Over the past five years, the Internet has joined the basket of core communication services necessary for full participation in society. For the majority in the upper socio-economic (SES) classes, the Internet has been integrated as a resource in every day social relationships and activities. At the same time, a persistent divide exists for lower SES groups, and a significant minority in other groups.

In an overview of trends and changes with the Internet since 1998, three in particular have emerged which invite a rethinking of governance and social objectives in relation to the next phase of Internet development and maturity.

The persistence of a digital divide continues to raise important policy questions about full and equitable participation in economic, social and civic relations. In the face of the divide, questions about the appropriate role of information technology and, alternative and traditional resources become important for addressing issues relating to individual and community economic and social development.

Secondly, the proliferation and sophistication of commodity and entertainment services has created a wealth of choices for Canadians. The technical capabilities of the Internet permit a personalization and customization of content that provides unique opportunities of choice for users.

Third, at the same time, the Internet also can be used to develop, and provide access to, a diverse range of general, public information content and resources that are beneficial for a range of collective and individual social benefits. These ‘collective’ and ‘individualization’ properties are coming more into a tension as the Internet matures. This has implications for issues relating to content development, the role of intermediaries (community, commercial, government), and the broader policy objectives relating to the Internet involving human and social capital, social and economic development.

This section of the report analyzes the diffusion and emerging uses of the Internet from these perspectives. The first section assesses the current state of the digital divide and discusses some social policy issues involving public access initiatives. The next section explores the mutuality of online content and how content can meet a duality of needs for the public, embodying commercial and public goods needs. This analysis also links these trends to the historical and policy context of the development of modern communications in Canada. Analysis on community organizations as intermediaries demonstrates the potential of the Internet as a resource for addressing digital divide issues and, for integrating social relationships and facilitating the development of social infrastructure, social capital and social cohesion. In this broader view of focusing on social relations, instead of technology, analysis demonstrates the potential and limitations for using the Internet as a resource in social and economic development.