Falling trough the net

National Telecommunications

Gregory L. Rohde, Assistant Secretary for

Communications and Information

Economics and Statistics Administration and Information Administration

Robert J. Shapiro, Under Secretary for Economic Affairs

JOINT PROJECT TEAM

for NTIA

Kelly K. Levy, Associate Administrator, Office

of Policy Analysis and Development

James McConnaughey, Senior Economist

Wendy Lader, Senior Policy Advisor

Art Brodsky, Director of Communications

Sandra Laousis, Telecommunications Policy Analyst

for ESA

Lee Price, Deputy Under Secretary for Economic Affairs

Patricia Buckley, Senior Policy Advisor

Sabrina Montes, Economist

George McKittrick, Economist

Gwendolyn Flowers, Chief Economist

Jeffrey Mayer, Director of Policy Development

JOINT PROJECT CONTRIBUTORS

for NTIA

Kathy Smith, Chief Counsel

Milton Brown, Deputy Chief Counsel

Steve Saleh, Program Officer

Wayne Ritchie, Management and Program Analyst

Lan Chu, Law Clerk

for ESA

Jane Molloy, Director, Office of Policy Analysis

Laurence Campbell, Senior Regulatory Policy Economist

Sandra Cooke, Economist

U.S. Bureau of the Census

Demographic Surveys Division

Ronald R. Tucker, Adelle Berlinger

Judith Eargle, Greg Weyland

L. Dinah Flores, John M. McNeil

Tim J. Marshall, Aileen Bennett

Technologies Management Office

Andrew Stevenson

Population Division

Eric Newburger

INTRODUCTION	xiii
EXECUTIVE SUMMARY	xv
PART I: HOUSEHOLD ACCESS TO COMPUTERS AND THE INTERNET	1
Overall Household Findings: The Nation Moves Toward Digital Inclusion	2
Digital Inclusion Proceeds Unevenly	2
Geography	4
Income	8
Education	10
Race and Ethnicity	12
Household Type	17
Households With Computers and Internet Access, by State	20
A New Dimension: High Speed Internet Access	23
Non-Internet Households	25
Why Households with Computers Have Never Had Internet Access	25
Why Households with Computers Have Discontinued Internet Access	27
PART II: USE OF THE INTERNET BY INDIVIDUALS	33
Internet Use Among Individuals	36
Income	36
Race and Ethnicity	37
Gender	39
Educational Attainment	40
Age	41
Location of Internet Access	45
Locations of Internet Access Outside the Home	46
Online Activities	47
Online Activities of Home Internet Users	48
Online Activities of Outside the Home Internet Users	49
PART III: INTERNET ACCESS AND COMPUTER USE AMONG PEOPLE WITH DISABILITIES	61
Definitions	62
Exploring the Populations with Disabilities	67
Income	69
Race and Ethnicity	70
Age	71
Employment Status	72
Gender	73
Access, Use, and Disability: 16-24 Year Olds	75
Access, Use, and Disability: 25-49 Year Olds	78
Access, Use, and Disability: 50-64 Year Olds	81
Access, Use, and Disability: 65 Year Olds and Older	83
CONCLUSION - A LOOK AHEAD	89
METHODOLOGY	91
Current Population Survey	91
Survey of Income and Program Participation	92
BOXES
Box II-1 The Relationship Between the Household- and Person-based Measures	35
Box III-1 The Survey on Income and Program Participation	62
Box III-2 Building a Disability Category	64
FIGURES
Figure I-1 Percent of U.S. Households with a Computer and Internet Access, Selected Years	1
Figure I-2 An Illustrative S Curve	3
Figure I-3 Percent of U.S. Households with Internet Access, by U.S., Rural, Urban, and Central Cities, 1998 and 2000	4
Figure I-4 Percent of Rural Households with Internet Access, by Income, 1998 and 2000	5
Figure I-5 Percent of U.S. Households with a Computer, by U.S., Rural, Urban, and Cities, 1994, 1997, 1998, 2000	7
Figure I-6 Percent of U.S. Households with Internet Access, by Income, 1998 and 2000	8
Figure I-7 Percent of U.S. Households with a Computer, by Income, 1998 and 2000	10
Figure I-8 Percent of U.S. Households with Internet Access, by Education, 1998 and 2000	11
Figure I-9 Percent of U.S. Households with Internet Access by Income and Education, 1998 and 2000	12
Figure I-10 Percent of U.S. Households with Internet Access, by Race/Hispanic Origin, 1998 and 2000	13
Figure I-11 Rate of Growth of Internet Penetration, by Race/Hispanic Origin, 1998 and 2000	14
Figure I-12 Income and Education Differences Account for Half of the Gap between Blacks and Hispanics and the National Average, 2000	15
Figure I-13 Percent of U.S. Households with a Computer, by Race/Hispanic Origin, 1998 and 2000	16
Figure I-14 Percent of U.S. Households with a Computer, by Family Type, 1998 and 2000	18
Figure I-15 U.S. Households with High Speed Internet Access, 2000	24
Figure I-16 Percent of U.S. Households with Internet Access, by Access Speed, By U.S., Rural, Urban, and Central Cities, 2000	24
Figure I-17 Reasons for U.S. Households with a Computer/Web TV Never Accessing the Internet, Percent Distribution, 2000	26
Figure I-18 Reasons for U.S. Households Discontinuing Internet Use, Percent Distribution, 2000	28
Figure II-1 Different Perspectives on Internet Access and Use, 1998 and 2000	35
Figure II-2 Broad Increases in Internet Use Since 1998	36
Figure II-3 Internet Use by Income, 1998 and 2000	37
Figure II-4 Internet Use by Race/Hispanic Origin, 1998 and 2000	38
Figure II-5 Household Access Rates by Race/Hispanic Origin Do Not Closely Track Internet Use by Persons, 2000	38
Figure II-6 Internet Use by Gender and Age, 1998 and 2000	39
Figure II-7 Internet Use by Gender and Race/Hispanic Origin, 1998 and 2000	40
Figure II-8 Internet Use Rates by Educational Attainment, 1998 and 2000	41
Figure II-9 Internet Use by Age Group, 1998 and 2000	41
Figure II-10 Internet Use by Income, Age 18-24, 1998 and 2000	43
Figure II-11 Internet Use Age 25-49 and Labor Force Status, 1998 and 2000	44
Figure II-12 Internet Use Age 50+ and Labor Force Status, 1998 and 2000	45
Figure II-13 Internet Access by Location, 2000	46
Figure II-14 Internet Use by Location and Race/Hispanic Origin, 2000	46
Figure II-15 Online Activities, 1998 and 2000	48
Figure II-16 The Percent of Internet Users Searching for Jobs on the Internet Declines as Income Increases, 2000	50
Figure III-1 Internet Access by Disability Status, 1999	65
Figure III-2 Personal Computer Use Experience by Disability Status, 1999	66
Figure III-3 Regular Users of PCs by Location and Disability Status, 1999	66
Figure III-4 Income Distribution for Persons with a Disability, 1999	68
Figure III-5 Income Distribution for Persons without a Disability, 1999	68
Figure III-6 Age Distribution for Persons with a Disability, 1999	68
Figure III-7 Age Distribution for Persons without a Disability, 1999	68
Figure III-8 Employment Status Distribution for Persons with a Disability, 1999	68
Figure III-9 Employment Status Distribution for Persons without a Disability, 1999	68
Figure III-10 Internet Access at Home, by Income and Disability Status, 1999	69
Figure III-11 Regular Users of PCs, by Income and Disability Status, 1999	69
Figure III-12 Internet Access at Home, by Race/Hispanic Origin and Disability Status, 1999	70
Figure III-13 Regularly Uses a PC, by Race/Hispanic Origin and Disability Status, 1999	70
Figure III-14 Internet Access at Home, by Age and Disability Status, 1999	71
Figure III-15 Regular Users of PCs by Age and Disability Status, 1999	71
Figure III-16 Internet Access at Home, by Employment and Disability Status, 1999	72
Figure III-17 Regular Users of PCs, by Employment and Disability Status, 1999	72
Figure III-18 Internet Access at Home by Gender and Disability Status, 1999	73
Figure III-19 Regular Users of PCs by Gender and Disability Status, 1999	73
Figure III-20 Internet Access Among 16-24 Year Olds, by Disability Status, 1999	76
Figure III-21 Personal Computer Use Experience Among 16-24 Year Olds, by Disability Status, 1999	76
Figure III-22 Internet Access Among 25-49 Year Olds, by Disability Status, 1999	78
Figure III-23 Personal Computer Use Experience Among 25-49 Year Olds, by Disability Status, 1999	78
Figure III-24 Internet Access Among Employed 25-49 Year Olds, by Disability Status, 1999	79
Figure III-25 Personal Computer Use Experience Among Employed 25-49 Year Olds, by Disability Status, 1999	79
Figure III-26 Internet Access Among 50-64 Year Olds, by Disability Status, 1999	81
Figure III-27 Personal Computer Use Experience Among 50-64 Year Olds, by Disability Status, 1999	81
Figure III-28 Internet Access Among 65 and Older, by Disability Status, 1999	83
Figure III-29 Personal Computer Use Experience Among 65 and Older, by Disability Status, 1999	83
TABLES
Table I-A Percent of Households with Computers, by State, 2000	21
Table I-B Percent of Households with Internet Access, by State, 2000	22
Table I-1 Percent of Households with a Computer, 1998 and 2000	30
Table I-2 Percent of Households with Internet Access, 1998 and 2000	31
Table II-1 Internet Use by Individuals Age 3 and Older, 1998 and 2000	51
Table II-2 Internet Use by Individuals Age 3-8 Years, 1998 and 2000	52
Table II-3 Internet Use by Individuals Age 9-17, 1998 and 2000	53
Table II-4 Internet Use by Individuals Age 18-25, 1998 and 2000	54
Table II-5 Internet Use by Individuals Age 25-49 In the Labor Force, 1998 and 2000	55
Table II-6 Internet Use by Individuals Age 25-49 Not in the Labor Force, 1998 and 2000	56
Table II-7 Internet Use by Individuals Age 50+ In the Labor Force, 1998 and 2000	57
Table II-8 Internet Use by Individuals Age 50 + Not in the Labor Force, 1988 and 2000	58
Table II-9 Reconciliation of Household Access and Individual Internet Use Rates for 2000	59
Table III-1 Disability Status of Persons 16 and Above, 1999	63
Table III-2 Population Distribution, by Age and Disability, 1999	74
Table III-3 Internet Access and Computer Use by 16-24 Year Olds, 1999	77
Table III-4 Internet Access and Computer Use by 25-49 Year Olds, 1999	80
Table III-5 Internet Access and Computer Use by 50-64 Year Olds, 1999	82
Table III-6 Internet Access and Computer Use by 65 Year Olds and Older, 1999	84
Table III-7 Individuals 16 and Over, 1999	85
Table III-8 Internet Access and Computer Use, 1999	86
Table III-9 Disability, by Age, 1999	87
APPENDIX
Figure A1 Percent of U.S. Households with a Computer and Internet Access 1994, 1997, 1998, 2000	94
Figure A2 Percent of U.S. Households with a Computer By U.S., Rural, Urban, and Central Cities, 1994, 1997, 1998, 2000	94
Figure A3 Percent of U.S. Households with a Computer By Income, By U.S., Rural, Urban, and Central Cities, 2000	95
Figure A4 Percent of U.S. Households with a Computer By Race/Hispanic Origin, By U.S., Rural, Urban, and Central City Areas, 2000	95
Figure A5 Percent of U.S. Households with a Computer By Income, By Race/ Hispanic Origin, 2000	96
Figure A6 Percent of U.S. Households with a Computer By Education, By U.S., Rural, Urban, and Central Cities, 2000	96
Figure A7 Percent of U.S. Households with a Computer By Household Type, By U.S., Rural, Urban, and Central Cities, 2000	97
Figure A8 Percent of U.S. Households with Internet Access By U.S. Rural, Urban and Central Cities,1998 and 2000	97
Figure A9 Percent of U.S. Households with Internet Access By Income, By U.S., Rural, Urban, and Central Cities, 2000	98
Figure A10 Percent of U.S. Households with Internet Access By Race/Hispanic Origin, By U.S., Rural, Urban, and Central Cities, 2000	98
Figure A11 Percent of U.S. Households with Internet Access By Income, By Race/Hispanic Origin, 2000	99
Figure A12 Percent of U.S. Households with Internet Access By Education, By U.S., Rural, Urban, and Central Cities, 2000	99
Figure A13 Percent of U.S. Households with Internet Access By Household Type, By U.S., Rural, Urban, and Central Cities, 2000	100
Figure A14 Percent of U.S. Households with Internet Access By Age, By U.S., Rural, Urban, and Central Cities, 2000	100
Figure A15 Percent of U.S. Households with High-Speed Internet Access, 2000	101
Figure A16 Percent of U.S. Households with High-Speed Internet Access By Technology and Age, 2000	101
Figure A17 Percent of U.S. Households with Internet Access, By speed, By Region, 2000	102
Figure A18 Percent of U.S. Households with Internet Access, By speed, By Income, 2000	102
Figure A19 Percent of U.S. Households with Internet Access, By Access Speed, By Education, 2000	103
Figure A20 Percent of U.S. Households with Internet Access, By Access Speed, By Age, 2000	103
Figure A21 Percent of U.S. Households with Internet Access, By Access Speed, By Race/Hispanic Origin, 2000	104
Figure A22 Percent of U.S. Households with Internet Access, By Access Speed, By Type of Household, 2000	104
Figure A23 Percent of U.S. Persons Using the Internet By Location, 2000	105
Figure A24 Percent of U.S. Persons Using the Internet By Income, By Location, 2000	105
Figure A25 Percent of U.S. Persons Using the Internet By Race/Hispanic Origin, By Location, 2000	106
Figure A26 Percent of U.S. Persons Using the Internet At Home By Race/Hispanic Origin, By U.S., Rural, Urban, and Central Cities, 2000	106
Figure A27 Percent of U.S. Persons Using the Internet Outside the Home By Race/Hispanic Origin, By U.S., Rural, Urban, and Central Cities, 2000	107
Figure A28 Percent of U.S. Persons Using the Internet By Education, By Location, 2000	107
Figure A29 Percent of U.S. Persons Using the Internet, By Household Type, By Location, 2000	108
Figure A30 Percent of U.S. Persons Using the Internet, By Age, By Location, 2000	108
Figure A31 Percent of U.S. Persons Using the Internet, By Gender, By Location, 2000	109
Figure A32 Percent of U.S. Persons Using the Internet Outside the Home By Selected Places, By U.S., Rural, Urban, and Central Cities, 2000	109
Figure A33 Percent of U.S. Persons Using the Internet Outside the Home By Income, By Selected Places, 2000	110
Figure A34 Percent of U.S. Persons Using the Internet Outside the Home By Race/Hispanic Origin, By Selected Places, 2000	110
Figure A35 Percent of U.S. Persons Using the Internet Outside the Home at Schools (K-12) By U.S., Rural, Urban, and Central Cities By Race/Hispanic Origin, 2000	111
Figure A36 Percent of U.S. Persons Using the Internet Outside the Home at Work By U.S., Rural, Urban, and Central Cities, By Race/Hispanic Origin, 2000	111
Figure A37 Percent of U.S. Persons Using the Internet Outside the Home By Education, By Selected Places, 2000	112
Figure A38 Percent of U.S. Persons Using the Internet Outside the Home By Household Type, By Selected Places, 2000	112
Figure A39 Percent of U.S. Persons Using the Internet Outside the Home By Gender, By Selected Places, 2000	113
Figure A40 Percent of U.S. Persons Using the Internet Outside the Home By Selected Places, By Employment Status, 2000	113
Figure A41 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Income, 2000	114
Figure A42 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Race/Hispanic Origin, 2000	114
Figure A43 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Education, 2000	115
Figure A44 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Household Type, 2000	115
Figure A45 Reasons for Households with a Computer/WebTV Not Using the Internet at Home, By Age, 2000	116
Figure A46 Percent of U.S. Persons Using the Internet At Home By Type of Use, 2000	116
Figure A47 Percent of U.S. Persons Using the Internet At Home By Income, By Type of Use, 2000	117
Figure A48 Percent of U.S. Persons Using the Internet At Home By Race/Hispanic Origin, By Type of Use, 2000	117
Figure A49 Percent of U.S. Persons Using the Internet At Home By Education, By Type of Use, 2000	118
Figure A50 Percent of U.S. Persons Using the Internet At Home By Type of Use, By Employment Status, 2000	118
Appendix Table 1 Reasons for Discontinuing Home Internet Use, by Selected Characteristics of Reference Person, Total, Urban, Rural, Central City, 2000	119