The topics to be addressed include computer security. See, notice and symposium web site. The registration deadline is December 2. Location: NIST, Red Auditorium, Building 101.

Day one of a two day conference hosted by the Power Line Communications Association (PLCA). Acting head of the National Telecommunications and Information Administration (NTIA) Michael Gallagher is scheduled to speak at 3:00 PM. For more information, contact Craig Schaar. Location: Troutman Sanders, Conference Center, 401 Ninth Street, NW.

Deadline to submit comments to the Federal Communications Commission (FCC) in response to its Notice of Inquiry (NOI) regarding the impact that communications towers may have on migratory birds. See, notice in the Federal Register, September 12, 2003, Vol. 68, No. 177, at Pages 53696 - 53702. This is Docket No. WT 03-187, and FCC 03-205. The FCC adopted this NOI on August 8, 2003, and released it on August 20, 2003. See also, story titled "FCC Release NOI On Communications Towers and Migratory Birds" in TLJ Daily E-Mail Alert No. 723, August 21, 2003.

Friday, December 12

The House may take up conference reports. See, Republican Whip Notice.

Day two of a two day conference hosted by the Power Line Communications Association (PLCA). For more information, contact Craig Schaar. Location: Troutman Sanders, Conference Center, 401 Ninth Street, NW.

Deadline to submit comments to the Office of the U.S. Trade Representative (USTR) regarding barriers to U.S. exports of goods, services and overseas direct investment for inclusion in the USTR's annual National Trade Estimate Report on Foreign Trade Barriers (NTE). The USTR seeks comments on, among other issues, lack of intellectual property protection, trade restrictions affecting electronic commerce, and technology transfer requirements. See, notice in the Federal Register, October 31, 2003, Vol. 68, No. 211, at Pages 62159 - 62160.

Deadline to submit reply comments to the Federal Communications Commission (FCC) in response to SBC Communications' petition requesting that the FCC forbear from applying the terms of 47 U.S.C. § 271(c)(2)(B) to the extent, if any, those provisions impose unbundling obligations on SBC that this FCC has determined should not be imposed on incumbent local exchange carriers pursuant to 47 U.S.C. § 251. See, FCC notice [PDF]. This is WC Docket No. 03-235.

Deadline to submit comments to the Federal Communications Commission (FCC) regarding Northland Networks' petition pursuant to 47 U.S.C. § 252(e)(5) requesting that the FCC preempt the jurisdiction of the New York Public Service Commission to resolve a dispute between Northland and Verizon regarding reciprocal compensation and change of law provisions of their interconnection agreements. This is WC Docket No. 03-242. See, FCC notice [PDF].

Monday, December 15

The Supreme Court will begin a recess. (It will return from recess on January 12, 2004.)

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Verizon v. FCC, No. 03-1080. Judges Randolph, Rogers and Garland will preside. Location: 333 Constitution Ave. NW.

9:30 AM. The U.S. Court of Appeals (DCCir) will hear oral argument in Cellco Partnership v. FCC, No. 02-1262. Judges Randolph, Rogers and Garland will preside. Location: 333 Constitution Ave. NW.

Day one of a seven day trial in USA v. First Data & Concord EFS, Inc., in the U.S. District Court (DC), D.C. No. 03-2169 (RMC). See, Scheduling and Case Management Order [9 pages in PDF] and story titled "DOJ Sues to Stop Merger of PIN Debit Networks", also published in TLJ Daily E-Mail Alert No. 765, October 24, 2003. Location: U.S. Courthouse, 333 Constitution Ave., NW.

TIME? The Department of Homeland Security's (DHS) Homeland Security Advanced Research Projects Agency (HSARPA) will host a one-day workshop to obtain feedback from the academic community on how to work with the DHS's research and development program." See, DHS release. Location?

Deadline to register to attend the December 17 meeting of the National Institute of Standards and Technology's (NIST) Board of Overseers of the Malcolm Baldrige National Quality Award. Contact Virginia Davis at virginia.davis@nist.gov or 301 975-2361. See, notice in the Federal Register, November 25, 2003, Vol. 68, No. 227, at Page 66075.

Deadline for federal branch agency Chief Information Officers (CIOs) to submit reports to the Office of Management and Budget (OMB) regarding the E-Government Act of 2002. See, November 21, 2003 memorandum from Karen Evans (Administrator for E-Government, Information and Technology Policy at the OMB) to the CIOs.