California Is Spending Billions On ‘Broadband For All,’ But Critics Say It Will Not Lower Internet Prices

Source: 
Coverage Type: 

Californians spend an average of $84 per month to connect to the internet—and some of the most vulnerable groups, including older adults, veterans and people with disabilities, tend to pay even more. So the state is spending billions of dollars to make broadband more affordable and available under its Broadband for All plan. It’s creating a new public backbone network called the “middle-mile” across 10,000 miles of California, and offering funding for companies to build the "last mile," the final leg of the network that brings service to your home. The idea is that increased competition will force the large internet companies to drop their rates. But LAist has found that large internet providers are also applying for those billions of dollars of government funding, hoping to use it to expand their service territory into underserved areas. However, they largely do not plan to connect to the state’s public network. Instead, companies want to use their own already-built middle mile infrastructure, which gives them control over prices. Without that element of competition, some say internet bills would likely stay the same or even increase.


California Is Spending Billions On ‘Broadband For All,’ But Critics Say It Will Not Lower Internet Prices