AT&T Hit With More Complaints About 'Redlining' AT&T has been hit with yet another complaint that the company is intentionally refusing to upgrade broadband in minority and low income areas. The National Digital Inclusion Alliance (NDIA) and a group called Connect Your Community (CYC) issued a report earlier this year using FCC data to highlight AT&T's refusal to upgrade poor areas of Cleveland. The groups state that AT&T is simply refusing to to upgrade to VDSL across the majority of Cleveland Census blocks, "including the overwhelming majority of blocks with individual poverty rates above 35%."

The groups argued that compiled FCC data in map form, like the one to the left, speaks for itself. AT&T has been facing a looming lawsuit over its alleged "redlining," and there was a recent complaint filed at the FCC on the behalf of three low-income African American residents of Cleveland. The three complainants state that "wealthier and predominantly white areas have gotten premium upgradable high speed broadband access at bullet speed," while the three complainants "receive slow speeds at a rate as low as 1.5 mbps downstream or less, although they pay AT&T for high speed access." They're asking for a hearing at the FCC in front of an Administrative law Judge. AT&T is now facing a similar complaint filed at the FCC stating the telecom giant is doing the same thing in Detroit. "AT&T’s arrogance and blatant disregard for low-income minority communities do not end with Detroit or Cleveland," says lawyer Daryl Parks, who is representing the under-served customers. "We are seeing a very discouraging pattern across the country. There are more cities, states and complainants to come," he added. Unsurprisingly, AT&T has consistently declared it has done nothing wrong. “We do not redline," AT&T said earlier this year in the wake of the first complaint. "Our commitment to diversity and inclusion is unparalleled. Our investment decisions are based on the cost of deployment and demand for our services and are of course fully compliant with the requirements of the Communications Act. We will vigorously defend the complaint filed today.” “We do not redline," AT&T said earlier this year in the wake of the first complaint. "Our commitment to diversity and inclusion is unparalleled. Our investment decisions are based on the cost of deployment and demand for our services and are of course fully compliant with the requirements of the Communications Act. We will vigorously defend the complaint filed today.”







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Most recommended from 127 comments

Ostracus

join:2011-09-05

Henderson, KY 16 recommendations Ostracus Member Scorched broadband policy. Any bets they'll stop someone else from coming in and serving those people?

Anonba563

@myvzw.com 10 recommendations Anonba563 Anon Please don't make me defend at&t, Please. I HATE to defend the indefensible company which is at&t, but in this must. Unless there is a law I'm not aware of, there is no such thing as discrimination based on how much money you have or where you live. at&t is a company which only looks at their bottom line. That is the only eyesight they utilize. As a company, they have no morals or ethics, other than to make money.



While I agree people need broadband to function effectively in modern society no matter where they live (rural or downtown), I don't believe it is illegal for a company like at&t to discriminate for financial reasons either in rural or downtown.



The bottom line of the problem is, in my opinion, we the people are dependent on groups who do not have our priorities or our needs in mind in running their businesses. In other words, we don't matter to at&t and others. They are basically saying to us all, screw you and the horse you rode in on. Maybe, it's time we told them the same thing? Again, please don't make me defend at&t again...... davidhoffman

Premium Member

join:2009-11-19

Warner Robins, GA 6 recommendations davidhoffman Premium Member AT&T's alleged racial discrimination. Sorry, but AT&T has been ridiculously haphazard in supplying ADSL or VDSL. Race has nothing to do with it. I know relatively wealthy areas that have not seen upgrades from dialup. AT&T seems to be headed for an all cellular solution to issues of WWW access. Wireline seems to be a part time hobby. shmerl

join:2013-10-21 6 recommendations shmerl Member Upgrade to VDSL? I thought upgrade today should be to the fiber optics...

tc1uscg

join:2005-03-09

Guantanamo 5 recommendations tc1uscg Member Thats the way the market works You upgrade in areas that will have a better return. Unless there is a smoking gun that proves they are not upgrading because of sex, race or sexual preference, this will go no where.

Anond8631

@charter.com 4 recommendations Anond8631 Anon When Google Fiber cherry picks no one complains. hmmmmmm

kevinloydw

join:2001-08-18

Salem, OR 4 recommendations kevinloydw Member Gee a company that wants to make money The poor typically can't pay for semi-luxury items like high speed internet. They certainly can't/won't pay for higher speed tiers if their needs are met by lower cost options.



It would be a bad business decision to invest millions to only get thousands in return. Unfortunately and fortunately this is there reality of the situation.

r81984

Fair and Balanced

Premium Member

join:2001-11-14

Katy, TX 4 recommendations r81984 Premium Member Minority Areas No, Poor Areas Yes Sorry, no way a major company gives a shit about the race demographics of an area.

Now they certainly will use current subscriber counts in an area and income demographics to determine what areas they will provide service to.



The US has been subsidizing providing utilities like phone and electricity to poor and rural areas for over a 100 years because private companies wont pay for it.



The real solution is to make a law requiring ATT to service all areas with internet no matter what.

Or just cut out ATT and make a national ISP company owned by the people as that would save us all a fortune.

Economist

The economy, stupid

Premium Member

join:2015-07-10

united state ·AT&T FTTP

3 recommendations Economist Premium Member Enterprise zones While overall, enterprise zones have proven ineffective, in a case like this, they might work because the goal is different. Now before you say no, hear me out and then say no.



Right now, the city, state and fed are making nothing off AT&T in these area because AT&T is not investing due to low ROI. How to stimulate investment? Increase the ROI and this can be done through enterprise zones in these targeted communities. Allow AT&T to fully expense upgrades, lower taxes on revenues generated in these areas (still better than getting the nothing they are now) and have RUINOUS penalties for cost shifting to ensure the enterprise zone program is not abused. And don’t target specific companies, but rather specific SICs or something to bring in any company willing to do it. Obviously it would have to be carefully planned to ensure companies don’t game the system, but I think it would work.

tshirt

Premium Member

join:2004-07-11

Snohomish, WA 2 recommendations tshirt Premium Member Once you allow fiberhoods and other... ... self-selection gimmicks, you dump any chance of unbiased, engineering, scientific or direct economic based selection.

for all it's faults, the local franchise system allowed cities to require a step by step area wide build out on a scheduled basis for catv and the broadband plants.

no reason the incumbent phone franchise shouldn't be held to a similar standard