The broadband digital divide and the nexus of race, competition, and quality

We examine the gap in broadband access to the Internet between minority groups and white households with geographically fine data on DSL subscription. In addition to income and demographics, we also examine quality of service and competition as components of the Digital Divide. The gaps in DSL demand for blacks and Hispanics do not disappear when income, education, and other demographic variables are accounted for. However, lack of competition is an important driver of the Digital Divide for blacks. Service quality is an important determinant of demand, and is related to the DSL gap for some groups. JEL Codes: L96, D12, D63 * We gratefully acknowledge Sean Gill for research assistance and the many seminar participants who commented on earlier versions of this project, including those at the Center for Research in Regulated Industries 18 Annual Western Conference (San Diego), the FCC, the International Industrial Organization Conference (Georgia Tech), the NSF-Conacyt Internet Use in the Americas Workshop (Mexico City), the Pew Charitable Trusts Workshop on Measuring Broadband (D.C.), the Public Utility Research Center and London Business School Annual Telecommunications Conference (University of Florida), The Economic Impacts of Technology Conference (UC Santa Cruz), and the Western Economic Association International 80 Annual Conference (San Francisco). The above-mentioned individuals and institutions are responsible for neither the opinions nor any errors contained herein. Manuscript