From the 2012 Minnesota Broadband Conference – Building Our Connected Future: Minnesota’s Better with Broadband in Duluth, November 2012

1. The Digital Divide
2.0
November 2012
Center for Rural Policy and
Development
St. Peter, MN
© Center for Rural Policy & Development

2. 2012 Minnesota Internet Survey
 Began in 2001
 Developed as a way to measure the
adoption rate of computers, Internet use and
broadband across rural Minnesota
 In 2005, the Twin Cities metropolitan
counties were added to provide comparison
 In 2012, cell phones added to capture the
population of cell phone-only households;
26% of households statewide.
© Center for Rural Policy & Development

3. Here’s where we’re at…
© Center for Rural Policy & Development

4. A redefined Digital Divide
Digital Divide 1.0 Digital Divide 2.0
© Center for Rural Policy & Development

5. The Digital Divide 2.0
 As broadband adoption reaches its
saturation point in Minnesota, there are
three main trends.
 Remaining non-adopters
 The mobile Internet
 Speed
© Center for Rural Policy & Development

6. The remaining non-adopters
 “Hard-core” non-adopters
 The oldest age group and the youngest
age group are the most likely to not
purchase Internet access at home.
 Attitude, affordability, alternatives define
the reasons among the oldest and
youngest consumers
© Center for Rural Policy & Development

7. “How important is it that you be able to
access broadband in your home?”
60%
50%
40%
30%
Rural
Metro
20%
Among all
households
10%
0%
1 Not 2 Somewhat 3 Neutral 4 Somewhat 5 Very
Important not important important Important
© Center for Rural Policy & Development

8. Importance of home access by
age
80%
70%
60%
50%
40% Rural
Metro
30%
20%
Percentage
reporting “very 10%
important”
0%
18-24 25-34 35-44 45-54 55-64 65+
© Center for Rural Policy & Development

9. Broadband adoption by age
100%
90%
80%
70%
60%
50% Rural
40% Metro
30%
Percentage of all
households 20%
10%
0%
18-24 25-34 35-44 45-54 55-64 65+
© Center for Rural Policy & Development

10. Broadband adoption
by income
100%
90%
80%
70%
60%
50%
Rural
40%
Metro
30%
Percentage of all
households 20%
10%
0%
< $25,000 $25,000 $40,000 $50,000 $75,000 $100,000 $150,000
to to to to to +
$39,000 $49,000 $74,000 $99,000 $150,000
© Center for Rural Policy & Development

11. Income by age statewide
© Center for Rural Policy & Development

12. Mobility
 Young people are the most likely to use
mobile devices
 2010 Pew Internet & American Life
study found that 84% of people age 18-
29 use a cell phone or laptop to access
the Internet.
© Center for Rural Policy & Development

13. How we access the Internet
at home
100%
80%
60%
Rural
40%
Metro
20%
Among
households with 0%
a home Internet Home Tablet Cell phone Gaming Other
computer computer device
connection
“Other” included e-readers, video devices such as
Roku, netbooks, and iPods.
© Center for Rural Policy & Development

14. Accessing broadband outside
the home
45%
40%
35%
30%
25%
20%
15%
Rural
10%
Among households Metro
5%
reporting that they
0%
accessed the Internet
somewhere outside
their home.
© Center for Rural Policy & Development

15. Speed
 Difficult to measure
 Recent report by the Hudson Institute
states that rural America is behind in
bandwidth and it will have an impact
 Clues indicate that rural Minnesota is
running behind the metro when it comes
to bandwidth
© Center for Rural Policy & Development

16. Satisfied with the speed of
your connection?
 Said “Yes”:
 Metro: 86%
 Rural: 78%
© Center for Rural Policy & Development

17. What we do online
Rural Metro
Send and receive email 96.2% 98.6%
Check the weather 88.7% 89.3%
Access news web sites 79.9% 82.6%
Research a purchase you're
planning 79.6% 86.3%
Purchase something at an online
store or auction 77.6% 84.0%
Do banking, pay bills or other
financial business online 77.2% 85.4%
Use social media 75.1% 81.8%
Top ten Stay informed on community
activities online news and events 69.6% 69.6%
among households Share photos 69.3% 79.8%
with a home
Internet connection Research medical information 63.9% 70.1%
© Center for Rural Policy & Development

18. Fastest growing activities
 Social media
 Staying informed on community news and
events
 Watching/streaming movies or TV shows
 Placing a phone call over the Internet
 Playing games online with other gamers
 Selling goods or services online
 Communicating with your doctor, nurse, or
other caregiver
© Center for Rural Policy & Development

19. Still a large gap with some
activities…
Difference
Rural Metro (Percentage points)
Watch movies or TV
shows 46% 71% 25
Download music or
video files 55% 73% 18
Share photos 69% 80% 11
Communicate with
doctor or nurse or
There is still a large
other caregiver 13% 23% 10
gap between rural
and metro in some Do work for
activities. employer at home 33% 44% 10
© Center for Rural Policy & Development

20. Trends to watch:
Non-adopters
 Young people as non-adopters is a trend
worth monitoring.
 May not see a need for a home Internet
connection.
 Will it go the way of the landline phone?
© Center for Rural Policy & Development

21. Trends to watch:
Mobility
 Young people are the big adopters of mobile
technology.
 How are their expectations of what they
need or are willing to buy changing?
 What does this mean for a community with
no wi-fi hot spots or poor cell phone
reception?
© Center for Rural Policy & Development

22. Trends to watch:
Speed
 Speed/bandwidth will define the “haves” and
“have nots.”
 Many proposed solutions for rural issues rely
on large amounts of bandwidth.
 Distance learning
 Remote health care
 Business
 Will communities that are not prepared with
adequate bandwidth be passed over?
© Center for Rural Policy & Development

23. What does this mean?
 Technology and ideas move
faster than public policy.
 Need to ensure that the solutions
being proposed now will address
the trends developing for the
future.
© Center for Rural Policy & Development

24. 2012 Minnesota
Internet Survey
To find out more about the survey and to
download a copy of the report,
visit our web site at
www.ruralmn.org
© Center for Rural Policy & Development