2. Connectivity and key determinants

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2.1 Evolution of ICT connectivity in Canada

Following the commercial introduction of web browsers in 1993, Internet penetration in Canada was rapid. Although in 1996 only a very small number of households used the Internet from home (7.4%), by 2001 the penetration rate approached half of all households (48.7%) and by 2003 it reached 55%, while Internet use from any location reached 64% in 2003 (Statistics Canada 2004a). Growth was fast in the beginning¹, particularly among high income households. In recent years, growth has slowed as the technology becomes more widely used and the potential pool of new users becomes smaller. As we shall see later in this section, Internet use among the highest income groups is very high, which means that much of the new growth in Internet penetration depends on households currently with low incomes.

Compared with Internet penetration, the growth of personal computer use has occurred over a longer time period and has been relatively stable, considering the computer’s appeal to specialized users in its early years. By the time the Internet had gained popularity, computers were no longer in their initial growth period (Sciadas 2002). Computer growth rose steadily from 16.3% of households in 1990 to two-thirds (66.8%) of households by 2003. The penetration rate for individuals reported in ALL is slightly higher (75.6%) than the household rate, in part because families with several members are more likely to have a computer than one-person households.

In terms of other ICTs, penetration of telephones and colour televisions is nearly universal in Canada, while penetration of VCRs has stabilized at high levels for some time. CD players were taken up at a slightly faster rate than the personal computer, while growth in the proportion of cable television subscribers has stagnated in Canada, in part due to competition from other service providers, including satellite (Chart 1).

2.2 Personal computer and Internet access

Differences in the penetration and use of various ICTs, both within and across countries, have been well documented in recent years. Studies of the digital divide (see, for instance, US Dept. of Commerce 1995, 1998, 1999, 2000, 2002, 2004, OECD 2001b, Sciadas 2002, 2003) have also identified and analyzed many factors that influence connectivity and use of ICTs, whether at the household or individual level. While income has always been a key determinant, many other factors have been found to exert an independent influence. These include education, age, gender, residential location (urban vs. rural) and even family type.

Results from the ALL survey confirm such findings. The data reveal that in 2003 computer access ranged from a high of over 80% in Switzerland to a low of less than 40% in Italy. Closely tied to this pattern is Internet access, where nearly three-quarters of individuals in Switzerland compared to less than one-third of individuals in Italy lived in a home with Internet access (Chart 2). In Canada, three-quarters (75.6%) of individuals aged 16 to 65 years had computer access, while Internet access from home followed closely (68.1%).

As there are divides between nations, there are also divides between regions or provinces. In Canada, Ontario, Alberta, British Columbia and the Yukon Territory led in terms of home computer and Internet access (Chart 3). The western provinces have been leading in this area for some time and have traditionally been leaders in the penetration of high-speed Internet by cable (Veenhof, Neogi and van Tol 2003, April 2000). The only provinces with Internet penetration rates below 60% were the Atlantic provinces of Newfoundland and Labrador, Prince Edward Island and New Brunswick, along with the Northwest Territories and Nunavut.

Looking only among computer users, British Columbia (92.3%) and Ontario (92.1%) led in terms of the proportion of computer users with Internet access at home. Nunavut trailed with about two-thirds (67.4%) of its computer users having access to a connection at home. The overall national figures mask the disparities occurring between regions.

Although Ontario, Alberta and British Columbia all had Internet access rates above 70%, penetration rates grew more quickly from 2000 to 2003 in most of the other provinces (Table 1). This is in part because the penetration rates in the leading provinces were already considerably higher, and therefore had less room to grow. Penetration rates for Alberta, British Columbia and Ontario grew by less than 40% from 2000 to 2003, while penetration rates for Manitoba, Saskatchewan, New Brunswick and Quebec grew by nearly 60%.

2.3 Purposes of computer and Internet use

Although it is important to monitor access to key ICTs, such as personal computers and the Internet, it is equally important to examine their use if we are to understand their impacts. In Canada, the most common use of computers in 2003 was to access the Internet (91.2% of computer users). About three-quarters (75.4%) of Canadian computer users also used word processors to write or edit text on at least a monthly basis. The next most popular activity was reading information from a CD-ROM or DVD (58.9%). The computer is a source of entertainment for many Canadians, as over one-half of Canadian computer users played computer games in a typical month. Close to one-half also used their computers for managing accounts, using spreadsheets or carrying out statistical analysis (49.0%), and creating graphics, designs, pictures or presentations (42.8%). A small proportion of Canadian computer users engaged in programming (12.3%).

Compared with other countries included in this study, Canadians had the highest proportion of computer users who used the Internet, although the differences between most countries were not large. Computer users in Canada and the U.S. were also more likely to use their computers for playing games. In terms of most other computer activities, however, computer users in Bermuda and Switzerland were generally most active. Computer users in Italy were less likely to use computers for most types of activities (Table 2).

Regional and provincial analyses of computer activities within Canada also reveal some interesting trends (Table 3). Residents of Alberta, British Columbia, Yukon Territory and the Northwest Territories were most active at writing or editing text on computers. In Ontario the proportion of computer users engaging in this activity was also quite high. Computer users in Alberta and the Northwest Territories were also above the national average in the use of computers to keep a schedule or calendar and to read information from a CD-ROM or DVD format. The Yukon Territory had the highest proportion of computer users who accessed the Internet from any location. In the Atlantic provinces use rates for many activities were lower, however the use of computers for playing games was quite popular in Newfoundland and Labrador, New Brunswick and Nova Scotia. Computer programming was not a particularly popular activity in any province, although the rates were higher in Ontario and Quebec compared with most other provinces.

A closer look at the types of activities commonly carried out on the Internet demonstrates the medium’s versatility as an information, communication, entertainment and business tool. In Canada, the vast majority of Internet surfers used e-mail (87.0%), browsed the web for general information (85.2%), and read news and current events (69.4%) in a typical month. Additionally, close to half of Canadian users used the Internet to search for information, including health (49.7%), weather (44.9%) and government information (44.0%). Placing the most frequently used public services online is part of Canada’s Government On-line (GOL) initiative (see Government of Canada 2005, Statistics Canada 2003). The Internet also plays an important role in the job market, as close to one-third of Canadian users (31.7%) used the Internet to search for employment opportunities in a typical month.

There were some notable differences in the patterns of Internet use between Canadians and individuals in other countries. Individuals in the United States tended to use the Internet for the greatest range of purposes. In fact, Americans were among the leaders for most purposes of Internet use examined. The United States is often recognized as a leader in e-commerce and three-quarters (75.1%) of online Americans used the Internet to shop in a typical month in 2003. The majority of Internet users in Bermuda (71.6%) and Norway (61.0%) also used the Internet to shop or browse for products or services. Canadians were significantly less likely to do so (43.2%). Norway also emerged as a leader in online banking (64.1%).

While relatively few Internet users went online for formal education or training in a typical month, approximately one-quarter did so in Switzerland (26.5%), the United States (25.1%) and Bermuda (24.8%). Other less frequent activities on the Internet involved obtaining and saving music, and participating in chat groups or online discussions. Individuals in Canada and Italy were most likely to download music online (Table 4).

Within Canada, residents of the Northwest Territories and British Columbia were the most active Internet surfers in terms of the proportion of users performing specific tasks online. They were closely followed by individuals in Newfoundland and Labrador, Nova Scotia, and Ontario (Table 5).

E-mail use was above the national average in western and northern parts of Canada, including Alberta (87.5%), British Columbia (91.1%), Northwest Territories (89.9%) and the Yukon Territory (89.8%), as well as Ontario (88.8%). In addition, residents of the Northwest Territories, British Columbia, and Alberta were most active when it came to using the Internet for news and current events, and banking. In terms of searching for information online, surfers in British Columbia and the Northwest Territories were also very active, tracking down health-related and government information, and individuals in Newfoundland and Labrador and the Northwest Territories led the way in accessing weather forecasts.

The Internet can be an important medium for formal education, such as taking online courses, particularly for individuals living in remote locations who cannot attend a traditional school. Internet users in the Northwest Territories led the way (22.4%) in using the Internet for formal learning activities, such as taking a course or program of studies.

Residents in the Atlantic provinces of Newfoundland and Labrador, Nova Scotia and Prince Edward Island were busy when it came to looking for employment online. The Atlantic provinces were also among the leaders in downloading music and playing games over the Internet. Those in Newfoundland and Labrador, as well as residents of the Yukon Territory, were well above the national average in online shopping. Internet users in Nunavut and Quebec tended to be relatively less active online.

2.4 Use of other ICTs

In 2003, Canadians were frequent users of automated teller machines (88.6% using in a typical month) and calculators (85.6%). In recent years, cellular phones have followed a similar pattern of growth to home Internet access, as they were used by about two-thirds (65.8%) of Canadians. The fact that nearly half of these cell phone users used them on a daily basis signals that cell phones are becoming a routine part of everyday life. Just over one-half (54.5%) of Canadians used fax machines for personal use and over one-third (37.6%) made touchtone telephone transactions in a typical month.

Internationally, these ICTs were also used with considerable frequency.

Generally, the majority of respondents used calculators, cellular phones, automated teller machines and fax machines at least once a month. In terms of incidence of use, calculators were used by the greatest number of respondents. In terms of frequency of use, cellular phones were used most often. One-half of all respondents used cellular phones daily, and this use was particularly high in the European countries. Automated teller machines were used regularly but not as often in Italy and the United States. The use of touchtone phones for financial transactions, to make purchases or pay bills was popular in the United States but less common elsewhere (Chart 4). In addition, electronic personal organizers were used at work by nearly 22% of computer users who were employed - on average. This use was highest in Switzerland and Italy.

In addition to computer and Internet use, Western provinces were also heavier users of many other technologies in Canada (Table 6). Cellular phone use was particularly popular in Saskatchewan (74.1%) and Alberta (72.9%), while residents of the territories were significantly less likely to use cellular phones in 2003. Personal use of fax machines tended to increase from east to west, and was well above the national average in the Northwest Territories (63.0%), the Yukon Territory (62.9%), British Columbia (62.4%) and Alberta (61.2%). Residents of the territories also took advantage of ICTs for making financial transactions, with the Yukon Territory (49.0%) and the Northwest Territories (43.8%) leading in the use of touchtone telephone transactions. In addition, use of automated teller machines was high in most provinces, especially Quebec (91.1%) and the Yukon Territory (90.7%).

2.5 The relationship between ICT access and income

As in previous research, a strong correlation was found between ICT connectivity and income, both across countries and within. Income has been established as one of the key factors shaping the digital divide, as it determines whether individuals live in households which can afford computers, the Internet and other ICTs. Individuals living in low-income households are generally disadvantaged due to lack of access to a home computer and home Internet access, and therefore have fewer opportunities for computer-related learning (Felstead et al. 2002). Examining access to key ICTs by income within individual countries can provide a sense of the magnitude of internal digital divides. Indicatively, Chart 5 shows access to computers by income quartile and country. (The situation is very similar for Internet access). With the exception of Italy, for both computer and Internet access, there exists relatively little difference between the top two income quartiles - it is between the second, third and lowest quartiles that differences become most evident. In Canada, for example, computer access in the highest quartile (91.8%) slightly exceeds that of the second-highest income group (82.5%). These rates are significantly higher than computer access for the lowest income quartile (54.6%). Italy lags behind the other countries in terms of computer and Internet access for each quartile. In fact, computer and Internet access for users in the top income quartile living in Italy (62.5%) is only marginally higher than the access rates of the lower quartiles of other countries.

2.6 ICT non-users

While there is ample evidence that connectivity has been increasing to varying degrees in all countries, it is instructive for policy purposes to gauge perceptions among non-users. Data from the survey reveal that, in most countries, only a minority of individuals who do not use computers expressed an interest in starting to use one (Chart 6). In Canada, only 29.2% of non-users indicated an interest in starting to use a computer, and still fewer (22.7%) expected to use one in the following year. As shall be explained in the next section, this has significant consequences, as it has the potential to further marginalize that segment of the population with lower skills. This brings us to a more detailed investigation of the relation between ICTs and skills.

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1. This rapid rate of growth of a new technology was not a new phenomenon. In fact, Internet penetration occurred more slowly than the penetration of television in the 1950s (Sciadas 2002).
2. For more information on the 1994 International Adult Literacy Survey, see Jones, Kirsch, Murray and Tuijnman (1995).