Because every American
should have access
to broadband Internet.

The Internet Innovation Alliance is a broad-based coalition of business and non-profit organizations that aim to ensure every American, regardless of race, income or geography, has access to the critical tool that is broadband Internet. The IIA seeks to promote public policies that support equal opportunity for universal broadband availability and adoption so that everyone, everywhere can seize the benefits of the Internet - from education to health care, employment to community building, civic engagement and beyond.

Library

Special Reports

Access to Broadband Internet: Top Ten Areas of Saving — 2015

 
 



METHODOLOGY

In updating the “Top 10 Ways Being Online Saves You Money” report, IIA looked at the top areas of consumer spending, and the discounts that are available to Internet users.  Based on the 2014 Consumer Expenditure Survey released by the U.S. Department of Labor, we used online resources and applications to find discounts on essentials like housing, apparel, gasoline and food.  Mobile broadband and apps have changed the way that people shop online, providing access to discounts on everything from leisure activities to groceries. Some areas of this analysis, like housing, gasoline and newspaper expenditures, required data specific to certain cities.  For the purposes of this report, we chose five of the top 12 U.S. cities by population (New York, Chicago, Los Angeles, Dallas and Jacksonville) also keeping geographic diversity in mind. Overall, we found that the savings in this year’s analysis ($10,504.25) were significantly higher than those in our 2013 analysis ($8,674) and the year prior ($8,870).

We looked at similar products and used similar websites for comparison, though our research revealed several new studies on Internet savings in the health insurance and automotive categories, along with a new collection of apps available for tablets and other mobile devices.

The greatest sources of additional savings in this year’s analysis were found in two categories: entertainment and automotive.  We found that “cutting the cord” on traditional cable TV subscriptions in favor of streaming content via Netflix or a similar service could produce significant savings.  In the automotive category, we found that using an online tool like TrueCar could save on a new car purchase.  In a departure from last year’s methodology, we factored in the average annual cost of a mobile data plan AND home Internet connection ($1,440).

The below methodology provides more detail as to the calculations used for each savings category.

ONE. HOUSING. POTENTIAL SAVINGS: $2,413/YR (16.53%)

Source: Search based study on apartments in New York, Chicago, Los Angeles, Dallas and Jacksonville Methodology: Sampled 50 online postings in the above markets to determine average cost savings relative to local apartment rent.  Considered the average annual expenditure on shelter ($17,798) minus the annual mortgage interest and charges for owned homes ($3,200) based on the Department of Labor annual study on consumer expenditures.  Applied 16.53% savings factor to the remaining average expenditure for apartment living ($14,598). Source examples: www.craigslist.org, Craigslist App, www.trulia.com, Trulia Rent App, www.zillow.com, Zillow App

TWO. AUTOMOTIVE. POTENTIAL SAVINGS: $3,000 (A ONETIME SAVINGS OF 9.26%)

Source: Cost analysis based on average new car purchase price in 2014
Methodology: Applied $3,000 savings factor from TrueCar.com to the average 2014 vehicle purchase cost net outlay ($32,386) based on a report by Edmunds.

THREE. HEALTH INSURANCE. POTENTIAL SAVINGS: $430/YR (15%)

Source: Kaiser Family Foundation Study
Methodology: Applied 15% savings factor from Kaiser study to the average amount spent on health insurance ($2,868) based on the Department of Labor annual study on consumer expenditures.

FOUR. FOOD. POTENTIAL SAVINGS: $1,020/YR (25.68%)

Source: Search based study on basic basket of groceries based on top selling items (Carbonated beverages, Milk, Fresh bread, Produce, Snacks, Cheese, Frozen dinners/entrees, Cold cereal) Methodology: Created a standard basket of monthly groceries to establish a baseline retail cost.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Potential savings based on cost reductions at the aggregate basket level.  Applied 25.68% savings factor to the average annual expenditure on food at home ($3,971) based on the Department of Labor annual study on consumer expenditures. Source example: www.couponmom.com, www.peapod.com, www.coupons.com

FIVE. NON PRESCRIPTION DRUGS. $59/YR (17.52%)

Source: Search based study on common over the counter medicines (Pain Relievers, Antacids, Cold Remedies, Allergy Relief, Natural Remedies) Methodology: Created a standard basket of the best-selling non-prescription drugs to establish a baseline retail cost.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Potential savings based on cost reductions at the aggregate basket level.  Applied 17.52% savings factor to the average annual expenditure on non-prescription drugs, $338 annually according to a study by the Consumer Healthcare Products Association.
Source example: www.drugstore.com, www.overstockdrugstore.com

SIX. GASOLINE. POTENTIAL SAVINGS: $303/YR (12.28%)

Source: Search based study on lowest gasoline prices in New York, Chicago, Los Angeles, Dallas and Jacksonville Methodology:  Researched average gas prices for each of the above cities, and found the lowest advertised prices in each, for a savings of 12.28% off of average gasoline expenditure ($2,468) based on the Department of Labor annual study on consumer expenditures.
Source example: www.gasbuddy.com, GasBuddy App

SEVEN. ENTERTAINMENT. POTENTIAL SAVINGS: $3,476/YR (63.02%)

Source: Search based study on restaurant dining, sporting/concert tickets and leisure activities in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology: Applied savings factor of 55.64% on dining outside of the home ($2,787) and entertainment such as concerts, events and leisure activities to the entertainment budget ($2,728) based on the Department of Labor annual study on consumer expenditures.
Source example: Groupon App, Living Social App.
Also added cost savings of “cutting the cord” on cable TV.  To calculate savings, we looked at the average monthly cost of a cable subscription in the U.S. ($99, according to Yahoo Finance) and assumed the use of a streaming service like Netflix.  Applied savings factor of 89.91% to the total average spent on cable as a percentage of total entertainment spending.

EIGHT. APPAREL. POTENTIAL SAVINGS: $1,117/YR (62.55%)

Source: Search based study on basic clothing combinations for men and women Methodology:  Created a set of standard baskets of apparel for a man (khakis/jeans and shirts) and a woman (skirts/jeans and tops) to establish a baseline retail cost in each of five price categories.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Applied 62.55% savings factor to the average annual expenditure on apparel ($1,786) based on the Department of Labor annual study on consumer expenditures.
Site example: www.6pm.com

NINE. NEWSPAPERS. POTENTIAL SAVINGS: $85/YR (39.29%)

Source: Search based study reviewing major newspapers in New York, Chicago, Los Angeles, Dallas and Jacksonville

Methodology:  Calculated the standard annual rate for a daily delivery (including Sunday) subscription for three top papers in each of the above cities.  Potential savings factor based on average annual daily subscription rates vs. online subscription rates and access to the newspaper’s app (where available).

Source example: www.nytimes.com, www.chicagotribune.com, www.dallasnews.com

TEN. BILL PAY. POTENTIAL SAVINGS: $41/YR (100%)

Source: Cost analysis based on average consumer’s postage for seven bills per month.
Methodology: Created a standard multiple of monthly bills that are traditionally paid via postage (Rent/Mortgage, Gas, Electric, Water, Cable/Phornet, Mobile, Credit Card). Applied average cost per U.S. postage stamp ($ 0.49) for each monthly bill.
Site examples: www.mycheckfree.com, www.chase.com, www.bankofamerica.com

Posted by IIA on 12/14 at 04:41 PM

IIA Filings with the FCC

 
 

In the Matter of Lifeline and Link Up Reform and Modernization

A sea change in the Lifeline Program is needed. IIA strongly believes that the Lifeline Program should cover broadband services. As Commissioner Mignon Clyburn has noted, broadband is “the greatest equalizer of our time.” But while broadband access is nearly ubiquitous for upper-income Americans, those with low incomes struggle to achieve comparable connectivity. IIA believes that, if the FCC fails to fundamentally alter the program to cover broadband, then the FCC may inadvertently and unnecessarily jeopardize the program’s future existence.

Letter to the FCC Regarding Lifeline

In bringing Lifeline into the 21st century, broadband should be included as an integral, more affordable offering of the program, and consumers should be empowered by providing the subsidy directly to eligible people instead of companies. Moreover, to enhance administrative efficiency, we urge the FCC to shift program eligibility verification away from companies that are not accountable to the American people, and instead allow states to verify eligibility for Lifeline at the same time they determine consumer eligibility for other federal low-income programs.

In the Matter of Protecting and Promoting the Open Internet

To protect the innovation that has been a hallmark of the Internet ecosystem and to advance the overall mission of broadband deployment, the Commission should rely on its authority, reaffirmed by the Verizon court, under Section 706 of the Telecommunications Act of 1996 rather than on a radical proposal to reverse decades of Commission precedent and practice by reclassifying broadband services under Title II. Selective forbearance would pose serious legal and practical difficulties. Section 706 – the text of which speaks of the need to promote investment – presents the better alternative to protect the open Internet, protect consumers, and promote innovation.

In the Matter of Policies Regarding Mobile Spectrum Holdings

In summary, IIA believes the existing unpredictable, non-public process for changing spectrum screens undermines economic growth by failing to provide investors with the transparency, predictability and flexibility needed to properly consider wireless broadband investments. While freeing more spectrum for mobile broadband use remains the most important new policy priority, creating an open and predictable process for evaluating the amount of spectrum carriers will be allowed to possess is essential to promoting investment and growth in commercial mobile services.

In the Matter of Crafting an Effective National Broadband Strategy

An effective National Broadband Strategy will enable the government to partner with the private sector to extend broadband service to every corner of the country, while at the same time raising awareness of its benefits. A national broadband strategy should also evolve as technologies improve, and as we learn more from broadband mapping and from the return of initial stimulus investments. The best strategy will start by examining where we stand today and then identify policies to get us where we want to be.

Posted by admin on 12/01 at 01:40 PM

Special Access

 
 

Download “Special Access.”

FCC Reversing Course

 
 

Download “FCC Reversing Course: Seeking to Regulate Internet Video as a Traditional Legacy Video Service.”

Posted by admin on 11/09 at 08:54 AM

FCC’s Technology Transition to a Broadband World

 
 

Download “FCC’s Technology Transition to a Broadband World – One Step Forward, Two Steps Back.”

Posted by admin on 11/09 at 08:51 AM

Advancing Private Sector Broadband Investment

 
 

Download “Advancing Private Sector Broadband Investment: FCC Rhetoric and Policies at Odds.”

Posted by admin on 11/09 at 08:46 AM

Ensuring 21st Century Connectivity for Low-Income Americans

 
 

Download IIA’s Lifeline Filing

Fundamental reforms should include expanding the Lifeline Program to cover broadband and completely overhauling program administration

WASHINGTON, D.C. – August 31, 2015 – Today, the Internet Innovation Alliance (“IIA”) urged the Federal Communications Commission (“FCC”) to embrace fundamental and sweeping reform as the agency moves forward in its effort to modernize the existing federal Lifeline Program. Only a “sea change” in the program’s current design will advance the goal of creating a 21st Century program capable of efficiently and effectively delivering broadband Internet technologies and meaningful opportunities to America’s low-income consumers, according to IIA.

IIA’s comments filed today in response to the FCC’s Further Notice of Proposed Rulemaking (FNPRM) on Lifeline Program modernization emphasize the core need to include broadband as a new eligible service under Lifeline. IIA contends that the failure to update the program to include high-speed Internet would potentially jeopardize Lifeline’s future existence.

“The time for bold action is now. As Commissioner Clyburn aptly noted, Lifeline reform gives us a unique opportunity to ‘rid us of antiquated constructs’ and ‘design a future-proof program that enables low-income consumers to have access to broadband services comparable to everyone else,’” commented Rick Boucher, a former Democratic congressman who chaired the Energy and Commerce Subcommittee on Communications and the Internet and now serves as honorary chairman of the IIA.

Beyond making broadband an eligible Lifeline service, IIA’s filing urges the FCC to squarely address existing structural flaws that today hamstring the program and the Lifeline marketplace. IIA proposes that the Commission move swiftly to adopt the following essential reforms:

1. Safeguard the Lifeline Program by taking eligibility determinations away from self-interested service providers.

In its comments, IIA enthusiastically supports the FCC’s proposal to remove the responsibility of consumer eligibility determination from Lifeline providers. IIA points out that determining eligibility for receiving benefits from a government program is an inherently governmental function; as such, eligibility determinations should not be left to service providers that may have improper economic incentives to increase enrollment.

2. Simplify and protect the Lifeline Program by vesting administration in a state agency using a “coordinated enrollment” and de-enrollment process.
IIA supports relying on state governmental agencies as the neutral entities charged with using a coordinated enrollment process to verify consumer eligibility and administer the enrollment and de-enrollment processes. Under this process, consumers determined eligible to receive Supplemental Nutrition Assistance (SNAP) by the State would automatically be deemed eligible to receive Lifeline assistance. IIA believes that a reformed federal Lifeline program should link eligibility determination to a single, mature assistance program – SNAP – which would increase administrative efficiency, promote participation by both consumers and service providers, and reduce the potential for waste, fraud, and abuse. 

3. Empower consumers and promote dignity with a “Lifeline Benefit Card” – a direct-to-consumer benefit.

To preserve and advance the personal dignity of Lifeline beneficiaries, IIA believes that Lifeline Program benefits should be transferred directly to the consumer using a “Lifeline Benefit Card” or similar approach (e.g., coordinated enrollment taking advantage of existing SNAP EBT cards and adding the Lifeline benefit to that EBT card). Eligible consumers could use the “Lifeline Benefit Card” as a voucher to buy whichever communications service meets their needs from authorized and registered providers, whether broadband, wireline, or wireless voice service (on a stand-alone or bundled basis).

4. Incentivize voluntary participation in the Lifeline Program by cutting red tape.

IIA recommends delinking the ETC designation from the Lifeline Program so subsidy recipients receive the complete benefits of robust competition that full service provider participation could offer. Removing existing regulatory roadblocks will make it easier for service providers to participate in Lifeline and incentivize them to compete for the purchasing power of Lifeline consumers.

Boucher added, “IIA stands with Commissioner Clyburn and her fellow Commissioners in the belief that the time for comprehensive Lifeline reform is now to ensure the relevance and fiscal integrity of the program so that all Americans may participate fully in the broadband century.”

Posted by admin on 08/28 at 10:00 AM

Regarding the Future of Lifeline

 
 

On the heels of Federal Communications Commission Chairman Tom Wheeler’s proposal to restructure and modernize the Commission’s Lifeline program, IIA sent a letter today in support of the rulemaking proceeding soon to be initiated to advance Lifeline reform.

From the letter, signed by IIA Chairmen Rick Boucher, Bruce Mehlman, Larry Irving and Jamal Simmons:

“The Internet serves as a 21st century tool that promotes civic engagement and enables citizens to access education, healthcare, government services and job opportunities. Not having high-speed broadband service limits access to the benefits and opportunities offered in today’s global digital economy.   

“In the U.S., consumers with economic means have nearly ubiquitous access to broadband, yet almost two-thirds of our nation’s low-income community continues to seek that similar opportunity. Without broadband availability, low-income families face an uphill battle in obtaining the American dream.

“In bringing Lifeline into the 21st century, broadband should be included as an integral, more affordable offering of the program, and consumers should be empowered by providing the subsidy directly to eligible people instead of companies. Moreover, to enhance administrative efficiency, we urge the FCC to shift program eligibility verification away from companies that are not accountable to the American people, and instead allow states to verify eligibility for Lifeline at the same time they determine consumer eligibility for other federal low-income programs. Such ‘coordinated enrollment’ would benefit consumers by streamlining the eligibility process and ultimately enable subsidy recipients to receive a ‘Lifeline Benefit Card’ where consumers could apply the funds to the provider of their choosing. These reforms would make program participation for all service providers more attractive, thereby broadening consumer choice and stimulating competition for the low-income consumer purchasing power.

“IIA applauds the Commission for quickly moving forward to initiate a new proceeding aimed to advance Lifeline reform this year. The time for reform is now, the need is great, and the goal is achievable. “

Download IIA’s Lifeline letter to the FCC.

Posted by admin on 06/11 at 10:18 AM

Permanently Securing Net Neutrality

 
 

Some believe that an open Internet was safely secured by the FCC’s net neutrality rules that now treat broadband Internet access service as a public utility under Title II of the 1934 Communications Act.

Yet, in choosing the impose rules designed to regulate the original telephone monopolies on the nation’s dynamic Internet economy, the FCC now faces the real threat that its monopoly-era approach will be reverse either by a court or through the election of a Republican President that would alter the Commission’s leadership in 2017.

While Democrats and Republicans have fought for the past decade over the adoption of rules that assure network neutrality, Republicans now appear ready to engage in a real and thoughtful discussion about preserving an open Internet. They have moved a great distance from their traditional approach. If Democrats are willing, Congress can once and for all create legal permanence for the network neutrality principles Democrats have long sought with “rules of the road” that preserve Internet openness and restore the light-touch regulatory approach that has promoted the exponential growth of the Internet.

Download our paper “Permanently Securing Net Neutrality,” along with our timeline of light-touch regulation that has given consumers a vibrant Internet.

You can also listen to a teleconference discussing how Congress can permanently secure net neutrality featuring our Honorary Chairman Rick Boucher and constitutional law expert Kathleen M. Sullivan:

Posted by admin on 05/20 at 08:26 AM

Impact of “Title II” Regulation on Communications Investment

 
 

Updated as of 3/6/15

By every relevant measure of broadband capability, the US is ahead of Europe, with greater levels of broadband deployment, competition and access to the fastest wireless and next-generation wired facilities.


 

 

“DOWNLOAD “IMPACT OF ‘TITLE II’ REGULATION ON COMMUNICATIONS INVESTMENT” (PDF)


A light-touch regulatory approach to broadband leads to greater deployment, competition and coverage than Title II-style regulation, according to our new 36-page report comparing the state of broadband in the United States to Europe.

Authored by Fred Campbell, executive director of the Center for Boundless Innovation in Technology and former Wireless Bureau Chief at the Federal Communications Commission (FCC), “Impact of Title II Regulation on Communications Investment” sheds light on the different outcomes resulting from Title II-style Internet policy adopted by the European Union (EU) in 2002 and the deregulatory approach to broadband that the United States (US) adopted that same year.

The study reveals the European Commission’s acknowledgement that:

• High-speed broadband investment is taking place more quickly in the United States;

• Title II-style regulations are the reason European broadband networks have fallen behind the United States; and

• Europe must adopt investment-friendly broadband policies in order to maintain its global competitiveness.

“It is ironic that, as the EU embarks on relaxing its Title II-style approach to broadband regulation to mimic US success, the FCC is now about to reverse course and embrace failed public utility regulation for the Internet. Instead, as the data in the study reveals and the EU experience demonstrates, the US has had it right all along. We should maintain a bi-partisan light-touch regulatory approach to ensure continued innovation, investment and rapid deployment of 21st century broadband networks.”

— Fred B. Campbell, Jr.

According to the study, the EU’s wholesale access regulations have posed major barriers to network investment, to the introduction of facilities-based competition and to the availability of the fastest wireless services and next-generation networks.

It notes that even though the EU is smaller in geographic size, has greater population density and surpasses the United States in gross domestic product, US wireline broadband providers have invested nearly three times more capital in their networks than their European counterparts. Our nation’s broadband investment greatly overshadowed European investment despite the fact that total European service provider revenues exceeded those of US providers by $15 to 20 billion annually.

“Rhetoric and partisanship have derailed the net neutrality debate. Rather than basing regulatory choices on philosophical principles and hypothetical concerns, policymakers should rely on real numbers that tell the success story of broadband in the US.

“The EU has acknowledged that its Title II-style regulatory approach is the reason European broadband networks have fallen behind those in our nation. The FCC has ample authority to assure Internet openness without imposing utility-style regulation on broadband. We should learn from the European example and avoid gambling on the future of the world’s most innovative Internet economy.”

— IIA Honorary Chairman Rick Boucher

The study highlights how US mobile operators have invested twice as much capital in their networks as EU mobile operators, and have reinvested a significantly greater percentage of their revenues (15-16%) in their wireless network infrastructure versus their EU mobile operator counterparts (7-8%).

Data from the study demonstrate how these higher levels of capital investment in the US correlate with high levels of facilities-based competition and next-generation coverage:

• US competitors have a larger share of the telephone market (US 65% vs. EU 41%); competitors also hold a larger percentage of the US broadband market.

• The vast majority of US households have access to multiple facilities-based fixed broadband operators while a majority of Europeans lack access to any alternative fixed facilities-based broadband alternative;

• US has 5 or more facilities-based mobile operators in most markets, while EU averages fewer than 4 facilities-based mobile operators per market (typically 3-4);

• 82% of Americans are covered by next-generation broadband at 50 Mbps download speeds vs. 63% of Europeans covered by broadband networks offering at the most 30 Mbps speed; and

• As late as 2012, high-speed wireless broadband (LTE) coverage in the US was more than double that in the EU (79% of US population had LTE coverage vs. 30% of EU households).

Posted by admin on 02/11 at 09:45 AM

Bringing the FCC’s Lifeline Program Into the 21st Century

 
 

A white paper by the Internet Innovation Alliance

Our new white paper, “Bringing the FCC’s Lifeline Program into the 21st Century,” calls for fundamental reform of the Federal Communications Commission’s existing Lifeline Program to provide access and enhanced consumer choice to 21st Century broadband services for the nation’s low-income consumers.

“The FCC’s Lifeline Program is a 20th Century government program aimed at spreading a 19th Century technology, voice service. It’s time to start a new conversation in Washington on how best to provide America’s low-income communities with greater access to 21st Century broadband communications services.”

— former Congressman, and Honorary Chairman of IIA, Rick Boucher

In our report, we highlight how this antiquated, cumbersome and complex program currently perpetuates a market imbalance that obligates only wireline telephone providers to participate and maintain the administrative systems and processes required to operate the program. 

We recommend streamlining the program to provide the flexibility necessary to broaden participation among various communications providers to help bring the benefits of competition to low-income consumers — more innovation, better service, lower prices—while also lowering administrative costs. One step toward attaining this goal is to transition the current program toward a voucher model, by providing eligible consumers with a “Lifeline Benefit Card” that empowers them to purchase a range of communications services, including broadband, wireline or wireless voice services.

Today, service providers determine the eligibility of consumers for the Lifeline subsidy. The white paper recommends that, given the economic incentives that service providers have to increase enrollment, eligibility determinations for Lifeline benefits and core program administration oversight should be performed by a governmental agency rather than by communications service providers.

Our report offers the following recommendations on how best to modernize and transition the Lifeline program so that it can help ensure next-generation broadband access for low-income consumers:

1. Bring the Lifeline Program into the 21st Century by making broadband a key part of the program’s rubric;

2. Empower consumers by providing the subsidy directly to eligible people instead of companies;

3. Level the playing field between service providers to broaden consumer choice and stimulate competition for their purchasing power;

4. Safeguard and simplify the program by taking administration away from companies that are not accountable to the American public, instead vesting that governmental responsibility with an appropriate government agency.

“Only five percent of U.S. consumers still rely solely on the antiquated, circuit-switched telephone network for their communications needs. This trend is reflected in the FCC’s Lifeline Program, with 80 percent of its dollars currently going to wireless carriers.

As consumers abandon their wireline telephones for modern broadband services, the Lifeline Program — adopted during the 1980s — should be modernized and upgraded to reflect the realities of the current IP-based world. Expanding the program to focus on broadband, and simplifying its administration to welcome participation by more service providers, will help millions more Americans access modern communications services.”

— former Congressman, and Honorary Chairman of IIA, Rick Boucher

Download “Bringing the FCC’s Lifeline Program into the 21st Century” (PDF)

Posted by IIA on 11/04 at 04:09 PM

The New Network Compact: Consumers Are in Charge

 
 

Anna-Maria Kovacs, Ph.D., CFA

July 2014

Download the Presentation (PDF)
Download the Full Report (PDF)
Read the Press Release

Executive summary:

There is a consensus among many regulators, consumer advocates, and network providers that there is a set of core values that should apply to the communications ecosystem in America: public safety, universal access, consumer protection, and competition.

Competition is a relative newcomer to the U.S. communications arena, but it has quickly empowered consumers to make their own communications choices based on their own priorities, which do not necessarily match those of their regulators. When consumers select platforms, services, or applications that are not consistent with traditional public safety, universal access, or consumer protection, what are regulators to do? Attempting to stifle consumer choice is neither appealing nor realistic, but abdicating responsibility for the core values is not viable, either. The time has come for a new network compact that recognizes that consumers are in charge.

For most of the Twentieth Century, even as recently as the passage of the Telecommunications Act of 1996, regulators could set rates and standards for communications providers, which were monopolies, and be certain that consumers would purchase the services the regulators had, thus, effectively designed.

Regulators and carriers treated consumers as a homogeneous body, for the most part creating one-size- fits-all services. Consumers, having no choices available through which they could express their diversity, acted as a homogeneous body.

In less than two decades, technological evolution and innovation and the competition they have fostered have provided consumers with the abundance of communications choices they enjoy today. The existence of those choices has changed the relationship of regulators, network providers, and consumers in fundamental ways. Consumers are now in charge.

For each communication, today’s consumers have at their disposal myriad permutations of platforms, services, applications, and devices from which they can select the combination that best fits their message, audience, location, and circumstances. They can satisfy their own priorities and fully express their individuality. They can also make choices that evade the core values. They are powerful decision- makers, neither directly captive to their providers nor indirectly captive to regulators who control the providers. Accomplishing the core values today requires a new network compact based on consumers’ power.

While regulators still exercise varying degrees of control over different network platforms, consumers today have so many options—both between platforms and between the services and applications that ride those platforms—that they can easily evade their regulators’ choices if they do not match their own.

Put another way, the old network compact—although created to benefit consumers—was primarily between regulators and service providers. Network providers supplied what regulators decreed given their vision of consumer welfare. Consumers had no choice but to buy those services or do without. Today, thanks to the ample choices they enjoy, consumers have taken control. They are no longer passive beneficiaries of decisions made by others—they are making their own decisions for their own benefit.

Those who value competition celebrate the empowerment of consumers. At the same time, consumers’ new power creates a dilemma for regulators. When consumers make choices that are not consistent with the core values, should regulators intervene—recognizing that they are limiting consumers’ choices by doing so? If they do intervene, how can they make their intervention effective given consumers’ power to evade regulatory choices that do not mesh with their own priorities?

The fundamental challenge for regulators is to craft a new network compact based on respect for consumers and their choices. It must not limit those choices except when it is absolutely necessary to do so. Regulators must ensure that core values are met, but they must do so strategically.

To be effective, the new network compact must target regulatory intervention to those few areas where consumers will recognize it as necessary: areas where some consumers are vulnerable and the market has failed to meet their needs.

Posted by admin on 07/29 at 01:48 PM

Access to Broadband Internet: Top Ten Areas of Saving - 2013

 
 



Embed This

Copy-and-paste this code to include on your website

<img src=http://internetinnovation.org/images/uploads/2013-cost-savings.jpg
width=506 height=1888 alt=10 ways being online saves you money />




METHODOLOGY

In updating the “Top 10 Ways Being Online Saves You Money” report, IIA looked at the top areas of consumer spending and the discounts that are available to Internet users.  Based on the 2012 Consumer Expenditure Survey released by the U.S. Department of Labor, we used online resources and applications to find discounts on essentials like housing, apparel, gasoline and food.  Mobile broadband and apps have changed the way that people shop online, providing access to discounts on everything from leisure activities to groceries. Some areas of this analysis, like housing, gasoline and newspaper expenditures, required data specific to certain cities.  For the purposes of this report, we chose five of the top 12 U.S. cities by population (New York, Chicago, Los Angeles, Dallas and Jacksonville) also keeping geographic diversity in mind. In a departure from last year’s methodology, we factored in the average annual cost of a mobile data plan ($690) rather than the average annual cost of a home broadband connection. Overall, we found that, after figuring in the cost of a mobile data plan, the savings in this year’s analysis ($8,674) were slightly higher than those in last year’s analysis ($8,170) and the year prior ($7,695).  We looked at comparable products across the board and used similar websites for comparison, along with a number of apps available for tablets and other mobile devices.  The below methodology provides more detail as to the calculations used for each savings category.

ONE. HOUSING. POTENTIAL SAVINGS: $1,850/YR (13.52%)

Source: Search based study on apartments in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology: Sampled 50 online postings in the above markets to determine average cost savings relative to local apartment rent.  Considered the average annual expenditure on shelter ($16,887) minus the annual mortgage interest and charges for owned homes ($3,200) based on the Department of Labor annual study on consumer expenditures.  Applied 13.52% savings factor to the remaining average expenditure for apartment living ($13,687).
Source examples: www.craigslist.org, Craigslist App, www.trulia.com, Trulia Rent App, www.apartments.com , Apts.com App

TWO. AUTOMOTIVE. POTENTIAL SAVINGS: $500 (A ONETIME SAVINGS OF 1.63%)

Source: Cost analysis based on average new car purchase price in 2012
Methodology: Applied $500 savings factor from Dealership Internet Departments vs. Traditional Car Buying to the average 2012 vehicle purchase cost net outlay ($30,748) based on a report by TrueCar.com.
http://www.autoblog.com/2012/04/11/average-price-of-new-cars-hits-all-time-record/

THREE. TRAVEL. POTENTIAL SAVINGS: $1,800/YR (20%)

Source: Amadeus Case Study amadeus.com/us/documents/aco/us/BearingPoint.pdf
Methodology: Applied 20% savings factor from Amadeus study to the average amount spent on travel ($8,998) based on the Department of Labor annual study on consumer expenditures.

FOUR. FOOD. POTENTIAL SAVINGS: $760/YR (19.38%)

Source: Search based study on basic basket of groceries based on top selling categories (Carbonated beverages, Milk, Fresh bread, Beer, Salty snacks, Natural cheese, Frozen dinners/entrees, Cold cereal, Wine, Cigarettes)
Methodology: Created a standard basket of monthly groceries to establish a baseline retail cost.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Potential savings based on cost reductions at the aggregate basket level.  Applied 19.38% savings factor to the average annual expenditure on food at home ($3,921) based on the Department of Labor annual study on consumer expenditures.
Source example: www.couponmom.com, www.peapod.com, www.coupons.com

FIVE. NON PRESCRIPTION DRUGS. $114/YR (31.94%)

Source: Search based study on common over the counter medicines (Pain Relievers, Antacids, Cold Remedies, Allergy Relief, Natural Remedies)
Methodology: Created a standard basket of the best-selling non-prescription drugs to establish a baseline retail cost.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Potential savings based on cost reductions at the aggregate basket level.  Applied 31.94% savings factor to the average annual expenditure on non-prescription drugs, which was derived as 10% of the average annual expenditure on healthcare ($3,556) from the Department of Labor annual study on consumer expenditures.
Source example: www.drugstore.com, www.amazon.com

SIX. GASOLINE. POTENTIAL SAVINGS: $142/YR (5.57%)

Source: Search based study on lowest gasoline prices in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology:  Researched average gas prices for each of the above cities, and found the lowest advertised prices in each, for a savings of 5.57% off of average gasoline expenditure ($2,549) based on the Department of Labor annual study on consumer expenditures.
Source example: www.gasbuddy.com, GasBuddy App

SEVEN. ENTERTAINMENT. POTENTIAL SAVINGS: $2,964/YR (56.11%)

Source: Search based study on restaurant dining, sporting/concert tickets and leisure activities in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology: Applied savings factor of 56.11% on dining outside of the home ($2,605) and entertainment such as concerts, events and leisure activities to the entertainment budget ($2,678) based on the Department of Labor annual study on consumer expenditures.
Source example: Groupon App, Living Social App, www.bargainseatsonline.com

EIGHT. APPAREL. POTENTIAL SAVINGS: $1,100/YR (63.38%)

Source: Search based study on basic clothing combinations for men and women
Methodology:  Created a set of standard baskets of apparel for a man (khakis/jeans and shirts) and a woman (skirts/jeans and tops) to establish a baseline retail cost in each of five price categories.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Applied 63.38% savings factor to the average annual expenditure on apparel ($1,736) based on the Department of Labor annual study on consumer expenditures.
Site example: JackThreads App, Overstock.com – Mobile, Gilt App

NINE. NEWSPAPERS. POTENTIAL SAVINGS: $87/YR (37.37%)

Source: Search based study reviewing major newspapers in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology:  Calculated the standard annual rate for a daily delivery (including Sunday) subscription for the top three papers in each of the above cities.  Potential savings factor based on average annual daily subscription rates vs. online subscription rates and access to the newspaper’s app (where available).
Source example: www.nytimes.com, www.chicagotribune.com, www.dallasnews.com 

TEN. BILL PAY. POTENTIAL SAVINGS: $47/YR (100%)

Source: Cost analysis based on average consumer’s postage for six bills per month, plus one pay-by-phone charge.
Methodology: Created a standard multiple of monthly bills that are traditionally paid via postage (Rent/Mortgage, Gas, Electric, Water, Cable/Phone/Internet, Mobile). Applied average cost per US postal stamp ($0.44) for each monthly bill, plus the savings of one average pay-by-phone charge ($15).
Site examples: www.mycheckfree.com, www.chase.com, www.bankofamerica.com

 

Posted by admin on 10/28 at 08:46 PM

Access to Broadband Internet: Top Ten Areas of Saving - 2012

 
 

Top Ten Areas of Savings 2012

Embed This

Copy-n-paste this code to include on your website

<img src=http://internetinnovation.org/images/uploads/2012_cost_savings.jpg
width=500 height=1630 alt=10 ways being online saves you money />

 


Print Version

Palmcard - PDF 3.5” x 8.5” Printout file



METHODOLOGY OVERVIEW

In updating the “Top 10 Ways Being Online Saves You Money” report, IIA looked at the leading areas
of consumer spending and the saving opportunities that are only available to Internet users. Based
on the 2011 Consumer Expenditure Survey released by the U.S. Department of Labor, we calculated
the amount and percentage that can be saved by having and using a high-speed Internet connection
with online resources for finding discounts on essentials like housing, apparel, gasoline and
food. Additionally, we took into account the power of group buying sites like LivingSocial and
Groupon that have changed the way people spend on basics like entertainment and provide tremendous
discounts on leisure activities, restaurants and sporting events. Other online resources like
couponmom.com and gasbuddy.com alert savvy consumers to deals at establishments in their city.
Some areas of this analysis, like housing, gasoline and newspaper expenditures, required data
specific to certain cities.  For the purposes of this report, we chose five of the top 12 U.S.
cities by population (New York, Chicago, Los Angeles, Dallas and Jacksonville) also keeping
geographic diversity in mind. Overall, we found that the percentage of savings in this year’s
analysis was relatively similar to last year’s research and the year prior. But as pointed out by
the U.S. Bureau of Labor Statistics, average annual expenditures rose 3.3 percent in 2011, causing
a jump in the total dollars saved (in $8,870.01 2012, $7,694.56 in 2011, and $7,707 in 2010) with
consumers spending more in the 10 categories. This rise in spending in 2011 barely outpaced the
3.2-percent increase in prices for goods and services from 2010 to 2011, as measured by the
average annual change in the Consumer Price Index (CPI-U). The below methodology provides more
detail as to the calculations IIA used for each savings category.

ONE. HOUSING. POTENTIAL SAVINGS: $1,736/YR (12.75%)

Source: Search based study on apartments in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology: Sampled 50 online postings in the above markets to determine average cost savings relative to local apartment rent.  Considered the average annual expenditure on shelter ($16,803) minus the annual mortgage interest and charges for owned homes ($3,184) based on the Department of Labor annual study on consumer expenditures.  Applied 12.75% savings factor to the remaining average expenditure for apartment living ($13,619). Site examples: www.apartmentfinder.com, www.apartments.com, www.craigslist.org

TWO. AUTOMOTIVE. POTENTIAL SAVINGS: $444 (A ONETIME SAVINGS OF 1.5%)

Source:Cost analysis based on average new car purchase price in 2011
Methodology: Applied 1.5% savings factor from JMR study to the average 2011 vehicle purchase cost net outlay ($29,602) based on a report by the New York Times. http://www.nytimes.com/2011/05/21/business/21auto.html?_r=0

THREE. TRAVEL. POTENTIAL SAVINGS: $1,659/YR (20%)

Source: Amadeus Case Study amadeus.com/us/documents/aco/us/BearingPoint.pdf
Methodology: Applied 20% savings factor from Amadeus study to the average amount spent on travel ($8,293) based on the Department of Labor annual study on consumer expenditures.

FOUR. FOOD. POTENTIAL SAVINGS: $994/YR (25.90%)

Source: Search based study on basic basket of groceries based on top selling categories (Carbonated beverages, Milk, Fresh bread, Beer, Salty snacks, Natural cheese, Frozen dinners/entrees, Cold cereal, Wine, Cigarettes)
Methodology: Created a standard basket of monthly groceries to establish a baseline retail cost.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Potential savings based on cost reductions at the aggregate basket level.  Applied 25.9% savings factor to the average annual expenditure on food at home ($3,838) based on the Department of Labor annual study on consumer expenditures.
    Site example: www.couponmom.com, www.peapod.com, www.coupons.com

FIVE. NON PRESCRIPTION DRUGS. $110/YR (33.25%)

Source: Search based study on common over the counter medicines (Pain Relievers, Antacids, Cold Remedies, Allergy Relief, Natural Remedies)
Methodology: Created a standard basket of the best-selling non-prescription drugs to establish a baseline retail cost.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Potential savings based on cost reductions at the aggregate basket level.  Applied 33.25% savings factor to the average annual expenditure on non-prescription drugs, which was derived as 10% of the average annual expenditure on healthcare ($3,313) from the Department of Labor annual study on consumer expenditures.
Site example: www.drugstore.com, www.amazon.com

SIX. GASOLINE. POTENTIAL SAVINGS: $161/YR (6.08%)

Source: Search based study on lowest gasoline prices in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology:  Researched average gas prices for each of the above cities, and found the lowest advertised prices in each, for a savings of 6.08% off of average gasoline expenditure ($2,655) based on the Department of Labor annual study on consumer expenditures.
Site example: www.gasbuddy.com

SEVEN. ENTERTAINMENT. POTENTIAL SAVINGS: $2,497/YR (48.10%)

Source: Search based study on restaurant dining, sporting/concert tickets and leisure activities in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology: Applied savings factor of 48.10% on dining outside of the home ($2,620) and entertainment such as concerts, events and leisure activities to the entertainment budget ($2,572) based on the Department of Labor annual study on consumer expenditures.
Site example: www.groupon.com, www.livingsocial.com, www.bargainseatsonline.com

EIGHT. APPAREL. POTENTIAL SAVINGS: $1,046.78/YR (60.16%)

Source: Search based study on basic clothing combinations for men and women
Methodology: Created a set of standard baskets of apparel for a man (khakis/jeans and shirts) and a woman (skirts/jeans and tops) to establish a baseline retail cost in each of five price categories.  Conducted a series of online searches against the baseline to identify cost savings exclusive to the Internet.  Applied 60.16% savings factor to the average annual expenditure on apparel ($1,740) based on the Department of Labor annual study on consumer expenditures.
Site example: www.overstock.com, www.jackthreads.com, www.gilt.com

NINE. NEWSPAPERS. POTENTIAL SAVINGS: $174.52/YR (84.88%)

Source: Search based study reviewing major newspapers in New York, Chicago, Los Angeles, Dallas and Jacksonville
Methodology:  Calculated the standard annual rate for a daily delivery (including Sunday) subscription for the top three papers in each of the above cities.  Potential savings factor based on average annual daily subscription rates vs. online subscription rates.
Site example: www.nytimes.com, www.chicagotribune.com, www.dallasnews.com 

TEN. BILL PAY. POTENTIAL SAVINGS: $47/YR (100%)

Source: Cost analysis based on average consumer’s postage for six bills per month, plus one pay-by-phone charge.
Methodology: Created a to a standard multiple of monthly bills that are traditionally paid via postage (Rent/Mortgage, Gas, Electric, Water, Cable/Phone/Internet, Mobile). Applied average cost per US postal stamp ($0.44) for each monthly bill, plus the savings of one average pay-by-phone charge ($15).
Site examples: www.mycheckfree.com, www.chase.com, www.bankofamerica.com


 


2011 Cost Savings Report

2010 Cost Savings Report

Posted by admin on 11/15 at 01:48 PM

Start-Up Savings: Top 10 Ways Broadband Saves American Entrepreneurs Money

 
 

In partnership with the Small Business and Entrepreneurship Council (SBE Council), IIA presents the top 10 ways America’s entrepreneurs can save money with broadband.

To see the results in a cool interactive, click on the feature above or head here. You’ll also find our methodology, along with an embed code. Our press release on the study is available in the Press Room.

(cut and paste below to include this graphic on your blog)
<img src="http://www.internetinnovation.org/small-biz/Start-Up-Savings-IIA-SBE-graphic.png" style="border:solid 1px #ccc">

Posted by IIA on 04/19 at 11:20 AM

Page 1 of 4 pages  1 2 3 >  Last »