California Bills Expand State Broadband Fund to Wireless ISPs, Local Governments

The legislation had been halted in the Senate by concerns cable providers expressed that CASF projects would provide unnecessary competition, said Sunne Wright McPeak, California Emerging Technology Fund (CETF) president, in an interview. Her nonprofit was key to getting local government and cable providers to agree to the new legislation, she said. The PUC hasn’t approved any projects that would create some competition, but some pending projects have gone over extensive review as a result, said McPeak. Cable providers were concerned about the legislation’s definitions of underserved and unserved, she said. “To get to the unserved, you have to go through underserved communities.” The California Cable and Telecommunications Association, who lobbies on behalf of providers, did not respond to requests for comment.

SB-740 will provide critical digital infrastructure to give every Californian access to broadband, said a statement from Sen. Alex Padilla (D), who sponsored the bill. “In our 21st Century digital economy, broadband is a key component for economic opportunity for both individuals and communities.” The Senate bill widened the definition of service providers to include local government agencies, tribal entities and wireless ISPs, McPeak said. “All of the local governments agreed to this because they recognized that they needed the money.” Prior to the passage of SB-740, only providers with a certificate of public convenience and necessity or a wireless carriers certification could apply for a CASF grant, said McPeak.

Wireless networks are still going to need backhaul to operate their networks, said Connie Stewart, California Center for Rural Policy executive director. “There are rural communities in California that don’t have a phone or electricity, and we don’t want them to also be behind on getting broadband infrastructure.” More funding should lead to a more diversity of programs to provide Internet access, said Stewart, who worked with CETF. “Wireless is a wonderful last-mile solution, but it needs fiber to back it up.” Expanding eligibility will create more cost-effective last-mile solutions, said Tara Thronson, Valley Vision project manager, wo also worked with CETF. “It does not matter if it comes from local governments or public-private partnerships because we all have a shared goal to provide access."

The legislation’s final version largely favored the ILECs, said Tellus Venture Associates President Steve Blum. His consulting firm focuses on community broadband and has many municipal customers, he said. “The law puts more money in the fund, which is necessary to keep investing in developing infrastructure.” Most of the CASF grants will continue to go to ILECs and CLECs despite the changes in the legislation, said Blum. “The law locks in a definition of unserved which will be difficult for the PUC to get around.”

AB-1299, sponsored by Assembly Member Steven Bradford (D), will use funds from SB-740 to bring broadband access to public housing units, said McPeak. The state has 300,000 publicly subsidized units that have access but aren’t are connected to a network because it’s not affordable, said McPeak. “They can’t afford to pay for the service at the market rate, so the challenge was to figure out what was most cost effective.” People living in publicly subsidized housing in urban areas can’t get access to the Internet, said Blum. “It’s a public policy question as to whether we should build out these networks in public housing projects."

AT&T said it supported the public housing bill in the legislature. “AT&T supports Assembly Member Bradford’s commitment to ensuring that all California communities have access to a high-speed broadband connection,” a spokeswoman told us in an email. “The California Advanced Services fund can now provide the funding needed to upgrade facilities in California’s subsidized housing units to allow for the provision of new broadband services to low-income families.” (sfriedman@warren-news.com)