(MONEY Magazine) – In the battle to wire homes for high-speed Internet access, DSL was once thought to have the edge over cable. A DSL hookup uses your existing telephone lines and jacks, not cables that have to be threaded through your walls. But in the past few months, more than 150,000 DSL subscribers have found themselves cut off as providers like NorthPoint, Zyan and Rhythms declared bankruptcy or scaled back service. As a result, you may find yourself with fewer DSL options--and higher prices for what remains.

What happened? Many of the early DSL providers were small upstarts that leased lines from local phone companies (which offered their own DSL service). Battles between the DSL firms and local carriers often made it hard for consumers to get DSL installed. Plus, DSL providers significantly underpriced their service to compete with less expensive cable Net access. The upshot: big losses just as venture capital has dried up.

Where does this leave consumers in search of Net access up to 30 times faster than a 56K modem? With fewer installation hassles and lower prices ($40 a month or so), cable looks to be the best choice for most. If cable isn't available where you live--or if you're intent on using your existing phone line--stick with your local phone company, which is less likely to run out of cash. Even though the price for DSL service has gone up, $50 a month is probably the most you'll pay through the end of the year, says Matt Davis, senior analyst at the Yankee Group. Intense competition from cable providers should put a cap on rates for now.

--BRIAN L. CLARK