New study shows Americans are abandoning wired home Internet

By Brian Fung

Photos / Getty Images
Photos / Getty Images

For the most part, America's internet usage trends can be summed up in a few phrases. The Internet is now so common as to be a commodity; the rich have better Internet than the poor; more whites have Internet than people of color; and compared to low-income minorities, affluent whites are more likely to have fixed, wired Internet connections to their homes.

But it may be time to put an asterisk on that last point, according to all-new data on a sample of 53,000 Americans. In fact, Americans as a whole are growing less likely than before to have residential broadband, the figures show. In plain English, they're abandoning their wired Internet for a mobile-data-only diet — and if the trend continues, it could reflect a huge shift in the way we experience the Web.

The study, which was conducted for the Commerce Department by the U.S. Census Bureau, partly upholds what we already knew. Low-income Americans are still one of the biggest demographics to rely solely on their phones to get online.

Today nearly a third of households earning less than $25,000 a year exclusively use mobile Internet to browse the Web. That's up from 16 percent of households falling in that category in 2013.

And they're often cited as evidence of a major digital divide; struggling families with little money to afford a home Internet subscription must troublingly resort to free public WiFi at libraries and even McDonald's to do homework, look for jobs and find information.

Even people with higher incomes are ditching their wired Internet access at similar or even faster rates compared to people who don't make as much. In 2013, 8 percent of households making between $50,000 and $75,000 a year were mobile-only. Fast-forward a couple years, and that figure now stands at 18 percent. Seventeen percent of households making between $75,000 and $100,000 are mobile-only now, compared to 8 percent two years ago. And 15 percent of households earning more than $100,000 are mobile-only, versus just 6 percent in 2013.

Stepping back a bit, as many as 1 in 5 U.S. households are now mobile-only, compared to 1 in 10 in 2013. That's a doubling in just two years.

This suggests that having only one form of Internet access instead of two may no longer be explained simply as the result of financial hardship — as might be the case for lower-income Americans — but could actually be the product of a conscious choice, at least for wealthier people, who are deciding that it's not necessary to have both.

These results paint the clearest picture yet of a country moving away from fixed networks toward wireless networks. They highlight how, for many, 4G LTE and other wireless technologies could be turning into viable substitutes for home broadband. And it helps explain many of the changes consumers are seeing in the marketplace.

Companies like Verizon are increasingly shifting their footing to prioritize mobile service over wired service. Cable companies are exploring how to compete with telecom companies for wireless customers by setting up cheap, public WiFi hotspots that allow for voice calls and Web browsing. Even Google and Facebook have experimented with the idea of beaming Internet wirelessly down to devices on the ground.

All this is happening because companies perceive a tremendous opportunity to make money in mobile Internet. And considering how even the wealthy appear to be voting with their feet, it appears the industry may be onto something.

- Washington Post

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