Lower Rural US 'Net Penetration Slows Advanced Tech Adoption, Says NPD

Thirty-one percent of U.S. households, mainly rural, lack a 25 Mbps download connection, reported NPD Thursday. That impedes adoption of advanced technologies dependent on high speeds, it said. “Consumers with single-digit megabits per second of download speed will struggle to benefit from activities that require these speeds, such as streaming video solutions or connecting to a remote network to telecommute,” said Eddie Hold, president, NPD-Connected Intelligence. State-level data “masks the underlying reality that in the most rural markets in America, less than 20 percent of households have a broadband connection,” Hold said. Rural consumers with access show similarities to the U.S. overall, and there's demand for connected devices, said the analyst: “Streaming media players, larger TVs, and smart home devices see significant ownership levels in rural markets when there is broadband, and at times even in areas that have slower connections.” Some 43 percent of rural households own a streaming media player vs. 45 percent nationwide, said NPD, “regardless of whether or not they have access to broadband.” Many of the households still buy DVDs due to a “less-than-satisfactory streaming connection,” but when broadband is delivered, streaming is preferred, Hold said: 5G rollout "will have a significant impact in rural America, disrupting the limited broadband carrier market and delivering broadband to many households that have not previously had access."