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October 1, 2005

By Staff

Early bird

Question | I'm a teenager. Where should I invest my money? - F.R., Mobile, Ala.

Answer | College money shouldn't be in stocks, as the market could drop in the short term. Long-term investments can patiently ride out downturns, so consider keeping money you won't need for five or 10 years in stocks. Short-term investors should stick to safer plays, such as money market funds or CDs.

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THE FOOL'S TAKE

For whom the Baby Bell tolls

SBC Communications (NYSE: SBC) is reportedly considering changing its name to AT&T when it acquires the venerable telecom firm. But does AT&T stand for honored tradition or creaky obsolescence?

Clearly, the AT&T moniker, which originally stood for American Telephone & Telegraph Co., is known worldwide. It's been around for more than 100 years. Its name recognition may be the primary factor attracting SBC, whose name is recognized only in certain regions of the country.

On the other hand, AT&T comes with baggage from its century-plus tenure in American communications, featuring the old monopoly, its breakup, and the birth of the Baby Bells (including SBC).

The telecom industry has changed dramatically. Look at the success of Skype (www.skype.com), a service that hasn't even been around two years and has already corralled 51 million registered users and 2 million paying customers. Vonage (www.vonage.com), a voice-over-Internet-protocol upstart, came out of nowhere to threaten the telecom traditionalists, and cable providers have also stepped into the arena.




 
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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See www.vonage.com/911 for details.

** Certain call types excluded.

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