CITY OF COMMERCE AGENDA REPORT
TO: Honorable City Council
FROM: City Manager
Item No.
SUBJECT: Resolution of the City Council Denouncing Digital Discrimination MEETING DATE: May 28, 2024
RECOMMENDATION:
The City Council will consider adopting a resolution denouncing digital discrimination.
ANALYSIS:
Digital discrimination is a critical issue in our community. This occurs when internet service providers unequally deploy high-speed internet connections or selectively withhold the best service deals from racially or socio-economically marginalized neighborhoods. Data indicates that some low-income residents in Los Angeles pay more than their wealthier neighbors for slower internet service. Currently, no law prevents service providers from charging higher rates in one community over another.
Studies have shown that providers systematically offer inferior service—slower speeds and older technology—to low-income communities at higher prices, while offering fast, reliable service to higher-income communities.
In response to this issue, the Federal Communications Commission (FCC) has adopted new rules to stop broadband providers from digitally discriminating against customers based on race, income, and other protected traits. These rules enable the FCC to fine providers who fail to provide equal service across different communities “without adequate justification” and establish a process for the public to submit complaints. Importantly, the rules define digital discrimination to include both unequal treatment and disparate impact on protected groups.
Supporting these findings, an April 2023 study from the University of California, Santa Barbara analyzed advertised prices at more than 35,000 addresses in Los Angeles that have access to Spectrum plans. The study found that low-income communities are advertised higher prices for slower service.
Spectrum, serving over 98% of LA County households, has stated that it is working to comprehensively address barriers to broadband access, adoption, and affordability. The company contends that the UCSB study is based on "cherry-picked, limited-time promotional offers" rather than actual speeds and prices that customers choose.
In November 2023, the FCC codified rules to prevent digital discrimination, outlining a process for the public to submit evidence of such discrimination by Internet service providers (ISPs).
Closing the digital divide and ensuring equitable access to fast, reliable, and affordable internet is crucial for accessing education, healthcare, and participating in economic opportunities and civic life. Therefore, it is essential that the City Council passes this resolution to denounce digital discrimination and promote fair treatment for all communities.
FISCAL IMPACT:
None at this time
Respectfully Submitted by: Ernie Hernandez, City Manager Prepared by: Lena Shumway, Director of Administrative Services Approved as to Form: Noel Tapia, City Attorney
Attachment:
Resolution