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Before the Public Utilities Commission of the State of California Filed 07/02/21 04:01 Pm BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA FILED 07/02/21 04:01 PM Order Instituting Rulemaking Regarding Broadband Infrastructure Deployment and to R. 20-09-001 Support Service Providers in the State of Filed September 10, 2020 California OPENING COMMENTS OF THE UTILITY REFORM NETWORK ON THE ASSIGNED ADMINISTRATIVE LAW JUDGE’S RULING REGARDING REDLINING STUDIES Brenda D. Villanueva, Telecom and Regulatory Attorney Regina Costa, Telecommunications Director The Utility Reform Network 1620 5th Ave., Ste. 810 San Diego, CA 92101 (619) 398-3680 [email protected] [email protected] July 2, 2021 1 / 67 Table of Contents I. Introduction ............................................................................................................................... 1 II. Contextual Background Present in Redlining as Applied to Broadband .............................. 5 A. The Term “Redlining” and its Roots in Other Contexts .............................................................. 5 B. Defining “Digital Redlining” to Recognize Inequitable Broadband Deployment Practices ..... 6 III. The Studies Identified in the ALJ Ruling and Others Presented Provide Strong Evidence of Digital Redlining in California ................................................................................................. 8 A. The Greenlining Study .................................................................................................................... 9 B. The CWA & NDIA Study ............................................................................................................. 12 C. The Annenberg Study.................................................................................................................... 14 1. The Original Annenberg Study .................................................................................................................. 14 2. The Updated Annenberg Study .................................................................................................................. 16 D. The 2021 Update of the CETF Survey ......................................................................................... 18 E. The Studies Reviewed Demonstrate that the Commission Must Expand Universal Service Programs to Support Broadband Adoption ........................................................................................ 20 IV. Table 1 - City and Census Designated Place Analysis ........................................................ 21 V. Response to ALJ Ruling Questions ....................................................................................... 25 A. ALJ Ruling Question 1 .................................................................................................................. 25 B. ALJ Ruling Question 2 .................................................................................................................. 27 C. ALJ Ruling Question 3 .................................................................................................................. 28 D. ALJ Ruling Question 4 .................................................................................................................. 30 E. ALJ Ruling Question 5 .................................................................................................................. 32 1. Digital Redlining Should be Identified Based on the Availability of Wireline Broadband Service .......... 33 2. Digital Redlining Should Consider Affordable and Reliable Service ........................................................ 34 F. ALJ Ruling Question 6 .................................................................................................................. 35 G. ALJ Ruling Question 7 .................................................................................................................. 37 i 2 / 67 1. The Commission Should Include the 2019 Network Exam Study of AT&T as a Data Source in this Proceeding, and Update the Study ...................................................................................................................... 37 2. Cable Business Models Contribute to the Redlining Problem ................................................................... 43 H. ALJ Ruling Question 8 .................................................................................................................. 44 VI. Conclusion ............................................................................................................................ 45 Appendix A Appendix B ii 3 / 67 I. Introduction Pursuant to the Assigned Administrative Law Judge’s May 28, 2021, ruling in R.20-09- 001 (“ALJ Ruling” or “Ruling”),1 The Utility Reform Network (TURN) hereby submits opening comments on the general and specific questions set forth in the ALJ Ruling. TURN welcomes the opportunity to provide comment regarding the broadband deployment deficiencies in California, present evidence of digital redlining,2 and suggest how to investigate and address these issues. For the reasons discussed in detail below, including in the response to Question 5, TURN believes that digital redlining should be identified as occurring in areas where residents do not have two wireline broadband service providers that offer downstream broadband service speeds of at least 100 Mbps.3 In opening comments on the Order Instituting Rulemaking in this proceeding TURN and Center for Accessible Technology observed that:4 • Market forces have failed to meet California's broadband needs. • Broadband service is unaffordable for many Californians. • The Commission needs adequate data about key aspects of broadband, ranging from the location of broadband-capable infrastructure to the price impediments that deter adoption. • The Commission also needs to address upload speeds, in addition to download speeds. • The Commission needs to address the telecommunications surcharge contribution base to support the Commission’s universal service goals. 1 Assigned Administrative Law Judge’s Ruling, R. 20-09-001 (May 28, 2021) (“ALJ Ruling”). 2 The ALJ Ruling uses the term “redlining” and explains that this is a practice where ISPs “are refusing to serve certain communities or neighborhoods within their service or franchise areas,” TURN will refer to these practices as “digital redlining.” TURN will refer to redlining practices in the housing industry as “housing redlining” as appropriate. These terms are explained in detail in these comments in Section II. 3 Affordability Metrics Framework Staff Proposal, R.18-07-006, at 22 (January 24, 2020). 4 Comments of The Utility Reform Network and the Center for Accessible Technology on the Commission’s Order Instituting Rulemaking, R. 20-09-001, at 4 (October 12, 2020). 1 4 / 67 TURN continues to support these observations and reiterates them here because in addition to the background provided below related to the term “redlining,” they serve to shape the circumstances in which California communities struggle to obtain high-speed broadband service that is necessary for everyday life. The ALJ Ruling sets within the scope of this proceeding the timely and necessary question, whether “Internet service providers (ISPs) are refusing to serve certain communities or neighborhoods within their service or franchise areas, a practice commonly called redlining.”5 As discussed below, there is no question that broadband ISPs6 have refrained from investing to serve all Californians in their service areas or have otherwise selected service areas that target customers who generate high-revenues and who have relatively low deployment costs. Based on our review of the studies and data referred to in the ALJ Ruling, and other analysis provided below, TURN believes that there is significant evidence of digital redlining in California. According to data reviewed by TURN, digital redlining impacts lower income communities, including those associated with inner-city neighborhoods and rural areas of the state. In fact, a number of these communities have been shaped and formed due to historic housing redlining practices, helpful context as the Commission seeks to investigate digital redlining practices. The studies and data reveal broadband ISPs persistent lack of investment in lower income communities, among others. This poor investment undermines opportunity for the residents of those communities. TURN urges the Commission to find that these broadband ISPs past and current practices have led to digital redlining and significant impacts in many 5 ALJ Ruling at 1. 6 The ALJ Ruling uses the term “Internet service providers (ISPs).” ALJ Ruling at 1. TURN will use the term “broadband ISPs” for the service providers, and “broadband service” for the service provided. 2 5 / 67 communities, and further urges the Commission to promptly establish a process in which broadband ISPs can also be part of the solution. TURN also urges the Commission to think broadly regarding whether Californians across the state have broadband truly available to them. Even in the areas of the state where reliable high-speed broadband is deployed and service offerings are provided by multiple broadband ISPs, high prices arising from the absence of downward price pressures from competition, make that service unaffordable for many California households. TURN believes that digital redlining warrants the exercise of Commission authority to investigate and mitigate the inequitable impacts felt by communities across the state. We believe the Commission is pursuing the
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