Digital divide: U.S. leads in digital infrastructure but trails in affordability and digital skills

by Barbara Lach

The U.S. digital infrastructure ranked 7th best in the world in 2015, according to the World Economic Forum, but we were only 53rd in affordability and 33rd in general skills of our population among 143 economically advanced nations. What it means is that while the rich are getting richer taking advantage of digital technology, a substantial part of our society, living and working in digital poverty, is being left further behind.

dig divide messed upThe Forum has published its annual Global Information Technology report for 14 years now to help global decision makers to evaluate the impact of information and communications technologies (ICTs) for political and economic investments. In plain English it means these reports serve as a strategic tool for big-time investors in global markets to yield huge profits, a great tool for the rich and powerful. As John Chambers, executive chairman and former CEO of Cisco Systems, said in the 2014 report, “The Internet of Everything represents a US$19 trillion global opportunity to create value over the next decade through greater profits for businesses as well as improved citizen services, cost efficiencies, and increased revenues for governments and other public-sector organizations.”

But as the informed decision makers, as well as many of us, take advantage of “the new economy every day, two generations of digitally impoverished Americans continue to be left out of these technology-driven economic advances. Today 15 percent, or 47 million, of adult Americans do not use the Internet; 5 million U.S. households with children between the ages of 6 and 17, or more than 17 percent of the 29 million families, have no broadband access at home. In cities like New Orleans and Detroit, one-third of families do not have broadband; in Kansas City 70 percent of public school students, and more than 70 percent of urban core households, do not have access to the Internet at home.

Today more than half of Kansas City Public Schools students are forced to complete homework outside of the comfort of their home; these students frequent fast-food restaurants and public libraries in search of a free hot spot. Disconnected, they represent the second generation of Americans unable to take advantage of “the new economy.” Although the U.S. is leading in digital infrastructure among the richest nations and those with access speed into the future on a fiber highway—case in point is our very own Kansas City west of Troost—for millions of Americans, Internet at home remains a distant dream only deepening the digital divide.

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Concentrated poverty exacerbates the digital divide

by Barbara Lach

That poverty affects society in negative ways is a cliché. Even those who never set foot, or even drive through, poverty-stricken neighborhoods know that such communities are low in income, jobs, education, health, safety and connectivity. These days we can avoid conveniently such communities altogether by using apps like “Ghetto Tracker,” renamed “Good Part of Town” after immediate backlash. Convenience and avoidance sometimes enable us to ignore the obvious—poverty in America is at the 2008 recession record level.

A novel development, however, makes our ‘traditional’ notion of poverty outdated at best. Today poverty in America is more concentrated in distressed areas than it was a decade ago, The Brookings Institute reports, for example in areas like the one east of Troost in Kansas City or the South Side in Chicago. More than twice as many Americans lived in extremely poor neighborhoods in 2010-2014 than in 2000. The effects of this recent concentration, given our increasingly digitized world, mount exclusion on top of poverty. It is easy to leave people in “the dark” if they are concentrated together. It is easy to leave people on the other side of the digital divide.

Brookings  map with source.jpgConcentrated poverty means not just lack of economic and social opportunities. It means lack of access to quality education, jobs, healthcare, daycare, citizenship, legal services, the political process and technological advances. It means disconnection from many resources and disengagement from active citizenship. Conversely, studies have shown that children who move to lower-poverty communities are more likely to attend college and have substantially higher incomes as adults.

The ubiquitous Internet could become the much needed uplifting tool for those in concentrated poverty areas; enabling Internet access could help to bridge the digital dive. While not a panacea to all socioeconomic challenges, Internet access does open opportunities—to communicate, gain knowledge, apply for jobs, shop, access healthcare resources and online financial services, just to name a few. Unfortunately, lack of Internet access offers none of these opportunities. Instead, to make things even worse, all the apps and online resources, which are so readily available today, build invisible fences that hold captive many Americans in disadvantaged communities. This persistent digital divide exacerbates poverty.

So why do we care? We should care because all residents, at or below the federal poverty level (e.g., $24,300 for a family of four in 2016), in these communities face socioeconomic challenges, from poor-performing schools to high crime rates, and the chances for economic mobility for those below or at the poverty level diminish every year. They are entrenched. We should care because concentrated poverty results in negative consequences for all of us, regardless of how many apps we carry on our cell or how tucked away we are in our suburbia (albeit the suburbs’ home is the largest and fastest-growing poor population).

The digital divide impoverishes the poorest and leaves all of us behind many other developed nations on the digital highway. As other countries, like South Korea and Sweden, speed in the digital era, our very own domestic lack of Internet access only exacerbates socioeconomic inequality. Internet access as a utility could be the leverage we need to enable all Americans partake in the digital revolution and the global digital community. Internet access for all benefits all.

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FCC’s Lifeline offers two ventis toward greater access

by Barbara Lach

$9.25 can buy two ventis at Starbucks—or one fifth of an Internet connection at home. But the 64 million Americans who cannot afford broadband most likely won’t be buying either.

With a recent proposal to offer low-income families a monthly subsidy for broadband access, the Federal Communications Commission has made a coffee-cup step toward bridging what has become the persistent digital divide. The $9.25 monthly subsidy that modernized federal Lifeline program offers, however, does not go far enough to make a meaningful difference for millions of disconnected Americans.

Source: FCC.gov

FCC Chairman Tom Wheeler

In a March 8 blog post, FCC Chairman Tom Wheeler and Commissioner Mignon Clyburn announced a new federal monthly subsidy for qualified households in the amount of $9.25 to help pay for broadband access for those who “live on the wrong side of the digital divide” [“Wrong” I am sure does not imply a fault of their own; author’s note] Modernizing the $1.7 billion FCC Lifeline program, which was initially established in 1985 to ensure low-income Americans have access to basic phone services so they may seek employment, medical help and rise out of poverty, is a much needed step in the right direction—albeit two lattes’ worth. The new plan was approved Mach 31 by commissioners’ vote 3:2.

“We can recite statistics all we want, but we must never lose sight of the fact that what we’re really talking about is people – unemployed workers who miss out on jobs that are only listed online, students who go to fast-food restaurants to use the Wi-Fi hotspots to do homework, veterans who are unable to apply for their hard-earned benefits, seniors who can’t look up health information when they get sick,” Chairman Wheeler said. “Internet access has become a pre-requisite for full participation in our economy and our society, but nearly one in five Americans is still not benefitting from the opportunities made possible by the most powerful and pervasive platform in history.”

FCC’s Lifeline has been criticized over the years for fraud and unaccountable spending. The new ruling establishes a third-party National Eligibility Verifier to confirm subscriber eligibility and promises transparency by making the Lifeline data available, including subscriber counts by provider. FCC set the program’s budget at $2.25 billion budget, indexed to inflation. Information for low-income consumers is available at https://www.fcc.gov/general/lifeline-program-low-income-consumers.

Because most U.S. Internet providers offer basic broadband services at a price that is higher than four times the $9.25 subsidy, this new Lifeline is more of a gesture in the right direction than practical help for most low-income American families. The FCC effort seems to be designed to encourage Internet providers, such as Comcast, Time Warner Cable and AT&T, to offer services in neighborhoods from which they have been traditionally absent. The access providers, though, may refuse to shell out the remaining balance, in which case most low-income families won’t be buying the remaining 8 ventis’ worth of Internet any time soon, leaving the FCC’s Lifeline only a gesture of good latte at best.

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