Standards for connectivity have evolved to reflect the transition to the online world, where fast internet connection is a prerequisite for integral services such as education, health care, and access to the global economy. As such, it has become more important than ever that Americans have access to reliable, updated broadband options, and that both federal and state policy support the availability of these services.
In California, these priorities have been recognized by Governor Newsom, who signed legislation directing $6 billion to expand broadband coverage for all Californians in 2021. “Delivering broadband to all is essential to California’s success,” says Newsom. “Access to high-speed internet can mean the difference between launching a successful career and being without work.”
Meanwhile, the Biden administration has made a federal commitment to expanded service, with $65 billion being allocated for broadband deployment as part of the infrastructure Investment and Jobs Act in 2021. Of this funding, at least $1.86 billion is being directed to California through the Broadband Equity, Access, and Deployment (BEAD) program, directed specifically towards underserved and high-cost areas.
The influx of government support and rising consumer demand have enabled internet service providers to invest heavily in highspeed, high-capacity wireless and fiber cable connections. However, in the face of California’s ambitious goals for widespread coverage, the transition needed to enable the modernization of network infrastructure may be hampered by longstanding regulatory requirements.
By designating certain service providers as “carriers of last resort,” some states impose requirements to provide basic telephone service to all customers within a designated service area. The intention is to ensure all consumers have access to voice services, especially in rural and underserved locations. Today, companies are required to continue to
maintain the copper wires that carry voice traffic, rather than working to replace legacy networks with updated technologies that provide modern internet services. Though the FCC addressed this at a federal level through a 2019 order, California is one of at least 38 states that continue to impose such requirements on carriers.
Now, with rapidly improving standards for connectivity in an ISP market that has proved more competitive over time, the monetary and opportunity costs associated with the state requirement to maintain deteriorating copper networks are mounting. This policy brief quantifies these costs and highlights the importance of updating policy for network infrastructure to ensure that California can efficiently allocate available resources to expand broadband connection across the state.