Ministers Denounce SBC Internet-Cable TV Push as Digital Redlining

SBC's announced $6 billion program to deliver high-speed Internet and cable TV over fiber-optic phone lines will target affluent customers, amounting to redlining of disadvantaged communities, the Ministerial Alliance Against the Digital Divide (MAADD) charged today.


"This is another discriminatory scheme disguised as technological progress by SBC," said Reverend James L. Demus III, co-director of MAADD. "These so- called investment proposals by SBC come with one fat string attached: no franchise agreement, and thus no requirement to invest in an entire community versus only the wealthy parts."

"This is nothing short of digital redlining. SBC is planning to deprive poorer customers of access to $6 billion in vital new technology," continued Demus. "We urge municipalities to stand firm and demand that SBC sign contracts that require it not to cherry-pick customers."

The $6 billion in investment by SBC is sure to almost completely bypass poor and minority neighborhoods -- SBC's own briefings to investors and analysts show the company intends to bring its new services to only five percent of what it calls "low-value customers" while targeting 90 percent of high-spending customers.

"SBC is making its values plain for everyone to see," said Rev. Dr. William Samuels, co-director of MAADD. "They're telling the world they don't value poor kids and their families, who are the ones who need access to technology to get access to a better education and better job opportunities. This is exactly why we need to keep behemoths like SBC regulated -- they can't seem to do the right thing unless they're forced to."

Last month, industry experts characterized SBC's investment plans as "discriminatory and anticompetitive." Industry analysts have estimated that, by wiring entire towns instead of bringing service only to selected customers, SBC could still make a sizable 10 percent return on investment.

"It comes down to pure and simple greed," said Rev. Dr. Walter Johnson, co-director of MAADD. "At a time when everyone in the country realizes it is vital for our future generations to bridge the digital divide, SBC seems to be doing all it can to widen it."

MAADD is an organization of Chicago-area ministers and over 8,000 members devoted to bridging the digital divide between those who have ready access to the Internet and those who do not, and ensuring that basic technology such as phone service remains accessible and affordable for all.




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Source: Ministerial Alliance Against the Digital Divide

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