KMB Video Journal

Home broadband adoption stood at 63% of adult Americans as of April 2009, up from 55% in May 2008.

The latest findings of the Pew Research Center's Internet & American Life Project mark a departure from the stagnation in home high-speed adoption rates that had prevailed from December 2007 through December 2008. During that period, Pew Internet Project surveys found that home broadband penetration remained in a narrow range between 54% and 57%.
The greatest growth in broadband adoption in the past year has taken place among population subgroups which have below average usage rates. Among them:

• Senior  citizens: Broadband usage among adults ages  65 or older grew from 19% in May 2008 to 30% in April 2009.    
• Low-income  Americans: Two groups of low-income  Americans saw strong broadband growth from 2008 to 2009: First, respondents  living in households whose annual household income is $20,000 or less saw  broadband adoption grow from 25% in 2008 to 35% in 2009. Second, respondents  living in households whose annual incomes are between $20,000 and $30,000  annually experienced a growth in broadband penetration from 42% to  53%.Overall, respondents reporting that they live in homes with annual  household incomes below $30,000 experienced a 34% growth in home broadband  adoption from 2008 to 2009.   
• High-school  graduates: Among adults whose highest level  of educational attainment is a high school degree, broadband adoption grew  from 40% in 2008 to 52% in 2009.   
• Older baby  boomers: Among adults ages 50-64,  broadband usage increased from 50% in 2008 to 61% in 2009.    
• Rural  Americans: Adults living in rural America had home high-speed usage  grow from 38% in 2008 to 46% in 2009.
  

Population subgroups that have above-average usage rates saw more modest increases during this time period.

• Upper-income  Americans: Adults who reported annual  household incomes over $75,000 had broadband adoption rate change from 84% in  2008 to 85% in 2009.   
• College  graduates: Adults with a college degree (or  more) saw their home high-speed usage grow from 79% in 2008 to 83% in 2009.  
  

Notably, African Americans experienced their second consecutive year of broadband adoption growth that was below average.

• In 2009,  46% of African Americans had broadband at home.   
• This  compares with 43% in 2008.   
• In 2007,  40% of African Americans had broadband at home.
  

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The Pew Internet Project's April 2009 survey interviewed 2,253 Americans, with 561 respondents interviewed on their cell phones.
Broadband adoption appears to have been largely immune to the effects of the current economic recession. In the April survey, more than twice as many respondents said they had cut back or cancelled a cell phone plan or cable TV service than said the same about their internet service.

• 9% of  internet users (7% of all adults) say that in the past 12 months they have  cancelled or cut back online service.   
• 22% of  adults say they have cancelled or cut back cable TV service in the past 12  months.   
• 22% of cell  phone users (19% of all adults) report that in the past 12 months they have  cancelled or cut back cell phone service.
  

Given that the Pew Internet Project's April 2009 survey shows that 85% of adults have cell phone service, up from 77% at the end of 2007 (in a sample that also included respondents interviewed on cell phones), it seems likely that cell phone users were economizing on service plans rather than foregoing service altogether.
Prices for home broadband service increased from 2008 to 2009. Home high-speed users who reported more choices of providers paid less than others.

• The average  monthly bill for broadband service in April 2009 was $39, an increase from  $34.50 in May 2008.   
• Broadband  users who say they have just one provider where they live (21% of home  high-speed users) report an average monthly bill of $44.70.    
• Among  broadband users with more than one provider in their area (69% of home  high-speed users), the average monthly broadband bill is $38.30.    
• A subset of  home broadband users who say four or more broadband service providers serve  their neighborhood (17% of all home high-speed users) reported an average  monthly bill of $32.10.
  

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A growing share of broadband subscribers pay for premium service that gives them faster speeds. They are also paying more for the extra speed than they did a year ago.

• In 2009,  34% of home broadband users said they subscribed to a service that gave them  faster access speeds, an increase from 29% in 2008.   
• About the  same share of home broadband users subscribed to basic service in 2009 (53%)  as in 2008 (54%).   
• Subscribers  to premium service paid an average of $44.60 per month for broadband in 2009,  up from $38.10 in 2008.   
• For basic  service, broadband users reported a monthly bill of $37.10 in 2009, up from  $32.80 in 2008.
  

A majority of home broadband users see a home high-speed connection as "very important" to at least one dimension of their lives and community, such as communicating with health care providers and government officials, or gathering and sharing information about the community.

• 68% of home  broadband users said such a connection is "very important" (31%) or "somewhat  important (37%) for finding out what is going on in their community.    
• 65% of home  broadband users said such a connection is "very important" (34%) or "somewhat  important (31%) for communicating with health care or medical providers.    
• 62% of home  broadband users said such a connection is "very important" (26%) or "somewhat  important (36%) for contributing to economic growth in their community.    
• 58% of home  broadband users said such a connection is "very important" (23%) or "somewhat  important (35%) for sharing their views with others about key issues.    
• 57% of home  broadband users said such a connection is "very important" (26%) or "somewhat  important (31%) for finding out what is going on in their community.  
  

Overall, 55% of broadband users view a high-speed link at home as "very important" with respect to at least one of these topics they were asked about. Some 84% of home broadband users see their fast connection as "somewhat important" or "very important" in at least one of the five realms listed above.
When asked why they do not have the internet or broadband at home, non-users (either dialup subscribers or non-internet users) cite factors related to the internet's relevance, availability, usability and price. A third of dial-up users cite price as a barrier, with the remaining two-thirds citing other factors.
Only 7% of Americans are dial-up internet users at home, a figure that is half the level it had been two years ago. Here's what they say when asked what it would take for them to switch to a broadband connection at home.

• 32% said  the price would have to fall.   
• 20% said  nothing would get them to change.   
• 17% said it  would have to become available where they live.   
• 16%  responded "don't know."   
• 13% cited  some other reason.
  

Non-internet users, 21% of adults, are three times the size of dial-up users and cite a wider range of reasons as to why they don't have internet access:

• 22% say  they are not interested in getting online (a decrease from 33% who said this  at the end of 2007).   
• 16% say  they can't get access where they live.   
• 13% cited  some other reason.   
• 10% said it  was too expensive.   
• 7% said  they believe the internet is difficult to use.   
• 6% say they  don't need or want it.   
• 6%  responded "don't know" or refused to respond.   
• 5% said  they don't have a computer.   
• 4% said  they were busy or have no time for the internet.   
• 4% said  they think the internet is a waste of time.