In 2021, California passed Senate Bill 156, an ambitious plan allocating $6 billion to shore up affordable broadband access throughout the state.

Among the most notable of the bill’s proposals was a plan to spend $3.25 billion on an open-access statewide broadband middle-mile network backers say could transform competition in the state.

An additional $2 billion has also been earmarked for last mile deployment. Both components will be heavily funded by Coronavirus relief funds and federal Broadband Equity, Access, and Deployment (BEAD) subsidies as well as California State Government grants – with all projects to be finished by December 2026 as per federal funding rules.

But while California’s proposal has incredible potential, activists and digital equity advocates remain concerned that the historic opportunity could be squandered due to poor broadband mapping, a notable lack of transparency, and the kind of political dysfunction that has long plagued the Golden State.

Massive Scale, Big Money, Endless Moving Parts

Still, California’s prioritization of open access fiber networks could prove transformative.

Data routinely indicates that open access fiber networks lower market entry costs, boost overall competition, and result in better, cheaper, faster Internet access. Unsurprisingly, such networks are often opposed by entrenched regional monopolies that have grown fat and comfortable on the back of muted competition.

A new chapter in state-Tribal relations is being written as the importance of robust and reliable telecommunication becomes all-too-apparent, especially in the face of more frequent extreme weather events. For the first time, a Tribe in California is building high-speed Internet infrastructure in collaboration with the state, thanks to the resilience of the Hoopa Valley people.

Tucked along the Trinity River in the northwestern corner of the state, the Hoopa Valley Reservation is located in a rural and heavily wooded region that spans over 89,000 acres, home to over 2,500 Tribal citizens. Last summer, the area was ravaged by closely-timed wildfires and thunderstorms, followed by massive landslides that collapsed into the region’s riverways, including the Trinity River, a sacred body of water for the Hoopa Tribe.

As the river turned to mud and dead fish began to wash up on its banks, alarmed residents had limited means of connecting with one another, getting timely information about what was going on, or contacting emergency services. That was because of a hidden casualty of the wild weather: the Tribe’s wireless Internet network, which sustained severe damage that not only hindered communication but also extended the time it took to assess the damage.

California digital equity advocates say that recent cuts to the state’s ambitious broadband deployment plan unfairly harm low-income and minority communities. And despite promises from state leaders that the cuts will be reversed, local equity advocates say the process used to determine which neighborhoods should be prioritized remains rotten to the core.  

In 2021, California state leaders announced a $7 billion, multi-armed plan to bring affordable, next-generation fiber to every state resident. A key part of the plan involved building a $4 billion statewide middle-mile open access fiber network designed to drive down the costs of market entry, improve competition, and reduce broadband prices.

At the time, California officials said “the statewide network will incentivize providers to expand service to unserved and underserved areas.” Groups like the EFF lauded the “historic” investment, likening it to bold, early efforts to ensure rural electrification.

But last May, California officials quietly announced they’d be making some notable cuts to the state’s affordable broadband expansion plan. Blaming inflation and rising construction costs, the state’s renewed budget called for a 17 percent reduction in planned broadband investment, on average, across the state.

For over 20 years, the city of Palo Alto, the "Birthplace of Silicon Valley,” has flirted with the idea of building a city-owned municipal fiber network. Now after years of debate, numerous studies, several false starts, and many unfulfilled RFPs, city officials say they’re finally moving forward with a city-owned fiber network they hope will transform affordable broadband connectivity citywide.

Palo Alto officials tell ILSR that the project will be spearheaded by the city-utility, and deployed in coordination with a major upgrade of the city’s electrical systems. Phase One of the city’s planned fiber deployment should begin later this year, delivering fiber access to around 20 percent of the city–or 6,500 homes and businesses.

Phase One will be funded entirely from the utility’s existing cash reserves. Profits from that deployment will then be used to expand affordable, multi-gigabit fiber access to all of the city’s 63,210 residents. Though no shortage of challenges remain.

A Long Time Coming

That Palo Alto residents have been clamoring for better, more affordable alternatives to regional telecom monopolies for 25 straight years speaks for itself. The high costs, slow speeds, and abysmal customer service of regional telecom giants AT&T and Comcast have long driven the public’s unflagging interest in better, cheaper connectivity options.

Chants for “affordable” and “quality Internet” rang through the corridors of Inglewood City Hall this morning.

The source of that sound came from members of the coalition known as Digital Equity LA who assembled to picket in front of State Sen. Steven Bradford’s Office, publicly calling for an “end to digital redlining” and for passage of Assembly Bill 41 (AB 41), also known as The Digital Equity in Video Franchising Act of 2023.

If passed as is, the proposed bill – which we wrote about previously here – would establish an equal access requirement, anti-discrimination provisions, and a process for the public and local governments to provide input on the franchise agreements governing how cable Internet service providers serve their communities.

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Noting how nearly 98 percent of all broadband subscribers in the Golden State get Internet service through cable companies operating under DIVCA franchises, reforming the franchise law would help reform broadband access – which the coalition says is essential to address the digital divide across one of the largest metro areas in the nation.

As California aims to boost broadband competition and Los Angeles County pursues what could be the biggest municipal broadband network ever built, local activists say they’ve made some meaningful recent inroads on both improving broadband mapping, and regulatory reform that should aid the equitable deployment of modern, affordable access.

Recently, inroads have been made on fixing long-broken California cable franchise law. In the early aughts, cablecos (and telcos pushing into the TV business) successfully lobbied for state-level “cable franchise reform” laws they promised would dramatically lower prices. In reality, such bills were often little more than legislative wishlists crafted by telecom giants.

Often these state-level replacements for local franchise agreements eroded legal regulatory authority, eliminated long standing requirements for uniform broadband and TV deployment, and in some states–like Wisconsin–even acted to strip away local consumer protections and eminent domain rights. Warnings by academics on this front were widely ignored.

Seventeen years after its passage, California activists say that California’s 2006 Digital Infrastructure and Video Competition Act (DIVCA) was no exception.

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.