Broadband ISPs should be held to a higher public interest standard and regulated like traditional utilities in California, a new joint study by nonprofit state policy news outlet Cal Matters and UC Berkeley’s Possibility Lab argues. State governments should also vocally support community broadband networks as a direct challenge to monopoly power, the authors state.

The study specifically looked at the broadband sector in California, where 15 percent of California households – predominately in low income and minority communities – lack broadband access. It concludes that dramatic federal and state policy failures have resulted in unchecked monopolies and muted competition that directly harms the public interest.

While the study lauds California’s dramatic $6 billion “Broadband For All” initiative, which is driving historic new investment into last and middle mile network upgrades, it also states that the state’s full vision for equitable access cannot be achieved without rate controls, universal access requirements, and strict reliability standards for large incumbent ISPs.

The study also urges state leaders to aggressively embrace municipal broadband cooperatives to address regionalized market failure and improve overall accountability.

“California should actively encourage and support the formation of municipal broadband
cooperatives across the state, particularly in underserved rural and suburban communities
where incumbent providers have failed to deliver adequate service,” the study observes.

Monopoly Dysfunction, Muted Competition

Like most U.S. states, California communities are dominated by a handful of cable and phone giants that have leveraged their immense political power to box out local competition creating dominant regional monopolies and duopolies.

Fledging efforts to build a fiber network in Fort Bragg, California have seen some headwinds in the wake of the project’s original build partner being dismissed. The need to find a new vendor to help the city toward its goal has resulted in significantly higher costs and some notable delays, though city leaders say they’re still dedicated to guiding the project to completion.

The original plan to deploy affordable fiber broadband to the city of 7,000 was slated to cost somewhere around $14.7 million. When the city announced its plan to begin construction last year, that number jumped to $17.3 million. Recently issues have now increased the planned total cost for the project to $18.9 million.

Construction began last Spring, but it didn’t take long for the city to realize that the fiber deployment was going to exceed the city’s original projections.

“In July or June, it became obvious that the level of restoration in the streets was going to far exceed what we could afford,” City Economic Development Manager Sarah McCormick told the Fort Bragg City Council at a meeting back in January.

At the same time, the city's original build partner, construction management firm GHD, was dismissed by the city after it could not originally account for being over budget due to boring costs. GHD had been awarded a $1.4 million contract to oversee the project.

“We quickly terminated that part of the contract because that was his job — to track the project,” McCormick said.

Analysis later found that the higher costs were due to the late addition of telecom fiber flower pots – enclosures allowing for the core fiber trunk to be split off to serve individual locations and residences – something inexplicably omitted from the original design.

“When they made that change, they didn’t change the bill of materials for boring,” McCormick said. “That would have been like a real no-brainer thing to see if you were the construction manager and tracking the project.”

Navigating a New Path

Last May, we shared a dashboard we built to track how community networks were doing in California's Last-Mile Federal Funding Account broadband grant program. With a new round of winners recently announced, we've updated our dashboards to show who, where, and how much community networks are getting. In the first round, they were seeing unprecedented success, punching far above their weight in comparison to the monopolies (which have a long track record of success in landing the bulk of state broadband grant dollars across the country). 

We're happy to say that the latest round shows community networks doing equally well. In late 2025 and early 2026, California announced an additional nine grants. Every county in California has now received grant funding for last-mile broadband expansion. Two of the awards were multi-county projects, stretching to include counties that were also served through the first round of funding.

Hoopa Valley Utility Authority was a big winner again, selected for a nearly $40 million award to serve areas of Trinity and Humboldt Counties. The project, called Hoopa TRAIL for Hoopa Trinity Rural Access Initiative Linkup, will serve nearly two thousand locations with gigabit symmetrical speeds. Taken together, community networks secured half of the awards and funding announced in this round. Other awards went to the Contra Costa Transportation Authority, for a planned public-private partnership, Comcast, AT&T, a regional Internet service provider, and a unique nonprofit-private partnership. Altogether, over $110 million was awarded in this round of grants, bringing the running total in the program to $1.23 billion.

California’s Public Utilities Commission (CPUC) recently signed off on Verizon’s $20 billion merger with telecom giant Frontier with some notable conditions. As part of Verizon’s settlement with the CPUC, they’re being required to offer affordable broadband, improve network resilience, and expand fiber and cellular access into long-neglected portions of the Golden State.

According to the CPUC approval announcement, the agency voted 5-0 to approve the merger after months of deliberation and negotiation with Verizon.

One cornerstone of the CPUC’s agreement is that Verizon will be required to offer significant support for its "Verizon Forward" service, which offers home Internet access for as low as $20 a month (either 300 megabit per second (Mbps) symmetrical fiber or 100/20 Mbps wireless) to California homes that qualify for existing low-income assistance programs.
 
Under that part of the arrangement, Verizon pledges to maintain that $20 per month price point for the next decade.

Verizon’s Frontier Deal Comes With Strings Attached

This comes on the heels of a recent CPUC study that found “the average monthly price for a plan at or above 100 megabits per second (Mbps) download and 20 Mbps upload – the Federal Communications Commission’s benchmark for broadband speeds – is $116.68” – “far above what many households can afford.” The study further indicates that in large swaths of the state “low-income households spend more than 15% of their discretionary income on broadband service.”

Despite a memo issued by the NTIA last summer that sought to discourage states from passing affordable broadband legislation similar to New York State’s Affordable Broadband Act, two dozen state lawmakers in Maryland have signed on to the Broadband Opportunity and Fairness Act, state legislation that seeks to address the single biggest barrier to Internet access anywhere: affordability.

HB-382, if passed, would require Internet Service Providers (ISPs) operating in Maryland to offer low-cost Internet service plans to eligible low-income households.

Introduced by Delegate Kris Fair (D-3A, Frederick Co.), the bill now has 25 co-sponsors and is slated for a Feb. 12 legislative hearing before the House Economic Matters Committee. Companion legislation has yet to be filed in the Senate, though Delegate Fair’s office says they are in discussions with state Senators about advancing a bill through that chamber as well.

Stepping Up and 'Doing Something'

By any measure, 2025 was a tough year in the grand project to extend fast, affordable, reliable broadband access to every home in the United States. The Digital Equity Act was abruptly cancelled, BEAD was restructured, small- and large-scale outages were common, and prices from the monopolies rose yet again.

But good things happened, too. In 2025, we saw seven new municipal broadband networks across the country that were lit up for service. As is usual, it was a mixture of partnerships, business models, and construction approaches to meet the unique challenges of a patchwork broadband landscape.

A Bountiful 2025 for Municipal Broadband

In California, the Gateway Cities Fiber Optic Network launched (eventually covering 23 cities); it will eventually cover 72 community anchor institutions and almost 5,000 unserved locations across member cities with the help of state grants.

Two dozen California cities are making progress bringing affordable fiber to 16,500 new locations in the Golden State. The collaborative middle mile project, dubbed the Gateway Cities Council of Governments' (GCCOG) Gateway Cities Fiber Optic Network Project, could revolutionize connectivity for a broad swath of Californians long stuck on the wrong side of the digital divide.

While the project should be transformative, questions remain if the project will reach the full potential of its original 2021 vision after some significant revisions were made to California’s expansion plans in the summer of 2023.  

The $104 million broadband infrastructure project is leveraging money from the California Department of Technology’s Middle Mile Broadband Initiative and the California Public Utilities Commission’s Last Mile Federal Funding Account Grant Program (FFA).

Both are part of a broader $6 billion California “Broadband For All” initiative aimed at boosting broadband competition and driving down broadband access costs statewide. The initiative in turn was enabled by 2021 federal infrastructure and COVID relief legislation resulting in a generational flood of historic broadband subsidies.

All told, the $104 million Gateway Cities Fiber Optic Network Project aims to connect 24 cities, 4,254 unserved locations, and as many as 16,500 locations with 74 miles of next-generation gigabit-capable fiber. The network will also bring faster fiber connectivity to 72 anchor institutions and public safety entities scattered across Southeast California.

Antelope Valley, California officials are hoping to leverage California’s historic recent round of broadband grant programs to deliver affordable fiber access to a significant swath of long-underserved southern California desert communities.

According to Antelope Valley officials, they’ve applied for a $24.3 million California Advanced Services Fund (CASF) Broadband Infrastructure grant to help them deliver symmetrical 10 Gigabit Passive Optical Network (XGS-PON) technology to 988 total households, most of which would be seeing affordable fiber access for the first time ever.

A breakdown of the project included in the application submitted by the Antelope Valley Union High School District to the California Public Utilities Commission (CPUC), indicates that the proposed project seeks to connect to the California State Middle Mile route at two points currently being negotiated in collaboration with state Middle Mile Authorities.

“The award will not be determined until approximately quarter two of next year,” Antelope Valley Union High School District Superintendent Greg Nehen tells ILSR.

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The Antelope Valley Broadband Project would be constructed with 100 percent underground fiber installation, with all fiber-optic cables placed in buried conduit within public rights-of-way, using underground microducts, handholes, and splice enclosures. No aerial deployment is planned for this project, according to project leaders.

Legal analysts are questioning the recent assertion by the head of the National Telecommunications and Information Administration (NTIA).

NTIA administrator Arielle Roth said last week that the agency she oversees will withhold federal broadband deployment funds from states that have laws enforcing net neutrality or that have enacted affordable broadband legislation similar to New York’s Affordable Broadband Act.

As the assistant secretary overseeing the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program, Roth’s legal reasoning is striking.

All the more so given that the New York Affordable Broadband Act that requires Internet service providers in the Empire State to offer a low-cost broadband service plan to income-eligible households has been upheld as Constitutional – a case in which the Supreme Court twice declined to intervene and overturn.

Yet, last week in speaking before the conservative Hudson Institute, Roth offered remarks that have legal observers scratching their heads in bewilderment. During her speech, Roth said:

“Consistent with the law, which explicitly prohibits regulating the rates charged for broadband service, NTIA is making clear that states cannot impose rate regulation on the BEAD program. To protect the BEAD investment, we are clarifying that BEAD providers must be protected throughout their service area in a state, while the provider is still within its BEAD period of performance. Specifically, any state receiving BEAD funds must exempt BEAD providers throughout their state footprint from broadband-specific economic regulations, such as price regulation and net neutrality.”

The stakes are high for broadband affordability advocates across the nation.