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Broadband Prices Lead to More Smartphone-Only Homes

Both studies follow the expected trend that those with less money and education have less Internet access, and widespread Internet access is still too new to say whether this represents causation or just obvious correlation.

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The other 57% listed a range of reasons why they don’t have high-speed Web access including the fact that their smartphone does the job, they have options outside the home, service is not available or sufficient (I wonder if those were farmer respondents), and 30% had some other reason or refused to give a reason.


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Those who don’t have broadband service say it’s too expensive and that smartphones can help them do everything they need to do online. Today, roughly one in five African-Americans have a smartphone but no broadband access at home, a ratio that has almost doubled in two years.


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Smartphone-only households were far more likely to be young.

Of 6,687 Americans 18 and older surveyed, 15 percent said they have ditched pay-TV services.

That is according to a new Pew Research survey. Additionally, 69% of Americans say that not having at-home high-speed internet would be a major disadvantage to finding a job.

The Home Broadband 2015 report is based on telephone surveys of 2,001 adults conducted in June and July. The decline was even greater for rural residents; 65% said they had broadband access at home in 2013, versus 60% this year.

If you’re already doing everything online on your smartphone anyway, why pay for home broadband service?

Here’s the thing: The latest data suggests that subsidizing the cost of Internet access may do little to convert the 20 percent of Americans who still don’t have a high-speed connection.

The shifts in TV-watching behavior are significant for the entertainment industry because so much of the profits of major media congloms are derived from cable networks that rake in affiliate fees from cable and satellite providers.

In previous studies larger percentage of respondents said they didn’t have broadband because they didn’t think it was useful, Horrigan said.

It appears consumers see the value of broadband, but perhaps not enough to overcome the key reason that some are dropping service – cost. Two-thirds (64%) said they cut the cord because they can get their desired programming with an over-air antenna, on the Net or on a streaming video service.

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The new study was narrower, focusing only on adults without a home broadband connection and offering them a specific list of choices for reasons not to subscribe.

Source NYC Media Lab  flickr