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AT&T Brings Fiber To Rich Areas While the Rest Are Stuck On DSL, Study Finds (arstechnica.com)

According to a new study from UC Berkeley's Haas Institute for a Fair and Inclusive Society, AT&T has been focused on deploying fiber-to-the-home in the higher-income neighborhoods of California, giving wealthy people access to gigabit internet while others are stuck with DSL internet that doesn't even meet state and federal broadband standards. Ars Technica reports: California households with access to AT&T's fiber service have a median income of $94,208, according to "AT&T's Digital Divide in California," in which the Haas Institute analyzed Federal Communications Commission data from June 2016. The study was funded by the Communications Workers of America, an AT&T workers' union that's been involved in contentious negotiations with the company. By contrast, the median household income is $53,186 in California neighborhoods where AT&T provides only DSL, with download speeds typically ranging from 768kbps to 6Mbps. At the low end, that's less than 1 percent of the gigabit speeds offered by AT&T's fiber service. The median income in areas with U-verse VDSL, which ranges from 12Mbps to 75Mbps, is $67,021. In 4.1 million California households, representing 42.8 percent of AT&T's California service area, AT&T's fastest speeds fell short of the federal broadband definition of 25Mbps downloads and 3Mbps uploads, the report said.

29 of 167 comments (clear)

  1. Corporation wants to make money by fred6666 · · Score: 4, Insightful

    who would have tought

  2. ATT is NOT a charity by Anonymous Coward · · Score: 2, Insightful

    They'll go where the money is.

    That's the proper way to run a business.

    1. Re:ATT is NOT a charity by sjames · · Score: 2

      You mean committing fraud? AT&T has been offered and accepted deal after deal granting them special tax breaks, subsidies,. and some big fat checks, not to mention right of way over other people's property in exchange for not cherry picking the rich neighborhoods. Time for them to pay up.

    2. Re:ATT is NOT a charity by deck · · Score: 2

      That was the way it was in rural areas (no electric grid) ;until as late as the 1960's (for those further out). Even with transmission lines crossing their properties, farmers and ranchers could not get electricity because "it just would not be profitable to serve them". The Electric Co-operative system alleviated this except for a few people in very remote areas. Where I am moving to in Bandera County Texas, the local electric co-op is working to put fiber to the premises in the denser rural areas. The last I looked a few years ago it still cost over $10,000 a mile to put in fiber.

      Yes AT&T, Verizon, Comcast, Charter, Frontier and others need to make a profit; but what they want is a HUGE profit because that is what benefits the board of directors, presidents, vice-president, and directors the most. The real customers of these companies are the stockholders and not the people they provide services to. Due to the forces of the stock markets, the quarterly bottom line drives everything. This then causes the biggest problem these companies have in that they would like the Federal and State governments to hand them an oligopoly by preventing any entity but them to provide any internet services even if they are not going to put any into an area for the next few decades or century. This would probably include my electric co-op being stopped.

  3. Who exactly is surprised by this? by tekrat · · Score: 4, Insightful

    Rich people also drive Teslas, were the first to have HDTV and before that, the first to have home computers.

    --
    If telephones are outlawed, then only outlaws will have telephones.
    1. Re:Who exactly is surprised by this? by Ryanrule · · Score: 2

      Those are not necessities. Would you defend rich people being the first to have food and water and shelter?

    2. Re:Who exactly is surprised by this? by aardvarkjoe · · Score: 5, Insightful

      Those are not necessities.

      Neither is gigabit internet.

      --

      How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
    3. Re:Who exactly is surprised by this? by aardvarkjoe · · Score: 2

      But faster connections than DSL are. The government even states that.

      The government says a lot of crap; doesn't make it true.

      --

      How can we continue to believe in a just universe and freedom to eat crackers if we have no ale?
    4. Re:Who exactly is surprised by this? by stdarg · · Score: 2

      So you don't know what the word "necessity" means I take it?

      Let's see, if you successfully lobbied the government to declare that water is not a necessity... would it stop being a necessity in your view?

  4. ummm just saying by zlives · · Score: 2

    wouldn't it make sense for them to deploy where people will buy their product especially when it is substantially more expensive product. and with the bonus of monetizing the usage data of high net-worth individuals who are probably a the target demographic of their advertising overlords...

  5. Don't knock DSL just because it's DSL. by Tablizer · · Score: 2

    Is the DSL at least reliable? If so, I'll take it!

    DSL versus fiber versus gerbils carrying pebbles with 1's and 0's on them make diddly squat difference if it's not reliable.

    Damn oligopolies make one have to choose between Dumb and Dumber.

  6. Re: But $90k per year is poor in California by saloomy · · Score: 4, Insightful

    This is such a stupid article. Seems to incite flame, but it's like stating: Rolex builds stores in affluent shopping centers only, study finds.
     
      So? Gigabit internet costs more than DSL, and it costs more to build out. So if they go to where there are a high number of subscribers who can likely afford it, they are more likely to recoup the buildout investment, and the service then won't die off. Otherwise the headline would read: AT&T kills off GPON service due to low subscriber rates.
     
    The rich get the product first, lowering the N'th's cost and so by making it more affordable for the products to be moved down market. Everyone knows this.

  7. Re:It would be bad business if they didn't by Anonymous Coward · · Score: 2, Informative

    The study comes from the UC Berkeley's Haas Institute for a Fair and Inclusive Society, which hosts a yearly "Othering & Belonging" conference.

    So, yes.

  8. There's a semi-good reason by Miamicanes · · Score: 2

    With ADSL, you can upgrade one CO and spread the costs among rich AND poor areas. With VDSL2, your meaningful service area is about 1,000 feet... and deploying a new VRAD in an area without existing fiber within a mile or so isn't cheap. Unless they can find enough rich people within a thousand feet who can't get service through an existing VRAD, those poor areas aren't going to get faster service.

    God, it hurts defending AT&T... but even if they were actively benevolent, VDSL2's short range makes it really hard to cost-effectively serve poor areas UNLESS those poor areas have lots of people willing and able to buy premium internet service.

    Going back to the rural electrification argument, yes, you can force the power company to provide you with power almost anywhere adjacent to a public road or right-of-way... but if you decide to build an Aluminum-smelting plant in the middle of nowhere (Aluminum-smelting uses a STAGGERING amount of power), you can't legally (or reasonably) expect the power company to upgrade 100+ miles of wiring for free, even if they WOULD provide you with up to 500A service for free.

    The best way California can get Uverse into poor neighborhoods? Find all the properties in the area owned by the city/county/state due to unpaid liens, and offer one per ~2,000 feet to AT&T for free (waiving those liens) as a neighborhood VRAD site. Most poor areas have vacant properties that can't be sold, because the liens exceed its value. Making some of them available to AT&T as VRAD sites would make it easier for AT&T to justify the cost of deploying 50mbps+ VDSL2 into those areas.

    1. Re:There's a semi-good reason by sjames · · Score: 2

      You mean in addition to all of the special tax breaks, right of way, and subsidies they have already been given?

  9. Wish I could get DSL by Mrrrrrrr · · Score: 2

    Wish I could get DSL. Been begging AT&T for fifteen years to install it here in this rural area. So whining about having "only" DSL seems like a first world problem.

  10. Re: But $90k per year is poor in California by whoever57 · · Score: 5, Insightful

    The thing is, telecom companies don't operate in the same environment as Rolex or (as suggested above) Tesla.

    First of all, Rolex or Tesla won't refuse to sell you their products if you come along with cash just because of your address.

    Secondly, and most importantly, those companies don't get massive subsidies from taxpayers to provide services to all, not just a privileged few.

    Finally, if you are looking at Tesla or other products in their initial phase, there is certainly a time when the costs are high and they drop as adoption rates increase, but at this time, GPON is well established technology. Costs are not likely to drop very much.

    --
    The real "Libtards" are the Libertarians!
  11. Re: But $90k per year is poor in California by Anonymous Coward · · Score: 2, Insightful

    maybe not so stupid when you consider how many hundreds of millions of dollars AT&T was given to build out better than DSL service to underserved and rural areas. And just where did all that money go?

  12. Re:DSL works for me by arbiter1 · · Score: 2

    My cable internet still works when power is out and i get 10x faster speeds then AT&T crap option where i live.

  13. This problem has been solved by Cooperatives by kriston · · Score: 2

    This problem has already been solved by Cooperatives

    But even Cooperatives have trouble. The cost to provision a dwelling for fiber ranges from $3,000 to $12,000 and large fiber build-outs or build-overs are not likely to happen without a government subsidy.

    Verizon FiOS is not building fiber anymore because it just doesn't make economic sense to. Verizon will not see dime one of profit for another 10 years on their FiOS plants. Remember, they cut bait and sold an entire region to Frontier years ago.

    Fiber to the neighborhood and copper coaxial to the dwellings is perfectly sensible and astonishingly cheap with comparable speeds and latency, though not 800 MB/s speeds, which, arguably, a dwelling would have a hard time seeing that speed once the connection leaves the FiOS plant.

    --

    Kriston

  14. They already made money by rsilvergun · · Score: 4, Interesting

    they got billions (with a 'b') in subsidies while _also_ being allowed to charge extra fees to bring fiber to those poor neighborhoods. They pocketed the money and told us to go fuck ourselves. Just nationalize broadband already. It costs them $9/mo (customer service included, though with AT&T I'm using the term loosely). Why the hell Americans are so obsessed with the "free" market that they let rich assholes profit off critical infrastructure is beyond me. Really, truly beyond me. I just don't understand why so many people can be so ignorant for so long in the face of so much evidence to the contrary...

    --
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    1. Re:They already made money by Trailer+Trash · · Score: 2

      they got billions (with a 'b') in subsidies while _also_ being allowed to charge extra fees to bring fiber to those poor neighborhoods. ... Why the hell Americans are so obsessed with the "free" market...

      And, yet again, we have cronyism being confused with a free market.

      Hint: If they got billions in subsidies, it's not a free market.

      Hint 2: If the government did it, they would be putting the finishing touches on their plan to roll ISDN out to those neighborhoods over the next 5 years.

      It's difficult to find the winning path.

    2. Re:They already made money by crtreece · · Score: 2

      If the government did it, they would be putting the finishing touches on their plan to roll ISDN

      Like they did in Chattanooga, TN, Longmont, CO, and tens of other cities across the US? Oh wait, you said ISDN, not Gigabit fibre.

      I'm not a big government fan, but when it comes to services that have reached utility level (aka everyone needs them to function in society, like water, electricity, and now internet access) the profit driven "free market" approach only seems to create monopolies that drive up prices and lower the quality of service.

      --
      file: .signature not found
  15. Re:Poor people paid most of the taxes by schnell · · Score: 3, Informative

    Poor people paid most of the taxes that put fiber in those rich neighborhoods.

    Yeah, I'm pretty sure that's the exact opposite of true. At least at a national level (Federal income tax), the top 16% of earners (those will incomes of $100K or above) account for 79.4% of all the individual tax revenue paid to the government. In fact, the top 1% of earners account for 51.6% of the IRS individual tax revenue all by themselves. Maybe taxes in California are radically different, but I doubt it.

    --
    "95% of all Slashdot .sig quotes are incorrect or completely fabricated." -Benjamin Franklin
  16. Re: But $90k per year is poor in California by stdarg · · Score: 3, Interesting

    GPON is well established technology. Costs are not likely to drop very much.

    Don't be ridiculous! Costs are dropping and will continue to drop as the technology is deployed more to residential customers. The cost of fiber optic cable itself is going down. The cost of fiber network equipment is going down. The labor costs of installing are going down. I mean for example, when AT&T installed fiber in my neighborhood they sent a guy out to fuse the cables. Last time I talked to a tech doing an install, he told me they stopped doing that and use pre-terminated cables. It's cheaper. It's faster. Putting the cable in the ground is also getting cheaper, easier, and less labor intensive.

  17. Re: But $90k per year is poor in California by whoever57 · · Score: 2

    I don't know what country you live in, but in the USA, paying more taxes does not get you more votes, nor should it entitle you to more government spending.

    --
    The real "Libtards" are the Libertarians!
  18. Re: But $90k per year is poor in California by mishehu · · Score: 3, Informative

    We've been paying a USF fee for longer than most of us have been alive. Yes, those underserved areas deserve to get the same high speed Internet that the posh upscale neighborhoods and new construction get. It's been paid for.

  19. Municipal fiber by MoarSauce123 · · Score: 2

    Municipal fiber is the fix here. I have no idea why that approach gets so much pushback. Countries like Sweden created their entire Internet infrastructure from municipal fiber networks that were then easy to interconnect. Waiting for big greedy corps to advance service is pointless. Their sole interest is in squeezing out of the existing wires as much as possible without spending anything.

  20. Upcoming Tech by nehumanuscrede · · Score: 3, Interesting

    I'll probably be labeled a shill for this, but it explains why AT&T isn't pushing very hard on FTTH deployment.

    In the works is a wireless solution that will provide gigabit speeds to homes that will be MUCH cheaper to deploy than fiber can ever be. It's called Project AirGig.

    The designs I've seen sit atop telephone poles and are inductive powered via the power lines.

    I want to say they operate in the 39 ghz range.

    It is being prepped for 5g deployment so, IF they get the design down, expect to see it in the not too distant future.

    Is why they're pushing for regulation changes that would allow them to install these units atop the poles with a minimum of red tape.

    Also explains why they don't want to pour billions of dollars into fiber if this is a potential solution instead.

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