Major ISPs Charged Less-Affluent Neighborhoods Up to 400 Times More Per Megabit for Same-Priced Internet

An extensive investigation has revealed that four prominent internet service providers (ISPs) — AT&T, Verizon, Earthlink, and CenturyLink — disproportionately offered significantly slower internet speeds for the same price to lower-income and less-White neighborhoods across 38 major U.S. cities. This disparity meant some customers paid up to 400 times more per megabit for their internet service compared to those in wealthier, predominantly White areas. As highlighted by HackerNoon, "An investigation found that four internet service providers disproportionately offered lower-income and least-White neighborhoods slow internet service."

The investigation, primarily conducted by the non-profit newsroom The Markup, analyzed over 800,000 internet service offers. It found that these ISPs routinely provided speeds at or above 200 megabits per second (Mbps) in some areas, while offering connections below the Federal Communications Commission's (FCC) 25 Mbps broadband definition in others, all for an identical monthly fee. These discrepancies frequently mirrored historical redlining maps, indicating a persistent legacy of economic and racial segregation in digital access.

The consequences for residents in affected communities are profound, impacting essential services like remote work, online education, and telehealth. Shirley Neville of New Orleans, for instance, paid the same price for internet speeds so slow they didn't meet Zoom's minimum requirements, while others in her city received speeds 400 times faster. Advocates have described this lack of equitable internet access as "the new Jim Crow," underscoring its severe societal implications.

In response to the findings, the implicated ISPs largely denied discriminatory practices. Companies like AT&T and CenturyLink's parent, Lumen, claimed the analysis was "fundamentally flawed" and cited business considerations, such as the higher cost of maintaining older network infrastructure, as reasons for service variations. They also pointed to their participation in programs like the federal Affordable Connectivity Program, which offers subsidies for low-income households.

Addressing these pervasive inequities, the Federal Communications Commission (FCC) adopted new rules on November 14, 2023, aimed at preventing and eliminating digital discrimination of access to broadband service. Mandated by the Infrastructure Investment and Jobs Act, these rules establish a framework for the public, state, local, and Tribal entities to file complaints with the FCC regarding discriminatory practices based on income, race, ethnicity, color, religion, or national origin. This marks a significant step towards greater regulatory oversight in an industry not traditionally treated as a utility.