The Supply Side of the Digital Divide: Is There Redlining in the Broadband Internet Access Market?

Abstract

The newest dimension of the Digital Divide is access to broadband (high-speed) Internet service. Using a comprehensive U.S. data set covering all forms of technology (chiefly DSL and cable modem), I look for evidence of redlining, where broadband carriers avoid areas with high concentrations of poor and minority households. There is little evidence of redlining based on income or on black or Hispanic concentration. There is mixed evidence concerning redlining based on Native American or Asian concentration. Other findings: market size, education, Spanish language use, commuting distance, and Bell presence increase access probability; inner city or rural location decreases access probability.

JEL Classification: O00, O