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November 8, 2000 Event

Government and the Internet: Destined for Convergence or Divided We Stand?

Politics is a pastime that Silicon Valley traditionally has considered a spectator sport. Yet the upcoming presidential election is inspiring a renewed focus on the government’s role in regulating the Internet. Staunch staples of political discussion such as foreign policy, health care reform, and the environment are giving way to debates over Internet taxation, privacy, open access, and many others. In addition, the Internet is enabling a wave of cyber-campaigning that illustrates its potential as a political platform. Clearly, the government is shaping the online revolution as much as the digital medium will shape a political evolution. Therein lies the looming question: how will Silicon Valley and Washington D.C. coexist as the two highly influential industries face ultimate and inevitable integration?

A host of examples illustrate the difficulty in marrying the laws and policies of the government with the freedom and power of the Internet. The Web is a new medium where old rules around issues such as intellectual property, patent law, and antitrust concerns simply do not apply. One such example is the record industry’s need for new copyright regulation. Another challenge involves the elimination of the digital divide. The proliferation of an online subculture that is unfairly privileged is a serious threat to the democratization of the Internet. On the business front, pending legislation on H-1B visas, taxation, and privacy will impact the fate of nearly every technology company. All the while, lobbyists and politicians chase each other’s tails in an effort to shape the Internet’s legal foundation.

Silicon Valley has stepped off of the sidelines into the government game. But can an industry famous for Internet speed ever reconcile itself with one infamous for red tape? To some extent, the numbers tell the story: campaign contributions from technology companies this year have topped $20 million to date, more than twice the amount donated in 1996 and 1998. Even civilian netizens have no choice but to pay attention to Capitol Hill – the far-reaching impact of policy decisions on such issues as privacy, copyrights, and taxation will touch businesses and individuals alike. The thought of a government-regulated Internet is both an inspiring and frightening one. One can only wonder whether the delicate integration of these two industries was ever in Mr. Gore’s original Internet blueprint.

Regulators Confront Web Role in Politics

Net Politics: What’s at Stake?

The Search for E-Mocracy

Key Learnings

DIGITALLY DIVIDED WE STAND
The digital divide is fueled by three social differences: educational inequalities; the generation gap; and economic class distinctions. Much of the gap stems from slow adoption of technology in these demographics due to a lack of familiarity and/or access. Television penetration in American households hints that WebTV-like access will be key in bridging the digital divide. Federal political action to ensure that schools meet a computer/student ratio along with federally-subsidized computers in classrooms will also help close this gap. Such actions will reduce the risk of empowering the tech-savvy elite while disenfranchising those without access or technical expertise. However, big business is doing more today to close the digital divide than government regulation: sub-$1000 computers have proliferated in large part because they opened new markets for businesses. Regardless, the digital divide may be receiving unfair attention at the national level - until kids get pencils and food, the digital divide seems a socially indulgent "priority."

NET ELECTION DEBATES
Pundits claiming that 2000 is the last election year sans Internet voting may will wait a bit longer for their vision to reach fruition. Online voting will be embraced only when it does not broaden the digital divide. If the population can't place it's confidence in a chad-plucking voting machine, the likelihood of a smooth migration to voting via a machine mom and dad can't reboot without the kids' help is unlikely. Fears of vote counting fraud plagued the 2000 election, and such fears will only multiply as the voting medium becomes LESS understood by the voting populous.

THE GOVERNMENT'S RESPONSIBILITY
Unlike Silicon Valley the government has yet to figure out exactly what it wants out of the Internet, beyond what it has historically sought: votes and money. The government's immediate role should be limited to stimulating baseline infrastructure for Internet development. Whether through accident, insight, or the inevitable constraints of ability, the government has tended to focus on establishing and maintaining underlying support systems that form the foundation for technology development. Moving forward, the government should respect this role, be realistic about its limitations, and be wary of attempts to regulate beyond them. The more aware the government is, the less chance it will have of derailing the engine that has been powering Internet momentum to date.

SILICON VALLEY'S RESPONSIBILITY
Silicon Valley will no never again stand by as Washington politicians make decisions about the technology industry's future. How Silicon Valley will make its desires heard, however, is an evolving art form. A CLO position (Chief Lobbying Officer) may be the answer for some companies. For others, executives may flee to seek political office. However the most influential political position may lie somewhere in between. Silicon Valley leaders must exercise their political power to push hard issues to the public. For example, proponents and critics of Tim Draper can agree that he forced a decisive vote on charter schools once and for all. Silicon Valley leaders must lead with issue-based campaigns and leave elected office pursuits to seasoned politicians. That is, crushing competitors and exercising monopoly power as a technocrat does not make a good politician. However, the role and influence of seasoned technology executives will not be underestimated when the time comes for Washington to increase its role in technology industry regulation.

QUOTES OF THE NIGHT

"We need less government in technology, and more technology in government."

"Silcon Valley getting involved in government is almost going against the ideals that created Silicon Valley."

"I'm glad Silicon Valley is three thousand miles from Washington."

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