3 main barriers to Broadband Adoption: affordability, digital literacy, and relevance - Could this be the Kenyan case, what can we learn from this..? - KICTANet

16 Mar 2010

      I guess, from such valuable and rich case studies, we can adopt and build up
a National Broadband Model of our own..

Harry

FCC: Cost a major barrier to broadband adoption

By Marguerite Reardon 
February 23, 2010 11:19 a.m. EST

Affordability is one of the main reasons why nearly one-third of Americans
do not have broadband at home, a recent Federal Communications Commission
survey found.

FCC Chairman Julius Genachowski plans to discuss the findings during a
speech at the Brookings Institute on Tuesday.

About 93 million Americans do not have broadband Internet access at home. In
an effort to get these Americans connected to the Net, Congress has called
on the FCC to develop a national broadband plan that will detail a strategy
for getting them connected to affordable, high-speed broadband. The FCC will
deliver its plan to Congress on March 17.

In order to understand what is keeping many Americans from subscribing to
broadband, the FCC conducted a consumer survey of over 5,000 American adults
in late 2009.

The survey identified three main barriers to adoption: affordability,
digital literacy, and relevance. About 36 percent of the 28 million adults
who said they don't subscribe to broadband at home said that the monthly fee
for broadband was is too expensive, they can't afford a computer, or the
installation fee is too high.

About 22 percent, or 17 million adults, indicated that they do not subscribe
to broadband at home because they lack the digital skills or are afraid of
the potential hazards of being online. And 19 percent, or 15 million people,
said they don't have broadband Internet at home because they simply don't
see a need for it.

The FCC's task force developing the broadband plan suspected a few months
ago before results of the survey had been completed that cost and lack of
digital skills were crucial factors in broadband adoption. The recent
findings bolster those earlier assumptions.

The cost of broadband service is likely to be a major barrier for low-income
families. And it is likely to explain why a disproportionate number of
people in lower income families have access to broadband at home. 

According to the survey, 40 percent of people who live in households where
income is $20,000 per year or less have broadband at home, while 91 percent
of people living in households where the income is more than $75,000 per
year have broadband at home.

Chairman Genachowski said that getting these individuals connected to the
Net is crucial to the future of the country.

"We need to tackle the challenge of connecting 93 million Americans to our
broadband future," he said in a statement. "In the 21st century, a digital
divide is an opportunity divide. To bolster American competitiveness abroad
and create the jobs of the future here at home, we need to make sure that
all Americans have the skills and means to fully participate in the digital
economy."

But getting people connected won't be easy even once the barriers have been
identified. In terms of cost, it's not clear how low prices would have to go
to spur significant adoption. On average, Americans pay about $40 a month
for broadband service. In some areas of the country, the cost is higher and
in some places it is lower. Price also varies depending on the speed of the
connection and whether that connection is bundled with other services.

The FCC said many people who cited price as a barrier were reluctant to
answer follow-up questions about how much they were willing to pay for
service. Of the people who did answer, the survey found that responses
varied from $10 to $20 to $25 a month for service.

But when experts analyzed the data about how many people would actually
likely sign up for service if prices were dropped to $10 or $20 a month,
adoption rates only picked up slightly. If prices dropped to $20, experts
said that would likely only change adoption by 6 percentage points. And a
$10 price tag would only change it by about 8 percentage points.

What this means is that cutting prices alone will probably not have a major
effect on broadband adoption. But lowering prices on service, coupled with
adding programs that teach people the digital skills they need to access the
Net while also educating them on how the Internet can enhance their lives,
could have a substantial effect.

3 main barriers to Broadband Adoption: affordability, digital literacy, and relevance - Could this be the Kenyan case, what can we learn from this..?

Harry Delano

Eric M.K Osiakwan

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