1. The Broadband Difference The Broadband Difference John B. Horrigan – Senior Research Specialist NARUC Broadband Summit April 28, 2003

2. Presentation Outline Pace of broadband adoption Who are broadband users? What do they do online? My take on the state of broadband demand.

3. Broadband adoption

5. Adoption Time of New Technologies ) Adoption Time of New Technologies (source: Federal Communications Commission ) TechnologyYears to Reach 10% Adoption Years to Reach 50% Adoption Video Cassette Recorder 1014 Compact Disc Player 4.510.5 Color TV 1218 Cell Phones 815 Personal Computer 418

6. % Internet users in each group … Home BroadbandDial-Up Male 56%49% Female 4451 Community Type Rural 1221 Suburban 5955 Urban 2924 Education Level Some college5863 College graduate or more4236 Age 18-24 2112 25-34 23 35-44 26 45-54 2119 55+ 1020 Income (household) Less than $30K 1216 More than $75K 4226

7. Broadband Demographics – 2003 and 2000 % Internet users in each group … March 2003May 2000 Male 56%66% Female 4434 Education Level Some college5850 College graduate or more4250 Community Type Rural 1210 Suburban 5950 Urban 2940 Income (household) Less than $30K 1213 More than $75K 4232

8. Broadband amplifies, intensifies everything A fat-pipe effect Spend more time logged on Do more things online Do them more often Feel better about the Internet’s role in their lives Change the way they spend their time

9. Frequency of online use & online experience How often do you sit down and access the Internet from home? Several times a day … 43%19% % broadband% dial-up Did you go online yesterday? %yes … 73%51% % broadband% dial-up How long have you been an Internet user? More than 6 years % yes … 64%44%

10. Broadband changes online behavior Create and share content Multimedia use and multitasking Taking online activities that used to be performed offline

11. The broadband picture: Information seeking Broadband Users (BLUE) vs. Dial-Up Users (RED) % Users who do activity on typical day

12. The broadband picture: Information producing Broadband Users (BLUE) vs. Dial-Up Users (RED) % Users who do activity on typical day

13. The broadband picture: Downloading Broadband Users (BLUE) vs. Dial-Up Users (RED) % Users who do activity on typical day

14. The broadband picture: Media streaming Broadband Users (BLUE) vs. Dial-Up Users (RED) % Users who do activity on typical day

15. Changes in time use 37% say their Internet use has cut their time watching TV 31% say it has decreased the time they spend shopping in stores 18% say it has decreased their time reading newspapers 13% say it has decreased the time they spend in traffic 25% say it has increased the time they spend working at home

16. The Broadband Story Broadband uptake is rapid compared with adoption rates of other technology Broadband adoption appears to be driven more by activities than demographics – –Those who say they want broadband tend to be content creators, music listeners, news gatherers – –And those who say they want broadband spend more on communications goods than other users. Internet adoption, by contrast, is driven more by demographics – –And Internet adoption has stalled in past 12 months

17. How to quicken uptake? Get more people online – –Broadband uptake is quick given that you’re online – –Lots of good models for encouraging access Let activities that are associated with broadband users flourish – –Business models for online music, P2P – –No “walled gardens” on the Internet

19. About us Pew Internet & American Life Project 1100 Connecticut Ave. NW – Suite 710 Washington, D.C. 20036 202-296-0019 http://www.pewinternet.org/ Find me at: jhorrigan@pewinternet.orgjhorrigan@pewinternet.org