A Computer in Every Home?

When the FCC recently released stats supporting its National Broadband Plan, it emphasized that cost and digital literacy are the main barriers to broadband adoption. But Leichtman Research concludes that cost plays a relatively minor role. It’s really about the computers—or lack thereof.

 

Based on Leichtman’s analysis of FCC data, the primary reason that the 31% of adult Americans who can get broadband choose not to is they don’t have a computer (18%). 3% use broadband at work and don’t need it at home; 3% are dial-up users who are OK with what the have; 3% are non-Internet users concerned about the cost; 3% are dial-up users concerned about the cost; and 2% have broadband at home but don’t use it.

 

Delve in further to the price issue and it looks less troublesome. The mean price cited for what non-Internet users who cited cost as a barrier are willing to pay is $26—that’s not far off from entry level broadband offerings today, Leichtman said. Dial-up users concerned about broadband’s price tag cite a mean price of $28. 29% of those who cited cost as a barrier said they are not willing to pay anything for access, while 31% didn’t answer.

 

It’s the lack of home computers that many are looking to address. When NCTA announced in Dec a proposal to offer middle school students in low-income families discounted home broadband service, it also made sure to add that CE makers would provide discounted computers. There are also local programs in many areas that refurbish old computers for low-income individuals, such as Project Reboot in Montgomery County, MD, which according to reports is giving away 250+ computers a month.

 

“This divide, which is not surprising in an economically and generationally diverse country the size of the United States, does not stem primarily from problems with broadband,” Leichtman concludes. “Rather, it stems largely from the lack of ubiquitous computer ownership.”