New INFORMS Management Science Study Key Takeaways:
- Disproportionate Benefits for Disadvantaged Households: Low-income and rural families see the largest gains in internet access and education data usage when switching to unlimited data plans.
- Significant Increases in Education Data Use: Disadvantaged households increased their education data consumption by the equivalent of five digital textbooks per month, compared to three for wealthier households.
- Challenging Conventional Thinking: The study challenges assumptions that improved internet access primarily benefits wealthier groups, demonstrating that removing data caps can reduce digital inequality.
BALTIMORE, MD, February 27, 2025 – A new study published in the INFORMS journal Management Science reveals that unlimited mobile data plans may be a key solution to reducing digital inequality. The research shows that low-income and rural households benefit the most when data caps are removed – particularly in their ability to access educational content.
For years, it has been assumed that improvements in internet access disproportionately benefit wealthier households. However, this study challenges that belief, showing that disadvantaged families make even greater use of new opportunities when freed from data limitations.
“For example, low-income households increased their use of education data by the equivalent of five digital textbooks per month, while higher-income households saw an increase equivalent of just three textbooks,” says Karthik Babu Nattamai Kannan, the study’s lead author and an assistant professor of information technology and operations management at Cox School of Business, Southern Methodist University.
More Than Just Entertainment – A Path to Digital Equity
“This isn’t just about streaming more videos or browsing more websites,” Kannan says. “Disadvantaged households are using this opportunity to access educational resources that can improve their lives, leveling the playing field in ways we haven’t seen before.”
The study, “Can Improvements to Mobile Internet Service Help Reduce Digital Inequality? An Empirical Analysis of Education and Overall Data Consumption,” analyzed data collected in partnership with a major U.S. telecommunications provider over two years. Researchers found that households in rural areas and those with lower incomes experienced the largest increases in internet usage – both overall and for education – when they transitioned to unlimited data plans. These findings highlight how unlimited data can help bridge the “homework gap,” ensuring students in underserved communities have the resources they need to succeed.
Policy Implications and the Future of Internet Access
This research comes at a pivotal moment as policymakers at the Federal Communications Commission (FCC) are formally debating the impact of data caps on internet access through the Proceeding #23-199: Data Caps in Consumer Broadband Plans. Because this study provides timely evidence that removing data caps could play a significant role in reducing digital inequality and expanding access to education, the FCC has invited the authors to present their work via web conference in October 2025 and file the papers with the FCC system to further aid the rulemaking process.
“We offer a practical solution that does not require costly infrastructure investments, focusing instead on leveraging the widespread use of smartphones, which are already present in more than 90% of U.S. households,” says Eric Overby, one of the study’s co-authors from the Georgia Institute of Technology.
The researchers argue their findings present a clear opportunity for policymakers and telecommunications providers to prioritize digital equity by making unlimited data more accessible.
“This study not only challenges conventional thinking but also offers hope for millions of Americans struggling to access the internet. Unlimited data is more than a luxury – it is a vital lifeline for communities on the wrong side of the digital divide,” says Sridhar Narasimhan, another study co-author from the Georgia Institute of Technology.
About INFORMS and Management Science
INFORMS is the world’s largest association for professionals and students in operations research, AI, analytics, data science and related disciplines, serving as a global authority in advancing cutting-edge practices and fostering an interdisciplinary community of innovation. Management Science, a leading peer-reviewed journal by INFORMS, publishes quantitative research on management practices across organizations. INFORMS empowers its community to improve organizational performance and drive data-driven decision-making through its journals, conferences and resources. Learn more at www.informs.org or @informs.
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Ashley Smith
443-757-3578
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Ashley Smith
Public Affairs Coordinator
INFORMS
Catonsville, MD
[email protected]
443-757-3578