U.S. Department of Commerce

National Telecommunications and Information Administration

Digital Nation

Expanding Internet Usage

NTIA Research Preview

February 2011
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 2

Foreword

“This isn’t just about faster Internet or fewer dropped calls. It’s about connecting every 

part of America to the digital age. It’s about a rural community in Iowa or Alabama 

where farmers and small business owners will be able to sell their products all over the 

world. It’s about a firefighter who can download the design of a burning building onto a 

handheld device; a student who can take classes with a digital textbook; or a patient who 

can have face-to-face video chats with her doctor.”

–President Obama, State of the Union Address, January 25, 2011

The Internet is an extraordinary platform for innovation, economic growth, and social 

communication. It has become the backbone of a global digital infrastructure and an integral 

part of the information economy. Statistical reports on job growth and retail sales show the 

importance of the Internet economy. Between 1998 and 2008, the number of domestic 

information technology jobs grew 26 percent—four times faster than employment in the United 

States as a whole. Moreover, global online transactions currently total an estimated $10 trillion

annually.

As the Internet economy grows, the nature and pace of its growth depend on the ability of the

nation’s citizenry to adopt and make use of the Internet. Supply side factors, such as availability

of broadband service, are critical. Equally important, however, is the ability of consumers to

participate in online opportunities. The rapid diffusion of broadband Internet in the United 

States relative to other major technologies over time underscores how important this 

infrastructure is to Americans.

How is the United States faring? The U.S. Census Bureau’s Current Population Survey (CPS) 

data documents the continuing rise in broadband Internet adoption among Americans, 

particularly at home. Based on the survey of 54,000 households and 129,000 persons, today 

more than 68 percent of U.S. households use high-speed broadband access. At the same time, 

dial-up use continues to wane as Americans migrate in large numbers to high-speed access and 

the substantial benefits it can confer. The wave of broadband Internet adoption cuts across all 

demographic groups, in rural and urban America alike. 

There has been good progress, yet almost one-third of American households still lack a 

broadband connection. We need to make sure no one is left behind in the digital age. Significant 

gaps in Internet usage still exist among certain demographic and geographic groups around the 

country. People with college degrees adopt broadband at almost triple the rate of those with 

some high school education (84% versus 30%), among adults 25 years and older. The rates for 

White (68%) and Asian non-Hispanics (69%) exceed those for Black non-Hispanics (50%) and 

Hispanics (45%) by 18 percentage points or more. Rural America lags behind urban areas by ten 

percentage points (60% versus 70%).
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 3

Recognizing these disparities, the President recently announced a National Wireless Initiative. 

The goal of this initiative is to ensure that virtually all Americans (at least 98%) have access to 

high-speed wireless services (4G) within the next five years. The President’s initiative

represents an extraordinary opportunity to bring cost-effective, mobile broadband connectivity to 

areas currently without any broadband service. The initiative will bridge the existing gaps in 

broadband deployment, and will simultaneously serve as a catalyst for our economy—creating 

new jobs, new investment, and incentives to develop new technologies.

Moreover, the President’s wireless initiative also addresses another key issue raised by the 

survey, namely, that a significant number of households do not subscribe to broadband because 

they have inadequate computers or no computers at all. The initiative will help eliminate this 

access barrier by expanding 4G and facilitating the proliferation of mobile devices with 

computing capability. These mobile devices are significantly less expensive than computers, but 

still provide a means through which individuals can access the Internet, web applications, and 

other web services. 

In addition, policymakers continue to focus on other ways to expand broadband usage in the 

United States. In particular, the American Recovery and Reinvestment Act of 2009 established 

broadband grant and loan programs through the Broadband Technology Opportunities Program 

(BTOP) and the Broadband Infrastructure Program (BIP), funding infrastructure projects, public 

computing centers, and sustainable adoption programs in many communities across the country. 

Each of these programs aims to close the deployment and adoption gaps documented in this 

report. Similarly, the Federal Communications Commission (FCC) recently released a Notice of 

Proposed Rulemaking on ways to expand the current universal service program to include 

broadband service.

At the same time, the Administration, working in close coordination with the States, is collecting 

data on broadband at an unprecedented level. For example, the National Telecommunications 

and Information Administration (NTIA), in collaboration with the FCC, developed the

interactive National Broadband Map with data provided by the States and other stakeholders as 

part of the State Broadband Data and Development (SBDD) grant program. The map shows

broadband deployment across the United States and provides specific information about the 

available broadband technologies and speeds. 

The data collected from these programs, including data collected for the CPS survey, is essential 

to enabling the President’s wireless initiative and assisting the FCC with universal service 

reform. These efforts will also help state and local policymakers throughout the country, in 

cooperation with private partners, to make sound, fact-based decisions in this area that will 

profoundly impact America’s world competitiveness and standard of living.

Finally, consistent with this Administration’s directive to maintain a transparent and open 

government, we will make the raw survey data utilized in this report publicly available for use 

and analysis by all interested parties. 

Lawrence E. Strickling

Assistant Secretary for Communications and Information

U.S. Department of Commerce
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 4

Digital Nation

Expanding Internet Usage

NTIA Research Preview

National Telecommunications and Information Administration

Lawrence E. Strickling, Assistant 

Secretary for Communications and 

Information

Anna M. Gomez, Deputy Assistant 

Secretary for Communications and 

Information

U.S. Department of Commerce Project Team

NTIA

Office of Policy Analysis and Development

Daniel J. Weitzner, Associate Administrator 

for Policy Analysis and Development

John S. Morabito, Deputy Associate 

Administrator for Policy Analysis 

and Development

James McConnaughey, Chief Economist

Rafi Goldberg

U.S. Bureau of the Census

Demographic Surveys Division

Lisa A. Clement

Gregory D. Weyland

Ariel L. Teichman

Michael Klein

Technologies Management Office

Agatha Heesock Jung

Demographic Statistical Methods Division

Thomas F. Moore

Kimball T. Jonas

Housing and Household Economic 

Statistics Division: Population Division

Kurt J. Bauman

Hyon B. Shin

Acknowledgments

The project team would like to thank Tom Power, Kathy Smith, Josephine Arnold, Dennis 

Amari, and Catherine Schmierer of NTIA; and Beethika Khan of the Economics and Statistics 

Administration for their contributions to this report.
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 5

Executive Summary

The new millennium has witnessed a rapid rise in broadband Internet connections in the United 

States. While the growth rate of total Internet connections at home slowed somewhat after 2001, 

the number of household broadband connections grew rapidly over the last decade. As of 

October 2010, the nationwide broadband adoption rate equaled 68.2 percent of households, up 

from 63.5 percent one year earlier. Overall, the growth of broadband Internet adoption in the 

United States stems from two sources: (1) supplanting dial-up services in many households, and 

(2) expanding the market for household Internet connections. 

The nationwide trend toward widespread adoption of broadband Internet connections has 

occurred among virtually all demographic groups, with nearly universal year-over-year growth. 

Adoption and growth rates, however, are uneven among various demographic groups. Over the 

past year, gaps decreased in a number of demographic categories, but persisted with respect to 

family income, education, age, race/ethnicity, employment status, household type, and disability 

status. Gender-specific adoption rates remained at virtual parity. The average urban-rural 

differential narrowed, but a ten-percentage point gap remains. State-specific adoption varied 

widely. Almost 72 percent of Americans use the Internet at some location, increasing from 68.4 

percent twelve months prior. The most popular locations for Internet access outside the home 

are the workplace and school, followed by public libraries and “someone else’s house.” 

Nationwide, non-adoption at home for the Internet and broadband stands at 28.9 percent and 31.8 

percent of households, respectively. The proportion of all persons who do not use the Internet 

anywhere equals 28.3 percent. For households that do not connect to broadband, the reason 

given most frequently for non-adoption was “don’t need/not interested,” followed by “too 

expensive.” This ranking holds for the main sub-category of this group (i.e., those who do not 

use the Internet anywhere), but the cost factor ranks first for non-broadband households that 

either only use the Internet outside the home, or only connect through dial-up. Cost also 

becomes more important in such decisions for lower-income, and Black non-Hispanic and 

Hispanic households. Urban and rural households both rank “don’t need,” “too expensive,” and

“no/inadequate computer” as their top three reasons for non-adoption, but lack of broadband 

availability was much more significant in rural areas (9.4%) than urban locales (1.0%).

Introduction

By a variety of measures, broadband Internet is an essential part of this nation’s economic 

fabric.

1

The rate of broadband adoption has outstripped such staples as VCRs, cell phones, 

cable, color televisions, personal computers, radios, electricity, and telephones.2

 

1 This analysis stems from the 2010 Current Population Survey (CPS), which found that a household with at least 

one of the following Internet access services had broadband: DSL, cable modem, fiber optics, mobile broadband 

plan for a computer or a cell phone, satellite, or “some other service.” 

2

In the United States, broadband diffusion achieved 50 percent penetration within approximately eight years, while 

the other technologies took much longer to reach the same threshold: VCRs (12 years), cell phones (14), cable (15), 
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 6

Is there a basis for society to promote the deployment and adoption of broadband Internet? 

Although research is in its early stages, the available evidence supports the notion that broadband 

can create significant economic benefits. For example, in 2009, Professor Leonard Waverman 

concluded:

Research suggests that with the right skills and infrastructure in place, broadband 

strategies could increase national productivity and growth by up to 15%. This 

productivity improvement will increase GNP without increasing resources used in 

production. For example, the U.S. could increase its GDP by $100 billion with an 

increase of 10 additional broadband lines per 100 individuals.3

The same year, two Harvard Business School researchers estimated that Americans whose jobs 

related to the Internet contributed approximately $300 billion of economic activity to the United 

States’ Gross Domestic Product. The researchers calculated that the direct and indirect economic 

value of the services that the Internet provided to the rest of the U.S. economy equaled $444 

billion.4 In addition, the Economic Development Administration (EDA) performed an 

econometric study of communities from 1998-2002, and found that the “results support[ed] the 

view that broadband access does enhance economic growth and performance, and that the 

assumed (and oft-touted) economic impacts of broadband are real and measurable.”

5

In the analysis below, NTIA examines the data collected in the CPS. The special Internet Use 

Supplement, attached to the CPS, periodically surveys approximately 54,000 households and 

gathers information on some 129,000 persons.6The Census Bureau conducted its ninth survey in 

October 2010.

7

This report documents the rapid growth of both broadband and the Internet in 

 

color TVs (18), personal computers (19), radios (28), electricity (52), and telephones (71). See Adam Thierer, On 

Measuring Technology Diffusion Rates, THE TECHNOLOGY LIBERATION FRONT (May 8, 2009), 

http://techliberation.com/2009/05/28/on-measuring-technology-diffusion-rates/#; ECONOMIC STATISTICS 

ADMINISTRATION & NATIONAL TELECOMMUNICATIONS & INFORMATION ADMINISTRATION, A NATION ONLINE:

ENTERING THE BROADBAND AGE, at fig.2 (2004); infra, at 7 fig.1.

3 Leonard Waverman, London Business School, & LECG, Connectivity Scorecard (2009), available at 

http://www.nokiasiemensnetworks.com/news-events/press-room/press-releases/study-shows-significant-economicbenefits-from-broadband-if-ov.

4

See John Deighton et al., Economic Value of the Advertising-Supported Internet Ecosystem (2010), available at

http://www.iab.net/media/file/Economic-Value-Report.pdf.

5

Sharon Gillett et al., Measuring the Economic Impact of Broadband Deployment: Final Report to the Economic 

Development Administration (2006), available at

http://www.eda.gov/PDF/2006%20Measuring%20Broadband%20Report.pdf.

6

For household-level estimates based on the total sample, the error attributable to sampling and other random 

effects at the 90 percent confidence level is no more than plus or minus 0.35 percentage points based on a standard 

error (SE) of 0.21 percentage points. For results based on Internet households, the margin of sampling error is no 

more than plus or minus 0.41 percentage points, based on a SE of 0.25 percentage points.

7 NTIA has wholly or partially funded the surveys, with the help of the Economics and Statistics Administration, for 

the CPS Computer and Internet Use Supplements in 1994, 1997, 1998, 2000, 2001, and 2003, and Internet Use 

Supplements in 2007, 2009, and 2010. The data became the basis for the Commerce reports, FALLING THROUGH 

THE NET (1995, 1998, 1999, 2000) and A NATION ONLINE (2002, 2004), and provided input into the NTIA report 

NETWORKED NATION: BROADBAND IN AMERICA (2007). October 2009 CPS data underpinned the first two reports in 

the Digital Nation report series, issued in February and November 2010. These reports are available on NTIA’s 

website at http://www.ntia.doc.gov.
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 7

general, and examines how increases in adoption varied by demographic groups and geographic 

areas. Finally, it examines the major reasons why some Americans do not access broadband 

Internet at home. The raw data that underlies this report is available at 

http://www.ntia.doc.gov/data/index.html and can be found through dataset pointers at 

http://www.data.gov.

8

Access and Use

Over the last decade, the number of household broadband Internet connections in the United 

States has risen rapidly. In August 2000, home broadband connections were quite rare, present 

in just 4.4 percent of households. Internet use in general had already become relatively popular, 

with connections in 41.5 percent of households, but the vast majority of Internet-using 

Americans relied on dial-up service at home. By October 2010, however, the landscape shifted 

dramatically, with 68.2 percent of households connecting via broadband, while 2.8 percent of 

households used dial-up service (see Figure 1).

As Figure 1 shows, the growth in broadband connections accelerated during most of the last 

decade, but the rate of growth in total Internet connections at home slowed after 2001. Overall, 

broadband Internet adoption in the United States traces its growth to two phenomena: 

(1) supplanting dial-up services in many households, and (2) expanding the market for household 

Internet connections. These numbers suggest that Americans have developed a strong preference 

for high-speed connections and the applications they enable. Although the gap between home 

 

8

For historical CPS data used in this report, see “Internet and Computer Use Data” at 

http://www.bls.census.gov/cps_ftp.html#cpssupps.

36.6

42.1

51.0

56.2

61.8

18.6

26.2

41.5

50.3

54.6

61.7

68.7 71.1

4.4

9.1

19.9

50.8

63.5

68.2

93.8 94.2 94.4 94.9 94.7 94.9 95.7

96.0

Oct 97

Nov 97 Nov 98

Dec 98

Jul 00

Aug 00 Sep 01

Nov 01

Oct 03

Nov 03

Oct 07

Nov 07

Oct 09

Nov 09

Mar 10

Oct 10

0

10

20

30

40

50

60

70

80

90

100

Percent of U.S. Households

Figure 1: Households with Computers, Telephone Subscriptions, and 

Internet Access, Selected Years, 1997-2010*

Computer Internet Broadband Internet Telephone

* Note: 2001-2010 use 2000 Census-based weights and earlier years use 1990 Census-based weights.
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U.S. Department of Commerce: National Telecommunications and Information Administration 8

broadband Internet adoption and telephone subscribership has narrowed over time, household 

use of broadband currently remains more than 25 percentage points behind. 

The nationwide trend toward increased adoption of broadband Internet connections is observable

among virtually all demographic groups, with year-over-year growth present almost universally. 

However, adoption and growth rates are uneven among various demographic groups, and such 

disparities warrant further investigation.

Use by Family Income

Broadband use has consistently correlated positively with family income. Low income persons 

are less likely to use broadband at home than their more affluent peers, with the October 2010 

data ranging from a 32.1 percent adoption rate among persons with $15,000 or less in annual 

family income, to 89.6 percent adoption among those with family incomes in excess of $150,000

(see Figure 2).

This trend in income-based adoption disparity appeared in the October 2009 and October 2007

data. A time-series comparison suggests that this form of digital divide is slowly shrinking. For 

example, broadband adoption in the $15,000-24,999 income range grew by 7.4 percentage 

points—an impressive 21 percent increase—between October 2009 and October 2010, while 

adoption in the $100,000-149,999 range increased by less than one percent during the same 

29.2

35.2

45.0

58.7

70.0

78.7

84.9

88.7

32.1

42.6

50.6

63.4

73.6

80.8

85.5

89.6

0

10

20

30

40

50

60

70

80

90

100

Percent of All Persons Ages 3 +

Family Income Range

Figure 2: Persons Using Broadband in the Home by Family Income, 2009-2010

October 2009 October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 9

period. Similarly, higher growth among lower income groups also occurred between October 

2007 and October 2009.9

Use by Education

Education is a particularly strong predictor of broadband use. While adults possessing at least a 

bachelor’s degree are very likely to use broadband Internet at home (84.2%), individuals whose 

education ended with a high school diploma have a 51.4 percent adoption rate. Broadband 

Internet use drops even further among those without diplomas (see Figure 3).

10

 

9

See NATIONAL TELECOMMUNICATIONS & INFORMATION ADMINISTRATION, DIGITAL NATION: 21ST CENTURY 

AMERICA’S PROGRESS TOWARD UNIVERSAL BROADBAND INTERNET ACCESS, at fig. 2 (Feb. 2010), available at 

http://www.ntia.doc.gov/reports/2010/NTIA_internet_use_report_Feb2010.pdf. 

10 This figure statistically draws from a pool of adults 25 years and older, thereby excluding a skewing of the results 

that would arise from including younger persons, such as current high school students.

15.2

29.5

51.4

71.8

84.2

0

10

20

30

40

50

60

70

80

90

Elementary/0-8 

Years

Some High School 

(No Diploma)

High School 

Diploma/GED

Some College Bachelor's Degree 

or More

Percent of All Persons Ages 25 +

Educational Attainment

Figure 3: Persons Using Broadband in the Home by Education, 2010

October 2010
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U.S. Department of Commerce: National Telecommunications and Information Administration 10

Use by Age

As was the case in the previous year, 18-24 year olds continued to show the highest rate of 

broadband use, while the lowest adoption rate was among persons ages 55 and older (see Figure 

4). Seniors did exhibit one of the largest growth rates (4.0 percentage points), and the disparity 

in broadband use among older Americans compared with their younger peers narrowed slightly 

in the October 2010 data. The very modest year-over-year decline for 18-24 year olds, if 

statistically significant, was inconsistent with prevailing trends. 

58.5

80.8

68.2 69.3

65.8

46.1

60.6

80.5

71.5 73.7

68.5

50.1

0

10

20

30

40

50

60

70

80

90

5-17 Years 18-24 Years 25-34 Years 35-44 Years 45-54 Years 55+ Years

Percent of All Persons Ages 3 +

Age Range

Figure 4: Persons Using Broadband in the Home by Age, 2009-2010

October 2009

October 2010
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U.S. Department of Commerce: National Telecommunications and Information Administration 11

Use by Race and Ethnicity

The theme of persistent but slowly narrowing demographic disparities also holds for race and 

ethnicity (see Figure 5). Asian non-Hispanic Americans continued to lead in broadband use at 

home with a 68.8 percent adoption rate,11 while White non-Hispanics have nearly closed a 

modest gap by growing to 68.3 percent adoption. Significant disparities, however, remained

among other race and ethnic groups, with none exceeding broadband use of greater than 50 

percent. Black non-Hispanics, American Indian/Alaskan Native non-Hispanics, and Hispanics 

are experiencing higher growth rates in adoption (similar to what NTIA observed in last year’s 

comparison of 2007 and 2009 data), providing some evidence that these disparities are shrinking.

 

11 While not reflected here, significant disparities can exist among the sub-groups that make up a racial or ethnic 

category.

65.7

45.9

42.6

67.3

39.7

68.3

49.9

46.1

68.8

45.2

0

10

20

30

40

50

60

70

80

Percent of All Persons Ages 3 +

Race and Ethnicity

Figure 5: Persons Using Broadband in the Home by Race and Ethnicity, 

2009-2010

October 2009

October 2010

* American Indian/Alaskan Native
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U.S. Department of Commerce: National Telecommunications and Information Administration 12

Use by Employment Status

While broadband use has increased among the employed, unemployed, and individuals who were 

not in the labor force, disparities between these groups persist (see Figure 6). As of October 

2010, 73.4 percent of employed Americans were broadband users, compared with 61.9 percent 

of the unemployed and 50.5 percent of individuals not in the labor force. This category includes 

only individuals ages 16 and older, so that children who are not old enough to work do not skew 

the numbers.

70.5

58.4

46.2

73.4

61.9

50.5

0

10

20

30

40

50

60

70

80

Employed Unemployed Not in Labor Force

Percent of All Persons Ages 16 +

Employment Status

Figure 6: Persons Using Broadband in the Home by Employment, 2009-2010

October 2009

October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 13

Use by Household Type

Married couples with children less than 18 years of age retained the highest rate of household 

broadband adoption in 2010, while non-family households continued to lag behind all other 

groups (see Figure 7). Family households without children had the second highest incidence of 

broadband use, while single-parent households with children were in the middle of the range.

79.8

60.0

56.9

67.7

50.8

83.9

68.3

63.1

72.2

55.4

0

10

20

30

40

50

60

70

80

90

Mar. Couple w/ 

Child < 18

Male Hhldr. w/ Child 

< 18

Female Hhldr. w/ 

Child < 18

Family Hhld. w/o 

Child < 18

Non-Family 

Households

Percent of U.S. Households

Household Type

Figure 7: Households with Broadband Internet Connections at Home by 

Household Type, 2009-2010

October 2009

October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 14

Use by Gender

The gap in broadband use between males and females continued to be very small, with home 

broadband use among 62.3 percent of males and 62.0 percent of females. This is consistent with 

the October 2009 data (see Figure 8). This parity between genders dates back to at least August 

2000, when approximately 45 percent of both males and females responded that they used the 

Internet anywhere (i.e., inside or outside the home).

59.3 59.0

62.3 62.0

0

10

20

30

40

50

60

70

80

Male Female

Percent of All Persons Ages 3 +

Gender

Figure 8: Persons Using Broadband in the Home by Gender, 2009-2010

October 2009 October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 15

Use by Disability Status

In the November 2010 Commerce Department study, NTIA began tracking broadband adoption 

by disability or impairment status.12 Based on October 2010 CPS data, Americans with 

disabilities are dramatically less likely to use broadband at home than the population without 

disabilities. While 68.0 percent of persons not reporting a disability use broadband at home, the 

adoption rate for persons with disabilities consistently lagged in a direct comparison (see 

Figure 9). Among the categories of persons with disabilities, the highest rate of broadband 

adoption occurred in those who are either deaf or have difficulty hearing (36.5%), followed by 

those with difficulty concentrating or remembering (35.3%). The adoption rates for each of the 

other disability categories were roughly less than half the adoption rate for those who reported no 

disability in October 2010.

13 As a group, 37.5 percent of persons with disabilities adopted 

broadband at home.

 

12 See ECONOMIC STATISTICS ADMINISTRATION & NATIONAL TELECOMMUNICATIONS & INFORMATION 

ADMINISTRATION, EXPLORING THE DIGITAL NATION: HOME BROADBAND INTERNET ADOPTION IN THE UNITED 

STATES, at ch.7 (Nov. 2010), available at

http://www.ntia.doc.gov/reports/2010/ESA_NTIA_US_Broadband_Adoption_Report_11082010.pdf.

13 As set forth in EXPLORING THE DIGITAL NATION, supra note 12, when controlling for factors such as income, 

education, age, race, ethnicity, foreign-born status, household size, and geographic location, the adoption gap 

between those with no disability and those with a disability equaled only five percentage points in October 2009. 

This report does not undertake that “marginal effects” analysis.

68.0

27.9

36.5

30.7

27.8

33.7 35.3

0

10

20

30

40

50

60

70

80

Percent of All Persons Ages 16 +

Disability Status

Figure 9: Persons Using Broadband in the Home by Disability Status, 2010

October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 16

Use by Location

An urban-rural differential continued to exist in 2010 (see Figure 10). The differential, however, 

decreased during the past year, from 11.8 to 10.1 percentage points. Three years earlier, in 2007, 

the gap was 15.0 percentage points (53.8% versus 38.8%). 

65.9

54.1

70.3

60.2

0

10

20

30

40

50

60

70

80

Urban Rural

Percent of U.S. Households

Population Density

Figure 10: Households Using Broadband in the Home by Population

Density, 2009-2010

October 2009

October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 17

Beyond the differential based on population density, major differences in broadband use existed

among the various states. An estimated 79.7 percent of households in Utah had broadband 

access, compared with 51.7 percent of households in Mississippi. The remaining states occupied 

the entire range in between (see Figure 11).

Internet Use Anywhere

In 2010, the incidence of Internet use anywhere (i.e., inside or outside the home) by Americans 

totaled 71.7 percent (209.4 million persons, ages three and older). This represented an increase 

from 68.4 percent (197.9 million) in 2009. Similar to the broadband pattern, all demographic 

categories with respect to Internet use anywhere experienced rising adoption over time, but 

historical demographic differences in use have continued. The urban-rural gap in Internet use 

anywhere receded from 4.4 percentage points (69.3% versus 64.9%) in 2009, to 3.6 percentage 

points (72.4% versus 68.8%) in 2010. 

Upper Bound Lower Bound Upper Bound Lower Bound

Utah 79.7 81.9 77.6 Illinois 68.7 70.3 67.2

New Hampshire 77.8 80.3 75.3 Georgia 68.6 70.4 66.8

Washington 76.7 78.6 74.8 Delaware 68.4 71.1 65.7

Massachusetts 75.9 77.9 73.9 Iowa 67.5 70.2 64.8

Connecticut 74.8 77.3 72.3 Maine 67.4 70.3 64.5

Oregon 74.7 77.2 72.2 Pennsylvania 67.4 69.0 65.8

Kansas 74.6 77.1 72.1 Texas 66.8 68.0 65.6

Nevada 74.2 76.7 71.7 Michigan 66.3 68.1 64.5

Arizona 74.2 76.3 72.1 South Dakota 65.5 68.0 63.0

Maryland 74.1 76.4 71.9 North Carolina 65.1 67.0 63.2

Alaska 73.4 76.0 70.8 Missouri 64.3 66.7 62.0

New Jersey 73.3 75.2 71.4 Ohio 63.9 65.6 62.2

California 73.1 74.0 72.2 Oklahoma 62.5 65.2 59.8

Wyoming 72.9 75.5 70.3 Montana 61.4 64.0 58.8

Idaho 72.0 74.5 69.5 Louisiana 60.5 63.2 57.8

District of Columbia 71.7 74.2 69.2 South Carolina 59.5 62.2 56.8

Colorado 71.6 74.0 69.2 Tennessee 59.5 61.8 57.2

North Dakota 70.9 73.4 68.4 West Virginia 59.1 61.7 56.5

Rhode Island 70.7 73.4 68.0 Indiana 58.8 61.1 56.5

Minnesota 70.6 72.9 68.3 Kentucky 57.8 60.6 55.0

Wisconsin 70.5 72.8 68.3 New Mexico 57.7 60.5 54.9

Florida 70.2 71.4 69.0 Alabama 55.5 58.2 52.9

Virginia 69.5 71.5 67.5 Arkansas 52.4 55.1 49.7

Vermont 69.2 72.0 66.4 Mississippi 51.7 54.5 48.9

Hawaii 69.2 71.9 66.5 Note: States are ordered by estimated household broadband usage

New York 69.0 70.3 67.7 rate for ease of understanding and not as a ranking. Rates should be

Nebraska 68.9 71.6 66.2 understood in the context of their associated confidence intervals.

Figure 11: Households Using Broadband in the Home by State, 2010

State

% w/ Broadband 

Internet

90% Confidence Interval

State

% w/ Broadband 

Internet

90% Confidence Interval
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 18

Use Outside the Home

While our primary focus is on broadband use at home, Americans are also using the Internet in 

other locations.14 The most popular locations for Internet access outside the home are the 

workplace (40.2%) and school (27.3%). Public libraries (11.3%) and “someone else’s house” 

(9.0%) represent other important locations often utilized for this purpose (see Figure 12).

 

14 Because a household measure is less useful than a per person measure in gauging Internet or broadband use 

outside the home, this sampling does not use household measures. The universe of persons in this section includes 

all Americans three years old and above.

40.2

27.3

11.3

1.3

5.7

9.0

4.9

0

5

10

15

20

25

30

35

40

45

Percent of All Persons Ages 3 +

Location

Figure 12: Persons Using Internet Outside the Home by Location, 2010

October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 19

Non-Adoption

For policymakers, non-adoption of broadband Internet—the obverse of this report’s focus thus 

far—merits special attention. The CPS data revealed that both non-adoption of Internet (28.9%) 

and broadband at home (31.8%) equaled less than one-third of U.S. households (see Figure 13). 

In 2007, the respective non-use rates were 37.6 percent and 49.2 percent. Both categories 

exhibited a decline during 2009-2010: no Internet use decreased by 2.4 percentage points; no 

broadband use decreased by 4.7 percentage points. Regarding non-adoption anywhere (i.e., 

neither at home nor outside the home), the incidence decreased from 31.6 percent of all persons 

three years old and older in 2009, to 28.3 percent in 2010. 

36.5

31.3

31.8

28.9

0

5

10

15

20

25

30

35

40

No Broadband Use at Home No Internet Use at Home

Percent of U.S. Households

Non-Use Category

Figure 13: Households with No Internet Use and No Broadband Use at 

Home, 2009-2010

October 2009

October 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 20

Reasons for Non-Adoption

Thirty-eight million households in the United States do not access broadband Internet at home. 

In both 2009 and 2010, the reason given most frequently for non-adoption was “don’t need/not 

interested,” followed by “too expensive” (see Figure 14). With one exception, this ranking order 

held true first for the Internet beginning in December 1999, and later, broadband.15 In 2010, lack 

of interest scored higher than ever before, at 45.6 percent, up from 37.8 percent the prior year. 

The cost factor decreased from 26.3 percent to 25.3 percent during the same interval. Home 

computer deficiencies ranked third, but also fell from 18.3 percent to 14.2 percent. Lack of 

availability also declined as a main reason, from 3.6 percent to 3.1 percent. By contrast, using 

broadband access somewhere else increased as a rationale, from 4.4 percent to 4.9 percent. 

 

15 The exception occurred in the September 2001 CPS, where cost (22%) surpassed “don’t want” (20%). See

ECONOMIC STATISTICS ADMINISTRATION & NATIONAL TELECOMMUNICATIONS & INFORMATION ADMINISTRATION,

A NATION ONLINE: HOW AMERICANS ARE EXPANDING THEIR USE OF THE INTERNET, at fig 8-3 (2002).

Don't Need/Not 

Interested, 37.8

Don't Need/Not 

Interested, 45.6

Too Expensive, 26.3

Too Expensive, 25.3

No/Inadequate 

Computer, 18.3

No/Inadequate 

Computer, 14.2

Not Available, 3.6 Not Available, 3.1 Can Use Elsewhere, 4.4 Can Use Elsewhere, 4.9

Other, 9.6 Other, 6.9

0

10

20

30

40

50

60

70

80

90

100

October 2009 October 2010

Percent of Households Without Broadband

Figure 14: Main Reason for No High Speed Internet Use at Home, 2009-2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 21

Demographic Differences in Non-Adoption

The next two tables (Figures 15 and 16) show the different reasons reported for not having 

broadband, based on family income and race. For family income, “too expensive” and 

“no/inadequate computer” became less prominent reasons as income increased, displaced in part 

by lack of availability and other choices. Budgetary and equipment concerns appeared to be 

important deterrents to broadband adoption among low-income households, while high-income 

households without broadband more likely lack interest or availability (see Figure 15).

Reasons for not using broadband also varied when examined by race. White and Asian nonHispanics, who had the highest rates of broadband adoption, had non-users whose top-rated 

reason for eschewing broadband at home was, overwhelmingly, “don’t need/not interested.” 

Other racial or ethnic groups, however, were more likely to list “too expensive” or 

“no/inadequate computer,” with those two responses exceeding 50 percent among Hispanics, 

compared with just over one-third of White non-Hispanics (see Figure 16).
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 22 Don't Need/Not Interested, 39.9 Don't Need/Not Interested, 44.3 Don't Need/Not Interested, 45.6 Don't Need/Not Interested, 41.7 Don't Need/Not Interested, 43.2 Don't Need/Not Interested, 42.2 Don't Need/Not Interested, 45.8 Don't Need/Not Interested, 48.1 Too Expensive, 32.6 Too Expensive, 27.0 Too Expensive, 25.9 Too Expensive, 24.5 Too Expensive, 18.2 Too Expensive, 16.9 Too Expensive, 14.7 Too Expensive, 13.5

No PC*, 16.8

No PC*, 15.6

No PC*, 12.4

No PC*, 14.4

No PC*, 12.3

No PC*, 9.6 No PC*, 7.7

No PC*, 10.2

Not Available, 1.1

Not Available, 2.1

Not Available, 2.8

Not Available, 4.0

Not Available, 7.2

Not Available, 11.3 Not Available, 13.7 Not Available, 8.3

Can Use Elsewhere, 3.5 Can Use Elsewhere, 3.6

Can Use Elsewhere, 5.5

Can Use Elsewhere, 6.5

Can Use Elsewhere, 9.6 Can Use Elsewhere, 9.4 Can Use Elsewhere, 6.9 Can Use Elsewhere, 8.2

Other, 6.2 Other, 7.3 Other, 7.8 Other, 9.0 Other, 9.5 Other, 10.4 Other, 11.3 Other, 11.7

0

10

20

30

40

50

60

70

80

90

100

< $15,000 $15,000-$24,999 $25,000-34,999 $35,000-49,999 $50,000-74,999 $75,000-99,999 $100,000-149,999 $150,000 +

Percent of Households Without Broadband

Family Income Range

Figure 15: Main Reason for No High Speed Internet Use at Home by Family Income, 2010

* Respondent indicated having either no computer at home or one inadequate for broadband Internet applications.
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 23 Don't Need/Not Interested, 50.5 Don't Need/Not Interested, 39.4 Don't Need/Not Interested, 37.6 Don't Need/Not Interested, 45.8 Don't Need/Not Interested, 34.7 Too Expensive, 20.9 Too Expensive, 31.2 Too Expensive, 24.5 Too Expensive, 20.5 Too Expensive, 35.9

No PC*, 12.8 No PC*, 16.3

No PC*, 20.4

No PC*, 15.9

No PC*, 16.1

Not Available, 4.3 Not Available, 1.2

Not Available, 3.9

Not Available, 1.1

Not Available, 1.0

Can Use Elsewhere, 4.7 Can Use Elsewhere, 5.5 Can Use Elsewhere, 8.3

Can Use Elsewhere, 5.1

Can Use Elsewhere, 4.7

Other, 6.8 Other, 6.4 Other, 5.4

Other, 11.6

Other, 7.6

0

10

20

30

40

50

60

70

80

90

100

White Non-Hispanic Black Non-Hispanic AI/AN Non-Hispanic Asian Non-Hispanic Hispanic

Percent of Households Without Broadband

Race and Ethnicity

Figure 16: Main Reason for No High Speed Internet Use at Home by Race and Ethnicity, 2010

* Respondent indicated having either no computer at home or one inadequate for broadband Internet applications.
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 24

Population density also affected reasons for non-adoption of broadband (see Figure 17). While 

the top-ranked reason for both urban and rural areas was “don’t need/not interested” (45.4%

versus 46.1%), respondents in urban areas cited cost more often than their rural counterparts

(26.7% versus 21.1%). Computer deficiencies (14.6% versus 12.9%) and “can use elsewhere” 

(5.4% versus 3.7%) also weighed more heavily in urban locales. By contrast, lack of broadband 

availability, as a barrier in rural areas (9.4%), outranked the corresponding impact in urban 

America (1.0%).

Don't Need/Not 

Interested, 45.4

Don't Need/Not 

Interested, 46.1

Too Expensive, 26.7 Too Expensive, 21.1

No/Inadequate 

Computer, 14.6 No/Inadequate 

Computer, 12.9

Not Available, 1.0 Not Available, 9.4

Can Use Elsewhere, 5.4 Can Use Elsewhere, 3.7

Other, 7.0 Other, 6.7

0

10

20

30

40

50

60

70

80

90

100

Urban Rural

Percent of Households Without Broadband

Population Density

Figure 17: Main Reason for No High Speed Internet Use at Home

by Population Density, 2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 25

Types of Broadband Non-Users

It is useful to disaggregate households lacking high-speed access at home into three subcategories, thus permitting additional insights for policymakers: (1) households that do not use 

the Internet anywhere; (2) households that do not have an Internet connection, but had users 

outside the home; and (3) households with only a dial-up connection. 

Among households lacking high-speed access at home, almost two-thirds (62.3 %) reported no 

Internet usage anywhere. “Don’t need/not interested” (58.1%) far exceeded any other reason 

provided by these non-Internet users and rose almost 11 percentage points from the prior year, 

when it stood at 47.2 percent (see Figure 18). In 2010, “too expensive” became the second mostcited reason despite slipping 0.6 percentage points, to 18.0 percent, during 2009-2010. The third 

most prominent reason, “no/inadequate computer,” declined to 15.7 percent during the same 

period.

Don't Need/Not 

Interested, 47.2

Don't Need/Not 

Interested, 58.1

Too Expensive, 18.6

Too Expensive, 18.0

No/Inadequate 

Computer, 22.3

No/Inadequate 

Computer, 15.7

Not Available, 0.7

Not Available, 0.4 Can Use Elsewhere, 1.4 Can Use Elsewhere, 1.3

Other, 9.8 Other, 6.5

0

10

20

30

40

50

60

70

80

90

100

October 2009 October 2010

Percent of Households With No Internet Users

Figure 18: Main Reason Provided by Non-Internet Users, 2009-2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 26

The second sub-category, households that lacked an Internet connection, but had users outside 

the home, accounted for 28.9 percent of the “no home broadband” category and included

different reasons for non-adoption. For this group, cost ranked highest at 38.7 percent in 2010

(see Figure 19). “Don’t need/not interested” increased by almost six (5.9) percentage points 

from 2009 to 22.6 percent in 2010. “No/inadequate computer” and “can use elsewhere” both 

declined over the two-year period, settling at 14.6 and 13.7 percent, respectively. Lack of 

availability decreased one percentage point to 1.7 percent in 2010.

Don't Need/Not 

Interested, 16.7

Don't Need/Not 

Interested, 22.6

Too Expensive, 39.8

Too Expensive, 38.7

No/Inadequate 

Computer, 16.9

No/Inadequate 

Computer, 14.6

Not Available, 2.7 Not Available, 1.7

Can Use Elsewhere, 14.8 Can Use Elsewhere, 13.7

Other, 9.3 Other, 8.8

0

10

20

30

40

50

60

70

80

90

100

October 2009 October 2010

Percent of Households With No Internet Connection

Figure 19: Main Reason for No Internet Connection at Home, 2009-2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 27

The third sub-category, households with only dial-up Internet access, was the smallest group at 

8.9 percent of households lacking broadband. As with the second sub-category (“only Internet 

use outside the home”), “too expensive” was the most frequently cited main reason for nonadoption, though dropping markedly from 2009 (41.3%) to 2010 (33.5%) for the dial-up group

(see Figure 20). By 2010, “don’t need/not interested” had increased almost five percentage 

points, nearly overtaking cost for the top spot at 32.5 percent. Lack of broadband availability 

also ranked highly for this group, rising almost seven percentage points between 2009 and 2010. 

This surprising development might be explained by the difficulty of overcoming lack of 

availability as a barrier, as compared with other reasons, as the pool of dial-up users shrinks

rapidly (from 5.6 million households in 2009 to 3.4 million in 2010). 

Don't Need/Not 

Interested, 27.3

Don't Need/Not 

Interested, 32.5

Too Expensive, 41.3 Too Expensive, 33.5

No/Inadequate 

Computer, 1.1 No/Inadequate 

Computer, 1.6

Not Available, 19.9 Not Available, 26.7

Can Use Elsewhere, 1.6

Can Use Elsewhere, 1.7 Other, 8.9 Other, 3.8

0

10

20

30

40

50

60

70

80

90

100

October 2009 October 2010

Percent of Households With Dial-up Only

Figure 20: Main Reason for No Broadband in Households with Dial-up 

Internet Access, 2009-2010
Digital Nation: Expanding Internet Usage

U.S. Department of Commerce: National Telecommunications and Information Administration 28

Conclusion

Today, more than two-thirds (68.2%) of U.S. households enjoy broadband Internet access at 

home. This represents an increase of almost five percentage points since 2009 (63.5%) and more 

than 17 percentage points since 2007. As a group, an estimated 209 million Americans—about 

72 percent of all adults and children ages three years and older—use the Internet somewhere, 

whether it be at home, the workplace, schools, libraries, or a neighbor’s house. Americans have 

developed a strong preference for high-speed connections and the applications they enable. Why 

does it matter? Available evidence supports the notion that broadband can create significant 

economic benefits for those who adopt it. In a global economy and the huge market it 

represents, this advantage could make the difference between those who succeed and those who 

do not. This resource can impact our nation’s job base, productivity, competitiveness, economic 

growth, and ultimately, our standard of living.

Given the high stakes, it matters that we are leaving some individuals behind, particularly with 

respect to high-speed Internet at home. The good news is that the digital divide has receded 

somewhat in recent years. Non-adoption rates in the U.S. for home broadband (31.8% of 

households), home Internet (28.9% of households), and Internet used anywhere (28.3% of all 

persons) comprised less than one-third of the nation and were at new lows. Over 80 million 

(81.6 million) households have adopted broadband, but 38.0 million do not have such 

connectivity. Unfortunately, too many people with low incomes, less education, or disabilities,

as well as unemployed individuals or seniors, certain minorities, and non-family households, are 

on the wrong side of the divide. The rural-urban disparity has decreased, but still persists. Major 

differences still exist across states.

Overall, the two most frequently cited reasons for not having broadband Internet access at home 

were “don’t need/not interested” in it (46%) or “too expensive” (25%). “No/inadequate 

computer” (14%) ranked third. This ranking order held for the main sub-category of this group

(non-Internet users), but the cost factor rated first for dial-up households and those that only used

the Internet outside the home. Cost also became more important in such decisions for lowerincome, and Black non-Hispanic or Hispanic households. Urban and rural households both 

ranked “don’t need,” “too expensive,” and “no/inadequate computer” as their top three reasons, 

but lack of broadband availability was much more important for rural areas (9.4%) than urban 

locales (1.0%).

This study serves to identify demographic and geographic trends, particularly for home 

broadband adoption in the United States, and to understand the main reasons why some U.S. 

households remain unconnected. Coupled with the NTIA-FCC interactive National Broadband 

Map, also issued today, these facts can be the linchpin for sound public decision-making and 

ensure that all Americans participate in the twenty-first century economy. Finally, we have 

made these findings and the associated data available for public use, including use by researchers 

and policy analysts, to further the policy debate and, ultimately, to enhance the public’s wellbeing.