ALL CHARGED UP

The digital divide is not dead — it's just moved to another space. That became clear last week when two Atlanta-based providers outlined third quarter financial results on the same morning. EarthLink and Cox Communications each hailed the positive financial impact of delivering broadband high-speed Internet service. Then, in ominous moves for those hoping for closure on the digital divide, each veered in different pricing directions. EarthLink supported a less-than-lightning-speed, 384 kb/s tiered DSL service for $39.95 because, said CEO Gary Betty, “this combination of speed and price better matches customer preference.” Cox went the other way, rolling out an across-the-board $5-per-month price increase for a faster, more highly featured service. Patrick Esser, Cox's executive vice president of operations, predicted the higher price won't disrupt demand “because we will still be selling at or below DSL price points.” Beyond the odd coincidence of two companies announcing — within hours of each other — such different business strategies, this signals that high-speed Internet is now less about availability and more about price. It will be some time until it's clear which model succeeds; the one from a company whose livelihood depends on drawing subscribers to Internet service or the one from a company whose foundation is built on charging for something that once was free, a.k.a. television. In the meantime, the digital divide will continue to exist — just in a different way.