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Ethnicity in Utilization Of Broadband and IP Services Dave McClure US Internet Industry Association.

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Presentation on theme: "Ethnicity in Utilization Of Broadband and IP Services Dave McClure US Internet Industry Association."— Presentation transcript:

1 Ethnicity in Utilization Of Broadband and IP Services Dave McClure US Internet Industry Association

2 A Changing America Census data shows 25% or more of Americans are of non-white* ethnicity, growing to 36% by Census data shows 25% or more of Americans are of non-white* ethnicity, growing to 36% by Seniors (65+) comprise 12.4% of the population Seniors (65+) comprise 12.4% of the population * Note regarding terminology and ethnic populations * Note regarding terminology and ethnic populations

3 A Changing America Population Growth, 1990 to 2000 Total US 13% White, Non-Hispanic 8.6% African American 21.5% Asian American 43.1% Hispanic 57.9%

4 A Changing America Chiswick and Miller note: Chiswick and Miller note: Immigration will continue at a rate of about 1 million per year. About 10 percent of the U.S. population will be foreign born. Immigrants are disproportionately urban dwellers (94 percent) living in central cities of metropolitan areas (40 percent). The distribution of immigrants varies by country of origin and is concentrated in a few states.

5 A Changing America Non-White populations will grow to 35.7% by 2020, and by 2050 ethnic non-whites will comprise 47% of the US Population of nearly 400 million people. Non-White populations will grow to 35.7% by 2020, and by 2050 ethnic non-whites will comprise 47% of the US Population of nearly 400 million people. Hispanic/Latino populations will dominate, followed by Black/African American and Asian Americans. Hispanic/Latino populations will dominate, followed by Black/African American and Asian Americans. Seniors will comprise proportionally less of the population due to the influx of younger immigrants and higher birthrates among minorities. Seniors will comprise proportionally less of the population due to the influx of younger immigrants and higher birthrates among minorities.

6 Trends Larger US population, more households and higher density in urban areas. Larger US population, more households and higher density in urban areas. Differences in services requested and utilized. Differences in services requested and utilized. Changing focus for deployment and R&D. Changing focus for deployment and R&D. A need for specific, targeted information on serving ethnic and other market segments. A need for specific, targeted information on serving ethnic and other market segments.

7 IP and Broadband Services The term `advanced telecommunications capability' is defined, without regard to any transmission media or technology, as high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology. -- Telecommunications Act of 1996, at Section 706 (C).

8 The Broadband Industry These include but are not limited to: These include but are not limited to: High-Speed Internet High-Speed Internet IP Telephone Services IP Telephone Services Video Programming Video Programming Video On Demand Video On Demand Telecommuting (VPNs, secured access, storage) Telecommuting (VPNs, secured access, storage) Distance Learning Distance Learning Online Medical Monitoring and Care Online Medical Monitoring and Care Home Security Home Security

9 Ethnic Utilization Data available only for High-Speed Internet, video programming and video on demand. Data available only for High-Speed Internet, video programming and video on demand. Consider primarily single-race ethnic populations (Whites, Hispanics, Blacks, Asian Americans) and seniors Consider primarily single-race ethnic populations (Whites, Hispanics, Blacks, Asian Americans) and seniors Because the broadband industry is emerging and highly fragmented, much critical research has not been conducted. Because the broadband industry is emerging and highly fragmented, much critical research has not been conducted.

10 Internet Use Data From Pew Internet and American Life Project, current Internet usage demographics: Hispanics, 78% Asian-Americans, 75% Whites, 73% Blacks, 69%

11 Internet Use 22% of seniors 65 and older are online, contrasted with 75% of year olds, up 47% since % of seniors 65 and older are online, contrasted with 75% of year olds, up 47% since Division by education shows college educated+ users at 92%, high-school 62%, non- high school 38%. Division by education shows college educated+ users at 92%, high-school 62%, non- high school 38%. Differences in economics vary from 94% use in households with incomes over $75,000 per year to 54% in households under $30,000 per year. Differences in economics vary from 94% use in households with incomes over $75,000 per year to 54% in households under $30,000 per year. The divide between Rural and Urban Internet use is only 65% versus 75%. The divide between Rural and Urban Internet use is only 65% versus 75%. Currently 59% Broadband versus 39% dial-up Currently 59% Broadband versus 39% dial-up

12 Video Programming African Americans and Hispanics view more television. Hours Viewed per Week: Non-African Americans 53.6 Hispanics 58.6 African Americans 75.8 African-American households had greater Cable Plus with Premium Pay Channels. Hispanic homes spend one-third of their television viewing time tuned to Spanish-language programs. Hispanic homes spend one-third of their television viewing time tuned to Spanish-language programs.

13 Video Programming African Americans African Americans Enjoy network and cable shows (cable ratings are 32% higher than Caucasians). They have higher network ratings than Caucasians and Hispanics across most dayparts, and weekend morning kids ratings for African Americans more than double Caucasian HH ratings. Network ratings for Hispanics are about half total US ratings. Hispanics largely view cable Spanish Language channels (Univision, Telemundo), except for weekend morning kids ratings.

14 Video On Demand Only 22% of households that have cable have ever ordered a pay-per-view event. Only 22% of households that have cable have ever ordered a pay-per-view event. Black Americans are 47% more likely to view pay-per-view events. Black Americans are 47% more likely to view pay-per-view events. Hispanics tend toward Spanish-language and sports events, but there is little specific data. Hispanics tend toward Spanish-language and sports events, but there is little specific data.

15 Summary The population is growing, but generalizations are difficult to apply. The population is growing, but generalizations are difficult to apply. Even within ethnic groups, there is significant diversity based on country of origin, language and other factors (e.g., Latino and Hispanic are not synonymous). Even within ethnic groups, there is significant diversity based on country of origin, language and other factors (e.g., Latino and Hispanic are not synonymous). Ethnic pockets will converge in urban areas but will also move into suburban and rural areas. Ethnic pockets will converge in urban areas but will also move into suburban and rural areas.

16 Summary Ethnic groups are high-value subscribers to video programming and video on demand, and are a significant subscriber base for high-speed Internet. Ethnic groups are high-value subscribers to video programming and video on demand, and are a significant subscriber base for high-speed Internet. Seniors will be a significant audience for high- speed Internet usage over the next 20 years, but will decline in significance as the baby boomers pass on. Seniors will be a significant audience for high- speed Internet usage over the next 20 years, but will decline in significance as the baby boomers pass on.

17 Summary Children ages 5-18 are significant users of video and Internet services, and will require more attention in programming and services. Children ages 5-18 are significant users of video and Internet services, and will require more attention in programming and services. Ethnicity is less critical with respect to broadband and IP services than issues of education (including English language comprehension), income and geography. Ethnicity is less critical with respect to broadband and IP services than issues of education (including English language comprehension), income and geography.

18 Public Policy Implications The racial digital divide is largely non- existent. Education, income and geographical divides should take precedence in policy discussions. This includes expansion of Universal Service requirements to accelerate rural buildout of broadband and IP services. The racial digital divide is largely non- existent. Education, income and geographical divides should take precedence in policy discussions. This includes expansion of Universal Service requirements to accelerate rural buildout of broadband and IP services. The issue of redlining in deployment of broadband services is less critical than policies encouraging buildout of the networks. The issue of redlining in deployment of broadband services is less critical than policies encouraging buildout of the networks.

19 Implications The US-based broadband and IP services industry are best served by expanding literacy in the English language to reach Hispanic and Asian American consumers. The US-based broadband and IP services industry are best served by expanding literacy in the English language to reach Hispanic and Asian American consumers. Protection of children from inappropriate content will be a major issue among ethnic groups, particularly African-Americans and Hispanics. Protection of children from inappropriate content will be a major issue among ethnic groups, particularly African-Americans and Hispanics.

20 USIIA David P. McClure President and CEO US Internet Industry Association


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