Demand-Side Programs to Stimulate Adoption of Broadband: What Works?

Abstract

We examine the evidence available on the efficacy of demand-side programs intended to stimulate broadband adoption. We review studies that attempt to measure results. Our suggestions for future program evaluations are to include cost-benefit analysis as a standard part of program review and to make clear that the purpose of evaluation is to assess progress made toward the ultimate policy goals rather than the program's proximate implementation goals. Appropriate data must be collected to draw conclusions, and appropriate statistical methods must be used to determine the causal impacts of a program. This has rarely been done to date.

How much does broadband infrastructure matter? Decomposing the metro–non-metro adoption gap with the help of the National Broadband Map

“…This supports the premise, shared by many economists, that the main barrier to increasing rural broadband adoption rates is on the demand side as opposed to the supply side (Hauge and Prieger, 2010;Whitacre, 2010a).…”

“…This investment is expected to increase to nearly $9B over the next several years (Buckley, 2014). Many economists have argued, however, that this focus on supply is misguided, and that efforts would be better spent on the demand component (Atkinson, 2009;Hauge and Prieger, 2010;Whitacre, 2010b;Whitacre & Mills, 2007). This argument is given more credence by recent survey results in which "not available where I live" ranked only 4th on a list of reasons for why households do not adopt broadband (NTIA, 2010).…”

Lit up and left dark: Failures of imagination in urban broadband networks

“…Within digital divide discourse, nuance tends to be assigned to demand, where internet and media researchers have made crucial arguments about differences in terms of need and literacy (Hauge & Prieger, 2010) …”

‘Stuck Out Here’: The Critical Role of Broadband for Remote Rural Places

“…A number of factors influence low levels of adoption, particularly demographic factors such as income, age, level of education and digital literacy (Eastin & La Rose 2000;Dwivedi & Lal 2007;Hauge & Prieger 2010), all of which are associated with rural regions (Horrigan 2009). These barriers to adoption are exacerbated by the high costs of connecting to broadband services in remote rural regions that serve to perpetuate the urban-rural digital divide.…”