$32.5 Million From "New Charter" For Digital Inclusion In California: A National Model?

As the Federal Communications Commission nears a decision on the proposed merger between Charter Communications, Time Warner Cable and Bright House Networks, digital inclusion advocates in California have negotiated a $32.5 million deal with "New Charter" that could support broadband adoption by hundreds of thousands of low income families in the state. Now the big question is: Will the FCC make the California agreement a model for communities affected by the merger throughout the US?

Under California law, the transfer of cable franchises required for the proposed merger must also be approved by the California Public Utilities Commission (CPUC). The California Emerging Technology Fund (CETF) has led a statewide coalition calling on the CPUC (as well as the FCC) to withhold that approval unless the merged company, calling itself New Charter, agrees to a number of conditions to help overcome the digital exclusion of millions of residents in Los Angeles, San Diego, San Bernardino, Riverside and other affected urban and rural communities. The proposed New Charter plan -- essentially, 30 mbps Internet service with no data caps for $14.99 a month -- would be available to families with children eligible for the Federal school lunch program, as well as customers 65 years of age or more who receive Supplemental Security Income, i.e. very low-income seniors.

This is potentially a very big deal, not just for southern Californians but for the whole country. There have been similar state-level regulatory agreements in the past between community advocates and major Internet carriers (notably in California, which is how CETF got its start). In this case, however, the proposed merger affects tens of millions of households in states other than California, and the terms of its approval by the FCC are apparently still being finalized. Can the FCC ignore New Charter's $32.5 million commitment to digital inclusion in just one state? Or will this deal lead the Federal regulators to put community digital inclusion investment on their negotiating agenda on behalf of all the underserved communities served by Charter, Time Warner and Bright House?