1. Broadband Adoption in Rural America John B. Horrigan October 27, 2004 Rural Broadband Coalition Alexandria, Virginia

2. Presentation Overview Trends in internet adoption Trends in rural home broadband adoption Differences in online behaviors of rural and other internet users

3. Internet adoption: Rural vs. Nation

4. Broadband at home, 2000-2004

5. Broadband adoption: Rural vs. Nation (% with broadband of all in group)

6. Types of Home High-Speed Connections

7. Broadband adoption: Rural vs. Nation (% with broadband of all in group)

9. Availability 77% of Americans say broadband is available where they live – 8% say it’s unavailable – 15% don’t know Rural gaps – 27% of rural dial-up users say it’s not available – 11% of non-rural dial-up users say it’s unavailable

10. Reasons for switching to broadband at home (I) AllRural Connection too slow36%34% Want to download files faster2116 Job-related tasks108 Want “always on”711 Want to use phone/net same time75 Higher quality connection58 Easier access to entertainment43 Responded to promotion37 Price fell to affordable level33

11. The Decision to Switch If price isn’t a big factor in the switch to broadband... What is? – People’s growing impatience with dial-up over time. Why is that? – The longer a person has been online, the more he or she does online, and more time per day is spent online.

12. Time spent online, average day, (2004)

13. Differences in Usage Patterns (2004)

14. Go Online for Health care information (% of internet users in group -- 2004)

15. Go online to do research for job (% of internet users in group -- 2004)

16. Buy something online (% of internet users in group -- 2004)

17. Get news about campaign online (% of internet users in group--2004)

18. Number of statements heard about candidates (out of eight; among internet users in group, June 2004 survey)

19. Summing Up Gaps remain in rural broadband uptake Availability an issue Plenty of demand, to judge by online behavior of users Internet’s ‘social welfare’ uses, e.g., health care online, suggests payoffs to policy initiatives to close rural broadband gap

20. Sources: Pew Internet random digit dial national telephone surveys Combined datasets for each of three years: – 2002: Sept-Dec 14,498 total cases 8,626 internet users 1,965 respondents with home high-speed connections – 2003: Mar-Nov 12,748 total cases 8,120 internet users 2,261 respondents with home high-speed connections – 2004: Feb-June 8,114 total cases 5,324 internet users 1,993 respondents with home high-speed connections