If you are reading this via the Internet, are you using a dial-up telephone line, or some faster broadband service, such as DSL or cable? Numerous farm organizations have been strong advocates for extension of broadband service to rural areas at an accelerated rate, and USDA has implemented several funding programs to achieve that goal. However, the rate at which many people jump the “digital divide” into the world of the Internet may not reflect the availability of broadband service to them.

“I don’t have it, because I can’t get it.”
“I can get it, but I don’t have it.”

Those seem to be the two scenarios discovered by economist Brian Whitacre at Oklahoma State University who says the gap in broadband access rates has remained relatively constant over the past several years despite increased extension of DSL and cable networks through the state of Oklahoma. Taking that state as an indicator of the rest of rural America, Whitacre’s findings may indicate that despite substantial USDA investment to erase the “digital divide,” it may be more of a function of households than being unable to connect households.

Whitacre says, “In the period between 2003 and 2006, rates of residential broadband access increased from 20 to 42 percent throughout the U.S. Over this same period, the number of broadband lines supplied by various providers increased from 23 million to 64 million.” But he says when the broadband infrastructure was available, different segments of the population showed different adoption rates. “The adoption decision is affected by the characteristics of the household. For instance, individuals with higher income and education levels are more likely to be early adopters. This fact is particularly true for broadband access, since its technological nature may be seen as an obstacle for households unfamiliar with its benefits.”

To support his theory about demographic characteristics retarding the adoption of broadband Internet service, Whitacre says in his 2003 to 2006 study, there were numerous changes in Oklahoma demographics, with improvement in education and income particularly:
1) There was a 4% increase in the number of heads of households with a high school diploma, and a 1% increase in college degrees.
2) Household income rose, with a 4% loss in the number under $10,000 and a 4% gain in the number over $100,000.
3) Other household characteristics, including age and household composition characteristics such as the percentage of married household heads, the percentage of male household heads, and the number of children, have remained relatively consistent over the three years.
4) The state did become slightly more diverse over this period, with more Hispanics, Native Americans, and individuals of other racial categories. Rural residents comprise approximately 42% of the state, which is comparable to the rates documented in the 2000 Census.

Comparatively, the proportion of residents with access to both cable and DSL rose from 15% to 34% from 2003 to 2006. “Only 8% of rural residents had both cable Internet and DSL access available to them in 2003. This number rose to 14% by 2006. By contrast, the percentage of urban residents with both types of access available rose from 20% in 2003 to 49% in 2006.” But Whitacre says adoption of broadband Internet service go in different directions when demographic characteristics of education and income are analyzed, “Broadband access rates for households earning less than $30,000 per year increased from 18% in 2003 to 26% in 2006. The statistics do not suggest that the same is happening with education levels. For instance, household heads with a high school education or less had broadband access rates of 23% in 2003 and 24% in 2006.”

Summary:
Rural development policy advocates have strongly pushed for broadband service to rural households; however, even in a rural state like Oklahoma, extension of broadband service does not necessarily mean that households will sign up. Demographic characteristics determine whether a household adopts broadband service, with lower income and higher age being determinants of fewer subscribers to DSL and cable Internet service.