Even with strong public statements on U.S. broadband deployment (and the role of wireless technology in meeting the 2007 universally affordable target date), neither President Bush nor Federal Communications Commission Chairman Kevin Martin sent telecom and tech stocks on the kind of joy ride to which Wall Street and corporate chieftains are so well accustomed-and cursed by. Ask Bernie Ebbers.
But this guy just might do the trick. With a wave of his wand last week, Michael Chertoff appears to have put the cash-rich Department of Homeland Security on a new glide path to serious exploitation of technology and protection of critical infrastructure in a way bound to make tech investors giddy.
Secretary Chertoff’s homeland-security overhaul, among other things, creates a new position of assistant secretary for cyber and telecommunications security. The tech sector, still smarting from the stock market meltdown of 2000, has long clamored for a higher priority for cyber security.
In prepared remarks on the DHS realignment, Chertoff used the word “technology” no less than 10 times. But it was really the entire package that seemed to signal Chertoff’s break from Tom Ridge’s homeland security.
“First … DHS must base its work on priorities that are driven by risk. Our goal is to maximize our security, but not security `at any price,’ ” stated Chertoff. “Our security strategy must promote Americans’ freedom, privacy, prosperity, mobility. Second, our department must drive improvement with a sense of urgency. Our enemy constantly changes and adapts, so we as a department must be nimble and decisive. Third, DHS must be an effective steward of public resources. Our stewardship will demand many attributes-the willingness to set priorities; disciplined execution of those priorities; sound financial management; and a commitment to measure performance and share results. Perhaps most of all, DHS must foster innovation. Finally, our work must be guided by the understanding that effective security is built upon a network of systems that span all levels of government and the private sector.”
It appears Chertoff gets it. Time will tell. DHS is a mammoth bureaucracy of precious little agility with lots of bosses. It also has billions of dollars to burn.
While Chertoff may be more successful than his predecessor in churning out tech and telecom contracts, potential downsides for industry still exist. The homeland-security regime requires increased government meddling in industry’s business like no time before. If push comes to shove, DHS always has the federal mandate option.
No doubt, mistakes will be made along the way. But that’s OK, politics means always having to say you’re sorry.
