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Public utilities

California Public Utilities Commission Initiates Rulemaking on Broadband Infrastructure Deployment

Strategic Insights

— 2 min read

The California Public Utilities Commission has begun a rulemaking process to investigate the deployment of broadband infrastructure and identify areas where service providers are not serving certain communities, a practice known as redlining. The Commission has issued a document presenting the opening comments of the Public Advocates Office, which provides an analysis of three studies that highlight income-based disparities in broadband infrastructure deployment and service availability. The studies, which include "On the Wrong Side of the Digital Divide" by the Greenlining Institute, "AT&T's Digital Redlining: Leaving Communities Behind for Profit" by the Communications Workers of America and the National Digital Inclusion Alliance, and "Who gets access to Fast Broadband? Evidence from Los Angeles County 2014-17" by the University of Southern California, demonstrate that communications service providers are investing and offering services differently depending on the income of the communities within their service areas.

Key Takeaways:

  • The three studies cited in the Administrative Law Judge's Ruling provide evidence of income-based disparities in broadband infrastructure deployment and service availability.
  • The studies highlight that communications service providers differ their investments and service offerings based on the income of the communities within their service areas.
  • The Public Advocates Office finds that the analysis of the studies and data provided in the ALJ Ruling is accurate, showing that broadband deployment reflects income disparities.
  • The Commission seeks comments on the studies and data, and requests that parties submit recommendations on how to investigate redlining and actions to ensure high-quality broadband service is available to redlined communities.
  • The Commission's Environmental and Social Justice Action Plan has a stated goal to increase access to high-quality communications services for Environmental Justice and Social Justice communities.
  • The Public Advocates Office recommends that the Commission take actions to ensure high-quality Internet service becomes available to previously redlined communities.
  • The office also suggests that the Commission conduct a refined analysis using more granular data to identify the most accurate statistics and trends regarding broadband deployment.
  • The studies and data analyzed indicate that poorer communities are more likely to be unserved, and wealthier communities are more likely to be served, indicating a possible case of redlining.
  • The CWA and NDIA Report specifically highlights AT&T's actions as an example of digital redlining.
  • The Greenlining Report provides an analysis of internet service providers' (ISPs) service areas and found a significant correlation between median household income and internet deployment and access.
  • The USC Annenberg and Price Report analyzed broadband access in Los Angeles County and found that households with incomes above $80,000 were more likely to have high-speed internet access compared to households with lower incomes.
  • The Public Advocates Office suggests that the Commission define redlining in the context of broadband Internet service, and consider whether internet speeds offered to residents should be taken into account.

Statistics:

  • 73% of households with incomes above $80,000 in Los Angeles County had high-speed internet access, compared to 22% of households with incomes below $30,000 (USC Annenberg and Price Report).
  • The Greenlining Report found that 55% of internet service providers' service areas in California had median household incomes above $50,000, while 71% had median household incomes below $30,000.
  • AT&T's Digital Redlining Report found that 73% of AT&T's service areas in California had median household incomes below $50,000.

Sources:

  • Greenlining Institute, On the Wrong Side of the Digital Divide, June 2020, https://greenlining.org/publications/online-resources/2020/on-the-wrong-side-of-the-digital-divide/
  • Communications Workers of America and the National Digital Inclusion Alliance, AT&T's Digital Redlining: Leaving Communities Behind for Profit, October 2020, https://www.digitalinclusion.org/wp-content/uploads/dlm_uploads/2020/10/ATTs-Digital-Redlining-Leaving-Communities-Behind-for-Profit.pdf
  • University of Southern California, Who gets access to Fast Broadband? Evidence from Los Angeles County 2014-17, October 2019, https://arnicusc.org/publications/who-gets-access-to-fast-broadband-evidence-from-los-angeles-county-2014-17/

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