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AT&T The Internet Businesses Communications Network Networking The Almighty Buck

AT&T Brings Fiber To Rich Areas While the Rest Are Stuck On DSL, Study Finds (arstechnica.com) 167

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

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  • by fred6666 ( 4718031 ) on Tuesday April 25, 2017 @07:45PM (#54301753)

    who would have tought

    • by rsilvergun ( 571051 ) on Tuesday April 25, 2017 @09:31PM (#54302177)
      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...
      • 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.

        Well, they did make sure to send plenty of that cash back to those politicians that agreed to the deal so the gravy train would keep rolling their way, so their *real* "customers" got what they wanted out of the deal. Subscribers and their wallets are the product, not the customers.

        Why would the politicians screw with such a sweet deal? Especially when they can essentially repeat the same scam every decade or two or three, depending, just like regularly shearing sheep. It's the same with most public-sector

      • 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.

        • by crtreece ( 59298 )

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

          Like they did in Chattanooga, TN [vice.com], Longmont, CO [longmontcolorado.gov], and tens of other cities [muninetworks.org] 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.

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

            Like they did in Chattanooga, TN [vice.com], Longmont, CO [longmontcolorado.gov], and tens of other cities [muninetworks.org] 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.

            Sigh. Again, this isn't a free market. Remember "billions in subsidies"?

            The other issue is that this isn't like water and electricity. The same standards of delivery for those services was the same 100 years ago. Broadband has changed dramatically in the last 5 years. There is simply no comparison.

            I have no problem at all with municipal broadband competing in a market on a level playing field (meaning they also have to provide service to places that might not be lucrative), which is mostly what you see

    • Corporation wants to make money by refusing to provide service to those willing to pay.

  • by Anonymous Coward

    They'll go where the money is.

    That's the proper way to run a business.

    • by sjames ( 1099 )

      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.

      • by stdarg ( 456557 )

        I suspect if you read the fine print you'd find that they have lived up to their obligations. Even if there was a goal established for reaching x% of households with y mbps speed, failing to reach that goal doesn't necessarily mean they violated the agreement. I'm curious if you have any concrete details with links to the relevant legislation (or regulation, or executive order, or whatever) that specifies the terms of the agreement including consequences.

        • by sjames ( 1099 )

          That might take a whole other website and a few years time to pile up the many cases of this going back to the mid '90s.

          • by stdarg ( 456557 )

            Eh I've read other websites about this issue. It sounds like mostly bullshit to me. From what I recall, the biggest source of "theft" or whatever that people accuse AT&T of is that they were depreciating their copper network and getting a tax break for that. It's a really common theme... people have no clue about how taxes work, and then fly into a rage when they find out some company is "using loopholes" or "not paying taxes."

            The other big complaint I've heard is that companies like Verizon and AT&

            • by sjames ( 1099 )

              If that's all you saw, you must not have wanted to see more. Pretty much all of the telecoms have been taking massive grants and subsidies since the mid '90s to build out universal broadband service. They have yet to actually perform to the level they promised.

              • by stdarg ( 456557 )

                Universal service is an aspirational goal. Wanting to hold telecoms responsible for failing is like saying Obamacare is fraudulent because it promised universal health care and failed, so the government should refund all of the tax money collected for it.

                • by sjames ( 1099 )

                  The government never collected tax money for universal healthcare. Obamacare was never claimed to be universal healthcare. It was claimed to expand the availability of health insurance and it did that. Feel free to argue if it was a good value or if it expanded it enough or even if insurance was an appropriate approach to healthcare, but it did what was claimed. The telecoms get heaps of money to implement universal service and have for a long time.

            • by mishehu ( 712452 )
              AT&T cannot even properly perform an inventory on all their equipment, and I'm not even talking about how much cabling they've hung up or buried. I'm talking about equipment for the remote terminals, the dslams, etc. They simply cannot account for it, and apparently even the IRS doesn't bother to make them provide a proper accounting and inventory of network assets.
      • by jon3k ( 691256 )
        Do you have a source that says AT&T specifically agreed to service these neighborhoods with gigabit fiber? If so I'd be interested in seeing it.
    • by Karlt1 ( 231423 )

      Gigabit Internet from AT&T is $70/month. DSL is $30 -$40 a month. How many people could afford to pay $40 a month and couldn't afford $70?

      • by DarkOx ( 621550 )

        I am going to get hard flamed for this, but I would still make the argument that the vast vast majority of people have no need or even practical use for more than the 50Mbps symmetric speeds VDSL can "practically" deliver.

        I telecommute, I would LOVE something better than LTE, because the caps are an issue, the speed around 6Mbps really isn't the problem. That said if I had the choice between VDSL and gigabit fiber at a price difference of $30 a month, I would not pay fiber.

        We don't need fiber the premises

        • by Karlt1 ( 231423 )

          I agree. I have Gigabit Internet but it's really overkill. The problem with DSL and cable are upload speeds. Comcast's gig service tops out 35Mbps - unlike AT&T.

          My work network tops out at 80/80 when I'm on the VPN in the middle of the night, most streaming is less than 10Mbps, and I have yet to go to a website or download a file at anything over 25Mbps except for work.

          The only thing that comes within 50% of maxing out my connection is BackBlaze if I max it out with 10connecgiknd.

    • by crtreece ( 59298 )

      They'll go where the money is.

      You are correct. They went to the government, lobbied for subsidies to build out broadband networks they had no intention of completing. They also have local monopolies that lower competition levels and increase profits. That's how to profit with crony capitalism.

    • by rtb61 ( 674572 )

      Nothing at all to do with who will pay what and everything to do with the squeaky wheel gets oiled. Basically they did those area first, where people would complain the loudest (loud in terms of real political access) and the poor, well, we all know the answer to that, screw em (keep in mind the prejudice of the decision makers). Don't think so, think property size and how many residence per kilometre of road, poor area small properties and medium density dwellings versus rich area and mansions (much larger

  • by tekrat ( 242117 ) on Tuesday April 25, 2017 @07:51PM (#54301777) Homepage Journal

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

    • Those are not necessities. Would you defend rich people being the first to have food and water and shelter?
    • that put fiber in those rich neighborhoods. And the middle class. You don't get rich by paying for the services you depend on. That's for suckers.
    • A poor person may at least enter negotiation with the sellers of those products, to see if they can come to a mutually acceptable offer.. AT&T refusing to even consider offers. Refusing business out of hand is a pretty anti-capitalist move.

    • That is another huge determining factor. The big cost is laying the infrastructure. The kind doesn't matter so much. So, if you are doing new deployments, fiber is more likely. The cable company here is all FTTH all the time for new build outs. However once that shit is deployed a replacement is a lot of money that you'd rather not spend. So they are less inclined to do it.

      Well new developments also tend to not be low income. Usually middle and upper class is what they target. No surprise then that is where

      • by mishehu ( 712452 )
        Except that they're just double-dipping. The FUSF is supposed to fund exactly these types of roll-outs to the poorer and underserved areas. Otherwise, why the hell are we being made to pay for the USF?
      • by hawk ( 1151 )

        Don't look at me for sympathy :)

        I bought this house in a middle class neighborhood about 30 years ago. It has degraded to lower middle class. (Hey, it makes for cheap security: noone in the neighborhood has anything worth stealing, so burglars don't bother us . . .)

        I can get highspeed from Cox, may many poxes befall their house.

        Centurylink, which used to be the phone company, can't deliver more than 3 mbit service here (but, gee, if I dig the trench to the street, they'll supply 8 conductor rather than 4

  • by zlives ( 2009072 ) on Tuesday April 25, 2017 @07:52PM (#54301781)

    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...

    • by Karlt1 ( 231423 )

      I'm paying $70 a month for AT&T Gigabit Internet -- $30 - $40 a month more than DSL. That's not "substantially" more expensive..

      • by mishehu ( 712452 )
        And I'm currently being made to pay $60 for a POTS line.
      • by DarkOx ( 621550 )

        50% more! What is substantial double? $40 is a weeks worth of groceries for a lot of Americans!

        If you think $40 additional cost is "insubstantial" to most folks you are completely out of touch!

      • by zlives ( 2009072 )

        i work with full time coworkers that would forgo the service for 40 dollar difference, while i would probably pay 40 more than you do to get gigabit.
        my coworkers do not live in my neighborhood.

  • 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.

    • Also, where I live, "fiber" usually means that you have to get a VDSL2 modem, because the fiber doesn't come all the way to your apartment. So you get DSL's connectivity issues anyway.
      • by Megane ( 129182 )

        I've had strictly DSL in some for or other since early 2000, and I've rarely had "connectivity issues". The most notable times were first, when the local copper down the alley degraded to the point where POTS service gave up before DSL did (though this gave me my first lesson in how TCP/IP doesn't tolerate even 10% packet loss very well), and second when (at least three times on two lines!) someone re-punched the wires inside a breakout box incorrectly. There have also been times (usually after midnight) wh

    • I agree about reliability. Way back around 2003, I was having serious trouble with Time Warner internet. They claimed to be faster than DSL. They probably were, but for me, they went down at the drop of a hat. Any hat. Anywhere in the world.

      DSL might have been slower, but it was much more reliable.

  • when all fails. power out? DSL. lines down? DSL. my neighbors love me. well, my wife does too, but they love her as well.
  • I was just bitching not more than 2 hours ago about how ATT only has fiber service in the dumpy part of town, but not out here.

    Im not rich, mind you but I live inland on a peninsula of a very large lake, so while I personally am not rich, there's some sickeningly big ass lake houses just down the road

  • by Miamicanes ( 730264 ) on Tuesday April 25, 2017 @08:30PM (#54301943)

    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.

    • They are a massive Corp. They can amortize the costs across all customers. You act like this is a small business.
    • by sjames ( 1099 )

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

    • by mishehu ( 712452 )
      Meaningful service area is only 1000 feet for adsl2 service? (That is what U-verse has been anywhere I've lived, and for speeds over 24 mbps they simply bind in more pairs.) According to all the numbers I've seen for the attenuation of the signal, at around 2 1/2 km distance you should still peg at ~13mbps. (Although it doesn't fit the definition of broadband, it is about 4 times better than what I get on neighborhood wifi running on ubnt's factory default settings because he really is in over his head a
      • ADSL has a range of a few miles, but as you observed, it maxes out around 13mbps. VDSL2 is another matter entirely.

        ADSL was viable for CLECs to lease wires, because they could rent rack space in the RBOC's CO and serve thousands of customers. VDSL2 blows that whole business model out the window... the only practical way CLECs could be accommodated with VDSL2 (due to short distance limits) is if the RBOC provided the VDSL2 network connectivity to the customer, then routed that customer's traffic over to the

        • by mishehu ( 712452 )
          You're missing how U-Verse and similar came about as a result of the stipulations of the 1996 Telecom act. By running fiber to the node, the RBOCs didn't have to grant access under competitive terms to the CLECs because it was no longer a straight copper run to the premise. So the real issue here isn't the viable range of adsl2. It's that the RBOCs refuse access to CLECS.
    • UNLESS those poor areas have lots of people willing

      One thing I find is that it doesn't matter how poor someone is, they always find money for a premium cable subscription.

      Which makes me wonder why cable companies don't provide them with high speed internet too.

  • 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.
  • Here in the San Francisco bay area, AT&T has been running an ad for the last couple months or so on one of those electronic billboards advertising gigabit fiber service. Well, if they're actually offering it somewhere on the peninsula, I have no idea where, because every time I check on their site, they claim it's not yet available in my area, despite the fact that I've seen their trucks running around the area apparently putting up new cabling of some sort. Google seems to have gotten bored with Goog
    • by bongey ( 974911 )

      You are not alone, family member who lives right next to Ferguson, Missouri has AT&T Gigabit service. I checked addresses around them and one block in any direction and it would say "unavailable.'. I would think SF would have a better roll out.

  • "Throw out the burdensome regulations that shackle corporations that are dying to provide a better internet to all! Especially those regulations that require a modern internet be equal (net neutrality) and available to all - kill 'em! They're standing in the way of profit growth.. I mean, market forces that would provide a faster internet for everyone."

    "Look... Let's be real.. if those nigg&&cough^^cough^^hack$##... poor people could just afford to pay for it, it'd be there already..."

    As much
  • Wealthy areas generally have newer housing which would be easier to service. Older buildings are harder to connect with the last mile of fiber. It is coincidental that the older buildings, on average, are occupied by people with a lower median income. What would be interesting is if instead of using median income to generate the statistics, the age of the infrastructure was used. There will be pockets of expensive old houses which could clarify things. If they get fiber access despite being hard to pro
  • 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.

    • by stdarg ( 456557 )

      The cost to provision a dwelling for fiber ranges from $3,000 to $12,000

      I think the low end must be lower than $3k, based on my observations of AT&T installing fiber in my neighborhood. Where did you get that figure and how old is it?

  • >"AT&T Brings Fiber To Rich Areas While the Rest Are Stuck On DSL, Study Finds "

    Duh. Can you say "How is that different from Verizon?" who does the EXACT SAME THING with their FIOS fiber. Here, one better-off neighborhood has FIOS and right across the street one that is less well-off has zero access to FIOS. And it is like that all throughout the city. Verizon covered only the absolute top of the market with FIOS and left the rest to rot with 2Mb/s DSL, which is so fragile that half of it goes do

    • by bongey ( 974911 )

      Well I don't think that is just it. My family member that basically lives in Ferguson, Missouri has AT&T Gigabit service, but going a block in any direction doesn't from their house. No they don't live in the rich part of town at all.

  • My neighborhood is home to a major AT&T CO which occupies a multistory building the size of a large square block. It was once full of so many employees, they had a whole other second block of parking lots for workers. But it's all automated now. It's kind of a Mother of All COs, serving as a hub for a large number of regular COs.

    This CO has ALL the latest services including fiber, video, DSL, whatever. Nobody here can get any of these services except DSL. We're a poorer neighborhood, you see. A

    • by Megane ( 129182 )

      I think you missed the most important part. They wired a NEW neighborhood, that hadn't been previously wired. The major blockade to getting the last mile of fiber installed is usually right of way, both on utility poles (they are often owned by a competitor) and it's even worse when all the wiring is underground. Sometimes the old wiring in a neighborhood falls apart to the point where it needs to be completely replaced, and at that point you will probably see the "only one block gets gigabit" effect.

  • by MoarSauce123 ( 3641185 ) on Wednesday April 26, 2017 @07:44AM (#54304059)
    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.
  • Higher income households are more likely to use a gigabit connection. Given the choice they will more likely choose the $70 gigabit over the $30-$40 DSL.

    They are more likely to have tvs that can support 4k streaming. They probably have more devices that are accessing the internet at the same time(smartphones, tablets, and multiple pcs/laptops). They are also more likely to be telecommuting.

    They are also less likely to intentionally share their wifi with multiple neighbors and friends.

  • Upcoming Tech (Score:4, Interesting)

    by nehumanuscrede ( 624750 ) on Wednesday April 26, 2017 @08:55AM (#54304327)

    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.

    Marketing Video: https://youtu.be/ZF09OWzv_pw [youtu.be]

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