Broadband Access

Following several consecutive years of double-digit growth, broadband adoption among US adults slowed dramatically in the past year, according to a report from the Pew internet & American Life Project.

The report - based on survey responses from 2,200 adults submitted during April and May - found that 66% of American adults currently access the internet via a high-speed home connection. That represents just 5% growth compared with the 63% that reported doing so in 2009, and a significant slowing in the rate of adoption compared with the 15% increase witnessed between 2008 and 2009.

However, growth in adoption among African-American users far outpaced the national average, and all other demographic groups. The report found that 56% of African-Americans now use a broadband connection, representing a 22% year-over-year increase compared with the 46% that reported doing so in 2009.

Data suggests a substantial portion of the 3% national growth could therefore have been driven by adoption by African-American users. Pew suggests the broadband adoption gap between African-Americans and white Americans has almost halved in the past year, now representing an 11% point gap between the two, which stand at 56% adoption and 67% adoption, respectively. (Clickz.com, August 2010)

On 2 July, President Obama is expected to announce new government investments in 66 projects to expand broadband connections in rural and poor areas across the country.

The $795 million in grants and loans funded by the 2009 economic stimulus act will create 5,000 jobs and generate $200 million in associated private investment, according to information provided by the White House.

Over 685,000 businesses, 900 health care facilities and 2,400 schools in all fifty states stand to benefit from the awards.  The money will bring broadband services to communities that "currently have little or no access, to help them better compete and do business in the global marketplace," the document said.

Obama will announce infrastructure grants and loans focusing on "middle mile connections" to communities lacking broadband access and "last mile awards" to connect homes, hospitals and schools to their community's broadband infrastructure, the document said.  In addition, the federal money also will fund public computing centers in libraries, community colleges and other public venues, according to the document. (CNN, June 2010)

Broadband penetration in rural markets in the US has experienced double-digit growth in the past year, driven largely by regional providers continuing to capture an increasing share of the market in these areas, according to comScore.

comScore indicated that although rural markets have witnessed significant increases in broadband penetration during the past few years, these areas still lag behind the penetration rates of metropolitan areas. As the primary drivers of rural broadband growth, regional ISPs have the opportunity to increase their market share by delivering broadband to the millions of households still relying on dial-up services.

Fueled by greater price competition, increased consumer demand, and growth in bandwidth-intense activities like video streaming and peer-to-peer sharing, broadband penetration continues to make gains across rural markets. Broadband penetration in rural markets reached 81% in Q4 2009, representing a sizeable increase of 13% points in the past year alone. (comScore, May 2010)

22% of Americans do not use the internet, but among those that do, 65% have access to a broadband connection, according to a survey conducted by the Federal Communications Commission (FCC).

The Commission surveyed 5,005 US adults in October and November 2009, and found correlation between socio-economic and demographic factors, and whether or not respondents had access to a high-speed connection.

For example, broadband adoption was greater among respondents with a higher level of education, and a higher salary.

Broadband adoption by American adults, by education level:
- Less than high school: 24%
- High school graduate: 55%
- Some college: 77%
- College+: 86%

In addition, white respondents were more likely to have high-speed access than African-American users, while 10% more African-American users claim to use broadband than Hispanic users.

Broadband adoption by American adults, by ethnicity:
- White: 69%
- Black: 59%
- Hispanic: 49%

Younger users also reported much wider access to broadband connections than older users. For example, 75% of 18-29 year olds access the internet via broadband compared with just 35% of users over 65.

Broadband adoption by American adults, by age:
- 18-29: 75%
- 30-49: 74%
- 50-64: 64%
- 65+: 35%

Perhaps unsurprisingly, the number of rural users with high-speed connections was less than average, at 50%, while non-rural users were slightly above the average, at 68%.(ClickZ, March 2010)