Broadband adoption is on the rise, but so are monthly bills, according to a Wednesday report from the Pew Internet and American Life Project.
About 63 percent of American adults now have broadband connections at home, up 15 percent from the same time last year. Unfortunately, an increased customer base has not prompted a drop in price from providers. The average monthly price for broadband in April 2009 was $39 – up from $34.50 in May 2008.
Despite the price increase and the recession, people are twice as likely to cut cell phone or cable TV service before they get rid of broadband, the study found. In the last 12 months, 9 percent of Internet users have dropped Internet service, but 22 percent have cut cable and another 22 percent have shut off the mobile phones.
For the first time, Pew also weighted the Internet's effect on civic involvement. About 55 percent of respondents said they had used the Web to engage with the community, contact government officials, or contribute to economic growth.
What services are people using? About 34 percent of users subscribe to premium service, up 29 percent from last year. Monthly prices for premium are up from $38.10 to $44.60. About 53 percent still have basic Internet service, a number that stayed relatively flat from last year. Prices for basic are up from $32.80 to $37.10.
Not surprisingly, the more providers in the area, the lower the prices. About 21 percent of people only have one provider in their area and they pay an average of $44.70 per month. The majority, or 69 percent, said they have more than one provider from which to choose, and they pay $38.30. The 17 percent of people with four or more broadband options pay $32.10 per month.
Pew noted growth in broadband adoption in several key demographic groups. Adoption among senior citizens, for example, spiked 58 percent to 30 percent of all those 65 and older, while 46 percent of rural Americans now report having broadband, up 22 percent from last year.
About 63 percent of American adults now have broadband connections at home, up 15 percent from the same time last year. Unfortunately, an increased customer base has not prompted a drop in price from providers. The average monthly price for broadband in April 2009 was $39 – up from $34.50 in May 2008.
Despite the price increase and the recession, people are twice as likely to cut cell phone or cable TV service before they get rid of broadband, the study found. In the last 12 months, 9 percent of Internet users have dropped Internet service, but 22 percent have cut cable and another 22 percent have shut off the mobile phones.
For the first time, Pew also weighted the Internet's effect on civic involvement. About 55 percent of respondents said they had used the Web to engage with the community, contact government officials, or contribute to economic growth.
What services are people using? About 34 percent of users subscribe to premium service, up 29 percent from last year. Monthly prices for premium are up from $38.10 to $44.60. About 53 percent still have basic Internet service, a number that stayed relatively flat from last year. Prices for basic are up from $32.80 to $37.10.
Not surprisingly, the more providers in the area, the lower the prices. About 21 percent of people only have one provider in their area and they pay an average of $44.70 per month. The majority, or 69 percent, said they have more than one provider from which to choose, and they pay $38.30. The 17 percent of people with four or more broadband options pay $32.10 per month.
Pew noted growth in broadband adoption in several key demographic groups. Adoption among senior citizens, for example, spiked 58 percent to 30 percent of all those 65 and older, while 46 percent of rural Americans now report having broadband, up 22 percent from last year.
