Rural Broadband Availability and Adoption: Evidence, Policy Challenges, and Options

Rural Broadband Availability and Adoption: Evidence, Policy Challenges, and OptionsBrian Whitacre, Oklahoma State UniversityRoberto Gallardo, Mississippi State UniversitySharon Strover, University of Texas

March 18th, 2013

Webinar ContentData utilizedNature and extent of the metro non-metro broadband digital divideFactors that strengthen or impede broadband adoption in rural areasBroadbands contribution to economic health in rural areasPolicy options & discussion

DefinitionsMetro / Micro / Noncore CountiesMetropolitan: Urban core of 50,000 (or 25% of workforce commutes to an urban core)Micro: Urban core of 10,000 49,999 (or 25% of workforce commutes to an urban core of that size)Noncore: The rest

BroadbandCurrent: 4 mbps Down, 1 mbps UpHistorical: 200 kbps in at least 1 directionVarious thresholds used depending on data sourcesNonmetroData UsedCurrent Population Survey Internet use supplementYears: 2003, 2010 (most current)40,000+ observations (10,000+ non-metro); household-levelOnly differentiates between metro / non-metro (no county ID)FCC County-level broadband adoption dataYears: 2008,2010, and 2011 (most current)3,000+ counties671 micropolitan1,366 non-coreNational Broadband Map Neighborhood levelYears: 2010, 20113,000+ countiesAggregated to county-levelWe mesh adoption data with availability dataMetro Vs. Non-MetroBroadband DivideHousehold Broadband Adoption Rates by Metro/NM Status, 2003 and 2010Source: Current Population Survey Internet Use Supplement, 2003 & 2010

Metro Non-metro Gap consistent since 2003

Metro Vs. Non-MetroBroadband DivideHousehold Broadband Adoption Rates by Income, 2003 and 2010Source: Current Population Survey Internet Use Supplement, 2003 & 2010Metro Non-metro Gap higher in 2010 for lower income levels6

Metro Vs. Non-MetroBroadband DivideHousehold Broadband Adoption Rates by Education, 2003 and 2010Source: Current Population Survey Internet Use Supplement, 2003 & 2010Metro Non-metro Gap higher in 2010 for lower education levels7

Metro Vs. Non-MetroBroadband DivideHousehold Broadband Adoption Rates by Age, 2003 and 2010Source: Current Population Survey Internet Use Supplement, 2003 & 2010Metro Non-metro Gap higher in 2010 for those over age 608

Metro Vs. Non-MetroBroadband DivideHousehold Broadband Adoption Rates by Race, 2003 and 2010Source: Current Population Survey Internet Use Supplement, 2003 & 2010Metro Non-metro Gap higher in 2010 for Blacks, Hispanics, Other race9

Metro Vs. Non-MetroBroadband DividePrimary Reason for Non-adoption of Broadband in NM Households, 2003 & 2010Source: Current Population Survey Internet Use Supplement, 2003 & 201010

Metro Vs. Non-MetroBroadband DivideComposition of Residential Broadband Connections, 2003 & 2010Source: Current Population Survey Internet Use Supplement, 2003 & 201011

Metro Vs. Non-MetroBroadband DivideCounty-level Broadband Adoption by Metro Status, 2008-2011Source: FCC Form 477 DataFCC Data: 5 Adoption categories80% 12Metro Vs. Non-MetroBroadband DivideCounty-level Broadband Adoption Gaps, 2008 and 2011Source: FCC Form 477 Data

Metro Micro , Metro Non-core Gaps shrinking since 200813

Metro Vs. Non-MetroBroadband DivideCounty-level Household Broadband Adoption Rates, 2011Source: FCC Form 477 DataPockets of low adoption exist

- Pattern is similar when looking at education, age, race14

Metro Vs. Non-MetroBroadband DivideCounty-level Household Broadband Adoption Rates and Number of Providers, 2011Source: FCC Form 477 Databut relationship with number of providers not overwhelmingCorrelation Coefficients:0.32 (all counties)0.09 (non-core)

- Pattern is similar when looking at education, age, race15

Metro Vs. Non-MetroBroadband DividePercent of Population with No Broadband Availability, by Metro Status (2010)Source: National Broadband Map Data (aggregated to County level)Pockets with High Levels of No BroadbandOne additional measure: % of population with no broadband available to them

- Pattern is similar when looking at education, age, race16Metro Vs. Non-MetroBroadband DivideNo Broadband Availability, by Metropolitan Status (2010)Source: National Broadband Map Data (aggregated to County level)Many noncore counties with SIGNIFICANT (>40%) portions of their population lacking access to broadband

- Pattern is similar when looking at education, age, race17Metro Vs. Non-MetroBroadband Divide: Download SpeedAverage Max. Advertised Download Speed by Metro Status, 2010 & 2011Source: National Broadband Map Data aggregated to County Level

- Pattern is similar when looking at education, age, race18Metro Vs. Non-MetroBroadband Divide: Upload SpeedAverage Max. Advertised Upload Speed by Metro Status, 2010 & 2011Source: National Broadband Map Data aggregated to County Level

- Pattern is similar when looking at education, age, race19Factors Affecting BroadbandAdoption in Rural AreasWhat Impacts Household Broadband Adoption? (CPS Data)+ Impact: income, education, home business, Internet at work- Impact: race / ethnic categories (Black, Hispanic), non-metro statusAvailability Measures Impacting Adoption+ Impact: Hi Availability (