From: David Honig <honig@otc.net>
Date: Fri, 27 Feb 1998 09:30:19 -0800 (PST)
To: cypherpunks@toad.com
Subject: FBI national wiretap stalled for $$
Message-ID: <3.0.5.32.19980227092656.007ed320@otc.net>
MIME-Version: 1.0
Content-Type: text/plain




The telcos don't want to be stuck for the > $500,000,000 cost of installing
the national
surveillience infrastructure.



http://www.newsday.com/ap/rnmpwh19.htm

	
Reno: Impasse on Digital Wiretaps

                     WASHINGTON (AP) -- Attorney General Janet Reno says an
``impasse'' between the government and telephone companies
                     is delaying installation of new technology that would
enable the FBI and other law enforcement agencies to wiretap into new
                     digital phone lines.

                     Under a 1994 law the government was to pay the phone
companies up to $500 million to develop new computer codes and
                     switches and have them installed by next October.

                     The effort, however, was delayed for at least two
years while the FBI and the phone companies battled with each other over
                     the extent of how much wiretapping capability would be
provided.

                     Testifying Thursday before a House appropriations
subcommittee, Reno conceded that meeting law enforcement's future needs
                     will likely cost the phone companies more than $500
million. She said the phone companies have balked at moving forward
                     unless the government agrees to reimburse their costs
above that amount.

                     ``We may be at an impasse,'' she said. ``Simply said,
industry's proposal is that all equipment, services and facilities
installed or
                     deployed as of October 1998 would be deemed in
compliance forever ... unless the government agrees to pay to modify or to
                     upgrade it.''

                     Reno said the Justice Department likely will file a
petition with the Federal Communications Commission next month ``stating
                     that the proposed industry technical solution is
deficient'' and asking the agency to make the phone companies meet law
                     enforcement needs.

                     She said the FBI's electronic surveillance is already
being hampered because of the impasse. But given the six months that the
                     FCC says it would need to decide the case and another
18 months required to install the necessary software and switches,
                     Reno said it may be two years before police agencies'
wiretapping capability fully is restored.

                     Meanwhile, the Justice Department has asked for
another $100 million in next year's budget to reimburse the phone companies.

                     The subcommittee's chairman, Rep. Harold Rogers,
R-Ky., told Reno to not expect any more money until the dispute is
                     resolved.

                     ``I not only hope that it's going to happen; I'm going
to make it happen,'' he said, ``or you won't get any money. I don't know
                     how more bluntly I can put it. You dragged your feet
for three years ..., the industry has dragged their feet. I think it's a
plague
                     on both your houses.''

------------------------------------------------------------
      David Honig                   Orbit Technology
     honig@otc.net                  Intaanetto Jigyoubu

 The Internet Protocol's only guarantee is that your packets will not clog
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