A Report on Americans’ Access to Technology ToolsOctober 2000 U.S. Department of Commerce Economic and Statistics AdministrationNational Telecommunications and Information Administration The digital economy is moving our Nation toward greater prosperity. Our goal at the CommerceDepartment is to ensure that all Americans – regardless of age, income, race, ethnicity,disability, or geography – gain access to the technological tools and skills needed in the neweconomy. Falling Through the Net: Toward Digital Inclusionis a key part of the Department’s ongoingefforts to promote full participation in the digital economy. It is important for our Nation tomeasure and analyze how the digital economy is affecting its citizens. I am pleased that the data in this report show that, overall, our Nation is moving toward fulldigital inclusion. The number of Americans who are utilizing electronic tools in every aspect oftheir lives is rapidly increasing. However, a digital divide still remains. The report shows thatnot everyone is moving at the same speed, and identifies those groups that are progressing moreslowly. The report also is rich with insights intohowAmericans are gaining access to keytechnologies, and how they are using such tools. With this information, we can better target andenact policies and programs to close the disparities in access to computers and the Internet thatstill are being experienced by some in our Nation. I applaud the many public and private sector efforts that are helping Americans achieve greateraccess to the tools of the digital economy. We are rapidly becoming a digital Nation. We knowthat to not have access to such tools means to miss out on tremendous economic and educationalopportunities. This report shows us that much work is left to be done. The Commerce Department looks forward to continuing to work with the many public andprivate sector organizations that are striving to ensure greater digital inclusion for everyone. FALLING THROUGH THE NET:TOWARD DIGITAL INCLUSION National TelecommunicationsEconomic and Statistics Administrationand Information AdministrationGregory L. Rohde, Assistant SecretaryRobert Shapiro, Under Secretary forfor Communications and InformationEconomic Affairs for ESA for NTIA Kelly K. Levy, Associate Administrator,Office of Policy Analysis and Development Lee Price, Deputy Under Secretary forEconomic Affairs James McConnaughey, Senior Economist Patricia Buckley, Senior Policy Advisor Wendy Lader, Senior Policy Advisor Art Brodsky, Director of Communications Sandra Laousis, TelecommunicationsPolicy Analyst JOINT PROJECT CONTRIBUTORS for ESA Kathy Smith, Chief Counsel Jane Molloy, Director, Office of Policy Analysis Milton Brown, Deputy Chief Counsel Laurence Campbell, Senior Regulatory PolicyEconomist Steve Saleh, Program Officer Sandra Cooke, Economist Wayne Ritchie, Management and Program Analyst Lan Chu, Law Clerk U.S. Bureau of the Census Demographic Surveys DivisionTechnologies Management OfficePopulation DivisionRonald R. TuckerAdelle BerlingerJudith EargleAndrew StevensonEric NewburgerGreg WeylandL. Dinah FloresJohn M. McNeilTim J. MarshallAileen Bennett TABLE OF CONTENTS INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiiiEXECUTIVE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xvPART I: HOUSEHOLD ACCESSTO COMPUTERS AND THE INTERNET. . . . . . . . . . . . . . . . .1Overall Household Findings: The Nation Moves Toward Digital Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Digital Inclusion Proceeds Unevenly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Geography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Race and Ethnicity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Household Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Households With Computers and Internet Access, by State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20A New Dimension: High Speed Internet Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Non-Internet Households . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .