Mercedes divide

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The phrase "Mercedes divide" was spoken by Federal Communications Commission (FCC) Chairman Michael Powell at the initiation of his chairmanship. He used the phrase as his response to the phrase digital divide which was popularized during the Clinton administration. The statement took place during a press conference in which he stated "I think there is a Mercedes divide. I would like to have one, but I can't afford one." [1] By stating his feelings that computer and internet access was more a luxury than a necessity early in his Chairmanship he indicated a change of direction in the FCC away from consumer advocacy and towards business friendly policies.

The phrase was a bookend that marked the beginning of a tumultuous chairmanship. Whether Chairman Powell could afford a Mercedes is debatable. He was said to be making $133,000 at the time. His father, Secretary of State Colin Powell, is reported to be a multi-millionaire. What is not debatable is that Chairman Powell's policy during his time at the FCC favored the rich and corporate America. The communications market went from optimism for great competition, to massive consolidation and the virtual elimination of independent internet service providers. Chairman Powell started his administration wanting to eliminate the FCC's digital divide program E-rate. By the end of his administration, E-rate was in turmoil, with Government Accountability Office audits, congressional hearings, and problems of fraud.