The California Public Utilities Commission (CPUC) is poised to include new broadband affordability requirements as part of the state’s looming approval of Verizon’s massive $20 billion merger with Frontier Communications, even as some consumer advocacy groups worry the changes may not go quite far enough to hold Verizon accountable.

The CPUC’s Public Advocates Office has struck a partial settlement with Verizon that the state hopes will take some of the sting out of the telecom industry’s latest consolidation spree.

Verizon’s $20 billion proposed merger with Frontier would merge two of the nation’s top four traditional phone companies, resulting in a telecom giant with assets across 31 states. The merged new company would have more than 9.6 million customers with a fiber network that ultimately passes more than 25 million fiber homes and businesses.

While the two companies don’t directly compete, Verizon’s political influence and market power will still increase. Both companies have long been criticized for lobbying to undermine U.S. broadband competition, then leveraging the resulting regional market failure to jack up consumer costs and neglecting aging DSL network upgrades and repairs.

Last week, a California Assemblymember who had sponsored legislation for a broadband affordability law abruptly withdrew the legislation. 

But what really killed the broadband affordability bill in California? Was it opposition to the proposed legislation from within the state or pressure from the Trump administration?

The Bill Was Advancing Until…

Modeled on New York’s Affordable Broadband Act (ABA), the California Affordable Home Internet Act was first introduced in January. It aimed to require Internet service providers that operate in the Golden State to offer a $15 per month broadband service plan for income-eligible households.

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The proposed legislation was introduced as AB 353 by Assemblymember Tasha Boerner and was initially supported by the California Alliance for Digital Equity (CADE).

Over the intervening months, CADE and proponents of the bill offered resources and recommendations on how the bill could be made more effective than the ABA, hoping to avoid the pitfalls that advocates were seeing with the rollout and implementation of New York’s law.

On June 4, the California bill advanced through the state Assembly and moved on to the state senate by a 52-17 margin.

California lawmakers’ efforts to pass a new law mandating affordable broadband access is at risk of being destroyed by industry lobbying. California insiders say the changes are so dramatic they may wind up making broadband affordability in the state worse – undermining years of digital equity activism and discarding a rare opportunity to bridge the digital divide.

The California Affordable Home Internet Act (AB 353), introduced by Assemblymember Tasha Boerner last January, would require that broadband providers in the state provide broadband at no more than $15 per month for low-income households participating in a qualified public assistance program.

The original legislation mandated that state residents should be able to receive $15 for all ISPs for broadband at speeds of 100 megabit per second (Mbps) downstream, 20 Mbps upstream. The proposal mirrored similar efforts by New York State which opened the door to other state efforts after the Supreme Court recently refused to hear a telecom industry challenge.

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“I want to get something fair and reasonable that helps those who need it most,” Boerner said in a press release. “AB 353 will fill the gap and ensure our children can turn in their homework, families can get access to telehealth, and apply for jobs online.”

On June 4 a vote moved the legislation through the state Assembly and on to the state senate by a 52-17 margin.

Just 40 miles north of the heart of Silicon Valley, the City of Oakland has its sights set on implementing an ambitious Broadband Master Plan.

Dubbed the OaklandConnect project – unanimously approved on May 20 by the Oakland City Council – the plan calls for the construction of a city-owned open access fiber network to expand affordable broadband connectivity to over 33,000 households that city surveys indicate are languishing without home Internet service.

While Oakland is served by Comcast and AT&T mostly (with a smattering of Sonic and T-Mobile hotspots), the service in many areas is substandard, expensive, or both – in a city where surveys indicate affordability as the primary reason so many do not have home Internet service.

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Once the East Bay city of 436,000 completes network construction, it would be one of the largest publicly-owned open access networks serving a major metro area in the nation – and may serve as inspiration for other large cities to follow suit with a model that’s been proven to bring affordable local Internet choice in monopoly-dominated markets.  

With New York’s Affordable Broadband Act (ABA) now in effect, lawmakers in other states are filing similar legislation that requires large Internet Service Providers to offer low-cost plans for financially-strapped households in their respective states.

In Massachusetts, State Sen. Pavel Payano filed a bill earlier this month similar to New York’s law that seeks to establish a $15/month plan for low-income households in the Bay State.

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Then, earlier this week, California Assemblymember Tasha Boerner introduced Assembly Bill 353 that would mandate ISPs “make affordable home Internet plans available to California residents,” Boerner’s office said in a press release.

“Right now, families are struggling to afford essential services, like the Internet,” Boerner said in a press statement.

Speaking to why passing an affordable broadband law was important, Boerner put it in plain terms, noting that “households in our state don’t have support to pay for a basic home Internet service plan. We are talking about kids not being able to do homework at home, parents having to go to libraries to apply for jobs, and people not having access to do basic things, like telehealth.”

California’s $2 billion Last Mile Federal Funding Account Grant Program (FFA) has announced another $207 million in new broadband grants across Amador, Los Angeles, and Solano Counties.

The FFA program, part of a broader $6 billion California “Broadband For All” initiative, is aimed at boosting broadband competition and driving down costs statewide.

According to the state’s announcement, $61 million in new grants were awarded by the California Public Utilities Commission (CPUC) for five Last Mile FFA broadband infrastructure grant projects in Amador and Solano Counties, bringing affordable fiber Internet access to approximately 10,000 Californians.

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The CPUC award details indicate that the grants will be awarded to the Golden State Connect Authority (GSCA) and the City of Vallejo to help bring fiber access to 2,278 unserved locations in Amador and Solano counties.

The City of Vallejo will leverage $3.8 million in state grants to complete four different projects laying predominantly underground fiber, with the city retaining ownership of the finished network and Smart Fiber Networks providing last mile consumer-facing service.

The California Public Utilities Commission (CPUC) has announced another $237 million in new grants that will help fund broadband expansion across 21 different California towns, cities, counties, and tribal communities. Meanwhile, numerous additional grants that are waiting in the wings are expected to get formal approval sometime in September.

Alpine, Mono, Nevada, Placer, Santa Barbara, and Tulare counties are among the latest winners in California’s $2 billion Last Mile Federal Funding Account Grant Program (FFA).

That program is an extension of California’s ambitious Broadband For All initiative, a $6 billion effort aimed at dramatically boosting broadband competition and access across the Golden State.

At an August 22 meeting, CPUC officials formally approved both a third and fourth round of FFA broadband funding. With these latest two rounds of funding, the CPUC says it has doled out $434 million in grant awards across 22 counties across California.

Open Access Fiber Comes To Alpine County Via Third FFA Round

The third round of formally approved grant awards included $95 million in funding for 10 broadband projects across California’s Alpine, Modoc, Riverside, Santa Barbara, and Tulare counties. This round of awards also included grants for the Fort Bidwell Indian Community in Modoc County and the Santa Ynez Band of Chumash Indians in Santa Barbara County.

Alpine County’s $7 million grant for fiber broadband expansion will be managed by the Golden State Connect Authority and help fund the Alpine County Broadband Network, an open access fiber network that will deliver fiber for the first time to 721 unserved locations and 818 unserved residents across Alpine County.