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Technology-Rich Metros Increase Their Distance From Others – MetaFacts
TUPdate #030428 |
| Dan Ness, Principal Analyst,
MetaFacts, April 28, 2003 |
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Executive Summary |
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Technology-Intense Centers |
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There are strong regional differences in the
amount and variety of technology products and services used. It should come as
no surprise that Silicon Valley is the most technology-intense region in the
U.S. The San Jose MSA (Metropolitan
Statistical Area) has a TECHii (Technology Intensity Index) score of 125.0,
meaning that adults in this region use a quarter higher combinations of
technology products and services than the U.S. average.
San Jose has one of the highest rates of
households with computer users (87%) as well as one of the highest rates of
high-bandwidth usage (44%).
The Oakland, California MSA is ranked second in
the nation for technology intensity with an index of 122.2, also driven by a
high PC user penetration (81%) and high-bandwidth Internet usage (47%) as well
as high cellphone penetration (75%).
Austin, Texas, places a close third, with a
combination of very high PC usage (85%), high-bandwidth Internet usage (37%),
and high cellphone penetration (70%).
Of the MSAs with an above-average Technology
Intensity Index, 8 are in California, and 4 are in Texas, and 1 each in New
Jersey and Florida.
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PC-Rich and PC-Poor Metros |
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The Salt Lake City – Ogden, Utah MSA is top in the
nation for PC usage, with 89% of households having at least one adult using a PC
at home, in a workplace, or for self-employment. This is closely followed by San
Jose, California at 87%. At third place nationwide, Austin-San Marcos, Texas weighs in
at 85%. These three metros have a strong balance of technology industries,
universities, affluence and families, all factors that are closely linked to
computer and Internet usage. |
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Cellphone-Penetrated Metros |
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Cellphone penetration has continued to climb and
approach PC penetration, which has flattened. Many of the MSAs with the highest
cellphone penetration also have strong PC, Internet and other technology usage.
The top MSA for cellphone penetration is Bergen-Passaic, New Jersey, at 80% of
households, far ahead of the 64% national average. This MSA, ranked 16th on the
Technology Intensity Index, also has a high penetration of PC users and
above-average high-bandwidth Internet and digital camera use. Second nationwide,
Fort Lauderdale, Florida has 78% of its households with a cellphone user.
Four MSAs are tied for third-place in cellphone
penetration, at 76%: Newark, New Jersey; Atlanta, Georgia; Nassau-Suffolk, New
York; and Monmouth-Ocean, New Jersey.
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High-Bandwidth Centers |
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The Oakland, California MSA outpaces Silicon
Valley (San Jose, California) with 47% compared with 44% of households having a
high-bandwidth Internet connection. These are closely followed by Long Island
(Nassau-Suffolk, New York) and Orange County, California, both at 42%. Even the
lowest MSA of the top twelve, Boston-Lawrence-Lowell-Brockton, has a full third
(33%) of its households with a high-bandwidth connection. This is well above the
national average of 25% of households, and the 15% level in the rural non-MSA
areas.
Of the dozen MSAs with the highest percentage
using high-bandwidth Internet connections, most of these are using Cable
connections as compared with DSL. There are many reasons that some metros have
higher-bandwidth Internet connections available as compared to others. Some of
the reasons are competitive forces and actions on the parts of the local
telephone companies
and cable companies. These companies are aggressively trying to capture what
they see as a lucrative market while competing with each other. At
the same time, fundamental restrictions on the limits of distance make the
economics of dense, concentrated markets more attractive than rural or even some
suburban markets.
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Background & Methodology |
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Measuring the household penetration and individual
usage levels of computer and communication technology are key factors closely
monitored by both the technology community as well as more recently by public
policy makers. For nearly two decades, it has also formed the starting point for
the Technology User Profile study. Through our other historical statistical
analysis, as well as that of many sociodemographers and database marketers,
there are many factors that affect and reinforce who uses and doesn’t use
technology, such as educational level, household income, family status,
occupation, employment status and race. Further, these and other factors are
interrelated to where people live.
This article reports on the key measures of
penetration and usage on a geographic level, reviewing each of 321 MSAs
(Metropolitan Statistical Areas) using the most recent results from the
nationwide 2003 Technology User Profile 2003 Annual Edition. The preliminary
results from this wave are based on 24,713 completed surveys conducted offline
among a representative population of American adults. To calculate the TECHii
score (Technology Intensity Index) for each MSA, we combine the relative
penetration of each technology product or service weighted by the average annual
expenditure. This factor is then compared to the national average, to give a
relative index. An index of 110 means that the households in the MSA spend 10%
more than the national average per household for the selected technology
products and services. Similarly, an index of 80 means that the MSA spends at
80% of the national average level. The technology products and services include
personal computers, the Internet, digital cameras, game consoles, cellular
phones, DSL & Cable High-Bandwidth Internet connections, and others.
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Links to Full
Document |
| For the complete TUPdate,
please follow
this link to the full document. |
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Other Resources |
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Current TUP subscribers may be interested in the
following links with related, more detailed or updated information:
MSAs by
Cellphone Penetration (TUPan03p) (Excel)
Cell-dominant MSAs by Cellphone Penetration (TUPan03p) (Excel)
MSAs by
PC Non Penetration (TUPan03p) (Excel)
MSAs by
Any PC Penetration (TUPan03p) (Excel)
MSAs by
TECHii score (TUPan03p) (Excel)
MSAs by
High-Bandwidth Internet usage (TUPan03p) (Excel) |
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