More than two-thirds of American homes used broadband Internet last year, according to a report released Wednesday by the U.S. Department of Commerce.
Home broadband use has climbed from 9 percent in 2001 to 68 percent in 2010, the report found.
Still, Federal Communications Commission Chairman Julius Genachowski claims the Internet adoption rate is not good enough because roughly 100 million Americans still aren't online at their homes.
"Whether we're talking about jobs, education, or health care, in this day and age, getting online is a necessity, not a convenience," Genachowski said Wednesday during a speech in Washington, D.C. "We can't afford to have a third of the country frozen out of the broadband economy."
Now, the private sector is doing something to help close the often-cited "digital divide."
U.S. cable companies, including Comcast, Cox and Time Warner Cable, will offer low-income broadband service for $9.95 per month, Genachowski said. Low-income families with kids eligible for the National School Lunch Program will be entitled to the offering, which doesn't burden folks with any installation, activation or modem rental fees. Genachowski said participating companies include Bend Broadband, Bright House Networks, Cablevision, Charter, Comcast, Cox, Eagle Communications, GCI, Insight, Mediacom, Midcontinent, Sjoberg's Cable, Suddenlink and Time Warner Cable.
Of course, broadband service does a family no good without a computer. Genachowski announced that Redemtech, a technology refurbishment company, has committed to offering refurbished laptops or desktop PCS for $150 plus tax. And starting next year, Microsoft and its partners will introduce a series of laptops and desktops that are designed for students and will cost as little as $250, Genachowski said. Morgan Stanley also has committed to developing a microfinancing plan to help families afford the upfront cost of a PC.
The commitments by the private sector will benefit millions of Americans, Genachowski said, and add up to $4 billion in value.
A report issued Wednesday by the federal government indicates that many Americans could use the assistance. The comprehensive report, "Exploring the Digital Nation," found, for instance, that homes with lower incomes and less education, as well as Blacks, Hispanics, individuals with disabilities and rural residents, were less likely to have residential Internet service. The report revealed that 81 percent of Asian and 72 percent of White homes had broadband access, while only 55 percent of Blacks and 57 percent of Hispanics could say the same. But the Commerce Department noted that socio-economic differences don't entirely explain the gap in broadband adoption between the haves and have-nots.
"Clearly, there is no single solution to closing the digital divide," NTIA acknowledged in a blog. "[W]e need a variety of targeted approaches."
The main reasons people cited for not having Internet access were lack of interest or need (47 percent), the expense (24 percent) and the lack of an adequate computer (15 percent).
The report was issued by the Commerce Department's Economics and Statistics Administration and National Telecommunications and Information Administration.
