New Broadband Report Shows U.S. Adoption at 68%

By Chris McGovern, Manager, Research Development, Connected Nation

Coinciding with yesterday’s launch of the National Broadband Map, the National Telecommunications and Information Administration (NTIA) also released a new report that may garner less attention, but is still important to the national broadband discussion. This report, titled Digital Nation: Expanding Internet Usage, shows that while between 90% and 95% of households have broadband service available to them, only 68% of households actually subscribe. While this percentage is up from 63.5% of households last year, it still means that between 25 and 31 million households have the option to access broadband, but choose not to.

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This report echoes Connected Nation’s findings that rural households, the elderly, minority residents, and adults with disabilities are less likely to subscribe to broadband, and the top barrier to broadband adoption remains the belief that they do not need home broadband service. At a state level, the broadband adoption figures that the NTIA reports are very similar to those found in surveys conducted by Connected Nation.

Connected Nation Welcomes the Federal Communications Commission’s Release of Form 477 Broadband Subscriber Data.

On February 12, the FCC released data on national broadband trends based on the reformed Form 477 data collected from all broadband providers in the United States. This data dates back to 2008. The 2008 reform of Form 477 addressed deficiencies in earlier provider reporting requirements and aims to help better equip national broadband public policy work.

Key changes in the reporting requirements include reporting the number of broadband subscribers by Census Tract rather than by ZIP Code. In addition, broadband subscriber data is now reported by different tiers of download speeds.

Connected Nation believes these reforms will help better inform national and state broadband public policy and welcomes the release of this report.

As a mapping agent under the National Telecommunications and Information Administration’s State Broadband Data and Development grant program, Connected Nation is currently working to complete broadband mapping and planning initiatives in 12 states and one U.S. territory. This new FCC Form 477 data will help guide our work. However, we will continue to work with the provider community to meet the more comprehensive and granular NTIA broadband data reporting requirements.

To learn more about the Form 477 data, click here.

Shot in the Arm, but Not the Cure

“President Obama appears to have struck the right balance with the initial announcements on broadband infrastructure awards. The administration’s focus on connecting community anchor institutions such as libraries, schools, and hospitals is a big step forward in bridging America’s digital divide. And, the awards for last-mile projects in rural areas are clearly key to closing the broadband gaps for unserved residents and businesses.

We are eager to learn more about the full list of projects funded in the first round, particularly within the sustainable adoption program. While the supply-side projects are obviously important for broadband stimulus efforts, effective demand-side programs are critical to accompany these network deployments if we hope to see any sustainable positive economic effects.

Connected Nation research in Kentucky, Tennessee, and Ohio shows that the largest barrier to broadband adoption is a lack of awareness about broadband’s benefits. Across these three states, 44 percent of those without a home broadband connection say ‘I don’t need broadband.’ Among vulnerable populations such as low-income residents, minorities, and people with disabilities, this awareness challenge is even greater.

While these middle-mile projects to connect community anchor institutions should be a big shot in the arm for broadband expansion in those areas, if there is not enough prospective demand for broadband service, particularly in the rural markets, then the wholesaler will be hard-pressed to get any internet service provider (ISP) takers to provide last mile service on the network. Even then, if take-rates remain low, the last mile services will likely prove to be unsustainable.

So, in addition to the hope of spurring demand indirectly through community anchor institutions, it is critical that effective digital literacy/awareness and computer ownership programs are funded and established to ensure the sustainability of these type of infrastructure projects as well as to ensure that vulnerable populations are not marginalized as a result of not having a computer or the digital skills to use broadband.“

--From Laura Taylor, Connected Nation’s Chief Policy Officer, in response to the federal government’s awarding of $183 million in federal broadband stimulus funds through the National Telecommunications and Information Administration’s Broadband Technology Opportunity Program and the Rural Utilities Service’s Broadband Infrastructure program.

Want to know more? Click here to view Connected Nation’s recommendations to NTIA about these projects.

Connect Kansas Grant Funding Announced in News Conference

Today, Kansas Lt. Governor Troy Findley and Kansas Department of Commerce Secretary Bill Thornton hosted a news conference to unveil Kansas’ $2 million federal grant for the Connect Kansas rural broadband initiative.

Connected Nation has been chosen by the Department of Commerce to assist with the state’s mapping and planning activities. In addition, the Information Network of Kansas and the Kansas Farm Bureau have provided required matching grant funds.

To learn more, visit Connect Kansas’ Web site or the CN news blog.

Connected Nation Receives Recovery Act Funding For Broadband Mapping and Planning Initiatives in Alaska and Kansas

NTIA Awards Lay the Groundwork For Launch of Connect Alaska and Connect Kansas Initiatives

Washington, DC – Today, the Department of Commerce’s National Telecommunications and Information Administration (NTIA) announced approximately $4 million in grant awards for Alaska and Kansas, enabling Connected Nation to launch comprehensive broadband mapping initiatives in partnership with those states.

“Connected Nation’s mission is to see that every American, no matter where he or she lives, has access to high-speed Internet,” said Brian R. Mefford, Connected Nation’s chief executive officer. ”Whether it is making a purchase online or filling out a job application, broadband is key to accessing and sharing information in this technology-driven economy. By plotting broadband availability on a map, we can find the quickest path to closing the digital gaps that still exist for many Americans.

“We applaud NTIA for working diligently to create a national broadband map and are honored to have been selected to help Alaska and Kansas in their efforts to increase broadband in rural areas.”

Connected Nation will soon be working with 12 states and one U.S. territory on the national broadband mapping effort. These efforts comprise approximately 42 percent of the country’s landmass and encompass approximately 39.5 million households.

More than $7 billion in stimulus funds have been designated to help expand broadband access to unserved and underserved communities across the United States. These funds are available through NTIA’s Broadband Technology Opportunities Program (BTOP) and the Rural Utilities Service’s Broadband Initiatives Program (BIP). NTIA has received applications for the grant program from all 50 states, five territories, and the District of Columbia and the agency is currently reviewing the remaining 35 applications. The remaining awards are expected to be announced in the next few weeks.

As the organization that produced the nation’s first granular statewide broadband availability map in 2005, Connected Nation is a prominent voice for the nation’s need for better broadband data. Connected Nation has worked closely with national leaders and provided numerous filings in support of a process for broadband data collection at the national level. To learn more about the programs that are helping more families and communities connect through broadband, visit http://www.connectednation.org/.

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Kansas awarded $2 million from National Telecommunications and Information Administration for broadband mapping initiative