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Government The Internet

California Won't Force ISPs To Offer $15 Broadband (arstechnica.com) 49

An anonymous reader quotes a report from Ars Technica: A California lawmaker halted an effort to pass a law that would force Internet service providers to offer $15 monthly plans to people with low incomes. Assemblymember Tasha Boerner proposed the state law a few months ago, modeling the bill on a law enforced by New York. It seemed that other states were free to impose cheap-broadband mandates because the Supreme Court rejected broadband industry challenges to the New York law twice.

Boerner, a Democrat who is chair of the Communications and Conveyance Committee, faced pressure from Internet service providers to change or drop the bill. She made some changes, for example lowering the $15 plan's required download speeds from 100Mbps to 50Mbps and the required upload speeds from 20Mbps to 10Mbps. But the bill was still working its way through the legislature when, according to Boerner, Trump administration officials told her office that California could lose access to $1.86 billion in Broadband Equity, Access, and Deployment (BEAD) funds if it forces ISPs to offer low-cost service to people with low incomes.

That amount is California's share of a $42.45 billion fund created by Congress to expand access to broadband service. The Trump administration has overhauled program rules, delaying the grants. One change is that states can't tell ISPs what to charge for a low-cost plan. The US law that created BEAD requires Internet providers receiving federal funds to offer at least one "low-cost broadband service option for eligible subscribers." But in new guidance from the National Telecommunications and Information Administration (NTIA), the agency said it prohibits states "from explicitly or implicitly setting the LCSO [low-cost service option] rate a subgrantee must offer."
"All they would have to do to get exempted from AB 353 [the $15 broadband bill] would be to apply to the BEAD program," said Boerner. "Doesn't matter if their application was valid, appropriate, granted, or they got public money at the end of the day and built the projects -- the mere application for the BEAD program would exempt them from 353, if it didn't jeopardize from $1.86 billion to begin with. And that was a tradeoff I was unwilling to make."

Another California bill in the Senate would encourage, not require, ISPs to offer cheap broadband by making them eligible for Lifeline subsidies if they sell 100/20Mbps service for $30 or less.

California Won't Force ISPs To Offer $15 Broadband

Comments Filter:
  • by Anonymous Coward
    Muhh states rights!! Derp!
    • Re:But, but!! (Score:4, Insightful)

      by GoTeam ( 5042081 ) on Tuesday July 22, 2025 @04:58PM (#65537674)

      Muhh states rights!! Derp!

      I get what you're saying, but these are basically bribes. The federal government takes your tax money and refuses to give your state highway, utility, or education funds unless you accomplish x. The federal government is the least efficient method for dispersing the funds. If you get the federal government to lower taxes (because they no longer provide the services) (kind of a joke since I doubt any administration would agree to stop collecting taxes in any significant way), your state is welcome to charge you that tax money and create incentives for businesses.

      • by Jhon ( 241832 ) on Tuesday July 22, 2025 @05:07PM (#65537696) Homepage Journal

        "The federal government is the least efficient method for dispersing the funds."

        California is far more inefficient in dispersing funds.

      • Re:But, but!! (Score:4, Interesting)

        by NotEmmanuelGoldstein ( 6423622 ) on Tuesday July 22, 2025 @06:56PM (#65537884)

        ... unless you accomplish x.

        Yes, I'm tired of US state governments declaring I don't get health insurance until I accomplish a 60 hour work-week. That bribery needs to stop.

        I'm not sure what alternative you're offering but money for services rendered tends to be very successful: There's even a word for incentivizing people/entities using money: Capitalism.

        ... federal government is the least efficient method ...

        I suspect it's least efficient because there isn't a "you accomplish x" rule in that federal department. That happens plenty: broadband, health insurance, agriculture, food handling. For other departments, the money is given to the states who then have the responsibility of issuing "bribes": There, we see rampant cronyism or infrastructure money used as literal bribes, I mean, pay bonuses.

        Rent control such as this, skews the market: If US government fixated on regulating the market, not corporate welfare, there wouldn't be an incentive to skew the market a second time.

  • Good (Score:3, Insightful)

    by registrations_suck ( 1075251 ) on Tuesday July 22, 2025 @04:45PM (#65537648)

    Nobody should be forced to sell their product or service for $15.

    • Not even in my reservation?

      Disclaimer: I am not a native American ; so Sioux me

    • Re:Good (Score:5, Interesting)

      by Bahbus ( 1180627 ) on Tuesday July 22, 2025 @05:01PM (#65537688) Homepage

      And ISPs should be defined as a utility. And they shouldn't be allowed to be private, for-profit companies. But we are where we are.

    • by Ogive17 ( 691899 )
      This wouldn't be an issue if the governments owned the infrastructure and the ISPs were just a service. Competition would be much better and cost wouldn't be an issue.

      Instead we have an infrastructure that was mostly paid by the government (when you take property rights into account, plus subsidies) but none of the benefits.
      • If govt owned the infrastructure it would probably be outdated and barely functional. Just like the pothole ridden streets you drive on every day.
    • Re: (Score:2, Insightful)

      Nobody should be forced to sell their product or service for $15.

      I'd say it depends.

      If I form a landscaping company that has no competition in most areas, and I demand $1,000 per mow but people are desperate... okay, arguably nobody should be forcing me to charge something reasonable.

      But what about when I ask for municipal support (money) to upgrade my trucks? When I ask for special permits for my crews to drive through public parks because it's a shorter route for them?

      Is it wrong for the municipality to place conditions on those perks and that support? If your

    • Re:Good (Score:4, Interesting)

      by ihavesaxwithcollies ( 10441708 ) on Tuesday July 22, 2025 @06:47PM (#65537850)

      Nobody should be forced to sell their product or service for $15.

      Counter-point: Nobody should be forced to pay $100 for internet.

    • Nobody should be forced to sell their product or service for $15.

      And there is no inalienable right to operate a corporation or LLC. Being able to operate your own unregulated business is simply not possible in most of the civilized world.

      Imagine if business were forced to hire accounts just to keep track of their tax liability? And those accounts have to be certified by state or federal government? Wow, sounds like a brutal totalitarian government ... in the mind of a libertarian crank maybe.

      Local, state, and federal governments can regulate business and do so to quite

    • funny when the government says ok do that you we take away your free money and they quit.
    • $15 sounds reasonable for the limited bandwidth they are being asked to provide. This should be plenty for a household in poverty to allow bills to be paid online, job searches to be done, children to do school work online and adults to do online schooling training that might better their situation. They don't need the bandwidth to stream 5 4k TV's with Netflix 24/7
  • Remember (Score:5, Informative)

    by smooth wombat ( 796938 ) on Tuesday July 22, 2025 @04:48PM (#65537652) Journal
    They want you to pay. Everything they're doing is to extract the maximum amount of dollars.

    Lower cost electricity through renewables [newsweek.com]? Gone.

    Lower cost for health care? Gone. In fact, if Republicans get their way, everyone will be forced into Medicare Advantage [morningstar.com], the most expensive Medicare available, for three years. And you can't get out of it.

    Lower cost for broadband service [cnet.com]? Gone.

    Whatever it takes, you will pay.
    • They will keep increasing the cost of living while lowering your pay or just flat out shutting you out of the job market.

      Eventually you will mortgage your house to pay for food and medicine.

      Before long you'll get behind on that mortgage and the sheriff will come to throw you out of your house. I mean I guess technically the bank's house.

      Then they will snap up your property for cheap at auction. Armed thugs will make sure that you do not get your house back.

      If you get too uppity it'll be of
  • by CommunityMember ( 6662188 ) on Tuesday July 22, 2025 @04:52PM (#65537666)
    Does that mean that it is likely New York will need to rescind their $15/mo requirement to keep receiving BEAD funds? I am sure the NYS ISPs are going to look hard at this new guidance.
  • by MpVpRb ( 1423381 ) on Tuesday July 22, 2025 @05:00PM (#65537684)

    it's availability
    There are no options for fiber in my area
    Our local ISP wasted years in a futile attempt to install fiber
    ATT explicitly stated that they will never provide fiber

    • by jonwil ( 467024 )

      Almost everywhere that new competitors have entered the market in competition with the last-century dinosaur legacy carriers, outcomes for consumers have been better.

    • Agreed. The only high speed internet available in my area is Starlink at $120/month. It's not cost efficient to bring in cable or fibre. Rural area but real internet is 5 miles away.

  • And yet. (Score:4, Insightful)

    by fahrbot-bot ( 874524 ) on Tuesday July 22, 2025 @05:57PM (#65537780)

    Broadband Equity, Access, and Deployment (BEAD)

    It has the word "Equity" in it and this administration hasn't canceled it? /s

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