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Broadband Internet Adoption Stalls, Regresses for Poor, Says Pew Report

WASHINGTON, July 2 – Broadband growth in the United States has effectively stalled over the past five months, a possible victim of the economic slowdown, according to a report released Wednesday by the Pew Internet & American Life Project.

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WASHINGTON, July 2 – Broadband growth in the United States has effectively stalled over the past five months, a possible victim of the economic slowdown, according to a report released Wednesday by the Pew Internet & American Life Project.

Some 55 percent of all adult Americans now have a high-speed internet connection, or a broadband connection, in their home, according to the report, “Home Broadband Adoption 2008.”

That number compares with 47 percent of adult Americans with broadband in early 2007, and 54 percent in December 2007. Hence broadband growth over the previous 12 or 13 months has dramatically tapered off.

The growth rate in broadband adoption from 2007 to 2008 was 17 percent. That compares favorably to the 12 percent growth recorded in the 2006 to 2007 timeframe, according to Pew’s annual studies in 2007 and 2008.

Yet for poor Americans, as well as African Americans, broadband adoption was slow or negative.

Among adults living in households with annual incomes of less than $20,000 annually, broadband adoption has actually regressed: the percentage dropped from 28 percent in March 2007 to 25 percent in April/May 2008, said the report.

Among African Americans, home broadband adoption stood at 43 percent in May 2008, versus 40 percent the previous year.

“The flat growth in home high-speed adoption for low-income Americans suggests that tightening household budges may be affecting people’s choice of connection speed at home,” said John Horrigan, associate director of research at the Pew Internet & American Life Project and author of the report.

“Broadband is more costly on a monthly basis than dial-up, and some lower income Americans may be unwilling to take on another expense,” said Horrigan.

Pew’s annual report has become the respected benchmark for understanding broadband adoption within the United States.

Looking over the past year, three groups did experience relatively strong growth in broadband adoption from 2007 to 2008:

  • Older Americans: Those aged 50 and above experienced a 26 percent growth rate in broadband from 2007 to 2008.
  • Lower-middle income Americans: Those with household incomes between $20,000 and $40,000 annually saw broadband penetration grow by 24 percent over the same period.
  • Rural Americans: Among those who live in rural areas, 38 percent have broadband at home now, versus 31 percent a year ago, or a growth rate of 23 percent over the same period.

The Pew report identifies a number of other trends: including the fact that broadband prices have only dropped four percent over the past two-and-a-half years, that affordability (or the lack thereof) is having an impact on broadband adoption, and that wireless technologies may be poised to play a larger role in making broadband more widely available in the home.

Broadband users reported paying $34.50 a month for high-speed internet services in April 2008, versus $36 a month in December 2005 — a four percent decline. Cable modem users reported paying an average of $37 a month (versus $41 in 2005), while Digital Subscriber Line (DSL) users reported paying $31.50 a month (versus $32 in 2005).

Dial-up users, who now constitute just 10 percent of American adults who go online, now cite price as the key reason for why they do not subscribe to broadband.

Asked, “What would it take to get you to switch to broadband?”, dial-up users said:

35% The prices has to come down/be more affordable/cheaper
19% Nothing will convince me to get broadband
16% Don’t know
11% Other
10% It would have to become available where I live
4% When my cable/telephone company offers it where I live
4% Refused
2% Someone else will pay for it
2% If it was free
0% When my children get older

Note: Total may exceed 100% due to multiple responses.

Source: Q23 in the Spring Tracking Survey 2008 (conducted April 8-May 11, 2008), Princeton Survey Research Associates International) for Pew Internet & American Life Project.

The Pew report also found that fixed wireless services have increased their role in the home broadband marketplace, from next to nothing in 2002 to about 12 percent of home broadband connections. DSL maintains an edge in the marketplace, with 46 percent of broadband users subscribing, versus 39 percent for cable modem service. And the number of fiber optic users finally nudged above negligible, with 2 percent of home users subscribing.

Reports and Documents Referenced in this Article:

Editor’s Note:

The Pew Internet & American Life Project has been a supporter of BroadbandCensus.com since its launch in January 2008, and provided a seed grant for BroadbandCensus.com to gather information about users’ broadband experiences and speeds.

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Ookla Has Verizon as Fastest Q1 Fixed Provider, T-Mobile Takes Top Spot for Mobile

T-Mobile was also named the most consistent mobile operator and topped 5G download speeds.

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Image of Speedtest from May 2017 by Daniel Aleksandersen used with permission

WASHINGTON, April 18, 2022 – A market report released Friday by performance metrics web service Ookla named Verizon the fastest fixed broadband provider in the U.S. during the first quarter of 2022, and T-Mobile as the fastest mobile operator during the same period.

Verizon had a median download speed of 184.36 Mbps, edging out Comcast Xfinity’s speed of 179.12 Mbps. T-Mobile’s median mobile speed was 117.83 Mbps.

Verizon had the lowest latency of all providers, according to Ookla, well ahead of Xfinity’s fourth place ranking, yet sat at third for consistency behind both Xfinity and Spectrum.

T-Mobile was also the most consistent mobile operator during the first quarter, achieving an Ookla consistency score of 88.3 percent, which along with median download speed represented an increase from the fourth quarter of 2021.

The company also achieved the fastest median 5G download speed, coming in at 191.12 Mbps.

Verizon also notably increased its 5G download speed from its Q4 metric, attributed in part to the turning on of new C-band spectrum in January following deployment delays and protest from airlines. For mobile speeds, it stood in second behind T-Mobile, bumping AT&T to a standing of third. These rankings were the same for mobile measures of latency and consistency.

Yet on 5G availability, AT&T remains ahead of Verizon.

The Samsung Galaxy S22 Ultra came in as the fastest popular device in the country, running at 116.33 Mbps.

Ookla is a sponsor of Broadband Breakfast.

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Broadband Data

FCC’s Rosenworcel: Broadband Nutrition Labels Will Create New Generation of Informed Buyers

The FCC hopes companies will make it easier for consumers to choose a broadband plan that fits their needs.

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Photo of Chairwoman Jessica Rosenworcel speaking at the Mobile World Conference 2022 in Barcelona

WASHINGTON, March 11, 2022 – The Federal Communications Commission’s broadband nutrition labels will usher in a new era where buyers have simple information about what they’re buying, agency Chairwoman Jessica Rosenworcel said Friday.

Consumers should know what they’re signing up for when they spend hundreds “or even thousands” of dollars per year for internet service. She was speaking at Friday’s commission hearing on its so-called broadband nutrition label initiative.

The hearing comes on top of a public comment period on the initiative. Many providers are pushing for more flexible regulations on compliance.

When consumers choose a broadband provider for their household, Rosenworcel said may people make decisions with “sometimes incomplete and inaccurate information.”

“The problem for broadband consumers isn’t a total lack of information, but there’s loads of fine print,” Rosenworcel said. “It can be difficult to know exactly what we are paying for and these disclosures are not consistent from carrier to carrier,” which makes comparing prices and services harder and more time-consuming for consumers.

The comments built on other recent speeches by Rosenworcel promoting the initiative, encouraging state attorneys general’s ability to enforce companies’ commitments through their states’ consumer protection statutes.

The FCC began a plan in 2015 for broadband labels that was voluntary. The new initiative directed by last year’s bipartisan infrastructure law makes this effort mandatory for broadband providers.

Matt Sayre, managing director of cross sector economic development firm Onward Eugene, said residents in rural Oregon would benefit from simple information when considering broadband providers. During a time where dial-up and satellite-based offerings were primarily available, Sayre said his neighbors “never used terms like latency or packet loss.”

“These are important aspects of good internet service, but not easily understood by most people,” Sayre said. “Citizens understood they needed better service but were uncertain about what tier of service they needed. This is where broadband labels can be very helpful.”

The hearing was the agency’s first on the initiative.

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Small ISP Organizations Push FCC for Flexibility on Broadband Label Compliance

Advocates say strict compliance requirements may economically harm small providers.

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Photo of outgoing WISPA CEO of Claude Aiken from April 2018 by New America used with permission

WASHINGTON, March 11, 2022 ­­– In comments submitted to the Federal Communications Commission Wednesday, organizations representing small internet providers are pushing for flexible regulations on compliance with a measure that requires clear reporting of broadband service aspects to consumers.

The measure was adopted at a late January meeting by the commission, mandating that providers list their pricing and speed information about services in the format of a “broadband nutrition label” that mimics a food nutrition label. Congress’ bipartisan infrastructure bill enacted in the fall required that the FCC adopt such policy.

The organizations that submitted comments Wednesday say that strict compliance requirements for the new measure may economically harm small providers.

Among those leading the charge are trade associations Wireless Internet Service Providers Association, NTCA – The Rural Broadband Association and America’s Communications Association as well as provider Lumen Technologies.

In comments, limited resources of smaller providers were cited as factors which could disadvantage them in terms of complying with the measure to the FCC’s standards and several organizations asked for small providers to be given extra time to comply.

In separate comments, internet provider Lumen said that the FCC must make multiple changes to its approach if it is to “avoid imposing new obligations that arbitrarily impose excessive costs on providers and undermine other policy goals.”

Last month, FCC Chairwoman Jessica Rosenworcel said that she looks forward to increased coordination between the FCC and state attorneys general for the enforcement of the measure.

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