California Wants Broadband With No Strings Attached
California has signed on for federal broadband money, but agreeing to the terms is apparently a whole other story. While Sacramento disputes the fine print, the residents the money is supposed to connect will keep waiting.
On Nov. 2, California became the last state to sign an agreement accepting its share of the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program. But the California Public Utilities Commission (CPUC) accompanied its signature with a letter challenging a condition attached to the money: a commitment not to enforce rate regulation, net neutrality rules governing how providers treat internet traffic, and other “utility-style” rules against BEAD-funded providers.
The CPUC told the National Telecommunications and Information Administration (NTIA) that the condition is vague, can’t bind the rest of state government, and is void under California law. It won’t finalize a single funding agreement with a provider until the dispute is resolved.
California wants the money without the strings, but its legal arguments are weak. The condition is clear, consistent with the statute, and binding on the state as a whole, regardless of how California divides authority among its agencies.
The costs of delay are harder to dispute. As providers extend service elsewhere, the locations still awaiting broadband become harder and costlier to reach. Meanwhile, rising costs and changing market conditions threaten the bids California is sitting on. Whether the state eventually relents or fights in court, the people who most need the program risk losing out.