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Center for Advanced Communications Policy

TELECOM/IT POLICY HIGHLIGHTS 7.02
February 2007

Overview As the current Congressional session enters its second month, there has been a flurry of
new telecommunications bills introduced by Senators and Representatives. Some of
them, such as the “Interoperable Emergency Communications Act,” address the
issue of emergency communications. Others, such as the “Internet Freedom
Preservation Act,” concern the issue of net neutrality. Much of the proposed legislation
and ongoing hearings related to telecommunications involve longstanding issues that
were unresolved at the end of the last Congressional session, and this new legislation
provides continuity with ongoing telecommunications issues.

Meanwhile, the FCC continues to address ongoing issues of its own. This past month, the
Commission held the third of eight scheduled public hearings on media ownership. Other
actions by the Commission address the development and deployment of
telecommunications capacity for public safety applications and ways to promote the
Commission’s Lifeline and Link-Up programs for low-income consumers. Ongoing
developments in the private sector, such as a plan by Cyren Call to develop and manage
a nationwide broadband network for emergency communications, and a proposed merger
of the nation’s two satellite radio companies, XM Radio and Sirius, will continue to attract
the FCC’s attention in coming months.
Legislative Emergency Broadband Network Considered by Senate Commerce Committee
Activities
02.08.2007 – The Senate Commerce Committee held a hearing to consider how best to
improve communications among the various emergency services at the local, state, and
federal levels. In particular, the Committee considered the future of the 700 MHz
spectrum to be opened by the digital television transition. This spectrum has been
considered by Congress and the FCC for the creation of a nationwide emergency
communications network. Such a network could be used by first responders in the wake
of national disasters such as the terrorist attacks of September 11, 2001, or 2005’s
hurricane season.

In their opening statements at the hearings, Senate Commerce Committee chair Daniel
Inouye (D-HI) and co-chair Ted Stevens (R-AK) both voiced their support for action to
create a national broadband network for emergency services. One method to develop
such a network discussed in the hearings is through public-private partnerships. Morgan
O’Brien, founder and former CEO of Nextel and current chairman of Cyren Call,
advocated for such private-public partnerships during the hearings, and his company,
Cyren Call, has sought licenses for half of the spectrum made available in the 700 MHz
spectrum for emergency communications. While the Senate Commerce Committee co-
chair has expressed support for the Cyren Call proposal in concept, he and others have
expressed reservations about allowing a single company to have access to half of the
available spectrum.

Although representatives of the law enforcement and fire fighting communities have
endorsed the need for a national broadband network, other groups have argued that
emergency services do not require further allocation of spectrum. For example,
representatives of CTIA-The Wireless Association have suggested that emergency
services would benefit from better management of the 49.7 MHz of spectrum already
allocated for their use. At issue is the FCC’s deadline of January 2008 to complete
auction of the spectrum vacated by analog television services, and the need for Congress
to determine how much spectrum should be reserved for public safety uses. [Sources:
Senate Commerce Committee and Dow Jones Newswire]

Measure to Improve Emergency Communications Approved by SCC

02.13.2007 – Coinciding with its hearing on a nationwide emergency communications
network, the Senate Commerce Committee has reported on the “Interoperable
Emergency Communications Act” [S. 385], a bill sponsored by Senate Commerce
Committee chairman Daniel Inouye (D-HI), co-chairman Ted Stevens (R-AK), and two
other senators. The bill now awaits consideration by the full Senate.

The proposed legislation would provide the National Telecommunications and Information
Administration (NTIA) with guidance on the awarding of $1 billion in emergency
communications grants to law enforcement, firefighters, and emergency medical
personnel. The bill would also allow up to $100 million of the $1 billion for pre-
positioning communications facilities or equipment that can be quickly activated in the
event of an emergency or national disaster. This current bill reinforces earlier legislation
setting a deadline of September 30, 2007 for distribution of the interoperable
communications grants (see TIPH 7.01 for more details).

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For a copy of the proposed legislation, please see [http://thomas.loc.gov/cgi-
bin/query/z?c110:S.385:]. [Source: Senate Commerce Committee]

Net Neutrality Bill Introduced in Senate

01.09.2007 – Senators Byron Dorgan (D-CA), Olympia Snowe (R-ME), and eight other
co-sponsors have introduced the “Internet Freedom Preservation Act” [S. 215] in
the Senate. The senators introduced a bill with the same title [S. 2917] in the Senate
during the last session, in May 2006, but the bill failed to receive a vote from the full
Senate. This new bill was introduced on January 9, 2007, and has since been referred to
the Senate Commerce Committee for its consideration.

The “Internet Freedom Preservation Act” contains two sections which would mandate
net neutrality, an issue of considerable controversy during the last session of Congress.
The first section, the least controversial of the proposed legislation, would prohibit
broadband Internet service providers from blocking users’ access to lawful content or
services. More controversial, however, is the second section, which would require
broadband ISPs to “enable any content, application, or service made available via the
Internet to be offered, provided, or posted on a basis that…is reasonable and
nondiscriminatory.” Such companies would not be allowed to charge for prioritizing for
the content, applications, or services received by consumers, in essence creating net
neutrality.

For a copy of the proposed legislation, please see [http://thomas.loc.gov/cgi-
bin/query/z?c110:S.215:]. [Source: Library of Congress]

Policy/ Eligibility for Rural Healthcare Pilot Program Expanded by FCC
Regulatory
Activities 02.07.2007 – In an Order on Reconsideration [FCC 07-6], the FCC has expanded
eligibility in its new health care pilot program designed to provide connections to National
LambdaRail, Inc. (NLR), as well as Internet2. NLR and Internet 2 are non-profit
backbone providers that serve government research and academic institutions and
private health care institutions. These services provide a much higher bandwidth
network through very-high-performance Backbone Network Service (vBNS) to support
bandwidth intensive academic, medical, and other research applications.

The Rural Health Care Pilot Program, launched by the FCC in September 2006, initially
specified that applicants could seek funding for connections to Internet2. However, the
FCC found several public interest benefits in the participation of more than one backbone
provider, including the provision of network redundancy to aid the health care community
in responding to a national crisis. As such, the current Order allows for competitive
bidding from NLR also. The Rural Health Care Pilot Program is one means of providing
advanced telecommunications and information services to rural health care providers by
authorizing universal service fund support for rural telemedicine services, as mandated
by the Telecommunications Act of 1996. Applicants seeking funding may now specify
either Internet2 or NLR, or seek competitive bids for nationwide backbone services from
two providers.

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For a copy of the FCC’s Order on Reconsideration, please see
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-6A1.txt] (MS Word and PDF
versions also available). [Source: FCC]

Lifeline and Link-Up Outreach Enhancements Announced

02.20.2007 – The joint FCC, National Association of Regulatory Utility Commissioners
(NARUC), and National Association of State Utility Consumer Advocates (NASUCA)
“Lifeline Across America” Working Group has announced outreach enhancements for the
Lifeline and Link-Up programs. The federal Lifeline and Link-Up programs provide eligible
low-income consumers with savings of up to $10.00 on their monthly basic telephone
service fee. Some states offer even greater savings, and residents of tribal lands may be
eligible for up to $35.00 in savings on their monthly phone bills. In 2005, the “Lifeline
Across America” Working Group was formed to address how to better reach eligible
consumers of these programs and ensure that they have information about the programs
and how to apply.

The outreach enhancements announced by the Working Group include an “Outreach Tool
Kit” on the Lifeline website that includes a sample press release and sample news story
on Lifeline and Link-Up, a fact sheet, flyers and posters, and current statistics and
historical information about the programs. The Working Group has also begun
coordinating with professional social service associations, such as the National
Association of Social Workers, and regional economic development organizations, such as
the Delta Regional Authority, to ensure broader distribution on information about the
programs. In addition, all 90 FCC Consumer Advocacy and Mediation Specialists who
answer consumer calls have been provided with updated training on the state and federal
Lifeline and Link-Up programs. Finally, there are efforts underway to increase outreach
on tribal lands.

For more information, please visit the “Lifeline Across America” Working Group’s website
at [http://www.lifeline.gov]. [Source: FCC]

Public Hearing on Media Ownership Held in Harrisburg, Pennsylvania

02.23.2007 – The FCC convened the third of eight scheduled hearings on the
Commission’s media ownership rules in the Pennsylvania capital of Harrisburg on Friday,
February 23, 2007. About 300 people turned out for the six hour session to hear and
participate in the sometimes heated discussions about the FCC’s rules on media
ownership. The first two hearings, held in Los Angeles and Nashville, were similarly
spirited discussions.

Broadcasters who have participated in the hearings have argued for a loosening of
current FCC regulations on media ownership in order to remain competitive in a complex
marketplace. Current rules stipulate that one entity can own two television stations in a
single market and between five to eight radio stations in a market, depending on its size.
While a company can own a television station and several radio stations in a single
market, the ownership of a broadcast station, either television or radio, and a daily
newspaper is explicitly banned under current FCC rules. In contrast to broadcasters who

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have sought more lenient rulemaking from the Commission, media activists and similar
stakeholders have advocated tightening of the rules to reduce merger activity and
moderate what they perceive as threats to competition, localism, and diversity.

For more on the hearing, including the statements of all five FCC commissioners and an
audio webcast of the hearing, please visit [http://www.fcc.gov/ownership/hearing-
harrisburg022307.html]. [Sources: FCC and The [Harrisburg] Patriot-News]

Public Safety Interoperable Communications Grant Program Addressed

02.16.2007 – The National Telecommunications and Information Administration (NTIA)
and Department of Homeland Security (DHS) have issued a Memorandum of
Understanding (MOU) to implement the Public Safety Interoperable Communications
(PSIC) Grant Program. The grant program, which was signed into law as part of the
Digital Television Transition and Public Safety Act of 2005 [Public Law No. 109-
178], provides up to $1 billion in funding to help local, state, and federal first responders
communicate more effectively during a man-made or natural disaster. As required by
the recently enacted Call Home Act of 2006 [Public Law No. 109-459], the funds are
to be awarded by September 30, 2007, and the grant projects completed by fiscal year
2010. The grant program will assist public safety agencies in the acquisition of,
deployment of, or training for the use of interoperable communications systems that can
use spectrum in the 700 MHz band reallocated for public safety radio communication.

Under the MOU signed by NTIA and DHS, each party will have specific responsibilities for
the PSIC Grant Program. DHS will 1) develop policies, procedures and regulations to
govern the PSIC program; 2) develop a timetable to complete actions so that grants may
be awarded by the established dates; 3) develop and distribute program application and
guidance materials; 4) publicize the availability of grant opportunities; 5) provide
technical assistance to applicants; 6) notify recipients of grant awards; 7) award grant
funds by September 30, 2007; and 8) conduct site visits to verify progress and
completion of funded projects. As set forth in the MOU, NTIA will 1) assist in the
development of policies, procedures, and regulations governing the PSIC program; 2)
provide DHS with NTIA access rights to Grants.gov to post funding opportunity
announcements and post NTIA grant award information to the Federal Assistance Award
Data Systems; 3) participate in publicizing the availability of grant opportunities under
the PSIC Grant Program; 4) approve final grant awards; 5) review and approve an
annual administrative plan to implement the program; 6) jointly announce grant awards;
and 7) provide funding to DHS for administrative costs and the grant awards.

For a copy of the MOU between NTIA and DHS regarding the PSIC Grants Program,
please see [http://www.ntia.doc.gov/otiahome/psic/PSICMOU_Executed_2-16-2007.pdf]
(PDF only). [Source: NTIA].

Qwest Communications Granted Forbearance Relief by FCC

02.20.2007 – The FCC has announced, but not yet released, an Order [FCC 07-12] that
grants in part and denies in part a petition for forbearance filed by Qwest
Communications. The FCC’s decision provides Qwest with some relief from regulatory
and statutory obligations stemming from the company’s provision of in-state, interstate,

5
interLATA (long distance) telecommunications services. The FCC Order relieves Qwest of
the regulation that it normally applies to dominant carriers. For example, the company
will not be subject to the FCC’s tariff requirements and the creation of an “interexchange
basket” for services.

In making its decision, the FCC cited evidence that Qwest lacks classical market power in
the region it serves and the capacities that it operates. For example, the company lacks
the power to unilaterally raise rates above competitive levels. However, the FCC did note
that where Qwest might act as a dominant carrier, such as in international service, the
Commission did not grant forbearance.

For a copy of the FCC’s Public Notice announcing its Order in the matter of Qwest’s
petition for forbearance, please see
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-12A1.txt] (MS Word and
PDF versions also available). [Source: FCC]

Judicial Civil Rights and Telecommunications Provisions Examined by Court of Appeals
Activities
02.05.2007 – The U.S. Court of Appeals for the 8th Circuit has issued its ruling in Level 3
v. St. Louis [Nos. 06-1398 and 06-1459], a case involving the Civil Rights Act of
1871 (codified as 42 U.S.C. § 1983) and Section 253 of the Telecommunications
Act of 1996 (codified as 47 U.S.C. § 253). The Court’s opinion in this case is the first
ruling in the 8th Circuit on resolving disputes between telecommunications companies and
municipalities, and it addresses whether Section 253 creates a private right of action
under Section 1983.

In 1999, the telecommunications firm Level 3 and the City of St. Louis entered into a
contract regarding Level 3’s access to municipal rights of way. In short, the contract
stated that St. Louis could charge Level 3 footage fees that were based only on the linear
feet of conduit installed by Level 3, but also based on the number of active conduits in
each linear foot. In 2003, both parties filed complaints in U.S. District Court regarding
the contract between the company and municipality. Level 3 alleged that the contract
violated both Sections 253 and 1983, while St. Louis sought a ruling regarding the
validity of the contract. Section 253 has frequently been a subject of debate because of
its unclear language. It holds that no state or local law or action can have the effect of
limiting the ability of any entity to provide intrastate or interstate telecommunications
service. However, at the same time, Section 253 includes a clause that states that
nothing in the section prohibits the states from managing the public rights-of-way to
require fair and reasonable compensation from telecommunications providers. As a
result of the lack of clarity in this section, it has been litigated a number of times at the
federal courts, with different interpretations of the statute. Meanwhile, Section 1983
allows individuals to sue the states in federal courts for civil rights violations. To gain
jurisdiction, the offended party must point to a particular federal civil right that has
allegedly been violated. In this case, Level 3’s assertion that St. Louis violated Section
253 gave them grounds to bring a case based on Section 1983.

The District Court for Eastern Missouri, ruling on the original case, threw out Level 3’s
claim that Section 1983 had been violated, but it found in favor of the plaintiff by ruling
that the contract violated Section 253. The City of St. Louis filed an appeal with the

6
present court. The Court of Appeals reversed the District Court’s earlier decision, noting
that Level 3 failed to prove an actual or effective prohibition, rather than the mere
possibility of a prohibition. In short, the Court of Appeals found in favor of St. Louis.
Regarding the issue of whether violations of Section 253 provide grounds to sue for civil
rights violations through Section 1983, the Court of Appeals refused to make a formal
opinion, only noting that the District Court did not err by dismissing the claim.

For a copy of the opinion of the U.S. Court of Appeals for the Eighth Circuit, in Level 3 v.
St. Louis, please see [http://www.ca8.uscourts.gov/opndir/07/02/061398P.pdf] (PDF
only). [Sources: Eastern Missouri District Court and 8th Circuit Court of Appeals]

Studies/ Broadband Internet Access Report Published by FCC
Reports
01.31.2007 – The FCC has released its biannual report on high-speed Internet
connections in the United States. The statistics on broadband Internet access includes
data gathered as of June 30, 2006. The FCC report covers three main areas of concern:
1) high-speed lines (connections delivering at speeds exceeding 200 kilobits per second
in at least one direction), 2) advanced services lines (connections delivering at speeds
exceeding 200 kbps in both directions), and 3) geographic coverage.

According to the report, high-speed lines increased by 26 percent during the first half of
2006, from 51.2 million to 64.6 million lines in service. Between the end of June 2005
and June 2006, the total number of high-speed lines increased by 52 percent, or 22.2
million lines. Of the 64.6 million lines in service at the end of June 2006, 50.3 million of
them served primarily residential customers. During the first half of 2006, advanced
services lines increased by 15 percent, from 43.8 million to 50.4 million lines, a
somewhat slower increase than that seen in high-speed lines. In determining the
geographic coverage of broadband Internet access, the FCC estimates that high-speed
DSL connections were available to 79 percent of households to whom LECs could provide
telephone coverage. Meanwhile, high-speed cable modem service was available to 93
percent of the households to whom cable system operators could provide cable TV
service. The Commission also found that 99 percent of the nation’s Zip Codes, which
contains 99 percent of the nation’s population, had at least one provider of high-speed
Internet service.

For a full copy of the FCC’s report on broadband Internet access in the United States,
please see [http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270128A1.txt] (MS
Word and PDF versions also available). [Source: FCC]

Local Telephone Competition Report Released by FCC

01.31.2007 – The FCC’s Wireline Competition Bureau (WTB) has released its latest report
on local telephone service competition in the United States. The FCC gathers data on
local telephone service from all incumbent local exchange carriers (incumbent LECs) and
competitive local exchange carriers (CLECs). The Commission uses this information to
publish reports twice a year on the current state of competition in the telephone industry,
and the current report reflects data as of June 30, 2006.

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According to the FCC report, end-user customers obtained local telephone service by
using approximately 142.2 million incumbent LEC switched access lines, 29.8 million
CLEC switched access lines, and 217.4 million mobile telephony service subscriptions at
the end of June 2006. Of the 29.8 million CLEC end-user switched access lines, 6 million
lines were provided over coaxial cable connections, suggesting the continuing rise in
Voice over Internet Protocol (VoIP) telecommunications. At least one CLEC was serving
customers in 82% of the nation’s Zip Codes at the end of June 2006. About 98% of
United States households resided in those Zip Codes. Moreover, multiple carriers
reported providing local telephone service in the major population centers of the country.

In addition to gathering information on wireline services, the FCC report noted that
mobile telephone service providers reported 217.4 million subscribers at the end of June
2006, a figure which is 25.4 million, or 13 percent, more than a year earlier. About 7
percent of these subscribers were billed by mobile telephony service resellers.

For a copy of the WTB’s report on local telephone service competition, please see
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-270133A1.txt] (MS Word and
PDF versions also available). [Source: FCC]

Other NTIA Administrator Gives Speech to Satellite Industry Association
Activities
and Items of 02.21.2007 – Assistant Secretary for Communications and Information and Administrator
Interest of the NTIA John M. R. Kneuer recently gave the 10th Leadership Dinner Address to the
Satellite Industry Association. In his speech, Kneuer discussed the interactions between
the U.S. government and the commercial satellite industry, focusing on the role of
satellite in economic, homeland, and national security. He recommended a closer
partnership between the federal government and satellite industry to implement the
National Space Plan, which would increase U.S. private sector participation in the design
and development of national government space systems and infrastructures. An
important theme of Assistant Secretary Kneuer’s speech was the role of the U.S.
government as a consumer of satellite services.

For a copy of Assistant Secretary Kneuer’s speech, please see
[http://www.ntia.doc.gov/ntiahome/speeches/2007/JKneuer_SIA_022107.htm] (PDF
version also available). [Source: NTIA]

XM Radio and Sirius Announce Plans for Merger

02.19.2007 – Satellite radio companies XM Radio and Sirius have announced plans for a
“merger of equals.” The proposed deal would essentially see Sirius purchase XM Radio
through a plan for XM shareholders to receive 4.6 shares of Sirius common stock for each
XM share they own. In addition, Mel Karmazin, chief executive of Sirius, would become
the new company’s chief executive. The new company’s chairman would be Gary M.
Parsons, current chairman of XM Radio. Officials behind the merger announced that the
new company’s name and headquarters would be determined at a later date.

Proponents of the merger of the two major satellite radio companies have argued that
continued losses by both firms and a more competitive marketplace for radio services

8
make the merger more necessary. They cite emerging competition from high definition
radio as analog AM and FM broadcasts have converted to digital signals, which improve
sound quality and give terrestrial radio stations the ability to broadcast “side channels”
alongside their main frequencies. However, in order for the $4.9 billion deal to take
place, both the Department of Justice and FCC must give their approval. The FCC has
already prohibited one company from holding the two satellite radio licenses awarded by
the Commission, on antitrust grounds. A combined XM Radio and Sirius company would
be in violation of FCC rules unless they were to receive a waiver. Opponents of the
merger, including the National Association of Broadcasters (NAB), argue that a combined
company would essentially be a monopoly for satellite programming. However, merger
proponents have urged a wider view of the competitive marketplace by considering
terrestrial radio, Internet radio, and music download services and products such as the
iPod as competitors. [Sources: New York Times, Washington Post, and Reuters]

Upcoming California State University, Northridge Center on Disabilities' 22nd Annual
Events International Technology and Persons with Disabilities Conference

03.19-24.2006 – California State University at Northridge’s (CSUN) Conference on
International Technology and Persons with Disabilities will be held in Los Angeles,
California, from March 19-24, 2007. The focus of the conference is to bring together key
disability stakeholders to discuss all technologies and issues related to education,
employment, and independent living of individuals with disabilities. For more about the
conference, including registration information, see [http://www.csun.edu/cod/conf/].

CTIA Wireless 2007 Conference

03.27-29.2007 – CTIA-The Wireless Association® will be hosting its spring CTIA Wireless
conference at the Orange County Convention Center in Orlando, Florida, on March 27-29,
2007. Billed as the “largest, most comprehensive show in the wireless industry,” the
conference provides a venue for wireless providers, users, developers, buyers, and
manufacturers to exchange ideas, create partnerships, and develop new collaborations.
There will be more than 80 speakers to lead the discussions comprising the conference’s
educational program.

For more information about the CTIA Wireless 2007 conference, including how to register
and a list of speakers, please visit [http://www.ctiawireless.com/].

“First Responders Summit” to Be Hosted by FCC Public Safety Bureau

04.20.2007 – The FCC’s Public Safety and Homeland Security Bureau will host the “First
Responders Summit: Interoperable and Reliable Public Safety Communications,” on
Friday, April 20, 2007, from 9:00 a.m. to 4:00 p.m., in the Commission Meeting Room
(TW-C305). The summit will be open to the public, but admittance will be limited to the
seating available. For those unable to attend, a live audiocast will be made available at
the FCC’s website.

The “First Responders Summit” will include expert panel discussions led by

9
representatives from the public safety community, communications industry, and the
government. Three expert panel discussions will include “Government Agencies and
Public Safety Initiatives,” “Transition from Legacy to Future Architectures - Integration of
Current Systems into IP-based Networks, Radio Bridging,” and “Beyond Voice -
Broadband Applications for First Responders.” The summit will then close with an open
roundtable discussion on key issues related to emergency preparedness and response.

Sign language interpreters and open captioning will be available for this event. Other
reasonable accommodations will be available upon request. For more information about
the event, please see the Public Notice at
[http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-271054A1.txt] (MS Word and
PDF versions also available). [Source: FCC]

International Conference on Digital Government Research

05.20-23.2007 – The Digital Government Society of North America will hold its 8th Annual
International Conference on Digital Government Research at Sheraton Society Hill, in
Philadelphia, on May 20-23, 2007. The conference provides a forum for the presentation
and discussion of interdisciplinary research on digital government and its applications in
diverse domains. Topics for this year’s conference include, but are not limited to, social
science research and citizen interactions, computer science and information technology
research to support government, and IT-enabled government operations and government
application domains.

Interested participants are invited to submit research papers, as well as proposals for
panels, system demonstrations, posters, and pre-conference tutorials and workshops.
For more information, please consult the conference website at
[http://www.dgsociety.org/call_for_papers.php].

Newsletter Center for Advanced Communications Policy
Info TELECOM/IT POLICY HIGHLIGHTS 7.02
February 2007

Nathan W. Moon, Editor [nathan.moon@cacp.gatech.edu]
Telecom/IT Policy Highlights presents legislative, regulatory, legal, and other items of
interest pertinent to information, telecommunications, and related technology policy and
research. For additional information regarding the information provided in this report, or
if there are newsworthy items that should be included in future editions, please contact
Nathan W. Moon, Research Specialist [nathan.moon@cacp.gatech.edu], or Paul M.A.
Baker, Ph.D., AICP, Director of Research [paul.baker@cacp.gatech.edu].