Older Australians less likely to participate in the digital economy

ACMA logo[news release] Age is the most significant driver of internet use in the home, according to an Australian Communications and Media Authority report, released today.The report indicates that nearly three out of four people (specifically, 73 per cent) have a home internet connection and 87 per cent of the population have used the internet. In contrast, only 48 per cent of people aged 65 and over have the internet at home and 44 per cent have never used the internet.’The report indicates that lack of interest or cost remains the most frequently reported reasons for not using the internet,’ said Mr Chris Chapman, ACMA Chairman. ‘As well as age, there are a number of other factors which affect the willingness to subscribe to an internet or broadband service at home, including educational level, work status, occupation, income and living arrangements,”The majority of older non-internet users see no real benefit in using the internet, while non-internet users aged between 18 and 49 years identified cost as the major barrier to connection. The majority (77 per cent) of those not online do not plan to connect or use the internet in the future,’ Mr Chapman said.’Addressing these barriers to participation is important for social inclusion and ensuring that all Australians can garner the benefits of online activities in the rapidly evolving digital economy. Access to the internet, an understanding of how to effectively use it and managing online risks are all important to a wider adoption of the internet and its role in underpinning the digital economy.’The report, Australia in the Digital Economy: Online participation, estimates that of those people using the internet, the proportion that log on more than once a day (‘heavy users’) has increased from 36 per cent in the quarter ending September 2004 to 52 per cent in the quarter ending June 2008. The majority (84 per cent) of users are logging on at least weekly (‘medium users’).All respondents aged 14 to 17 have used the internet and 92 per cent were heavy or medium users. Around 55 per cent of those aged 14 to 49 were heavy users.The report is available on ACMA’s website at www.acma.gov.au/WEB/STANDARD/pc=PC_311655

Backgrounder

ACMA is undertaking an ongoing examination and analysis of the use and provision of telecommunications services in Australia. The work program has been designed to assist ACMA in its role as the industry regulator and to meet its statutory reporting requirements under the Australian Communications and Media Authority Act 2005 and Section 105 of the Telecommunication Act 1997.

Key findings of the Australia in the Digital Economy: Online Participation report include:

  • Australian use of the internet is increasing and the majority (84 per cent) of users are logging on at least weekly.
  • The take-up and use of on-line services, however, is impacted by a number of socio-economic and demographic factors, with age having a significant impact. Australians aged 65 and over are less likely to be connected to the internet than all other age groups. Other factors such as personal income, work status, gender, household family structure, location and profession also affect participation levels to varying degrees.
  • There is still a segment of the community which is not online. These Australians are generally aged 65 and over, retired, live on their own and are more likely to earn under $50,000 a year. The majority of these people do not plan to connect to the internet in the future. While cost was identified as a barrier to use, particularly by younger people, for most they did not connect to the internet as they saw no relevance or benefit to their lifestyle.
  • Although main internet activities include email, banking, general browsing and paying bills, use of newer applications such as user generated content and social networking is increasing, especially for younger age groups, although use of these services is increasingly being used by all age groups.

Ever used the internet and age

Australians ever used the internet and ageSource: Roy Morgan Single Source, April 2008-June 2008, 14+ years old, N = 5,175 all respondentsOver half of people who do not plan to get an internet connection in the future stated lack of relevance to lifestyle as the reason for non-connection. This was followed by cost, which was cited by 38 per cent, and it is too difficult, cited by 15 per cent.Reason for non-connection was influenced by age, income, work status and household structure. For respondents aged 65 and over, lack of relevance was the most significant factor with 75 per cent citing this compared with only 28 per cent of those aged 14 to 24. For those aged 50 and under cost was more of a concern.

Reason for internet non connection

Australians reason for internet non-connectionSource: Roy Morgan Single Source, July 2007-June 2008, 14+ years old, N = 4,162, those who do not intend to connect to the internet. Note: excludes ‘can’t say’ and ‘no answer’

Frequency of internet use, July 2005 – June 2008

As more Australians become familiar with the internet and its potential benefits they start to use it for day-to-day activities such as banking, shopping, entertainment and research and subsequently their usage and frequency of internet usage increases. The number of people who use the internet more than once a day has increased from 36 per cent in the quarter ending September 2004 to 52 per cent in the quarter ending June 2008.However, the proportion of people who use the internet less than once a week has remained relatively stable since July 2004 at an estimated 15 per cent of the population 14 years and over.Australians frequency of internet useSource: Roy Morgan Single Source, July 2004-June 2008, 14+ years old, N = 65,446, ever accessed the internet. Note: excludes ‘can’t say’

Methodology

Data within this report are drawn from a number of sources including the Roy Morgan Single Source, Australian Bureau of Statistics (ABS) and Nielsen Online and are referenced throughout the publication. This report also draws on research published in the ACMA report Telecommunication Today, Report 6: Internet activity and content and report provides further detail on take-up and use as reported in the ACMA Communications Report 2007-2008.Roy Morgan Single Source was the main source of data. Roy Morgan Single Source Database is a survey of individuals aged over 14 years drawn from a large base survey sample (more than 25,000 per year in Australia). The Roy Morgan statistics cited in the report were derived from data collection periods as prescribed below:

  • Take-up of internet — discrete quarter April 08-June 08;
  • Internet activities — six months from January 08-June 08; and
  • Non-internet users — year from July 2007-June 2008.

Throughout this report analysis has been based on the question, “have you ever accessed the internet?” Throughout this report ‘access’ refers to the physical internet connection i.e. home access or work access. Therefore, for clarification, throughout the report references to this question have used the term ‘use of internet’ instead of ‘ever accessed internet’.

ACMA’s research program in 2009

ACMA has regulatory obligations to report and advise on telecommunications, radiocommunications, broadcasting and the internet.This report is the second this year of a series called Australia in the Digital Economy, which focus on the impact and take-up of on line tools and services in the life of Australian citizens. ACMA is planning to issue a number of studies this year as part of its research focus on changing consumer use and attitudes towards communications and media services, and Australian’s interaction with the digital economy.A complementary report to the Australian in the Digital Economy: Online Participation report due for release over coming weeks is:

  • Convergence and Communications: Australian consumer satisfaction with communication services-which investigates Australian satisfaction levels with communication services including fixed line, mobile and internet.

Other research ACMA is conducting under this program include reports examining technology trends, changes in communications and media business models, and spectrum management arrangements including auction design and pricing for allocations.This Australian in the Digital Economy: Online Participation report also draws on these ACMA reports from 2008:

  • the annual Communications Report
  • the Telecommunications Today series of reports, in particular the fifth report, Consumer Take-up and Use of Communication Services

This news release was sourced from the ACMA website at:
www.acma.gov.au/WEB/STANDARD/pc=PC_311716Australia in the digital economy: Online participation
Age is the most significant driver of internet use in the home, according to an new Australian Communications and Media Authority report.The report indicates that nearly three out of four people (specifically, 73 per cent) have a home internet connection and 87 per cent of the population have used the internet. In contrast, only 48 per cent of people aged 65 and over have the internet at home and 44 per cent have never used the internet.
http://apo.org.au/research/australia-digital-economy-online-participationElderly Aussies’ lack of interest in web concerns ACMA
More than half of Australians aged over 65 don’t have the internet at home and 44 per cent have never used the Web, according to an Australian Communications and Media Authority (ACMA) report.
http://www.itnews.com.au/News/NewsStory.aspx?story=102682

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