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NEARLY 90% OF U.S. COMPUTER HOUSEHOLDS SUBSCRIBE TO BROADBAND

Broadband Divide Begins with Computers in the Home

Durham, NH -- September 4, 2012 -- New consumer research from Leichtman Research Group, Inc. (LRG) found that nearly 90% of US households that use a laptop or desktop computer at home currently subscribe to a broadband Internet service. Five years ago, 65% of households with a computer subscribed to a broadband service.

LRG's research also found that higher-income households are much more likely than lower income households to use computers at home, and to subscribe to residential broadband services:

  • 91% of all households with annual incomes over $50,000 subscribe to a broadband service at home -- compared to 68% of households with incomes of $30,000-$50,000, and 47% of households with incomes under $30,000
  • 41% of households with annual incomes under $30,000 do not have use computer at home, compared to 3% of households with incomes over $50,000

Annual Household Income Use a Computer at Home Internet at Home Broadband at Home
Under $30,000 59% 52% 47%
$30,000-$50,000 84% 78% 68%
Over $50,000 97% 97% 91%

These findings are based on a telephone survey of 1,351 households from throughout the United States and are part of a new LRG study, Broadband Access & Services in the Home 2012. This is LRG's tenth annual study on this topic.

Other related findings include:

  • 65% with broadband are very satisfied with their Internet service at home, while 3% are not satisfied
  • While 76% with broadband don't know the speed of their Internet connection, 63% of broadband subscribers rate the speed of their Internet connection 8-10, and 6% rate it 1-3
  • 2% of all online households say that broadband is not available in their area -- compared to 6% in 2008
  • Overall, 1.3% of all households are interested in getting broadband, but say that it is not available in their area
  • Overall, 0.6% of all households are interested in getting broadband, but cite cost as a reason for not currently subscribing to a broadband service
  • Overall, 0.6% of households have an iPad, tablet computer, or video-capable eReader, but do not use a laptop or desktop at home.

"While higher-income households remain most likely to subscribe to a broadband service, computers in the home also increases with household income," said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. "Disparities in computer ownership are the true roots of the broadband divides in the US."

Broadband Access & Services in the Home 2012 is based on a telephone survey of 1,351 adults age 18+ (including 103 cell phone calls) from throughout the continental US that was conducted in May-June 2012. The random sample of respondents was distributed to best reflect the demographic and geographic make-up of the US. The overall sample has a statistical margin of error of +/- 2.7%.

About Leichtman Research Group, Inc.

Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.

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