Broadband for All? Gaps in California’s Broadband Adoption and Availability

BROADBAND FOR ALL? GAPS IN CALIFORNIA'S BROADBAND ADOPTION AND AVAILABILITY
[SOURCE: California Economic Policy, AUTHOR: Jed Kolko]
Nearly half of California households have broadband Internet access. Broadband is more widely available in higher-income and higher-density areas, and there are large gaps in access between the urbanized coastal regions of California and the more rural inland areas. Differences in broadband adoption rates between different racial and ethnic groups are also significant, although some of these are due to different rates of computer ownership. The technical features of broadband, including the scale economies in providing broadband infrastructure, make some regions of California more profitable to serve than others, leading to gaps in availability. Even where broadband is available, the cost of service, as well as the cost of computer hardware, results in higher rates of adoption for some than others. However, these gaps are hard to measure. This issue of California Economic Policy assesses the extent of inequalities in broadband adoption and availability in California, using an innovative method to measure its availability. All levels of government—federal, state, and local—have policies to make broadband more widely available: Policymakers hope to raise the overall level of adoption and to close the gaps between those who have access and those who do not. This report reviews the policy approaches that California and its cities are taking to raise broadband adoption and availability, including local efforts to provide municipal Wi-Fi (wireless broadband). It concludes that broadband policy in California should focus on increasing availability in rural areas and helping raise adoption rates among disadvantaged groups in urban areas.
http://www.ppic.org/content/pubs/cep/EP_707JKEP.pdf