Data Central Blog

When she announced the Commerce Department’s Digital Economy Agenda a year ago, Commerce Secretary Penny Pritzker emphasized that broadband Internet access and digital skills are critical to the economy’s success.  The digital marketplace has created millions of new jobs in the United States. Digitally connected Americans are the modern workers, creative innovators, and new customers who will help sustain our nation’s global competitiveness. 

But what about those Americans who do not use the Internet? Whether by circumstance or by choice, millions of U.S. households are not online, and thus unable to meaningfully participate in the digital economy. Data from NTIA’s July 2015 Computer and Internet Use Supplement to the Current Population Survey confirm that the digital divide persists. In 2015, 33 million households (27 percent of all U.S. households) did not use the Internet at home, where families can more easily share Internet access and conduct sensitive online transactions privately.  Significantly, 26 million households—one-fifth of all households—were offline entirely, lacking a single member who used the Internet from any location in 2015.

Reasons for No Internet Use at Home

From Internet-connected fitness bands and watches to security systems and thermostats, Americans are beginning to use Internet-connected devices, appliances, and objects that are part of a growing category of technology known as the Internet of Things (IoT).

The latest computer and Internet use data collected for NTIA shows that the number of Americans using IoT devices is still small. But we are seeing an interesting snapshot of early adopters. These new insights into how Americans are utilizing IoT are drawn from data collected in July 2015 as part of our Computer and Internet Use Supplement to the Census Bureau’s Current Population Survey. As we previously noted in April, few Americans—just 1 percent—reported using a wearable, Internet-connected device, such as a fitness band or watch, as of July 2015. While the market for this type of device is clearly in its early stages, we found notable differences between early adopters of wearable technology and the population as a whole (see Figure 1). Unsurprisingly, wearable device users exhibited many characteristics associated with higher levels of computer and Internet use. Wearable device users tended to have higher education and family income levels compared with all Americans, and they were more likely to live in metropolitan areas.

Today, the National Telecommunications and Information Administration (NTIA) and the Economics and Statistics Administration (ESA) convened a roundtable to discuss what data is needed to better measure the economic importance of the cross-border information flows that connect people and businesses across the globe. Representatives from the government, private sector, academia, and public interest community spent the morning going through existing resources, identifying gaps, and evaluating what the Commerce Department could be doing to improve its digital economy metrics.

The Internet has connected people around the world in new ways through the free flow of information across borders. In 2014, approximately 56 percent of services exports and 50 percent of U.S. services imports were digitally deliverable. Modern day companies of all sizes are relying on cross-border data flows for their day to day operations. This includes the ability to access global markets, interact with customers across the globe, find new suppliers, and communicate with their overseas affiliates. For example, of 271 tech‐enabled startups surveyed by 1776 and the McKinsey Global Institute, 86 percent had at least one cross‐border activity. People are using cross-border data flows to access knowledge, communicate, and participate in electronic commerce.

As the Obama Administration continues to focus on expanding broadband access and adoption, NTIA released new data today that shows that some of the demographic groups that have historically lagged behind in using the Internet—such as senior citizens, minorities, and Americans with lower levels of educational attainment—are making big strides.

Particularly promising, Internet use increased significantly among children and older Americans between 2013 and 2015. Children between the ages of 3 and 14 became substantially more likely to go online, as Internet use among this group increased from 56 percent in 2013 to 66 percent in 2015, and Internet use among those aged 65 or older increased from 51 percent to 56 percent during the same period. In contrast, usage remained largely unchanged among those who were previously most likely to go online, with 83 percent of Americans between the ages of 25 and 44 reporting Internet use in both 2013 and 2015.

The latest data comes from the Computer and Internet Use Supplement to the Current Population Survey (CPS), which included nearly 53,000 households and was conducted for NTIA by the U.S. Census Bureau in July 2015. The large sample size provides a detailed picture of where, why and how Americans go online.