REPORT: SLOWER AND MORE EXPENSIVE

Sounding the Alarm: Disparities in Advertised Pricing for Fast, Reliable Broadband

Low-income households, people of color, and immigrants are significantly more likely to be stranded on the wrong side of the digital divide than people living in wealthy, white neighborhoods. The most common reason disconnected people report for not having a fast and reliable connection is affordability; the price is too high, or the service they can afford isn’t fast or reliable enough to justify the expense.

Digital Equity LA and the CCF Digital Equity Initiative set out in this report to document what people are being asked to pay for home internet in diverse neighborhoods across Los Angeles County. The findings of this report are sobering, raising significant red flags about the higher prices many poorer communities are being charged for the same or inferior service, and the implications of those pricing disparities on the effectiveness of current interventions to close the digital divide.

Findings Summary

1 Published pricing for Charter Spectrum service shows a clear and consistent pattern of the provider reserving its best offers - high speed at low cost - for the wealthiest neighborhoods in LA County.

2 People who live in higher poverty neighborhoods are not only routinely offered slower service at higher prices, but are offered contracts with worse terms and conditions. For example, Charter Spectrum’s promotional offers - guaranteeing a period of time before prices will increase - are for two years in wealthy communities, but for just one year in high-poverty communities.

3 Charter Spectrum's low-cost plans are not consistently advertised to households in high-poverty neighborhoods.

Digital Equity LA is a coalition of community-based-organizations working in Los Angeles communities delivering vital education, housing, immigration, health care, and civic engagement services, supporting Los Angeles’ vulnerable communities, and working together to advance digital equity as a necessary precondition to meet our core missions. The CCF Digital Equity Initiative provides financial and programmatic resources in support of Digital Equity LA.