en.Wedoany.com Reported - The California Public Utilities Commission (CPUC) has approved $53 million in California Advanced Services Fund grants for broadband infrastructure projects connecting three rural counties and two tribal nations in the state. The decision was made on the same day the CPUC voted to increase the universal service fund tax rate.
The CPUC raised the universal service fund tax rate by 16.6%, from $0.90 to $1.05 per access line per month, generating approximately $675 million in annual revenue. Of this, 21.5% will be allocated to the California Services Fund, which is funding these grants for the state's primary broadband deployment plan. Despite the connection cost per location far exceeding cheaper satellite options like Starlink, regulators approved the grants.
CPUC President John Reynolds stated in a press release that high-speed internet is essential for daily life, and these projects will meet the future needs of rural and tribal communities in work, education, healthcare, and public safety, bringing California closer to achieving its statewide "Broadband for All" goal.
Specific grant allocations include: Stimulus Technologies of California receiving up to $706,754 to restore wireless broadband service to 46 unserved locations in the rural community of Darwin, Inyo County; Siskiyou Telephone Company receiving approximately $2.3 million to extend fiber and fixed wireless broadband service to 417 unserved locations in Humboldt and Siskiyou counties, with multiple projects in high fire threat areas to enhance emergency communications; the Iipay Nation of Santa Ysabel receiving $24.97 million to serve 182 locations, at approximately $137,000 per location; and the Pauma Band of Luiseño Indians receiving $24.98 million to cover 383 locations, at approximately $65,000 per location. Both tribes will own and operate their broadband networks through newly established tribal internet service providers.
CPUC Commissioner Houck noted that these grants represent a significant investment in California's partnership with two tribal governments. She explained that the tribes will deploy 38 miles of open-access middle-mile fiber, interconnecting with state-owned middle-mile broadband networks, enabling them to provide affordable services to their members and surrounding communities.
According to New Street Research (NSR) data, through the BEAD program, the CPUC has awarded approximately $63 million to Starlink to connect 46,000 locations, at about $1,400 per location. NSR also found that Amazon Leo received $101 million to connect 92,097 locations, at approximately $1,096 per location.
