Broad assumptions about the impact of the Internet have created a "cult of hype" where the latest technological advancement is seen as the next best thing, and educators have been swept up in the promise of an educational utopia. The hype tells us that the world is joined by the infrastructure of this new technology and that globalization is now a reality. But the lack of an effective global telecommunications systems is creating a "digital divide," widening the economic gaps among nations. Areas that would benefit most from online education, such as remote areas in Australia and countries with limited economic resources for education, are the very areas that are hardest to reach with new technologies. This may create an even more elitist education system. Because businesses operate virtual classrooms to promote sales instead of learning, online education emphasizes the student as consumer. This approach is reflected in government policies, which have increasingly been influenced by economic rationalism. Online education is more than simply transferring learning methodologies from the classroom onto the Internet. It requires shifting from language-based learning to visual-based learning and understanding how education, technology, and culture impact each other. Little is known about the effectiveness of online education. An understanding of these changes will determine whether online education will become an effective and lasting educational medium or merely another educational gimmick that runs out of steam. (Contains 26 references.) (TD)