There’s no federal law or regulation that makes digital redlining illegal. Broadband providers are free to build infrastructure wherever they want. And because it’s expensive to do so, they often build where they have their highest return on investment, which is generally in more affluent communities that tend to be whiter. Meanwhile, they avoid lower-income neighborhoods that generally have more residents who are Hispanic or Black. But states and local governments have long held the power through franchise agreements to prohibit unjust discrimination through build-out requirements. For example, New York City has exerted this authority when it required Verizon to deploy 500,000 more fiber connections to low-income users.
Reardon, M. (2022, February 10). FCC launches task force to address digital redlining. CNET. https://www.cnet.com/home/internet/fcc-launches-task-force-to-address-digital-redlining/