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Minnesota Intelligent Rural Communities: A Progress Report on Broadband Jack M. Geller, Ph.D. University of Minnesota-Crookston Blandin Foundation Strategy Board August 31, 2010 * Funding supported through Blandin Foundation Grant No. U20010- 001

Minnesota Intelligent Rural Communities: A progress report

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Jack Geller presents his research on broadband adoption in MN to the Blandin Broadband Strategy Board

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Page 1: Minnesota Intelligent Rural Communities: A progress report

Minnesota Intelligent Rural Communities: A Progress Report on Broadband

Jack M. Geller, Ph.D.University of Minnesota-Crookston

Blandin Foundation Strategy Board August 31, 2010

* Funding supported through Blandin Foundation Grant No. U20010-001** Data collected by the Center for Rural Policy & Development, St. Peter, MN

Page 2: Minnesota Intelligent Rural Communities: A progress report

Study Methodology

• Sampling: Stratified sample based upon rurality• Sample size = 911• Statistical Margin of Error : + 4%• Data collected between May 2010 – July 2010

** Data collected by the Center for Rural Policy & Development and provided under agreement with the MIRC project

Page 3: Minnesota Intelligent Rural Communities: A progress report

The Technology Adoption Curve

Page 4: Minnesota Intelligent Rural Communities: A progress report
Page 5: Minnesota Intelligent Rural Communities: A progress report

Number of Broadband Providers in your Area

None

One

Two

3 or More

Don't Know

0% 5% 10% 15% 20% 25% 30% 35%

1.90%

13.80%

21.70%

29.90%

32.70%

Page 6: Minnesota Intelligent Rural Communities: A progress report

Internet Connection Type

Dial-up

Cable Modem

DSL

Other

Don't Know

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

8.70%

30.30%

47.00%

13.60%

0.50%

Page 7: Minnesota Intelligent Rural Communities: A progress report

Why Dial-up Users have not Switched

Not Available

Little Use

Use BB Elsewhere

Too Expensive

0% 10% 20% 30% 40% 50% 60% 70%

20.50%

15.10%

3.50%

61.00%

Page 8: Minnesota Intelligent Rural Communities: A progress report

Utilization & Costs

• Median hours online per week: 10 hours• Satisfied with connection speed: 81.9%• Median price per month: $35.00• Median Total Communication Bill: $100 -$150

Page 9: Minnesota Intelligent Rural Communities: A progress report

Computer & Internet Connectivity by Age

<21 22-35 36-55 56-64 65 and older

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

83.30%

89.70%

84.00%

74.50%

38.90%

83.00%86.00%

80.00%

70.80%

36.30%

ComputerInternet

Page 10: Minnesota Intelligent Rural Communities: A progress report

Computer & Internet Connectivity by Income

Less than $25,000

$25,000-$39,000

$40,000-$49,000

$50,000-$74,000

$75,000-$100,000

$100,000-$150,000

More than $150,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

42.50%

65.10%

73.20%

87.30% 88.60%

96.40%100.00%

34.60%

61.60%

69.50%

84.80% 86.40%

92.80%

100.00%

ComputerInternet

Page 11: Minnesota Intelligent Rural Communities: A progress report

Broadband is now the predominant method by which rural residents connect to the Internet.

In 2001 6% of all rural Minnesota households had a broadband connection; but in 2010 only 6% still have a dial-up connection.

Broadband access, while not yet ubiquitous in rural Minnesota is overwhelmingly accessible.

Competition is limited, but increasing in may areas.

Stagnant growth in home computers will create a “ceiling” on broadband growth.

The most cited reason why dial-up customers have not yet adopted broadband services is still price.

Observations

Page 12: Minnesota Intelligent Rural Communities: A progress report

The socio-economic and demographic characteristics of rural Minnesota are greater barriers to the full adoption of broadband technology than geography or topography.

The challenge to full adoption will lie in the development of broadband applications that are specifically relevant and valued among those remaining “laggards.”

Observations

Page 13: Minnesota Intelligent Rural Communities: A progress report

For Additional Information Contact

Jack M. Geller, Ph.D.University of Minnesota, [email protected]