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<DIV><SPAN class=078254218-16032010><FONT color=#000080>I guess, from such
valuable and rich case studies, we can adopt and build up a National
Broadband Model of our own..</FONT></SPAN></DIV>
<DIV><SPAN class=078254218-16032010><FONT
color=#000080></FONT></SPAN> </DIV>
<DIV><SPAN class=078254218-16032010><FONT
color=#000080>Harry</FONT></SPAN></DIV>
<DIV><FONT size=2 face=Arial></FONT> </DIV>
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<H1>FCC: Cost a major barrier to broadband adoption</H1>
<DIV class=cnn_stryathrtmp>
<DIV class=cnnByline>By Marguerite Reardon
<SCRIPT type=text/javascript>cnnAuthor = "By Marguerite Reardon";</SCRIPT>
</DIV>
<DIV class=cnn_strytmstmp>
<SCRIPT type=text/javascript>if(location.hostname.indexOf( 'edition.' ) > -1) {document.write('February 23, 2010 -- Updated 1619 GMT (0019 HKT)');} else {document.write('February 23, 2010 11:19 a.m. EST');}</SCRIPT>
February 23, 2010 11:19 a.m. EST</DIV></DIV></STRONG>
<P><STRONG>Affordability is one of the main reasons why nearly one-third of
Americans do not have broadband at home, a recent Federal Communications
Commission survey found.</STRONG></P>
<P>FCC Chairman Julius Genachowski plans to discuss the findings during a speech
at the Brookings Institute on Tuesday.</P>
<P>About 93 million Americans do not have broadband Internet access at home. In
an effort to get these Americans connected to the Net, Congress has called on
the FCC to develop a national broadband plan that will detail a strategy for
getting them connected to affordable, high-speed broadband. The FCC will deliver
its plan to Congress on March 17.</P>
<P>In order to understand what is keeping many Americans from subscribing to
broadband, the FCC conducted a consumer survey of over 5,000 American adults in
late 2009.</P>
<P>The survey identified three main barriers to <FONT color=#ff00ff>adoption:
affordability, digital literacy, and relevance</FONT>. About 36 percent of the
28 million adults who said they don't subscribe to broadband at home said that
the monthly fee for broadband was is too expensive, they can't afford a
computer, or the installation fee is too high.</P>
<P>About 22 percent, or 17 million adults, indicated that they do not subscribe
to broadband at home because they lack the digital skills or are afraid of the
potential hazards of being online. And 19 percent, or 15 million people, said
they don't have broadband Internet at home because they simply don't see a need
for it.</P>
<P>The FCC's task force developing the broadband plan suspected a few months ago
before results of the survey had been completed that cost and lack of digital
skills were crucial factors in broadband adoption. The recent findings bolster
those earlier assumptions.</P>
<P>The cost of broadband service is likely to be a major barrier for low-income
families. And it is likely to explain why a disproportionate number of people in
lower income families have access to broadband at home. </P>
<P>According to the survey, 40 percent of people who live in households where
income is $20,000 per year or less have broadband at home, while 91 percent of
people living in households where the income is more than $75,000 per year have
broadband at home.</P>
<P>Chairman Genachowski said that getting these individuals connected to the Net
is crucial to the future of the country.</P>
<P>"We need to tackle the challenge of connecting 93 million Americans to our
broadband future," he said in a statement. "In the 21st century, a digital
divide is an opportunity divide. To bolster American competitiveness abroad and
create the jobs of the future here at home, we need to make sure that all
Americans have the skills and means to fully participate in the digital
economy."</P>
<P>But getting people connected won't be easy even once the barriers have been
identified. In terms of cost, it's not clear how low prices would have to go to
spur significant adoption. On average, Americans pay about $40 a month for
broadband service. In some areas of the country, the cost is higher and in some
places it is lower. Price also varies depending on the speed of the connection
and whether that connection is bundled with other services.</P>
<P>The FCC said many people who cited price as a barrier were reluctant to
answer follow-up questions about how much they were willing to pay for service.
Of the people who did answer, the survey found that responses varied from $10 to
$20 to $25 a month for service.</P>
<P>But when experts analyzed the data about how many people would actually
likely sign up for service if prices were dropped to $10 or $20 a month,
adoption rates only picked up slightly. If prices dropped to $20, experts said
that would likely only change adoption by 6 percentage points. And a $10 price
tag would only change it by about 8 percentage points.</P>
<P class=cnnInline>What this means is that cutting prices alone will probably
not have a major effect on broadband adoption. But lowering prices on service,
coupled with adding programs that teach people the digital skills they need to
access the Net while also educating them on how the Internet can enhance their
lives, could have a substantial effect.</P></DIV></BODY></HTML>