The Dual Risks of Digital Exclusion and Unaffordability of Telecommunications in Lower-Income Australian Households

Abstract

We analyse household telecommunications spending in Australia over the period 2006–2021 using Household Income and Labour Dynamics in Australia (HILDA) survey data. We find the affordability of telecommunications is improving, and that telecommunications spending behaves like other core necessities, such as food. We find households in which members are not employed, have relatively low education, are elderly, Aboriginal or Torres Strait Islanders or immigrants, speak English poorly, reside alone, or have long-term health conditions are at heightened risk of digital exclusion due to lower spending on telecommunications. Households located in rural areas, with children or with members that work from home are at higher risk of digital exclusion as a consequence of overspending on telecommunications. Overall, the number of people at risk of digital exclusion from inadequate spending or overspending is quite small in Australia. The risks appear to have decreased during COVID-19. Telecommunications is a core necessity but given the small number of people at risk of exclusion, policies addressing affordability should be highly targeted.