The U.S. Treasury Department recently awarded more than $740 million in new American Recovery Plan Act (ARPA) funding to the states of California and Pennsylvania, providing a major boon to both states’ efforts to expand access to affordable broadband.

The Treasury awarded $540.2 million for high-speed Internet expansion projects in California under the American Rescue Plan’s Capital Projects Fund (CPF). According to the announcement, the funds will be used to connect 127,000 homes and businesses across California as part of the state’s ongoing “California Comeback Plan.”

As part of that effort, California leaders say they’ll spend $7 billion on expanding broadband access over the next three years, with $4 billion of that to be used for constructing a statewide middle-mile, open access fiber network the state hopes will boost broadband competition and drive down broadband access costs statewide.

To manage federal grant funds, California created its Last Mile Broadband Expansion grant program, which was designed to provide Internet access to areas of the state currently lacking access to reliable, affordable broadband at the FCC’s increasingly dated definition of 25 megabits per second (Mbps) downstream, 3 Mbps upstream.

“The pandemic upended life as we knew it and exposed the stark inequity in access to affordable and reliable high-speed internet in communities across the country, including rural, Tribal, and other underrepresented communities,” said Deputy Secretary of the Treasury Wally Adeyemo.

“This funding is a key piece of the Biden-Harris Administration’s historic investments to increase access to high-speed internet for millions of Americans and provide more opportunities to fully participate and compete in the 21st century economy,” Adeyemo added.  

Creative efforts are underway in Marin County, California to bring fiber connectivity to underserved pockets of the community and eventually the whole area. Digital Marin, currently housed within the county’s Information Services and Technology Department, is coordinating the project, and is leaning towards a municipally-owned, open-access solution modeled after Ammon’s standout network in Idaho.

Just across the Golden Gate Strait from San Francisco, Marin County is home to about 265,000 residents, as well as the Muir Woods National Monument, a County Civic Center designed by Frank Lloyd Wright, and nearly 73 miles of coastal trail. Despite largely being considered an urban county, Marin also includes suburban and rural areas with 40 percent of the county classified as protected park land.

When it comes to Internet connectivity, the area is peppered with what Marin County resident and Digital Marin Executive Steering Committee member, Bruce Vogen, calls “donut holes of high-quality Internet access.” An unknown provider built a DSL network in the region many years ago and then Comcast later bought and inherited the antiquated infrastructure. Soon after, AT&T entered the market but selected only the most profitable neighborhoods to serve. All 90,000 of the county’s urban households can access the Internet through Comcast, but just 20,000 of these homes have access to the archipelago of AT&T’s fiber network. In any case, Marin’s urban areas are either subject to monopoly or duopoly market control. It has long been apparent there is a digital divide in Marin County, but it wasn’t until the 2022 FCC maps were released that the contours of this divide came into focus.

As Los Angeles County officials work with community coalitions to improve high-speed Internet access in underserved communities across the region, the Digital Equity LA Summit last week focused on the challenges ahead. Front and center: urging state officials to fix the broadband priority maps the state will use to target where to invest $2 billion in state broadband grant funds with the state months away from receiving over a billion additional dollars from the federal BEAD program.

While a racially-charged controversy swirls loudly around the Los Angeles City Council, a new study lays bare how low-income communities of color are impacted by the quiet business decisions of the region’s monopoly Internet service provider.

Slower and More Expensive/Sounding the Alarm: Disparities in Advertised Pricing for Fast, Reliable Broadband details how Charter Spectrum “shows a clear and consistent pattern of the provider reserving its best offers - high speed at low cost - for the wealthiest neighborhoods in LA County.”

Authored by Digital Equity LA, a coalition of more than 40 community-based organizations, not only highlights how economically vulnerable households in LA County pay more for slower service than those in wealthy neighborhoods, it also provides evidence for how financially-strapped households are also saddled with onerous contracts and are rarely targeted by advertisements for Charter Spectrum’s low cost plans.

A leading voice behind the Digital Equity LA initiative – Shayna Englin, Director of the Digital Equity Initiative at the California Community Foundation (CCF) – notes that higher poverty neighborhoods (which tend to be mostly made up of people of color) pay anywhere from $10 to $40 more per month than mostly white, higher-income neighborhoods for the exact same service. 

In the 1980s, Rancho Cucamonga proclaimed itself “The City with a Plan.” Back then, the plan was to remake this once rural enclave known for its vineyards into more than just one of the many sunny suburbs of Los Angeles. The vision was to leverage its stretch of the famed Route 66 highway as a branding and economic development tool and transform the city into a premier destination within the Inland Empire metropolitan area along the foothills of the San Gabriel Mountains.

That forward-looking spirit was revived again 30 years later as city leaders looked to cultivate a digital vineyard with the creation of a “Fiber Optic Master Plan” – a six-year $13 million investment plan that targets the city’s new development.

Today, Rancho Cucamonga (its name was derived from a Native American word meaning “sandy place”) owns and operates Rancho Cucamonga Municipal Broadband in partnership with Onward, a local private Internet service provider.

The city built, owns, and maintains the physical infrastructure, which is managed by the Rancho Cucamonga Municipal Utility (RCMU). Onward, which is based in the city, provides gigabit speed Internet access to the network’s 525 mostly residential subscribers as the network slowly expands to reach yet-to-be-built residential developments.

Targeting Greenfield Projects and Businesses

The move toward municipal broadband began in earnest in 2016 when the city hired Magellan Advisors to develop a plan that would leverage the city’s existing fiber assets and expand its municipal utility fiber network to “greenfield projects” and the city’s business parks (see the map below that shows blue areas where service exists and orange areas where service is coming).  

Driven by Covid frustration and a boom in available grant money, Santa Clara County, California officials say they’re moving forward with their plans to explore a municipal broadband network, with the formal next steps expected to be announced at the tail end of this year. 

Last December, the board of supervisors in Santa Clara unanimously approved the creation of a publicly-owned fiber municipal broadband network. Spearheaded by County Supervisors Cindy Chavez and Susan Ellenberg, the project aims to provide “affordable, reliable high speed broadband service” to communities across Santa Clara County.

Santa Clara county contracted CTC Technology and Energy to examine various construction and funding proposals and develop a project master plan. County officials tell ILSR that the next report on that effort isn’t expected until November or December of this year, but the county is working on building a bridge toward a publicly-owned option in the interim. 

Hidden In Plain Sight

According to the California State Association of Counties (CSAC), 70,000 Santa Clara residents have no access to broadband whatsoever. Another 73,000 currently qualify as underserved, meaning they remain stuck on dial up or antiquated DSL incapable of meeting the FCC’s minimum threshold of 25 Megabit per second (Mbps) downstream/3 Mbps upstream to even be considered “broadband.” 

“The pandemic has exposed the digital inequity that has been hidden in plain sight in the heart of Silicon Valley for two decades now,” Santa Clara County Supervisor Cindy Chavez told ILSR. 

Two recent victories in digital equity work out of California give cause for celebration this week. AB 2748 Telecommunications: Digital Equity in Video Franchising Act and AB 2751 Affordable Internet and Net Equality Act both passed the Communications and Conveyance Committees this week; the former by a margin of 10-3 and the latter 7-3.

Sponsored by Assemblyman Chris Holden, AB 2748 would have a range of impacts if passed, including  giving the state CPUC and local governments more power in negoitating with providers to ensure that there is no discimination based on neighborhood household income that leads to inequitable access to service. It also revises franchise fee agreements at the local level. Read the full bill analysis for more.

From the press release:

"Although DIVCA originally intended to address inequitable broadband access, it remains pronounced across California cities," says Shayna Englin, Director of the California Community Foundation Digital Equity Initiative. "AB 2748 modernizes DIVCA by establishing equal access requirements as policy, and makes them enforceable through a reasonable application process for franchise renewals. We are pleased to co-sponsor Assemblymember Holden's bill, as the legislation will bring us one step closer to ensuring every Californian has access to fast, reliable, and affordable Internet [access]."

AB 2751 would create a Net Equality Program which would require that most state agencies only do business with Internet Service Providers (ISPs) that have a low-income plan offering of $40/month for 25/3 Megabits per second (Mbps). Read the full bill analysis for more.

Public testimony for AB 2751 highlighted the significant disparity in service speeds and prices that disadvantage low-income Californians by the state's two monopoly providers: Charter Spectrum and AT&T: