The Demographic and Economic Drivers of Broadband Adoption in the United States

In this Policy Paper, we analyze the variation in broadband adoption rates among the respective United States. Significantly, we find that 91% of the variation is explained by demographic and economic conditions, such as household income, education and, most significantly, income inequality. Our research therefore indicates that policies that focus on these demand-side factors perhaps offer more "bang for the buck" in terms of increasing broadband penetration than supply-side policies, including subsidies for networks or regulation of providers. For example, programs that focus upon educational institutions in low-income communities with school age children - like ConnectKentucky's "No Child Left Offline" initiative - may boost broadband adoption rates considerably, as they leverage demand-side drivers that encourage broadband subscription (having a child in school) in a way that may overcome or mitigate the problem of income inequality. Programs that target broadband education for older and retired persons may also be helpful