Galt Global Review

QFS 360

July 14, 2004
business digest


European Roundup
by Esme Friesen

headlines:
Hawking goes deeper into black holes
EU gets tough on MobilCom aid
AI: Talk of the future

Hawking goes deeper into black holes
After nearly 30 years of arguing that a black hole destroys everything that falls into it, Stephen Hawking is saying he was wrong.

The about-turn might cost Hawking, a physicist at the University of Cambridge, an encyclopaedia because of a bet he made in 1997. More importantly, it might solve one of the long-standing puzzles in modern physics, known as the black hole information paradox.

It was Hawking's own work that created the paradox. In 1976, he calculated that once a black hole forms, it starts losing mass by radiating energy.

This "Hawking radiation" contains no information about the matter inside the black hole and once the black hole evaporates, all information is lost. But this conflicts with the laws of quantum physics, which say that such information can never be completely wiped out. Hawking's argument was that the intense gravitational fields of black holes somehow unravel the laws of quantum physics. Other physicists have tried to chip away at this paradox.

Now, it seems that Hawking too has an answer to the conundrum and he has requested at the last minute that he be allowed to present his findings at the 17th International Conference on General Relativity and Gravitation in Dublin, Ireland.

EU gets tough on MobilCom aid
The EU Commission decided that market competition was unfairly distorted due to MobilCom’s use of 2002 aid money. The aid was not only used to restructure the company physically but also to reorient its marketing strategy and to focus on more profitable customer segments in its core business area as a mobile phone service provider. The aid thus had a particularly damaging effect on competitors, as they too are having to target their business strategies at more profitable customer groups due to a saturation of the German market.

On top of that, in the years leading up to the crisis MobilCom had been focusing on the UMTS sector, using aggressive pricing to pursue an expansion strategy aimed solely at boosting its market share. In the end this strategy failed, forcing MobilCom to withdraw from the UMTS sector. However, the aid granted meant that MobilCom did not have to bear alone the negative consequences of the risky strategy it had pursued, while at the same time being able to benefit from the positive effects, such as the fact that, in slimming down its customer portfolio, it could count on a larger customer base. This meant that the aid gave MobilCom a substantial advantage over its competitors.

As a result, the EU Commission is imposing a ban on direct online sales of MobilCom mobile telephony contracts for seven months. This, they feel, will offset the competitive distortions created. For the company, direct online marketing represents an increasingly important channel for selling mobile phone contracts. Halting such marketing for a while will offer competitors a chance that customers will go to their websites and sign up for contracts.

AI: Talk of the future
Having computer systems and appliances that communicate intelligently is fast becoming less sci-fi and more of reality for the modern consumer.

Due to a five-year collaborative link between Edinburgh University and California's Stanford University, Scotland is fast emerging as the world leader in computer science research and artificial intelligence.

For example, the seemingly ridiculous early visions of consumer AI, such as the talking car in Knight Rider, has not stopped researchers from developing a car that you can operate using voice commands. “In-car navigation systems have been giving directions to drivers for a couple of years now”, says Nick Wright, commercial manager for the program. “The computer creates the language on the fly. It doesn’t have a recording of every place name in the UK.”

Other areas of language technologies being developed include a search engine that will understand what you’re looking for, and search documents using meaning, rather than keywords and even machines that can ask you questions and respond in a seemingly intelligent manner.

”What we use is something called a ‘clarification strategy’. In short, speech recognition turns voice into text, but the computer needs to understand in order to react. If it doesn’t understand, or isn’t sure, it should ask a sensible question to find out.” states Wright.