Computer ownership an obstacle to broadband uptake, data shows

New data from Statistics Canada indicates that most households without broadband don't have a computer, leaving industry observers to question whether a national broadband strategy should involve the promotion of PC ownership. In a survey of household spending for 2009, released last month, Stats Can said 78 per cent of households have Internet access and 72 per cent have broadband, but just 82 per cent have PCs. Broadband is currently defined in Canada as having download speeds of 1.5 Mbps. The statistics show that PC and Internet-access penetration rates are virtually the same, suggesting that Canada might have to focus on getting computers into people’s homes to increase broadband uptake. “In order to increase Internet connectivity we need to increase computer ownership,” Mark Goldberg, head of telecom consultancy Mark H. Goldberg & Associates Inc., said in an interview. Goldberg said the biggest barrier to computer ownership is income. According to Stats Can’s breakdown of PC ownership by household income for 2008, 97 per cent of the highest income households have computers. The same percentage has Internet access. By comparison, 49.8 per cent of households in the lowest income group have computers. Catherine Middleton, Canada research chair in communications technologies and the information society at Ryerson University, said in an interview that the low penetration rate for computers shows that some people see no need to go online. “The first question for me is not, ‘Do we have enough computers,’” Middleton said. “It’s, ‘Do we have the steps in place to understand why having a computer and accessing the Internet might be beneficial?’” She said education to convey those benefits should be a pillar of the federal government’s digital economy strategy, expected to be released in the spring. “I would like there to be a very strong focus on digital literacy, and helping people understand the benefits of having a PC.” David Ellis, a technology consultant and educator at York University’s department of communication studies, said in an interview that funding and education should go hand-in-hand. Ellis said studies show that some people eschew broadband not only because they can’t afford it, but also because they don’t need it or they find technology too confusing. “I describe these as social-policy issues rather than issues having to do with availability,” he said. Bernard Courtois, president and CEO of the Information Technology Association of Canada (ITAC), said in an interview that it’s difficult to know whether a broadband strategy should focus on access or on computer ownership because both are required for an optimal user experience. “There’s almost no point in buying a computer if you’re not on the net,” Courtois said. “And there’s no point being on the net without a computer.” But Goldberg said PCs have to come first. “It’s only once they have a home computer that we’ll see Internet penetration increase,” he said, adding that boosting computer ownership would be good for communications service providers. Right now, four out of five homes have computers. “If we make that five out of five, that’s growing the market size by a quarter—a tremendous market opportunity.” But Ellis said broadband pricing, rather than the price of computers, may be a bigger issue for low-income households. “I could see why somebody wouldn’t want to pay a whack of money to first get all the equipment, and then pay what I feel are still completely unreasonable prices for residential broadband,” he said. Evan Pauls, a computer training coordinator at Immigrant Centre Manitoba Inc., a non-profit organization in Winnipeg that loans computers to newcomers, said in an interview that although many people need computers—the centre loans about 120 each year—Internet access is still the main issue. “A desktop computer is more and more affordable, and it’s less of an issue than actual access to the Internet. I would rather see more focus put on things like free WiFi in low-income housing,” he said. In a Jan. 12 blog post, Goldberg called on the communications technology industry to brainstorm ways to get PCs into low-income households. “A million computers will bring the lowest income households to parity,” he wrote. “One Laptop Per Child set out to provide the world’s poorest children with a connected laptop computer. Shouldn’t all Canadian children be comparably (if not better) equipped?” Goldberg said by phone it’s important to focus on particular households. “I think we need to target households with school-aged children that don’t have a computer,” he said, adding that computers have become integral to the education process. “You can’t tell me that those are households that don’t need a computer.” news@thewirereport.ca

Computer ownership an obstacle to broadband uptake, data shows

News | January 20, 2011

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