The California Public Utilities Commission (CPUC) is poised to include new broadband affordability requirements as part of the state’s looming approval of Verizon’s massive $20 billion merger with Frontier Communications, even as some consumer advocacy groups worry the changes may not go quite far enough to hold Verizon accountable.

The CPUC’s Public Advocates Office has struck a partial settlement with Verizon that the state hopes will take some of the sting out of the telecom industry’s latest consolidation spree.

Verizon’s $20 billion proposed merger with Frontier would merge two of the nation’s top four traditional phone companies, resulting in a telecom giant with assets across 31 states. The merged new company would have more than 9.6 million customers with a fiber network that ultimately passes more than 25 million fiber homes and businesses.

While the two companies don’t directly compete, Verizon’s political influence and market power will still increase. Both companies have long been criticized for lobbying to undermine U.S. broadband competition, then leveraging the resulting regional market failure to jack up consumer costs and neglecting aging DSL network upgrades and repairs.

Vineland, New Jersey officials say they’ve secured a $3.7 million grant from the state that will help expand fiber and wireless broadband access to the city of 62,000. Local officials are hopeful the grant is just the beginning steps toward dramatic expansion of affordable access.

Vineland’s new grant was made possible by the New Jersey Broadband Infrastructure Deployment Equity (NJBIDE) grant program. NJBIDE will be delivering $40 million in broadband grants via the state’s Capital Projects Fund (CPF), made largely possible by the 2021 federal passage of the American Rescue Plan Act (ARPA).

NJBIDE grants prioritize fiber optic infrastructure of 100 megabytes per second (Mbps) and mandates the provision of at least one low-cost option (not specifically defined by New Jersey) to serve low income communities – something increasingly important in the wake of the federal government’s retreat from efforts to ensure equitable and affordable broadband. (Still early in the process, the city has not yet determined the exact pricing and service tiers the network will offer once construction is complete).

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A 2024 city proposal indicates that city leaders want to spend between $35 and $40 million to create a citywide broadband network, starting with a citywide fiber ring. The city paid for a viability study from Bonfire that found that at least 42 percent of the City does not have access to viable, quality, affordable broadband service.

Syracuse, NY officials say the city’s community-owned broadband network Surge Link continues to dramatically expand two years after the network first launched, bringing affordable broadband access to the city of 145,000 – with a particular eye on helping the city’s disadvantaged.

A recent update from the city states that the network now serves more than 9,200 households in Syracuse, located in central upstate New York. The latest expansion brought the service into the city’s Valley, Skunk City, Washington Square, Northside, Prospect Hill and Hawley-Green neighborhoods in early July.

The Surge Link initiative is part of a broader $15 million investment into fixed-wireless access broadband infrastructure into a city traditionally left underserved by giant regional telecoms.

A lack of competition between dominant regional monopolies Charter (Spectrum) and Verizon has resulted in spotty access, high prices, and slow speeds.

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The lion’s share of Surge Link’s latest expansion was made possible by a $10.8 million grant from the New York State ConnectALL initiative, a multi-layered billion-dollar project to dramatically boost high speed Internet access across the state leveraging a series of new grant programs, education initiatives, broadband mapping improvements, and digital equity proposals.

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

The CBN team's Associate Director for Communications Sean Gonsalves recently published a piece in ProMarket about the continuing consolidation of telecommunication markets and why municipal broadband is a better option. He writes:

"Last month, AT&T announced it would acquire all of Lumen Technologies’ fiber internet business for $5.75 billion. According to a company statement, the purchase will net AT&T one million fiber customers and significantly expand its fiber footprint in Denver, Las Vegas, Minneapolis-St. Paul, Orlando, Phoenix, Portland, Salt Lake City, and Seattle.

Across AT&T and Lumen’s service areas, where they offer wired or licensed fixed wireless Internet service, more than half of the locations they claim to serve have two or fewer options for high-speed internet service.

Good news for AT&T stockholders. Not so good news for broadband-hungry subscribers who, for years now, have been paying among the highest prices for internet service of any developed nation in the world. Ever wonder why that is? The answer is as painfully obvious as our overpriced monthly internet bills.

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When big telecom giants consolidate—especially in a market where most people have only one or maybe two internet service providers (ISPs) to choose from—the results are predictable: without meaningful competition for something as fundamental as internet connectivity in an internet-connected world, monopolists have no incentive to improve service, invest in network upgrades, or compete on price.

California lawmakers’ efforts to pass a new law mandating affordable broadband access is at risk of being destroyed by industry lobbying. California insiders say the changes are so dramatic they may wind up making broadband affordability in the state worse – undermining years of digital equity activism and discarding a rare opportunity to bridge the digital divide.

The California Affordable Home Internet Act (AB 353), introduced by Assemblymember Tasha Boerner last January, would require that broadband providers in the state provide broadband at no more than $15 per month for low-income households participating in a qualified public assistance program.

The original legislation mandated that state residents should be able to receive $15 for all ISPs for broadband at speeds of 100 megabit per second (Mbps) downstream, 20 Mbps upstream. The proposal mirrored similar efforts by New York State which opened the door to other state efforts after the Supreme Court recently refused to hear a telecom industry challenge.

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“I want to get something fair and reasonable that helps those who need it most,” Boerner said in a press release. “AB 353 will fill the gap and ensure our children can turn in their homework, families can get access to telehealth, and apply for jobs online.”

On June 4 a vote moved the legislation through the state Assembly and on to the state senate by a 52-17 margin.

Baltimore activists and leaders say the city is making steady progress in efforts to bridge the digital divide in the city of 565,000. The efforts have culminated in several grant-fueled initiatives to deliver fiber and wireless to city apartment complexes, a city middle-mile network, and a looming partnership with regional providers to further expand affordable access.

When we last checked in with Baltimore, the city had just doled out $2 million of its American Rescue Plan Act (ARPA) funding to bring fiber to 12 new city apartment buildings. The deployment is in partnership with Waves, a nonprofit formerly known as Project Waves.

Waves was first launched in 2018 in direct response to the Trump FCC’s repeal of net neutrality and the general failures of federal telecom policy to address digital inequity. Project Waves (profiled by ILSR in 2023) initially used Point-to-Multipoint wireless connectivity to deliver free wireless broadband service to about 300 multi-dwelling unit (MDU) residents.

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Now Baltimore Director of Broadband and Digital Equity Kenya Asli tells Government Technology the city is putting the finishing touches on a Request for Proposal (RFP) to strike a new public-private-partnership with an as-yet-unselected broadband provider. The deal should further expand fiber access to unserved and underserved parts of the city.

“Folks want more options, and so we are bringing in more options,” Asli said.

Oswego County, NY officials are celebrating the award of a new $26 million New York State grant aimed at dramatically expanding affordable fiber access to long-underserved rural communities in the northwestern part of the state, just north of Syracuse.

According to the announcement by New York State Governor Kathy Hochul, Oswego’s latest grant award will help fund the deployment of 345 miles of new fiber infrastructure to largely rural unserved regions, helping to bring affordable broadband access to nearly 11,000 homes, businesses and community institutions across 22 towns and villages.

Oswego County will own the finished open access network and lease the fiber to Internet Service Providers (SPs), including Empire Access, "on a non-discriminatory and non-exclusive basis."

Empire, a family-owned ISP and named the fastest ISP in the nation by PCMag in 2021, currently offers local residents symmetrical 500 Megabit per second (Mbps) service for $50 a month; symmetrical 1 gigabit per second (Gbps) service for $65 a month; and symmetrical 2 Gbps service for $100 a month.

New York City Mayor Eric Adams recently unveiled plans to improve public safety, housing, and the overall livability of the Big Apple.

Among them is $6 million in new funding to expand the New York Public Library’s (NYPL) “Neighborhood Internet” network, providing free Internet to an additional 2,000 households receiving Section 8 rental assistance.

The city hopes that the program, which is first focused on expanding Internet access to low-income households in Upper Manhattan and the Bronx, will ultimately be expanded to reach as many low income NYC residents as possible. But the effort still remains a far cry from the bolder, bigger, “master plan” initiative scrapped by the Adams administration in 2022.

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Low income city residents simply need a library card to connect to the NYPL network in the limited parts of the city where access is currently being offered. The NYPL has experimented with Citizens Broadband Radio Service (CBRS), fixed wireless, and some fiber for connectivity. The program also provides low income users with a Chromebook with Wi-Fi access.

New York State officials have unveiled the first round of broadband deployment grants made possible by the state’s $100 million Affordable Housing Connectivity Program (AHCP), which aims to drive affordable fiber and Wi-Fi to low-income state residents trapped on the wrong side of the digital divide.

As part of the program, the state recently announced it will be spending $13.1 million to connect 14,167 lower income residents across Buffalo, Rochester, upper Manhattan and the Bronx with both affordable gigabit-capable fiber – and low cost Wi-Fi.

Flume, the partner ISP chosen by the state, will offer residents the choice of three broadband tiers: 100/20 megabit per second (Mbps) fiber for $10 per month, symmetrical 200 Mbps fiber for $15 per month, and symmetrical 1 gigabit per second (Gbps) fiber for $30 per month. All three subsidized fiber options will be locked at that price point until 2034, according to the state.

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“In today's digital age, access to reliable, affordable high-speed Internet isn't just about convenience – it's about ensuring every New Yorker can participate fully in our modern economy and society,” New York Governor Kathy Hochul said of the new grants. “Through these strategic investments, we're not only installing fiber and infrastructure, we're opening doors to education, healthcare and economic opportunity.”

Faster, Better, Cheaper