FCC study shows Americans priced out of broadband

36 per cent of Americans do not have broadband at home

A major study by the Federal Communications Commission (FCC) has shown that 93 million Americans do not have broadband at home, and that cost is the major sticking point.

The study of over 5,000 people found that 36 per cent do not have a high-speed connection because of the high price, nearly a quarter felt they lacked the digital skills to use it, and one in 10 cited fear of fraud.

"We need to tackle the challenge of connecting 93 million Americans to our broadband future," said FCC chairman Julius Genachowski.

"In the 21st century, a digital divide is an opportunity divide. To bolster American competitiveness abroad, and create the jobs of the future here at home, we need to make sure that all Americans have the skills and means to fully participate in the digital economy."

The FCC is currently preparing a National Broadband Plan to wire up the US for the next generation of internet connectivity. The plan will be released in March.

"It is no surprise to find that high-speed internet access is too expensive, and that the high price is keeping people from going online," said Gigi B. Sohn, president and co-founder of US think-tank Public Knowledge.

"The best cure for high prices is vigorous competition. The FCC should make certain that it includes provisions in its National Broadband Plan to create the competition that will bring down prices and produce better services for all Americans."