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Department of commerce report Falling Through the Net: Defining the Digital
Divide:
Information tools, such as the
personal computer and the Internet, are increasingly critical to economic
success and personal advancement. Falling Through the Net: Defining the
Digital Divide finds that more Americans than ever have access to
telephones, computers, and the Internet. At the same time, however, NTIA has
found that there is still a significant "digital divide" separating
American information "haves" and "have nots." Indeed, in
many instances, the digital divide has widened in the last year.
This report, NTIA's third in
the Falling Through the Net series, relies on December 1998 U.S.
Department of Commerce Census Bureau data to provide an updated snapshot of the
digital divide. The good news is that Americans are more connected than ever
before. Access to computers and the Internet has soared for people in all
demographic groups and geographic locations. At the end of 1998, over 40 percent
of American households owned computers, and one-quarter of all households had
Internet access. Additionally, those who were less likely to have telephones
(chiefly, young and minority households in rural areas) are now more likely to
have phones at home.
Accompanying this good news,
however, is the persistence of the digital divide between the information rich
(such as Whites, Asians/Pacific Islanders, those with higher incomes, those more
educated, and dual-parent households) and the information poor (such as those
who are younger, those with lower incomes and education levels, certain
minorities, and those in rural areas or central cities). The 1998 data reveal
significant disparities, including the following:
- Households with incomes of
$75,000 and higher are more than twenty times more likely to have
access to the Internet than those at the lowest income levels, and more than
nine times as likely to have a computer at home.
- Whites are more likely to
have access to the Internet from home than Blacks or Hispanics have from any
location.
- Black and Hispanic
households are approximately one-third as likely to have home
Internet access as households of Asian/Pacific Islander descent, and roughly
two-fifths as likely as White households.
- Regardless of income level,
Americans living in rural areas are lagging behind in Internet access.
Indeed, at the lowest income levels, those in urban areas are more than
twice as likely to have Internet access than those earning the same income
in rural areas.
For many groups, the digital
divide has widened as the information "haves" outpace the
"have nots" in gaining access to electronic resources. The following
gaps with regard to home Internet access are representative:
- The gaps between White and
Hispanic households, and between White and Black households, are now more
than six percentage points larger than they were in 1994.
- The digital divides based
on education and income level have also increased in the last year alone.
Between 1997 and 1998, the divide between those at the highest and lowest
education levels increased 25 percent, and the divide between those at the
highest and lowest income levels grew 29 percent.
Nevertheless, the news is not
all bleak. For Americans with incomes of $75,000 and higher, the divide between
Whites and Blacks has actually narrowed considerably in the last year. This
finding suggests that the most affluent American families, irrespective of race,
are connecting to the Net. If prices of computers and the Internet decline
further, the divide between the information "haves" and "have
nots" may continue to narrow.
Until every home can afford
access to information resources, however, we will need public policies and
private initiatives to expand affordable access to those resources. The Clinton
Administration is committed to connecting all Americans to the National
Information Infrastructure. Pro-competition policies, to reduce the prices of
basic phone and information services, and universal service policies will
continue to be important parts of the solution.
Community access centers (CACs)
-- such as schools, libraries, and other public access points -- will play an
important role. The 1998 data demonstrate that community access centers are
particularly well used by those groups who lack access at home or at work. These
same groups (such as those with lower incomes and education levels, certain
minorities, and the unemployed) are also using the Internet at higher rates to
search for jobs or take courses. Providing public access to the Internet will
help these groups advance economically, as well as provide them the technical
skills to compete professionally in today's digital economy.
Establishing and supporting
community access centers, among other steps, will help ensure that all Americans
can access new technologies. As we enter the Information Age, access to
computers and the Internet is becoming increasingly vital. It is in everyone's
interest to ensure that no American is left behind.
Over the last five years, NTIA
has measured household connectivity as a means of determining which Americans
are connected to the nation's telecommunications and information infrastructure.
Part I updates the earlier household penetration surveys released in NTIA's Falling
Through the Net: A Survey of the "Have Nots" in Rural and Urban
America (July 1995) and Falling Through the Net II: New Data
on the Digital Divide (July 1998).
As in our earlier surveys, we
have measured household telephone, computer, and Internet penetration rates
across America to determine which Americans own telephones and personal
computers (PCs) and access the Internet at home
The 1998 data reveal that,
overall, U.S. households are significantly more connected by telephone,
computer, and the Internet since NTIA issued the first Falling Through the
Net report, which was based on 1994 Current Population Survey (CPS)
results. Penetration rates have risen across all demographic groups and
geographic areas. Nevertheless, penetration levels currently differ -- often
substantially -- according to income, education level, race, household type, and
geography, among other demographic characteristics. The differences in
connectivity are most pronounced with respect to computers and Internet access.
The following examples
highlight the breadth of the digital divide today:
- Those with a college degree
are more than eight times as likely to have a computer at home, and
nearly sixteen times as likely to have home Internet access, as
those with an elementary school education.
- A high-income household in
an urban area is more than twenty times as likely as a rural,
low-income household to have Internet access.
- A child in a low-income
White family is three times as likely to have Internet access as a
child in a comparable Black family, and four times as likely to
have access as children in a comparable Hispanic household.
- A wealthy household of
Asian/Pacific Islander descent is nearly thirteen times as likely
to own a computer as a poor Black household, and nearly thirty-four
times as likely to have Internet access.
- Finally, a child in a
dual-parent White household is nearly twice as likely to have
Internet access as a child in a White single-parent household, while a child
in a dual-parent Black family is almost four times as likely to
have access as a child in a single-parent Black household.
The data reveal that the
digital divide -- the disparities in access to telephones, personal computers
(PCs), and the Internet across certain demographic groups -- still exists and,
in many cases, has widened significantly. The gap for computers and
Internet access has generally grown larger by categories of education, income,
and race.
Traditionally, our notion of
being connected to the nation's communications networks has meant having a
telephone. Today, Americans' increased use of computers and the Internet has
changed that notion. To be connected today increasingly means to have access to
telephones, computers, and the Internet. While these items may not be
necessary for survival, arguably in today's emerging digital economy they are
necessary for success. As the Department of Commerce has found in its Emerging
Digital Economy reports, the dramatic growth of electronic commerce and the
development of information technology (IT) industries are changing the way
Americans work, communicate, purchase goods, and obtain information. Jobs in the
new economy now increasingly require technical skills and familiarity with new
technologies. Additionally, obtaining services and information increasingly
requires access to the Internet.
Policymakers have achieved
high levels of telephone connectivity through the implementation of two key
initiatives. Pro-competition policies at the state and national levels have
resulted in lower prices for consumers of telephone services. Universal service
policies have helped assure that most Americans can enjoy affordable access
today. Assistance for low-income households (e.g., the Federal
Communications Commission's Lifeline Assistance and Link-Up America and state
programs) and support for high-cost regions of the country (e.g., the
FCC's Universal Service Fund; other State and Federal rate-averaging) are prime
examples of such programs. And the U.S. Department of Agriculture's Rural
Utilities Service (RUS) provides targeted lending and technical advice to help
ensure that advanced telecommunications infrastructure is in place for rural
communities.
With the data in this report,
we are in a better position to identify where and how to reach everyone.
Policymakers should explore ways to continue to boost telephone penetration,
particularly among the underserved, and to expand computer and Internet
connectivity. For some individuals, it is an economic solution. Lower prices,
leasing arrangements, and even free computer deals will bridge the digital gap
for them. For high cost communities and low-income individuals, universal
service policies will remain of critical importance. For other individuals,
there are language and cultural barriers that need to be addressed. Products
will need to be adapted to meet special needs, such as those of the disabled
community. Finally, we need to redouble our outreach efforts, especially
directed at the information disadvantaged.
Promoting
Competition and Universal Service
To some extent, the surging
use of computers and the Internet among American households reflects the success
of our nation's pro-competition policies. A significantly higher percentage of
households owned PCs in 1998 (42.1%) than in 1997 (36.6%), and experienced
greater Internet access during the same period (26.2% versus 18.6%). The
increased competition among PC-providers and lower costs of manufacturing have
resulted in PCs selling for well below $1000. The increasing use of other
Internet-accessing devices, such as televisions, palm computers, and Internet
phones, should further invigorate competition among manufacturers and reduce
prices for consumers.
While competition has made
computers and the Internet increasingly affordable, these technologies still
remain beyond the budget of many American households. When asked why they lacked
Internet access, a significant portion of households (16.8%) responded that it
was too expensive. Respondents particularly cited the cost of monthly bills,
followed by toll calling for ISP access. A significantly higher percentage of
minority and low-income households reported that Internet access was cost
prohibitive. In addition, cost ranked highest among reasons given by those who
discontinued Internet use. And, the proportion of non-use would surely be higher
still for those who do not yet own PCs or other Internet-access devices.
Policymakers, such as the Federal-State Universal Service Joint Board, State
Public Service Commissions, and the Federal Communications Commission should
carefully consider these facts in their attempts to evaluate the new universal
service and access needs.
These findings suggest that
further competition and price reductions will be vital to making information
tools affordable for most Americans. Going forward, it will be important to
promote policies that directly enhance competition among companies manufacturing
computers and other Internet devices, as well as among Internet service
providers. Expanding competition in rural areas and central cities is
particularly significant, as these areas lag behind the national averages for
PC-ownership and household Internet access.
At the same time, the data
demonstrate the need for continued universal service support for telephony,
particularly in rural and other high-cost areas. And we need to encourage the
buildout of broadband networks to rural and other underserved areas of our
nation, so that all Americans can take full advantage of new information
technologies and services.
Expanding
Community Access Centers
Competition is a significant
answer to providing affordable access to computers and the Internet, but it is
not the total solution. It is highly unlikely that, in the foreseeable future,
prices will fall to the point where most homes will have computers and Internet
access. As a result, a digital divide may continue to exist at home between the
information rich and the information poor. Given the great advantages accruing
to those who have access, it is not economically or socially prudent to idly
await the day when most, if not all, homes can claim connectivity. Part of the
short-term answer lies in providing Internet access at community access centers
(CACs), such as schools, libraries, and other public access
facilities.
The 1998 data demonstrate why
providing public access to the Internet at these external sources is critical.
To begin with, these sources tend to be used by groups that lack Internet access
at home or at work; chiefly, minorities, people earning lower incomes, those
with lower education levels, and the unemployed. Households with incomes of less
than $20,000 and Black households, for example, are twice as likely to get
Internet access through a public library or community center than are households
earning more than $20,000 or White households. Similarly, low-income households
and households with lower education levels are obtaining access at schools at
far higher rates.
Moreover, the same households
that are using community access centers at higher rates are also using the
Internet more often than other groups to find jobs or for educational purposes.
CACs are, therefore, providing the very tools these groups need to advance
economically and professionally.
The data support the continued
funding of CACs by both industry and government. Industry has already come
forward with significant assistance. Companies are supporting the creation of
community technology centers, helping connect schools through "NetDays,"
and donating computers and software to schools and neighborhood centers. NTIA's
Telecommunications and Information Infrastructure Assistance Program (TIIAP) has
funded a number of pioneering CAC efforts.The U.S. Department of Education's new
Community Technology Centers (CTC) program will enable the funding of CACs in
economically distressed communities on a broader scale.
The 1998 data also underscore
the importance of the Administration's efforts to ensure that all schools and
libraries have affordable access to the Internet. Under the E-rate program,
telecommunications carriers are providing eligible schools and libraries with a
discounted rate for telecommunications services, internal connections among
classrooms, and Internet access. As a result, the E-rate program is helping to
connect more than 80,000 schools and libraries and is enabling children and
adults to both learn new technologies and have new points of access. The data
demonstrate that these community access centers are, indeed, used by people who
lack access at home and merit further funding.
In addition, we should look to
other community-based organizations that can help us achieve these goals --
traditional community centers, churches, credit unions, housing projects, senior
centers, museums, fire and police stations, and more. Each community knows best
how to reach and connect its residents.
Building Awareness
While many Americans are
embracing computers and the Internet, there are many others who do not realize
that this technology is relevant to their lives. We need to reach out to these
communities and let them know why they should care -- how new technologies can
open new opportunities for them and their children.
We also need to find out why
people are or are not connected. While such outreach works best at the local
level, this type of information should be shared with policymakers at all levels
of government -- local, state, tribal, and federal. Only when we have a good
understanding about why different communities do or do not have access to
digital tools can we fashion appropriate policies.
Addressing Content
Concerns
The data show that Americans
are concerned about invasions of their privacy caused by accessing the Internet.
Almost two-thirds of American are either "very concerned" or
"somewhat concerned" about confidentiality on the Internet. There are
legitimate concerns regarding the collection and transmission of personal
information via the Internet, especially information gathered from children. The
Administration has set forth an Electronic Bill of Rights, proposing that every
consumer have: the right to choose whether her personal information is
disclosed; the right to know how, when and how much of that information is being
used; the right to see that information; and the right to know if information is
accurate and to be able to correct it if it is not.
The Administration believes
that the private sector should take the lead in implementing meaningful,
consumer-friendly privacy regimes. We would like for companies to take steps to
notify customers of their privacy policies, process consumer privacy
preferences, protect customer data, and handle inquiries and complaints. Several
promising private sector initiatives are underway, such as BBBOnline and TRUSTe,
which require merchants to adhere to fair trade practices. These programs
provide a seal to businesses that post privacy policies that meet certain
criteria.
Parents are also concerned
about their children's safety while using the Internet. The data show that one
of the reasons that households with a computer have never used the Internet is
"concerns with children." The Administration is committed to
empowering parents, teachers, and other guardians with tools to keep children
safe while online. The Administration has encouraged private sector initiatives,
such as "One Click Away," which are designed to give parents
technology and educational resources to protect their children from material
that they deem to be inappropriate and to know who to contact when their
children encounter dangerous situations online. The Administration has also
promoted the concept of "greenspaces" -- educational, age-appropriate,
noncommercial content that is easily identifiable for families online.
Continued
Monitoring
Good public policy requires a
good factual foundation. Continued studies -- public and private -- are vital to
permitting policymakers to make prudent decisions. Policymakers should explore
ways to improve the availability of reliable penetration data for historically
small but vitally important groups, such as Native Americans and Asians/Pacific
Islanders. Potential solutions include "over-sampling" as part of a
broader-based survey or conducting special studies that target these groups. A
new analytical tool to gauge the status of Internet connectivity could be a
Household Access Index, designed to highlight progress or deficiencies in this
regard. A composite index could be developed that represents the country's
combined penetration for telephones, computers, other Internet access devices,
and the Internet. In 1998, the HAI for U.S. households would have equaled
162.4%, increasing from 149.0% in 1997.
In the final analysis, no one
should be left behind as our nation advances into the 21st Century,
where having access to computers and the Internet may be key to becoming a
successful member of society.
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