This document discusses digital disparities and efforts to promote digital inclusion in California. It finds that internet penetration varies significantly across California communities, from 60% to 98.5%. The unconnected tend to be older, have disabilities, have low incomes, and be black or Hispanic. While internet adoption has increased among these groups, gaps remain. Mobile phones have helped increase connectivity for lower-income households, but many still rely only on mobile internet. The document examines case studies of disconnected communities in South LA and East LA and outlines next steps to continue analyzing the issue and supporting targeted solutions.

1. Reducing Digital Disparities and
Building Tech Inclusion
Connected Communities and Inclusive Growth
Hernan Galperin and François Bar

2. Outline:
1. Home Internet in California within the US context
2. Where are the unconnected Californians? Who are they?
Data :
– Availability è CPUC data (type and speed of service)
– Adoption è American Community Survey (ACS): ~350K in CA
What is the current landscape?

3. The Big Picture: California in the US context

4. California ranks 8th in home Internet penetration
85.7%
0
10
20
30
40
50
60
70
80
90
100
Mississippi
Arkansas
NewMexico
WestVirginia
Louisiana
Alabama
Tennessee
SouthCarolina
Oklahoma
Kentucky
NorthCarolina
Montana
Indiana
Missouri
Idaho
SouthDakota
Iowa
Kansas
Texas
Pennsylvania
Georgia
Michigan
Nevada
Ohio
Florida
Maine
NorthDakota
NewYork
Wisconsin
Vermont
Nebraska
Illinois
RhodeIsland
Hawaii
Arizona
Delaware
Wyoming
Virginia
Minnesota
NewJersey
Connecticut
Oregon
California
Utah
Massachusetts
Maryland
Alaska
NewHampshire
Colorado
Washington
Source: American Community Survey 2016
HomeInternetpenetration(%)

5. California also ranks 8th in GDP per capita
Source: American Community Survey 2016 and Federal Reserve
50
55
60
65
70
75
80
85
90
95
100
30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000
State GDP per capita (in chained 2009 US $)
HomeInternetpenetration(%)
California

6. Internet growth in California has recently slowed down:
now connecting about 350K new households per year
Source: American Community Survey 2016
8.8%
0%
5%
10%
15%
20%
25%
Hawaii
NewJersey
Nevada
NewHampshire
Utah
Vermont
Idaho
Massachusetts
Maryland
RhodeIsland
NewYork
Alaska
Montana
Minnesota
Connecticut
Florida
Oregon
Colorado
California
Virginia
Kansas
Wyoming
Iowa
Washington
Illinois
Pennsylvania
Maine
Wisconsin
SouthDakota
NorthCarolina
Delaware
Georgia
NorthDakota
Texas
Nebraska
Arizona
Kentucky
Indiana
Missouri
Ohio
Michigan
WestVirginia
NewMexico
Tennessee
Louisiana
SouthCarolina
Oklahoma
Arkansas
Alabama
Mississippi
2013-2016 growth in home Internet penetration (in %)
HomeInternetpenetrationgrowth(D%)

7. Where are the unconnected Californians?
Who are they?

8. Home Internet Penetration by PUMA
Public Use Microdata Areas (PUMAs)
- Contain at least 100,000 people
- Nest within states
- Are built on census tracts and counties
- 265 PUMAs in CA
91.3% - 98.5%
88.8% - 91.3%
85.2% - 88.8%
78.7% - 85.2%
60.8% - 78.5%

9. Internet penetration varies significantly
across CA communities – from 60% to 98.5%
Source: American Community Survey 2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LACity(SouthCentral/Westmont)
LACity(Northeast/NorthHollywood&…
LACity(Southeast/EastVernon)
Selma,Kerman&CoalingaCitiesPUMA;
LACity(Central/Koreatown)
FresnoCity(Southwest)
HawthorneCity
Gardena,LawndaleCities&West…
Oxnard&PortHuenemeCities
Ridgecrest,Arvin,Tehachapi&City…
BakersfieldCity(Northeast)
LACity(South/SanPedro)
BaldwinPark,Azusa,Duarte&…
Oakland(Northwest)&EmeryvilleCities
InglewoodCity
LACity(MountWashington,Highland…
NorthHighlands,FoothillFarms&…
SantaAnaCity(West)
LongBeachCity(North)
ModestoCity(West)
NorwalkCity
SanDiegoCity(Central/CentreCity&…
Petaluma,RohnertPark&CotatiCities…
ModestoCity(East)
Bayview&HuntersPoint
NapaCity
Watsonville&ScottsValleyCities
HesperiaCity&AppleValleyTown
ElCajon&SanteeCities
LA(Southwest/MarinadelRey&…
HaywardCity
HuntingtonBeachCity
PerrisCity,TemescalValley&Mead…
Arcadia,SanGabriel&TempleCity…
PalosVerdesPeninsula
Lakewood,Cerritos,Artesia&…
WindsorTown,Healdsburg&Sonoma…
Richmond(Southwest)&SanPablo…
SantaMonicaCity
Corona(Northwest)&NorcoCities
Brentwood&OakleyCities
Sunnyvale&SanJose(North)Cities
DiamondBar,LaHabraHeights(East)…
WestHollywood&BeverlyHillsCities
Murrieta&WildomarCities
LACity(Northwest/CanogaPark,…
BakersfieldCity(West)
UnionCity,Newark&Fremont(West)…
SanJose(Northwest)&SantaClara…
SanJoseCity(SouthCentral/Branham)…
Milpitas&SanJose(Northeast)Cities
TemeculaCity
SanJoseCity(Southwest/Almaden…
Home Internet penetration by PUMA

10. Internet penetration varies significantly
across CA communities – many of the worst are in LA
Source: American Community Survey 2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LACity(SouthCentral/Westmont)
LACity(Northeast/NorthHollywood&…
LACity(Southeast/EastVernon)
Selma,Kerman&CoalingaCitiesPUMA;
LACity(Central/Koreatown)
FresnoCity(Southwest)
HawthorneCity
Gardena,LawndaleCities&West…
Oxnard&PortHuenemeCities
Ridgecrest,Arvin,Tehachapi&City…
BakersfieldCity(Northeast)
LACity(South/SanPedro)
BaldwinPark,Azusa,Duarte&…
Oakland(Northwest)&EmeryvilleCities
InglewoodCity
LACity(MountWashington,Highland…
NorthHighlands,FoothillFarms&…
SantaAnaCity(West)
LongBeachCity(North)
ModestoCity(West)
NorwalkCity
SanDiegoCity(Central/CentreCity&…
Petaluma,RohnertPark&CotatiCities…
ModestoCity(East)
Bayview&HuntersPoint
NapaCity
Watsonville&ScottsValleyCities
HesperiaCity&AppleValleyTown
ElCajon&SanteeCities
LA(Southwest/MarinadelRey&…
HaywardCity
HuntingtonBeachCity
PerrisCity,TemescalValley&Mead…
Arcadia,SanGabriel&TempleCity…
PalosVerdesPeninsula
Lakewood,Cerritos,Artesia&…
WindsorTown,Healdsburg&Sonoma…
Richmond(Southwest)&SanPablo…
SantaMonicaCity
Corona(Northwest)&NorcoCities
Brentwood&OakleyCities
Sunnyvale&SanJose(North)Cities
DiamondBar,LaHabraHeights(East)…
WestHollywood&BeverlyHillsCities
Murrieta&WildomarCities
LACity(Northwest/CanogaPark,…
BakersfieldCity(West)
UnionCity,Newark&Fremont(West)…
SanJose(Northwest)&SantaClara…
SanJoseCity(SouthCentral/Branham)…
Milpitas&SanJose(Northeast)Cities
TemeculaCity
SanJoseCity(Southwest/Almaden…
Home Internet penetration by PUMA

11. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 20000 40000 60000 80000 100000 120000 140000 160000 180000
Median HH income
Home Internet in California by PUMA (in %)
Income differences explain some of the gaps between
California communities
Source: American Community Survey 2016
HomeInternetpenetration(%)

12. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 20000 40000 60000 80000 100000 120000 140000 160000 180000
Median HH income
Home Internet in California by PUMA (in %)
Income differences explain some of the gaps between
California communities …but not all
Source: American Community Survey 2016
South Central LA / Westmont
HomeInternetpenetration(%)

13. Who are the unconnected Californians?
They tend to be
• Older
• People w/disabilities
• Low-income
• Black or Hispanic

14. Significant gains in household connectivity
among older adults, but gaps remain
Source: American Community Survey 2013/2016
75.8%
90.0%
93.0%
92.5%
64.2%
82.1%
84.4%
78.8%
0% 20% 40% 60% 80% 100%
65+
50-64
30-49
18-29
Home Internet penetration in California by age group (in %)
2013 2016

15. Connectivity gains among people with disabilities:
noticeable catch-up
Source: American Community Survey 2016
67.8%
79.9%
83.1%
92.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2016
Home Internet penetration in CA by disability status
Disability No disability

16. Low internet penetration concentrated in bottom 20% income
distribution
Source: American Community Survey 2016
58.9%
71.6%
80.4%
85.9%
90.0% 92.7% 94.2% 95.8% 97.3% 97.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6 7 8 9 10
Income deciles
Home Internet penetration in California by income decile (in %)

17. Low-income households are catching up with the rest
…though still below 75%
Source: American Community Survey 2013/2016
90.4% 94.5%
63.2%
74.0%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2013 2016
Home Internet in California by Household Income
Low-income households
Other households
Low income =<80% of
median HH income

18. Income gap in full connectivity (PC + wired) remains
unchanged
Source: American Community Survey 2013/2016
83.4%
88.3%
54.3%
58.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2016
Home Internet (PC+wired only) in CA by income (in %)
Low-income households
Other households
Low income =<80% of
median HH income

19. Hispanic/white gap closing, but black/white gap
growing
Source: American Community Survey 2016
82.0%
93.5%
75.5%
82.4%
72.5%
86.9%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
2013 2016
Home Internet penetration in California, by race
White Non-Hispanic Black Hispanic

20. Who are the unconnected Californians?
They tend to be
• Older
• People w/disabilities
• Low-income
• Black or Hispanic
But: Do mobile phones help close the gap?

21. Mobile-only internet households are significantly poorer
Source: American Community Survey 2016
24.3%
23.4%
20.0%
17.4%
15.7%
13.6%
11.1%
9.4%
7.4%
6.2%
0%
5%
10%
15%
20%
25%
30%
1 2 3 4 5 6 7 8 9 10
Income decile
Mobile-only Internet households in California, by income decile (%)

22. Mobile-only internet households are significantly poorer
Source: American Community Survey 2016
24.3% 23.4%
20.0%
17.4%
15.7%
13.6%
11.1%
9.4%
7.4%
6.2%
0%
5%
10%
15%
20%
25%
30%
1 2 3 4 5 6 7 8 9 10
Income decile
Mobile-only Internet households in California, by income decile (%)
That’s almost half of the 58.9% connected household
in the bottom decile

23. Does mobile-only connectivity explain
the closing of the racial gap?
Source: American Community Survey 2016
13.8%
17.6%
20.9%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
White Non-Hispanic
Black
Hispanic
Mobile-only households in California, by race (in%)

24. Map: tiny.cc/broadbandLA
thank you!
Hernan Galperin: hgalperi@usc.edu
François Bar: fbar@usc.edu
www.arnicusc.org/research/connected-cities

26. Number of high-speed Internet Service Providers (ISPs)
by census block in LA County
Source: CPUC 2015

27. Digital inequality in Los Angeles:
Community case studies

28. Community case study: South LA (Westmont)
• Least connected community in California:
– 60% home Internet
– Almost half (26%) are mobile only
– K-12 households: 26% unconnected & 28% mobile only
• Intersectionality of factors:
– Poverty (67%)
– Black and Hispanic (94%)
– Disability (14%)

30. Community case study: East LA (Boyle Heights)
• Low home Internet adoption rate:
– 71% home Internet
– 16% households are mobile only
• Intersectionality of factors:
– Poverty (65%)
– Black and Hispanic (76%)
– Disability (15%)
– Non-English households: 67%

32. Next steps/ongoing work
• Continue to update analysis and viz tool with new data
• Partner with local organizations for community case studies
• Develop case studies of underserved populations (eg, people
with disabilities, homeless)
• Engage with policymakers and community partners to support
targeted connectivity and literacy initiatives

33. Fixed-broadband subscriptions Mobile-cellular subscriptions
Country or area Number Rank % Rank Number Rank % Rank
Liechtenstein 29,504 122 80.4 1— — — —
Monaco 13,889 140 45.5 2 15,494 138 50.8 31
Switzerland 3,317,304 27 41.9 3 3,281,402 50 41.4 39
Gibraltar 11,879 145 40.9 4 2,954 143 10.2 92
Falkland Islands[10] 1,187 179 40.5 5— — — —
Netherlands 6,598,394 16 39.4 6 10,202,005 26 61 20
Denmark 2,118,541 40 38.2 7 4,851,519 37 88.5 7
France 24,780,180 5 37.8 8 34,233,625 10 52.2 27
South Korea 18,354,447 8 37.6 9 51,810,697 9 106 4
Norway 1,736,182 44 36.9 10 3,983,527 42 84.6 8
Iceland 107,895 100 34.5 11 224,568 110 71.7 15
Belgium 3,560,000 25 34.1 12 3,520,543 47 33.7 48
Germany 27,674,074 4 34 13 33,336,214 11 41 40
United Kingdom 21,455,580 6 34 14 45,419,806 9 72 14
Cayman Islands 17,750 133 33.8 15— — — —
Canada 11,282,326 14 32.9 16 17,163,076 19 50 32
Luxembourg 165,994 87 32.6 17 369,430 100 72.6 11
Sweden 2,929,963 30 32.2 18 9,219,679 26 101.3 5
Malta 129,848 95 31.7 19 236,229 109 57.6 21
Hong Kong 2,257,221 38 31.6 20 5,256,334 34 73.5 10
San Marino 9,962 149 31 21 3,521 142 11 87
Andorra 26,346 125 31 22— — — —
Finland 1,602,457 48 30.4 23 5,606,178 33 106.5 3
United States 87,974,583 2 28 24 234,412,672 2 74.7 9
Japan 35,556,075 3 27.9 25 144,077,507 4 113.1 2
New Zealand 1,202,952 53 27.8 26 2,823,031 56 65.2 18
Saint Kitts and Nevis 13,792 141 27.2 27— — — —
Belarus 2,561,813 31 26.6 28 3,167,236 51 32.8 51
Singapore 1,396,352 50 26.1 29 6,600,483 30 123.3 1
Anguilla 3,974 163 25.8 30— — — —

35. Countries with the highest average internet connection speed as of 1st
quarter 2017 (in Mbps)

36. Countries with the largest rate of high broadband connectivity as of 1st
quarter 2017