Many advocates for children are not yet involved in decision making and planning regarding the right of all children, regardless of family income, to benefit from information technology. This Kids Count report explores critical issues about information technology and children's literacy, education, and intellectual development. The report explains some of the underlying issues involving information technology and children such as poverty, literacy, and equal access; examines the importance of basic phone service and how more low income children and families can achieve access to telephones; discusses recent changes in universal service (i.e., policies that ensure that everyone has access to affordable telecommunications technology) due to actions by the Federal Communications Commission; and explores disparities in Internet access by income, and the role of schools, libraries and other public institutions in addressing those disparities. Suggestions and resources are offered to children's advocates about how to become involved in policy decisions about information technology. (JPB)