According to the Jupiter report, 64 percent of consumers surveyed reported that they are unlikely to trust a Web site even if the site has a privacy policy posted. As a result the researchers suggest that web sites will suffer substantial revenue loss and face a potential increase in government regulation unless they take a more proactive approach and engage in an informed dialogue to shape and allay consumers' fears.

When Jupiter asked consumers to identify the top two factors that would positively affect their trust in Web sites with regard to their privacy, the option that consumers selected with the most frequency-37 percent-was that they simply did not trust Web sites with their privacy. The posting of privacy policies eased the concerns of 36 percent of consumers surveyed. On the other hand government regulation was not a popular option among respondents; only 14 percent indicated that they would more likely trust a Web site on privacy issues if the site were subject to government regulations.

Finally, a greater number of consumers surveyed indicated that they would be more likely to trust a Web site if that site posted its own privacy policy than if the site posted a third-party privacy seal such as BBBonline. This finding demonstrates the fact that third-party privacy initiatives need to do more to educate consumers about the role such initiatives play in ensuring privacy standards. These seal programs should be aiming for nothing less than 100 percent of consumers surveyed indicating that they would trust a Web site if it displayed a third-party privacy seal.

Which of the following would contribute to your trusting a Web site not to violate your privacy? (Choose three.)

To purchase a copy of the report contact Ken Male, Vice President of Global Sales at 800-481-1212, ext. 177 or kensps@jup.com.

4. KEY FCC DECISION ORDERS COMPETIVE NETWORK ACCESS CONTINUED

The Federal Communications Commission (FCC) on September 15th ordered the incumbent local telephone companies to continue to make parts of the phone network available at reduced costs. The decision was a major victory for competitive telephone companies that rely on "unbundled network elements" or "UNEs" to provide services to their customers. ITAA has long actively advocated at the FCC on behalf of competitive access.

Last January, the Supreme Court had ordered the FCC to review its UNE rules, arising out of the 1996 Telecommunications Act, that had required leased access to seven parts of the phone network, including the copper wires that run to each customer's home, switching equipment that routes calls and directory assistance.

The agency's revised list largely stayed with items on the previous list, concluding that leased access to most of the existing networks was still essential for encouraging basic competition in the local phone market. Items covered include:

• Loops, which are the copper wires that lead into each customer's home or office, including high-capacity lines; wiring inside a building owned by GTE or a Bell, and unused or so-called dark fiber optic cable.
• Subloops, which are portions of the wires connecting directly to customers available at any accessible point such as on a telephone pole.
• Network interface devices, which connect a local loop to the inside wiring of a home or office.
• Circuit switching, which is the routing of calls to their proper destination from a telephone company local office. However in densely populated zones of large metropolitan areas, the incumbent local companies do not have to lease access to switching under certain circumstances.
• Interoffice transmission facilities, which are used to move telephone traffic among switches and telephone company offices, including over dark fiber optic cable.
• Signaling and call-related databases, which contain information about customer lines, network architecture and other information.
• Operations support systems, which allow new phone lines and services to be allocated and installed.
  

• Operator services and directory assistance, which help customers and give out listed phone numbers.
• Packet or data switching, which includes the technologies used to offer high-speed Internet connections such as Digital Subscriber Line Access Multiplexers, also known as DSLAMS.

Carriers that had sought access to high-speed Internet equipment used to provide Digital Subscriber Line, or DSL, service expressed some disappointment at the FCC ruling.

``This will make it less efficient and more costly for competitors to provide advanced services like DSL,'' AT&T General Counsel Jim Cicconi said. ``This decision could, in fact, harm consumers by retarding DSL deployment, particularly in rural and underserved areas.'' On balance, though, AT&T praised the rest of the decision.

Another ITAA Information Services & Electronic Commerce Division member company, NorthPoint took a different view on the same point criticized by AT&T. "The FCC's decision not to unbundle DSL equipment encourages further investment and facilities-based DSL deployment by incumbents and competitors."

NorthPoint General Counsel Steven Gorash went on to say "The Federal Communications Commissions' decision today on unbundled network elements represents a victory for consumers and competitive local exchange carriers (CLECs) that are fueling the deployment of advanced broadband services. The FCC delivered just what American consumers and businesses need to gain the benefits of affordable, reliable broadband services such as DSL."

5. ITAA CALLS FOR CAREFUL SCRUTINY OF LOCAL TELECOMMUNICATIONS COMPETITION

In late August ITAA cautioned the State of New York Public Service Commission (PSC) on Bell Atlantic's request to provide long distance services in the state of New York. The association called for thorough oversight of Bell Atlantic's claims that it has opened its local telecommunications facilities to competitive access.

The New York State PSC heard oral arguments from companies and advocacy groups as to whether Bell Atlantic should be allowed to offer long-distance services pursuant to Sections 252 and 271 of the Telecommunications Act of 1996. Immediately following the hearing Bell Atlantic is expected to file a request with the FCC to provide inter-LATA services within the State of New York. Under that law, Bell Atlantic must demonstrate that it is treating its own local market competitors fairly before it can qualify to enter the long distance market.

"ITAA believes that safeguards against incumbents from using their monopoly power to impede competition from new entrants are needed. The high tech industry's experience is that when incumbents lack competitive incentive, they move more slowly to make advanced telecommunication technologies available," said ITAA President Harris Miller. "ITAA supports including competitive telecommunications providers, including facilitating entry by competitive local exchange carriers (CLECs) and other providers into incumbent markets."

"New York State consumers deserve the full advantages of telecommunication choice. While the long distance markets are unquestionably competitive, local telecom services are not so. The state Public Service Commission must vigilantly protect the state's businesses and individual consumers against incumbent foot dragging and other excuses intended to thwart open telecommunications markets," added ITAA Vice President and Counsel Mark Uncapher.

6. ITAA IN ELECTRONIC COMMERCE INDUSTRY COALITION TO HELP THE DEFENSE DEPARTMENT

ITAA is part of an alliance of 18 industry organizations, the Federal Electronic Commerce Coalition, that has begun an initiative to help the Department of Defense with its mission to radically change the way the Department conducts its business and administrative affairs. This initiative evolved as an outcome of a May 4th Electronic Commerce Conference, hosted by Deputy Secretary John Hamre, attended by several hundred industry and DoD personnel in which four Electronic Business issues were identified for further development:

• Incentives for Adoption
• Information Security
• Performance Measures
• Software Quality and Interoperability

The kickoff meeting for this collaborative initiative was held on September 10th at the Pentagon, at which thirty six senior industry and DoD personnel formed four issue-oriented Working Groups to develop a set of recommendations and an implementation plan for reforming DoD Electronic Business policies and practices. "We are encouraged that a broad cross-section of industry has expressed interest in assisting the Department in its effort to implement change and in accomplishing our collective goals of doing business through electronic commerce," said one of the initiatives Executive Sponsors, Stan Z. Soloway, Director, Defense Reform.

These Working Groups will involve additional industry and DoD personnel having detailed subject matter expertise as support groups are formed to research, discuss and generate recommendations for the tasks that the Working Groups will define to assist them in developing their final report to DoD. Interim and final briefings will be presented to senior DoD and industry management at EC conferences hosted by Dr. Hamre in January and May 2000. "American industry is wrestling with the same problems the DoD is facing but they are able to move much quicker in translating vision and strategy to implementation that has a positive effect to the bottom line. The DoD and industry have both the ability and need to learn from each other and partner to effect much needed change," said the other Executive Sponsor Marvin J. Langston, DoD Deputy CIO.

Five member organizations of the Federal Electronic Commerce Coalition were actively involved in the development of this initiative with the Department of Defense, and will represent the Coalition on the DoD/Industry Steering Group for this initiative:

• Armed Forces Communications and Electronics Association (AFCEA)
• Association for Enterprise Integration (AFEI)
• Industry Advisory Council (IAC)
• Information Technology Association of America (ITAA)
• Interoperability Clearinghouse (ICH)

The Federal Electronic Commerce Coalition was organized early in 1999 to provide a consolidated voice from industry to government in the area of electronic business. "Our goals are to insure that government has access to all available industry best practices and to provide the best possible assistance to government in the implementation of these practices," said Robert Sturm, Co-chair of the Federal Electronic Commerce Coalition and Vice President, Business Development for Electric Press, Inc.

"The Coalition has had discussions with a number of government organizations, including the Department of Commerce, the National Performance Review, GSA's Federal EC Program Office and the CIO Council, to implement similar collaborative efforts as this one with DoD," added Howard Stern, the other Co-chair of the Coalition and Vice President, Government Partnerships for onehealthbank.com. "We anticipate that the Coalition will be fielding joint industry and government Working Groups to assist these other government organizations within the next few months."

7. ITAA E-MEDICINE PROJECT TARGETS HEALTHCARE INDUSTRY IT WOUNDS

ITAA 's E-Medicine project is working to increase the use of information technology in the healthcare industry. Currently, healthcare trails most other sectors in the percentage of its revenues devoted to IT spending. On September 22nd ITAA held an informal member meeting at ITAA on setting the direction the project will take. Faye Baggiano of EDS has agreed to chair the group.