Speed and the Internet:
The Effects of High Speed Access on Household Usage

Anne Hoag
Penn State University

This paper models and tests the factors influencing demand
and adoption of high speed Internet access and in turn, its
effect on satisfaction and consumption of the Internet at
home. The model was tested in November, 1996 with a survey
(n=256) in a Midwestern market situation where high speed
cable modems have been available for over three years. All
respondents used the Internet at home, about half via high
speed cable modems, the balance had significantly slower
dial-up access. Results indicate that users with high speed
access perceive the Internet to be more interactive, more
compatible with their lifestyles and needs and less complex
than do Internet users with slower dial-up modem access.
Cable modem adopters tend to be more frequent users of data-
intense applications such as FTP and the Web. They tend to
have information-related occupations but there is no
relationship with education or age and only a moderate
relationship with income. As to the relationship between
high speed Internet access and consumption of the Internet,
high speed access is positively related to time spent on-
line. The high speed users spend substantially more for
Internet access and this result is somewhat independent of
income. High speed Internet users are more satisfied with a
variety of Internet facets, use more "parts" of the
Internet, use it to satisfy more needs and tasks. The
conclusions are that even for home Internet use, occupation
may be the most influential demographic characteristic
related to demand for high speed Internet while income is
not as important an influence, and that speed leads to
higher levels of consumption and satisfaction.