1. Rural Library Hotspot Lending Programs
Brian Whitacre, Oklahoma State University
Department of Agricultural Economics

2. Agenda Background on the Digital Divide What We are Trying to Do
Hotspot Lending Program Basics
Program Overview
Findings from KS
Challenges of the Program
Pilot OK Program

3. Background on the Digital Divide
Rural broadband adoption rates persistently lag those in urban areas
Source: Current Population Survey Internet Use Supplements,
Low-income households have only ~50% adoption (compared to 95% for high-income)
Income-based digital divide has actually increased over time
Source: Lee and Whitacre, 2017

4. What We Are Trying to Do
Help households without a consistent high-speed connection to the Internet
Households without a high-speed connection to the Internet are increasingly at a disadvantage (Horrigan and Duggan, 2015)
Increase use of broadband in rural OK
Studies have shown that it is broadband ADOPTION (not simply having availability) that matters for changes to rural economies.

5. Why Hotspot Lending Programs?
Rural libraries are uniquely positioned to impact the digital environment of their communities
Specific possibilities:
Shrinking the “homework gap”
Helping patrons search for employment / job opportunities
Keeping in touch with family / friends
Accessing health information
Offering connectivity at community-wide events

6. Hotspot Lending Program Basics
Connects via a cellular (wireless) service provider (i.e. AT&T, Verizon, Sprint)
Area must have coverage for the device to work!
Emits a Wi-Fi signal that users can connect their personal devices to (laptop, tablet, smart phone)
Can connect 8-10 devices at once
Mobile – works wherever the service provider has coverage
Speeds based on provider signal (4G LTE is best)
Similar to data plan of cell phone
Unlimited plans available (but more expensive)

7. Library Hotspots
Library hotspot lending started out as an urban idea but is quickly gaining traction in rural locations
In 2015, New York Public library started a hotspot lending program for NY residents without broadband at home
Lent out 10,000 devices (for a full year!) with over $1M in support from Google and others
NYPL partnered with 24 rural libraries in KS and ME to see how the program might be different in more remote areas

8. Kansas Locations 4-8 devices per location 1 week checkouts Pop. 4,500

9. Early Findings from Kansas
# of devices loaned varied greatly

10. Early Findings from KS
How likely are you to recommend checking out the library’s MiFi router, to a friend or colleague? 1=highly unlikely; 10=very likely

11. Early Findings From KS Your Child’s Ability Your Own Ability
Since checking out a device, how confident are you
in your own (or your child’s) ability to use the Internet?
Your Own Ability
Your Child’s Ability
35% with MORE confidence
35% with MORE confidence

12. “How-to-Hotspot” Guide for Libraries
English and Spanish Versions available online
Hotspot Basics
Monthly Bill
Implementation
Outreach
Challenges
Hot-To-Hotspot Guide

13. The Biggest Challenge: COST
Need to work with local / national providers
Verizon / US Cellular:
$40 / device / month = $480 / year
This is problematic for most rural libraries
A great option: PCs for People / Mobile Beacon!
$200 / year / device for unlimited data
Only $120 after 1st year!
Limited to Sprint Network

14. Another Big Challenge: AVAILABILITY
Sprint Coverage in Oklahoma:

15. Other Challenges Throttling Loss / Theft / Damage Waitlist Marketing
If you don’t have an unlimited plan, users may be “throttled”
Maine program had 2 GB limit
KS program initially had 5 GB limit, moved to unlimited
Loss / Theft / Damage
User agreement / checkout policies vital
Determining if / when to call police
Waitlist
Reached several months in some cases
Some explored implementing a sharable calendar to allow specific checkout dates
Marketing
Not really a problem for most communities
Social media, newspaper, radio, word of mouth, events

16. User Focus Groups (3 to date)
COST is biggest reason why users do not have their own household connections
Used the devices for home schooling, feeling more connected, communicate with family, entertainment, getting information (local events, healthcare, continuing education)
Connected the hotspot to a variety of devices (phones, tablets, laptops, even TVs)
Most saw it as the same if not better than a wired connection
Felt loan period was too short but understood why

17. Pilot OK Program (Spring 2017-18)
Perkins
Haskell
4 libraries, 4 devices each
Seminole
Elgin
Broadband Adoption data from Dec (FCC)
Site
Population (2015)
% Poverty ( )
MHI ( )
Household BB (200k) Adoption
Household BB (10 MB) Adoption
Elgin
2,700
7.9%
$65,625
60-80%
20-40%
Perkins
2,800
21.6%
$40,861
Seminole
7,500
24.6%
$32,594
0-20%
Haskell
1,900
28.3%
$32,244

18. Newspaper Attention

19. OK Pilot Program – 1 month summary
Extremely well received!
4 devices each; high demand even without significant amount of marketing
Texts sent out when devices are ready – being picked up within 60 minutes!
Immediately request being put on waiting list upon return
Surveys reveal most are being used in conjunction with smartphones / tablets
Most use by lower-income households, likely to purchase home broadband service for $10 / month (but not $30)