FCC Survey: 93M Americans Disconnected From Broadband Opportunities

See FCC survey below. The survey of adults does not address K-12 digital literacy instruction of students or teachers. The issue is not just about access to broadband networks, it is also about digital literacy. Teacher librarians and computer teachers teach digital literacy, yet many school districts do not insist on digital literacy for its teachers and many schools are eliminating teacher librarians. Something is wrong with this picture.

FOR IMMEDIATE RELEASE NEWS MEDIA CONTACT:

February 23, 2010 Jen Howard, (202) 418-0506, Jen.Howard@FCC.gov

93 MILLION AMERICANS DISCONNECTED FROM BROADBAND OPPORTUNITIES

FCC Survey Finds Cost and Digital Literacy Main Barriers to Broadband Adoption

Washington, D.C. -- At the Brookings Institution today, the Federal Communications Commission released its National Broadband Plan Consumer Survey, Broadband Adoption and Use in America, which found that affordability and lack of digital skills are the main reasons why 93 million Americans -- one-third of the country -- are not connected to high-speed Internet at home.

“We need to tackle the challenge of connecting 93 million Americans to our broadband future,” said FCC Chairman Julius Genachowski. “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.”

On March 17, 2010, the Federal Communications Commission will deliver a National Broadband Plan to Congress that details a strategy for connecting the country to affordable, world-class broadband. This will be a strategy for U.S. global leadership in high-speed Internet to create jobs and spur economic growth; to unleash new waves of innovation and investment; and to improve education, health care, energy efficiency, public safety, and the vibrancy of our democracy.

As part of the plan, the FCC conducted a national random digit-dial survey of adults in October and November 2009 to assess America’s attitudes toward broadband. The Consumer Survey found that 35 percent of adult Americans do not have high-speed Internet connections at home -- or approximately 80 million adults and 13 million children over the age of five.

The survey identifies three main barriers to adoption:

· Affordability: 36 percent of non-adopters, or 28 million adults, said they do not have home broadband because the monthly fee is too expensive (15 percent), they cannot afford a computer, the installation fee is too high (10 percent), or they do not want to enter into a long-term service contract (9 percent). According to survey respondents, their average monthly broadband bill is $41.

· Digital Literacy: 22 percent of non-adopters, or 17 million adults, indicated that they do not have home broadband because they lack the digital skills (12 percent) or they are concerned about potential hazards of online life, such as exposure to inappropriate content or security of personal information (10 percent).

· Relevance: 19 percent of non-adopters, or 15 million adults, said they do not have broadband because they say that the Internet is a waste of time, there is no online content of interest to them or, for dial-up users, they are content with their current service.

The survey also found that non-adopters usually have more than one barrier that keeps them from having broadband service at home. Over half of non-adopters, when selecting from a menu of possible barriers to adoption, chose three or more. For example, more than half of non-adopters who cited cost also listed reasons relating to digital literacy or relevance.

“The gap in broadband adoption is a problem with many different dimensions that will require many different solutions,” said John Horrigan, Director of Consumer Research for the Omnibus Broadband Initiative. “Lowering costs of service or hardware, helping people develop online skills, and informing them about applications relevant to their lives are all key to sustainable adoption.”

The interaction of attitudes and use of communications goods and services creates four categories of non-adopters:

· Near Converts, who make up 30 percent of non-adopters, have the strongest tendencies toward getting broadband. They have high rates of computer ownership, positive attitudes about the Internet. Many are dial-up or “not-at-home” users, and affordability is the leading reason for non-adoption among this group. They are relatively youthful compared with other non-adopters, with a median age of 45.

· Digital Hopefuls, who make up 22 percent of non-adopters, like the idea of being online but lack the resources for access. Few have a computer and, among those who use one, few feel comfortable with the technology. Some 44 percent cite affordability as a barrier to adoption and they are also more likely than average to say digital literacy are a barrier. This group is heavily Hispanic and has a high share of African-Americans.

· Digitally Uncomfortable, who make up 20 percent of non-adopters, are the mirror image of the Digital Hopefuls; they have the resources for access but not a bright outlook on what it means to be online. Nearly all of the Digitally Uncomfortable have computers, but they lack the skills to use them and have tepid attitudes toward the Internet. This group reports all three barriers: affordability, digital literacy, and relevance.

· Digitally Distant, who make up 28 percent of non-adopters, do not see the point of being online. Few in this group see the Internet as a tool for learning and most see it as a dangerous place for children. This is an older group (the median age is 63), nearly half are retired and half say that either relevance or digital literacy are barriers to adoption.

The Consumer Survey interviewed 5,005 adult Americans between October 19 and November 23, 2009. The margin of error based on results based on the entire sample is plus or minus 1.6 percentage points. The survey included an over-sample of non-adopters, resulting in interviews of 2,334 adults who are not broadband users at home. The margin of error for results based on non-adopters is plus or minus 2.2 percentage points. Interviewers conducting the survey provide a Spanish-language option for respondents wishing to take the survey in Spanish.

See full 52-page report at Broadband Adoption and Use in America.

Federal Stimulus Fund Dollars for Public Libraries and Community Colleges

The American Library Association's Office of Information and Technology Policy (OITP) successfully advocated for more Federal Stimulus Funds for public libraries. Carrie McGuire, ALA Director, OITP Program on Networks, is to be commended.

On Friday, 1/22, Carrie hosted a "GoToWebinar" presentation for ALA members, featuring John Windhausen and Robert Bocher on "Stimulus Funds: Round 2 -- Get Connected". See archived version at http://ala.org/knowyourstimulus

John Windhausen credited ALA for upgrades to NTIA and RUS grant programs. He said that part 2 of the Stimulus Funds will have the same 3 programs as the first part:

• CCI - Comprehensive Community Infrastructure - emphasis now includes libraries as key community "anchor" entities.
• PCC - Public Computer Centers
• Sustainable broadband

Timing:
March 15 is deadline for applying for round #2; Grants will be awarded from Summer through September 30, 2010.

Scoring preference:

• Applications for programs that serve the needs of healthcare, education, children and "vulnerable populations" and unserved/underserved areas.
• Public Computer Center programs are obvious areas for libraries and community colleges, yet there is a lot of competition for this money from other community organizations.
• NEW emphasis on community colleges and training (workforce training)
• NEW emphasis on "community anchor institutions"

Priorities: (p. 12 NOFA)

• includes partnerships - govt, nonprofit, for-profit, community
• addresses economically distressed areas
• commitment to serve community colleges

Hope the end result of these grant requests and programs do what they are meant to do: provide broadband connectivity to communities and individuals who do not have access or are underserved.

Broadband Stimulous Funding - New Applications

News from the Commerce Department on Federal Broadband Grants:

Friday, January 15, 2010

Press Release: Commerce Department's NTIA and USDA's RUS Announce Availability of $4.8 Billion in Recovery Act Funding To Bring Broadband To More Americans. NTIA and RUS have released separate Notices of Funding Availability for the second and final round of the Broadband Technology Opportunities Program (BTOP) and the Broadband Initiatives Program (BIP). Hopefully, some significant dollars will benefit public libraries. ALA OTIP and others have worked hard on getting libraries and their important role in providing broadband Internet access to communities. See library-specific wording in the announcement below.

Text of press announcement:
WASHINGTON – The Commerce Department‟s National Telecommunications and Information Administration (NTIA) and USDA‟s Rural Utilities Service (RUS) today announced availability of $4.8 billion in American Recovery and Reinvestment Act (ARRA) grants and loans to expand broadband access and adoption in America. This is the second funding round for the agencies‟ broadband programs. The investment will
help bridge the technological divide, boost economic growth, and create jobs. NTIA and RUS also announced the rules for applying in this funding round, which have been modified to make the application process easier for applicants and better target program resources.

“Based on the feedback we received from stakeholders and our own experience in the first funding round, we are making the application process more user-friendly, sharpening our funding focus to make the biggest impact with this investment, and streamlining our review process to increase efficiency,” said Lawrence E. Strickling, Assistant Secretary for Communications and Information and Administrator of NTIA. “In response to lessons learned from the first funding round, RUS is making important changes that will make the process easier for applicants and target our resources toward „last-mile‟ broadband connections to homes and businesses,” said Jonathan Adelstein, Administrator, Rural Utilities Service, United States Department of
Agriculture. “This draws on our long experience in improving rural networks to the most difficult-to-reach areas of our country that need it most. We‟ve streamlined the application process, added support for satellite service for rural residents left unserved after other funds are awarded, and provided ourselves more flexibility to target areas of greatest need. We are going to stretch every last dime to maximize economic
development in rural areas that currently lack adequate broadband service.”

The agencies announced the rules for this funding round in two separate but complementary Notices of Funds Availability (NOFAs) that promote each agency‟s distinct objectives. NTIA’s Broadband Technology Opportunities Program (BTOP) NTIA‟s NOFA allocates approximately $2.6 billion in this funding round of which approximately $2.35 billion will be made available for infrastructure projects. In this round, NTIA is adopting a “comprehensive communities” approach as its top priority in awarding infrastructure grants, focusing on middle mile broadband projects that connect key community anchor institutions – such as libraries, hospitals, community colleges, universities, and public safety institutions. Comprehensive Community Infrastructure projects maximize the benefits of BTOP by leveraging resources, promoting sustainable community growth, and ultimately laying the foundation for reasonably priced broadband service to consumers and businesses.
In addition, NTIA plans to award at least $150 million of the funding for Public Computer
Center projects, which will expand access to broadband service and enhance broadband capacity at public libraries, community colleges, and other institutions that service the general public. NTIA also plans to award at least $100 million for Sustainable Broadband Adoption projects, which include projects to provide broadband education, training, and equipment, particularly to vulnerable population groups where broadband technology has traditionally been underutilized.

RUS’s Broadband Initiatives Program (BIP)
RUS‟s NOFA allocates approximately $2.2 billion in this funding round for broadband infrastructure projects. A second funding window will open later which will provide grants for satellite service for premises that remain unserved after all other Recovery Act broadband funding is awarded, make Technical Assistance grants for developing plans using broadband for regional economic development, and grants to provide broadband service to rural libraries funded by USDA under the Recovery Act.

RUS will focus this round on last mile projects, which are anticipated to receive the vast majority of funding. RUS will also fund middle mile projects involving current RUS program participants. The first NOFA had two funding options – grants up to 100 percent in remote rural areas, and 50/50 loan/grant combinations in non-remote rural areas. In the second NOFA, RUS has eliminated this distinction and adopted a base 75/25 grant/loan combination for all projects. The new approach provides RUS with flexibility to seek a waiver if additional grant resources are needed for areas that are difficult to serve, and priority for those who seek lower grant levels. RUS believes this simplified and flexible funding strategy will promote rural economic
development.

Separate NOFAs will allow applicants to apply directly to either program. RUS also eliminates the two-step process for BIP applicants to improve program efficiency. These changes will also add valuable time for applicants to focus on one specific program in preparing a more solid application.

Incorporated into the RUS NOFA is an opportunity for the reconsideration of BIP requests to provide viable applications with every chance for funding. There is also a second application review process during which RUS would allow an applicant to adjust its application to better meet program objectives and for the Administrator to provide discretionary points or to increase a grant component to meet rural economic objectives.

The agencies plan to accept applications from February 16, 2010, to March 15, 2010, and announce all awards by September 30, 2010.

The American Recovery and Reinvestment Act provided a total of $7.2 billion to NTIA and RUS to fund projects that will expand access to and adoption of broadband services. Of that funding, NTIA will utilize $4.7 billion for grants to deploy broadband infrastructure in unserved and underserved areas in the United States, expand public computer center capacity, and encourage sustainable adoption of broadband service. RUS will use $2.5 billion in budget authority to support grants and loans to facilitate broadband deployment in primarily rural communities. - # -

Libraries Get Broadband Stimulus Grants

Libraries in six states benefited the first round of awards from the $7.2-billion American Recovery and Reinvestment Act broadband grant and loan programs. See
Libraries Get Broadband Stimulus Grants | American Libraries Magazine

The award categories include: “middle mile” projects that connect communities to broadband services; “last mile” projects that connect end users such as homes, schools, libraries, or businesses to the middle mile; public computing; and sustainable adoption of broadband services.

Funding involving libraries in this initial round included:

• a $1.5-million sustainable broadband adoption grant (with an additional $591,000 in matching funds) to the New Mexico State Library to increase broadband adoption and promote computer literacy and Internet use statewide. The Associated Press reported that the program will provide small-group training at libraries in 15 communities, plus training offered by the state library to small organizations and business owners;
• a $1.3-million public computing grant (with matching funds of $320,000) to the Arizona State Library, Archives, and Public Records to enhance existing facilities in more than 80 public libraries throughout the state;
• a $1.9-million public computing grant (with matching funds of $477,000) to the city of Boston to expand computer and Internet capacity at the main library and 25 branches, 16 community centers, and 11 public housing sites;
• a $39.7-million middle-mile grant (with matching funds of $9.9 million) to telecommunications firm ION Hold Co., LLC, to build 10 new segments of fiber-optic, middle-mile broadband infrastructure that will connect more than 100 institutions—including libraries, state and community colleges, and health clinics—as well as households and businesses, in more than 70 rural communities in upstate New York and parts of Pennsylvania and Vermont.

Lots of states and groups are after the broadband stimulus money. It's not surprising to see that Boston Public Libraries are benefiting, given that is the location of ALA Mid-winter Planning Meeting.

Connecting in the 21st Century - Broadband

ALA conference offered a Sunday morning program on "Connecting inthe 21st Century". Much was an overview of what ALA surveys, papers, position statements and more that it has already done, then launched into new information.

John Windhause, SHLB Coalition Coordinator:
The $7.2B broadband funding went to both RUS (rural communities) and NTIA (intent to go to all parts of the nation). Rules for giving out funds took a long time, with ALA closely following and nudging. One new coalition created is SHLB Coalition, for schools, health, and library broadband. 45 members. Purpose is to highlight the benefits to and broadband needs of various institutions. Another purpose is to use the local links to better serve the broader community. Purpose #3 -identifies libraries and community anchor institutions. Libraries are eleigible for public computer center capacity dollars. Rules of Broadband Funding not ideal. For example, much of NTIA grants are also meant for rural communities.

Larry Strickland was just brought on as leader of NTIA. He specifically mentioned libraries. Schools, Health, and Libraries were defined as "middle mile" applicants (better than "last mile") so it should be easier for public libraries to apply for the money. They can seek fiber rings.

There are 3 rounds of funding. This one was the first one. Hopefully the rules of the next 2 rounds will be better. This is public infrastructure money.

Public computing center is a smaller bucket of money, but # applicants are smaller too. Ideal for public libraries and potentially schools. $200M minimum for the public computing center capacity funding. Some rules are still in flux (like definition of rural).

Alan Inouye - ALA OITP. Recommended actions

• Sustainable adoption category applications (20% match in cash or in-kind)
  
• Public computer center (focus on computers, software, internal connections; not clear you can increase bandwidth.)
  
• Multi-sector applications encouraged
• Which funding route should you pursue? Sooner the better, even though next 2 funding rounds give you more time to submit a better application.
• Governors get to contribute to the ranking of applications. Make sure your governor knows and values role of library in supporting public access to Internet/broadband. Get governor to help!
  
• A lot of interest and competition in the money. Manage your expectations.
• Applications will be reviewed by small group of volunteers. Be sure to have your application address how ARRA will help your community.
• A number of items to fulfill. Read application carefully.
• Worst day to submit your application is Aug 14 (deadline). Know your stimulus website = www.ala.org/knowyourstimulus
• ALA will be pushing for rule changes at NTIA. Major updates, so keep watching.

E-Rate is a way to help pay and continue to maintain your network.
Minimum of one award/state.
If your application makes it through first round, then reviewers look at it. If they deem it worthy, they send on to Governor's office. Should coordinate your school and library requests through your State Library.

NTIA Broadband Technology Opportunities Program

This post is a follow-up to the November 2008 FCC broadband hearing in San Jose.

Today's "kick-off" to the American Recovery and Reinvestment Act of 2008 Broadband Initiative took place in Washington, DC. The Public Meeting of NTIA's Broadband Technology Opportunities Program included a live webcast, viewed by at least 1,750.

Public Meeting Description: The U.S. Congress has appropriated $4.7 billion to establish a Broadband Technology Opportunities Program for awards to eligible entities to develop and expand broadband services to rural and underserved areas and improve access to broadband by public safety agencies. Of these funds, $250 million will be available for innovative programs that encourage sustainable adoption of broadband services; at least $200 million will be available to upgrade technology and capacity at public computing centers, including community colleges and public libraries; $10 million will be a transfer to the Office of Inspector General for the purposes of BTOP audits and oversight. Up to $350 million of the BTOP funding is designated for the development and maintenance of statewide broadband inventory maps.

Presenters included:

• Anna Gomez, Acting Administrator, NTIA, US Department of Commerce.
  
• Tom Vilsack, Secretary of US Department of Agriculture. See Rural Development website.
• Michael J. Copps, Acting Chair, FCC.
• Rick Wade, Senior Advisor and Acting Chief of Staff, US Department of Commerce.

Panel on Broadband initiatives, statutory requirements and timelines included:

• (Moderator) Mark Seifert, NTIA Senior Advisor
• Dr. Bernadette McGuire-Rivera, Associate Administrator, NTIA
• David Villano, Assistant Administrator for Telecommunications Programs, USDA Rural Development
• Scott M. Deuchman, Acting Senior Legal Advisor to Acting Chairman Copps, FCC.
  

The last portion of the hearing was devoted to Q&A. One of the many questions came from Alan Inouye, director of the American Library Association Office of Information Technology Policy, who asked for upcoming public meeting dates and stated that he hopes that grants to service providers will make access and discounts available to public libraries.

There will be a comment period before grant rules and regulations are determined. Then, the grants will be given out as fast as possible.

FCC Broadband Summit - 11/5 in San Jose

On Friday afternoon, I attended an FCC-NARUC Joint Conference on Advanced Services Broadband Summit in San Jose. Here are highlights:

FCC Chairman Kevin Martin made introductory remarks, as did other FCC and State Commissioners. California's Rachelle Chong said there is a need to focus on providing advanced broadband services to the "least, lost, and last" communities in America. NARUC Telecommunications Chair Ray Baum (OR) said there is a need for a broadband best practices guide. A template is being created for states and communities to submit examples.

Presenters:
Legislative Update: Broadband Mapping Bill, S. 1492, "Broadband Data Improvement Act". Purpose of Act is to give baseline statistics in order to eventually deploy broadband to all Americans. Presentation by Drew Clark, Executive Director, Broadband Census. Several state examples shown, including Massachusetts, California, and Virginia Tech "eCorridors". Broadband Census is a consumer-oriented rating service. He says the U.S. must compare to 75 cities abroad on speed, price, availability. We need to identify gaps. The Act encourages statewide initiatives, with 20% state matching funds. Created a state-by-state wiki for users to contribute.

"Future of Broadband". Presentation by Daniel Ballon, Pacific Research Institute. Broadband technologies and speeds have grown exponentially. Innovation drives broadband growth. Innovation and use is driven by CONTENT. For example, YouTube consumes more bandwidth than the entire Internet in YR 2000. Investments by Verizon and AT&T are enhancing America's competitiveness. There is a thriving broadband competition:

• A huge driver for broadband use is High Definition video-on-demand. Some main players in IP video: joost, babelgum, bling, fancast, brightcove, sezmi, veoh, and vattoo.
• Video-over-IP (videoconferencing)
• HD Videoconferencing (CISCO Telepresence, HP Halo)
• Telemedicine (referenced UCDAVIS Med Center's Dr. Thomas Nesbitt)
• Virtual Worlds (Second Life and other 3D simulations)
• Online Gaming [note: popular in many public libraries for teens and seniors]
• Cloud Computing (Google)
• Wireless. 4G Wireless networks: WIMAX and LTE (AT&T). Wireless consumers in the U.S. are leading global charge to mobile Internet.
• Satellite Internet Broadband. O3b networks. Useful because of its reach to remote and rural places. EX: Kizuna Satellite.

Dr. Ballon concluded by urging the FCC not to give unfair advantages or uneven regulations. There are multiple technologies in direct competition.

"Demand-Side Drivers of Broadband Deployment and Adoption" by Tom Koutsky of Phoenix Center for Advanced Legal and Economic Public Policy Studies. He focused on economic and demographic data. Some key indicators of demand for broadband:
+28% if child in school, this dramatically increases subscription to broadband.
All things being equal, immigrant populations in the U.S. are more likely to adopt broadband.

Formula for sound, effective broadband policy:
1- Leverage factors that have positive effect for BB adoption (i.e.: children in school, immigrant communities, younger populations)
2- Mitigate negative factors (i.e.: effect of income inequity; retired and older communities; English language)
3- Collect examples of programs that deliver (i.e.: computer training, in area w/ higher immigrant population)

Note: I asked Dr. Koutsky if he had looked at public library technology data from the Florida State University Study. He said that his wife is a librarian and a member of the American Library Association, and he was aware of the study, but had not used it. After a brief statement by me on the role of public libraries in providing access to the Internet and online library resources, especially in difficult economic times, a number of presenters included a reference to libraries.

"White Spaces: Access to the Future" (Google). This is the item that made the newspapers. Use of TV White Spaces have potential to serve the needs of rural markets. Good technical presentation. Google presenter Dan Conrad urged the FCC to open up regulation so the U.S. can experiment with this technology.