Communications-Related Headlines for October 21, 2002

TELECOM
FCC Chief Says Telecom Isn't Doomed by Cutbacks
Lieberman Calls for High-Tech Tax Incentives
Small Internet Services Survive Amid Giants

INTERNET
Is the End in Sight for 'Free' News on the Web?
Bringing Society to Cyberspace

TELECOM

FCC CHIEF SAYS TELECOM ISN'T DOOMED BY CUTBACKS
In a speech earlier this month, FCC Chairman Michael K. Powell urged
telecommunications companies to spend more on new equipment to ensure the
survival of big suppliers like Lucent Technologies and Nortel Networks.
Industry analysts suggest that such false stimulation is unnecessary and
predict that equipment suppliers will survive as smaller entities focused on
traditional products and services. "You can't underestimate the value the
carriers put on the people who understand their legacy networks," said James
Slaby of Giga Information Group. While investment in new technologies has
lagged, companies like Cisco have focused on carriers' need to migrate to
systems dominated by data and media transmissions. Given the outlook, the
telecoms are reluctant to follow Chairman Powell's advice.
[SOURCE: The New York Times, AUTHOR: Barnaby J. Feder]
(http://www.nytimes.com/2002/10/21/technology/21TELE.html)

LIEBERMAN CALLS FOR HIGH-TECH TAX INCENTIVES
Sen. Joseph Lieberman (D-CT) urged the Bush administration and Congress to
provide tax incentives to stimulate investment and growth in high-tech
industries. In a Friday speech at the NASDAQ market site, Lieberman, who is
considering a run at the White House in 2004, praised Bush for his response
to terrorism but added that those concerns "are no excuse for ignoring the
weakness of our economy." His plan would provide a short-term investment tax
credit for the acquisition of information technology, enact pension reforms
to protect employee retirement investments, eliminate capital gains tax on
new stock offerings, and give companies that hire additional employees a
payroll tax credit.
[SOURCE: USA Today, AUTHOR: Associated Press]
(http://www.usatoday.com/tech/news/techpolicy/2002-10-21-tax-incentives_x.ht
m)

SMALL INTERNET SERVICES SURVIVE AMID GIANTS
Battling major Internet services providers such as AOL, AT&T and Earthlink,
smaller Internet service providers are finding that their cheaper Internet
solutions are attractive to customers. Many of these providers, which
number at least 5,000 in the United States, target and attract specialty
groups such as doctors, veterans and unions. One of the biggest challenges
for small providers is the increasing demand for high-speed access --
something many smaller ISPs cannot provide because of broadband's high
upfront costs. David Robertson, president of Stic.net in San Antonio, said
ISPs like his will have to counter by focusing more on value-added
offerings, such as spam filtering and training for newcomers.
[SOURCE: Silicon Valley, AUTHOR: Anick Jesdanun]
(http://www.siliconvalley.com/mld/siliconvalley/4332658.htm)

INTERNET

IS THE END IN SIGHT FOR 'FREE' NEWS ON THE WEB?
Many news companies across Europe and the U.S. are beginning to charge for
news and other online content such as games and horoscopes in order to
remain in business. Media entities once thought that banner advertisements
alone would keep business running smoothly and allow them to offer news at
no cost, but "the free ride is over," said Annelies van den Belt, digital
director of Times Newspapers Ltd. Thanks to low returns on banner
advertising, papers are increasing requiring readers to shell out money for
a single story or, even better for the paper -- pay up for a multi-month
subscription.
[SOURCE: Reuters, AUTHOR: Bernhard Warner]
(http://www.reuters.com/news_article.jhtml?type=internetnews&StoryID=1592906
)

BRINGING SOCIETY TO CYBERSPACE
At this weekend's PopTech conference in Maine, Amy Bruckman's Palaver Tree
project demonstrated how communities in the virtual world can help children
learn the history of their real world hometown. Bruckman, an assistant
professor at the Georgia Institute of Technology, created an online
environment where middle school students interviewed senior citizen
volunteers about their role in the Civil Rights movement. The students
completed projects based on these interactions. "This is an example of what
kinds of new human experiences computer technology makes possible," Bruckman
said. Bonnie Bracey, a founder of Black Geeks Online, which served as the
source of several senior volunteers, praised Bruckman's work for the way in
which it involved "the minority community in a meaningful exchange that they
can actively be a part of."
[SOURCE: Wired News, AUTHOR: Katie Dean]
(http://www.wired.com/news/culture/0,1284,55765,00.html)

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