Measuring the Gap

As policymakers consider digital inclusion solutions, understanding the root of the problem is important. There are a number of ways people’s decisions not to subscribe to broadband could play out. Older adults – especially those on fixed incomes – may find the monthly fee burdensome but also struggle with the skills to use the internet. Low-income households, particularly those with children, likely understand the internet’s importance, but they may struggle with service affordability. Other people’s financial circumstance may make them intermittent home subscribers, but they may also need tech support or digital skills training to get the most out of their broadband subscription.

From a research perspective, the task is to explore the reasons behind non-broadband adoption and discover the relative importance of them. Today there is disagreement on this issue. One school of thought has it that, for the most part, people without broadband do not find it relevant to their lives. This rests on U.S. government data compiled by the National Telecommunications and Information Administration (NTIA). Another school of thought places greater weight on the cost of access devices and monthly fees. This brief tries to shed light on what drives these differences and resolve them. A close analysis of the debate leads to two conclusions:

• There are multiple reasons for non-adoption: Research spanning the past decade that investigates non-broadband subscribers finds that non-adopters cite more than one reason behind their choice. In 2010, 2015, and 2019, national survey data shows that, when offered the chance to cite more than one reason for not subscribing to broadband at home, people generally cite 2 or 3 reasons.
• Cost is the chief reason for not having broadband: Research that rests on the notion that reasons for non-adoption are multiple uniformly finds that cost is the most important reason that people do not have broadband. At least half of non-broadband subscribers cite cost (either monthly fee or access devices) as a reason they do not subscribe when offered multiple choices, with a plurality citing cost in follow-up questions about the most important reason for non-adoption.

Key findings & implications:

• Research that permits non-broadband adopters to identify multiple reasons for non-adoption shows that cost is the most important reason people do not subscribe to broadband at home.
• These findings rest on a more expansive research hypothesis than NTIA’s. Whereas NTIA supposes that there may be only a single reason for not subscribing, other researchers that allow for more than one reason find that cost (either monthly service or access devices) rises to the top.
• For policymakers, how decision-makers view the reasons behind non-adoption of broadband can shape policy design. If “don’t want/not interested” is the most important reason, then public education initiatives may make sense. If cost is the most important reason – in conjunction with other reasons – then more comprehensive interventions are worthy of consideration. Those are likely to include ensuring the availability of low-cost internet plans as well as investments in community institutions to provide digital skills.