Ovum says Demand, Not Access, is Chief Broadband Problem

Digital divides in developed economies are less about limited broadband availability and more about a lack of broadband demand and complex interfaces, say analysts at Ovum. In that that regard, Ovum joins a growing number of policy advocates who now recognize there is a difference between broadband availability" and "broadband use."

Though there clearly are some locations, largely in rural areas, that do not yet have a choice of wired providers, most rural U.S. locations, for example, can receive satellite service from two providers, HughesNet and WildBlue. And as many as 96 percent of U.S. homes can receive cable modem service, while 90 percent or so of U.S. locations can get digital subscriber line service from a telephone company as well.

 

“There has been significant focus on the limited availability of broadband as the main factor in creating digital divides” says Charlie Davies, Ovum senior analyst. "In fact, Ovum, as well as other consumer surveys and studies, have shown other factors such as a lack of demand as being a more significant barrier”.

That's an important distinction, since solving a problem requires defining accurately what the problem is. One might argue that not enough people buy BMWs because they can't get to a nearby dealership (an access problem). One might alternatively argue that more people do not buy BMWs because it isn't the right vehicle or because it costs too much (a demand problem).

Observers increasingly are acknowledging that demand, not access, is the main problem, though some areas are remote enough that physical access by wired facilities remains a problem.

In many developed markets, broadband penetration is now well over 50 percent but overall broadband growth is slowing, despite the fact that broadband availability is at an all-time high. Ovum says this situation is due to  a significant minority of people not being interested in taking up broadband, or other significant barriers in doing so (not interested in using the Internet, not owning a PC, not knowing how to use the Internet or not able to, or willing to pay for service, for example).

"Many people without broadband or the Internet are put off by overly complex devices and interfaces that cater to the technically literate," says Ovum. "In addition, users with disabilities are largely under-served."

The cost of using the Internet also is a barrier. So demand stimulation, not physical access, is the chief impediment to higher broadband usage.