Bridging the Digital Divide Can Yield Both Social and Monetary Benefits.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 10, 2001

In order to bridge the Digital Divide that exists between those who are able to get broadband Internet access and those who are not, carriers must address the problem in a manner that will yield profit, according to Cahners In-Stat Group (http://www.instat.com), a high-tech market research firm.

In recent years, the Federal government has called on industry to solve this problem, implying some sort of social obligation.

Cahners In-Stat Group believes that there is a social benefit from aiding those who are automatically precluded from broadband service due to economic status or geographic location (i.e. rural locations), and for that matter, being the provider to do so. However, reality suggests that there must be a greater motivation to close the divide -- specifically profit.

According to Daryl Schoolar, ISP industry analyst at In-Stat, "If we want to close the gap and truly make broadband available to anyone who wants it regardless of where they live or what they earn, a viable business model must be demonstrated to the service provider."

There are many companies who are altruistic enough to attack the problem as a matter of social obligation. However, Schoolar believes that, "It is more realistic to address the problem by finding a clear path to profitability, either in the short-term or long-term."

Cahners In-Stat Group advises service providers to consider the following strategies to successfully and profitably bridge the Divide:

-- Work with current groups that are already addressing the

Digital Divide;

-- Take advantage of already existing local and national

incentives to bridge the Divide;

-- Use low cost equipment solutions.

The report, Digital Divide (No. IS0006MS) provides examples of service provider and organizations successfully bridging the Divide, and strategies that can be used profitably address this societal issue.

To purchase this report or for more information, please call Matthew Woods at 617/630-2139; mailto:[e-mail] or visit http://www.instat.com/catalog/cat-ia.htm#is0006sp. The report price is $1,495 USD.

Cahners In-Stat Group also offers other reports that relate to this topic:

Broadband Consumers - Profiles and Strategies http://www.instat.com/catalog/cat-ia.htm#is0005sp

The U.S. ISP Industry: Revenues and Services http://www.instat.com/catalog/cat-ia.htm#is0004sp

Residential ISP Buying Behavior and Internet Usage Trends: A Survey of U.S. Consumers http://www.instat.com/catalog/cat-ia.htm#is0001sp

Cahners In-Stat Group (http://www.instat.com/) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.