February 16, 2010 Background Sheet

BROADBAND IN CALIFORNIA

ISSUES TO CONSIDER

The focus of this hearing will be the progress made and work to do on building out high speed broadband infrastructure to all Californians.

  • Broadband deployment and mapping: Is the data reliable under current mapping practices? Can we and should we track adoption rates?
  • Investment: Is the State’s investment effective and sufficient?
  • Adoption: “If you build it they will come” How true is that for broadband? Especially in rural and/or underserved areas?
  • Accountability and transparency of California Advanced Services Fund (CASF) and California Emerging Technology Fund (CETF) money.

INTRODUCTION

California Broadband Task Force

In the 21st century, access to broadband[1] or “high-speed” internet access has become an essential component of a successful modern society. Telemedicine, digitized medical records, on-line education, telecommuting, and career services and development are just a few of the co-benefits that broadband service offers communities. 

Over the last several years the Governor and the Legislature have implemented taken action to increase access to broadband for all Californians. In order to capture the scope of broadband deployment and adoption the California Broadband Task Force (CBTF) was formed in 2006. The 2008 report The State of Connectivity, Building Innovation Through Broadband revealed: 

  • 96% of California residences have access to broadband.
  • 1.4 million mostly rural Californians lack broadband access at any speed.
  • Barely more than half of Californians have adopted broadband at home.
  • Only half of Californians have access to broadband at speeds greater than 10 Mbps (including both upstream and downstream speeds).
  • Broadband infrastructure is deployed unevenly throughout the state, from state-of–the-art to nonexistent.

In addition to the findings above, the CBTF made several recommendations with respect to helping California achieve fast, reliable, and affordable broadband:

  1. Build out high speed broadband infrastructure to all Californians
    Advancing new incentives for deployment and improving existing programs will create a world-class broadband infrastructure in California.
  2. Develop model permitting standards and encourage collaboration among providers
    Developing a public-private partnership between local governments and broadband providers to endorse permitting standards will improve the speed with which broadband is deployed.
  3. Increase the use and adoption of broadband and computer technology
    Expanding the opportunities for Californians to access, use, and learn broadband, at home and in the community, will provide the foundation for a digitally literate society that is able to fully benefit from broadband technology.
  4. Engage and reward broadband innovation and research
    Promoting innovative uses of broadband technology and encouraging wider e-government use will result in quality of-life improvements, while increasing demand for a robust broadband infrastructure.
  5. Create a statewide e-health network
    Implementing a sustainable statewide e-health network will improve quality of care across the state and simultaneously increase demand for broadband services.
  6. Leverage educational opportunities to increase broadband use
    Ensuring high-capacity broadband connections coupled with a robust technology support system, relevant curriculum, literacy standards, and off-campus educational partnerships will provide California’s students with the skills they need to compete in a 21st century economy.
  7. Continue state-level and statewide leadership
    Continuing the California Broadband Initiative and supporting the creation of Community Broadband Leadership Councils will strengthen the statewide leadership necessary to drive broadband access and adoption across California.

EXISTING STATE LAW

State agencies have limited or no jurisdiction over broadband providers, including telecommunications, wireless, and video carriers, and satellite providers. While this policy has been largely successful in fueling private-sector investment in broadband infrastructure, it has not fully addressed deployment in less densely populated areas of the state. The following bills have addressed broadband deployment and access.

  • SB 1563 (Polanco, 2002) Expanded the state's telecommunications policy declarations and required the California Public Utilities Commission (CPUC) to develop a plan for encouraging widespread availability of advanced telecommunications infrastructure.
     
  • AB 855 (Firebaugh, 2003) Facilitated the placement of wireless telecommunication towers and facilities on state-owned property with a portion of the new lease revenues from these facilities dedicated to programs addressing the State’s “digital divide.”
     
  • AB 2987 (Nunez, 2006) Established the Digital Video & Telecommunications Act of 2006 which transferred sole franchising authority for video franchises to the CPUC
     
  • SB 1437 (Padilla, 2008) Recognized the California Virtual Campus and made the California Community Colleges eligible for the California Teleconnect Fund administered by the CPUC.
     
  • SB 1193 (Padilla, 2008) Established the California Advanced Services Fund to help the deployment of broadband infrastructure through by funding up to 40% of the cost of deploying broadband to unserved and under-served areas of the state.
     
  • AB1555 (Manuel Perez & Fuentes, 2009) Made any entity that meets the eligibility standards of the American Recovery and Reinvestment Act of 2009 also be eligible to apply for California Advanced Services Fund.

PUBLIC UTILITIES COMMISSION PROGRAMS 

California Advanced Services Fund – A surcharge of 0.25% on wireless and landline telephone services to fund a $100 million program to underwrite the deployment of broadband facilities in unserved and underserved areas of the state.

California Rural Telecommunications Infrastructure Grant Program – Offers grants of up to $2.5 million per project to construct telecommunications infrastructure in communities without telephone service. The program is capped at $10 million per year and each community is limited to one grant per year.

California Teleconnect Fund (CTF) – Fund created to reduce the ‘digital divide’ by providing a 50% discount on advanced telecommunications services, (i.e., broadband, for qualifying schools, hospitals, libraries and community-based organizations, including community technology programs). CTF is financed by a 0.13% surcharge placed on every telephone bill.

OTHER INITIATIVES

  • Executive order S-12-06 – 240 million for having full informational exchange between health care providers and stakeholders within 10 years.
     
  • Executive order S-23-06 – Governor’s 2006 Broadband executive order: Creates the California Broadband taskforce to identify opportunities for increased broadband adoption and enable the creation and deployment of new advanced communication technologies.
     
  • Proposition ID (2006) – Education bond providing the University of California with $200 million for infrastructure to expand medical school enrollment and build and enhance telemedicine statewide.
     
  • California Telemedicine & eHealth Center – Designed to facilitate the growth of telemedicine and eHealth in California by working collaboratively with hospitals, clinics, county and state agencies, federal and state legislative policy makers, community-based organizations, and other non-profit entities throughout the state. CTEC has emerged as the primary source for hospitals and clinics in promoting the use of telemedicine and eHealth within underserved communities.
     
  • California Emerging Technology Fund – Addresses the “digital divide” by accelerating the deployment and adoption of broadband to unserved and underserved communities and populations by requiring a 50% discount on selected telecommunications services to schools, libraries, qualifying hospitals, health clinics, and nonprofit community-based organizations.

RELATED STUDIES & REPORTS 

The State of Connectivity, Building Innovation Through Broadband revealed: 

http://www.calink.ca.gov/pdf/CBTF_FINAL_Report.pdf

 

THE DIGITAL INFRSTRUCTURE & VIDEO
COMPETION ACT OF 2006

INTRODUCTION

On September 29, 2006, the Legislature passed, and Governor Schwarzenegger signed into law Assembly Bill 2987, the Digital Infrastructure and Video Competition Act of 2006 (DIVCA). Prior to DIVCA, cable television franchises were issued by cities and counties. DIVCA replaced that system with one in which video franchises are now issued by the CPUC, rather than these local entities. DIVCA's not eased the authorization of video franchises, but increased the deployment of broadband infrastructure within California. The stated goals of DIVCA are to:

  • Create a fair and level playing field for all market competitors that does not disadvantage or advantage one service provider or technology over another;
  • Promote the widespread access to the most technologically advanced cable and video services to all California communities in a nondiscriminatory manner regardless of socioeconomic status;
  • Protect local government revenues and their control of public rights-of-way;
  • Require market participants to comply with all applicable consumer protection laws; and
  • Complement efforts to increase investment in broadband infrastructure and close the digital divide.

ISSUES TO CONSIDER

Are video franchisors on track to meet the build-out requirements of DIVCA relative to existing telephone and low-income customers?

Has DIVCA increased California’s workforce?

Has DIVCA facilitated the deployment of broadband in California’s unserved and underserved areas?

RELATED STUDIES & REPORTS

Employment – ftp://ftp.cpuc.ca.gov/VideoFranchiseTemplate/2009%20Employment%20Report_Dec%2030.pdf

Buildout – ftp://ftp.cpuc.ca.gov/videofranchisetemplate/DIVCA%202009%20Annual%20Rep...

[1] The Federal Communications Commission (FCC) currently defines “basic broadband” as data transmission speeds exceeding 768 kilobits per second (Kbps), or 768,000 bits per second, in at least one direction: downstream (from the Internet to the user’s computer) or upstream (from the user’s computer to the Internet). 

Committee Address

Staff