Comcast says it’s acquiring San Bruno, California’s CityNet, a municipally owned and operated broadband, video and voice network that currently serves over 5,400 residents and businesses.

San Bruno’s $8 million sale to Comcast was prompted by $21.5 million in debt and what the city says was surging operating costs. Unlike many municipal broadband providers, San Bruno also provided television services, which many smaller providers and communities are moving away from due to soaring programming costs and dwindling and unsustainable profit margins.

“Rates simply were not keeping pace with costs,” Bruno city manager Alex McIntyre wrote in a January report to the City Council. “CityNet has grown increasingly technologically obsolete over the past decade.”

Despite increasing service rates between 9 and 12 percent, the city says it saw operating losses of  $794,852 in 2023 and $859,995 in 2022.

Originally founded in 1972 as San Bruno Cable TV, the pioneering cable broadband operator (with some scattered fiber development) struggled with modernizing its coaxial network to fiber, something city leaders refused to fund.

“A significant City-funded capital investment would be required to bring CityNet’s technology and operations up to current industry standard, as well as rate adjustments,” McIntyre wrote. “The Council declined to authorize this capital request in April 2023.”

Leveraging years of regional fiber collaboration, Carson, California has broken ground on a municipal broadband pilot network city officials hope will someday be expanded to bring affordable fiber optic broadband to the entire city of 95,558, situated just 13 miles south of downtown Los Angeles.

Carson is looking to leverage $8 million in federal and state grant money to connect 1,000 unserved households and 372 businesses, with City Hall, the Civic Center and Cal State Dominguez Hills serving as anchor institutions for the new network. A new city announcement says construction has begun, with the pilot construction phase to be completed in 18 months.

“This visionary project is set to transform Carson into a cutting-edge digital hub, revolutionizing broadband access for residents, businesses, and city services,” the city said in a statement announcing the groundbreaking.  

The new network deployment comes as the Los Angeles area prepares to host the 2026 FIFA World Cup, and is being built on the back of previous collaborative fiber deployments amid the state of California’s landmark effort to boost statewide broadband competition.

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“This project represents a major milestone for Carson,” Carson Mayor Lula Davis-Holmes said of the new deployment. “By investing in our own fiber network, we are creating a foundation for enhanced connectivity, economic growth, and future smart city initiatives. This is just the beginning of a transformative journey for our community.”

Home to one of the wealthiest and most successful companies in America, you wouldn’t expect residents of Mountain View, California to find themselves on the wrong side of the digital divide.

Yet the city of nearly 82,000 – frustrated with spotty and expensive service by AT&T and Comcast – is considering a municipal broadband network to deal with the deficiencies of the duopoly.

Last year, Mountain View officials hired the consulting firm, Entrust Solutions, to take a closer look at the city’s broadband availability metrics and device potential options for the city.

The finished report and accompanying technical memorandum note that Comcast enjoys a monopoly over vast swaths of the city, resulting in expensive, slow, and spotty access.

“Although most of the City is considered ‘well-served’ by federal and California state standards, most residents have only a single option for Internet service and are essentially subject to a cable monopoly,” the authors wrote. “When it comes to modern gigabit Internet services, only 42% of the serviceable addresses have fiber access.”

The study similarly found that despite ongoing taxpayer subsidization, AT&T has historically failed to upgrade its older DSL customers to fiber across large swaths of the city.

“AT&T provides legacy copper-based service for most of the city, but that technology is not capable of meeting the State of California’s minimum broadband speeds of 100 Mbps download and 25 Mbps upload,” the consulting firm found.

“And while AT&T also provides fiber-to-the-premises (FTTX) services in limited neighborhoods of the City, this means that much of the City is effectively a Xfinity/Comcast monopoly, leading to an uncompetitive market for City residents seeking broadband service.”

California ISP Onward, which has increasingly partnered with California cities to expand affordable fiber access, is leveraging $4.7 million in American Rescue Plan Act (ARPA) broadband grants to further expand its footprint into long-unserved areas of San Diego County.

According to a recent announcement, San Diego county’s Broadband Committee has approved nearly $9 million in ARPA broadband grants to help expand fiber access to 1,000 residents in three unincorporated areas:

• $4.7M awarded to Onward to deliver high-speed internet service to 281 households in Warner Springs.
• $2.7M awarded to AT&T to deliver high-speed service to 101 households in San Dieguito.
• $1.5M awarded to AT&T to deliver service to 53 households in Ramona.

The county says a Notice of Funding Availability was shared with all known Internet Service Providers in the County back in July of 2024. The County requested grant proposals through public outreach and engagement based on findings from its Comprehensive Broadband Plan.

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The effort is running parallel with the San Diego County Library Tech Connect Program that has provided 7,000 Google Chromebooks and MiFi hotspots with unlimited data plans to residents and students to the internet for free.

The Onward website states that the planned $4.7 million expansion into Warner Springs is still in the planning stage, but that once completed the fiber options will be between 10 to 100 times faster than existing offerings. Onward has also partnered with Rancho Cucamonga to dramatically boost access elsewhere in San Diego County.

*In partnership with Broadband Breakfast, the following story by Broadband Breakfast Reporter Jake Neenan was originally published here.

The broadband industry keeps trying to get the Supreme Court to help them, and the Supreme Court keeps saying no.

The high court said again Monday that it will not hear the industry’s challenge to a New York law capping broadband prices for low-income customers. The denial Monday...keep(s) the door open for other states considering similar laws.

State legislators in at least California and Massachusetts are already considering similar laws.

ISPs had told justices they feared states doing so, writing that if the law were upheld “many state legislators and bureaucrats would surely then follow New York’s lead.”

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New York’s Affordable Broadband Act requires monthly prices of no more than $20 for households participating in programs like SNAP and Medicaid. ISPs with less than 20,000 subscribers were tentatively exempted, but large ISPs now bound by the law cover 95 percent of the state’s homes and businesses.

Charter and Altice already offered compliant plans per agreements with the state, and Verizon had a similar affordable plan with more stringent eligibility requirements. The law went into effect Jan. 15.

As federal broadband funding sources face continued uncertainty, California’s massive last-mile grant program continues to plow ahead, looking increasingly like a vital lifeline for communities hoping to ensure that every individual has access to robust, reliable, and affordable Internet access.

Cold Springs Rancheria of Mono Indians was among the applicants celebrating a winning grant application in the California Public Utilities Commission’s (CPUC) latest Federal Funding Account (FFA) announcement.

The grant marks the eighth successful application by a Tribal nation in this program and another in a long list of community-focused projects led by public entities like municipalities.

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Cold Spring Rancheria’s application, for up to $1.5 million dollars, will bring much-needed connectivity to a total of 94 units, including 5 anchor institutions, on the Reservation in Fresno County with 100 percent of the households served by this project qualifying as low-income.

Many residents on the Reservation lack access to a terrestrial Internet service offering speeds anywhere near the definition of broadband (100 Mbps Upload/20 Mbps Download). Those that do have access to purported “broadband” speeds must rely on out-of-date DSL connections and, as a result, struggle with slow and spotty connections.

After working for several years to find a viable solution to these connectivity challenges, Tribal officials can now look forward to the fastest and most reliable Internet access via fiber-to-the-home technology.

The new, Tribally-owned broadband network will help the Tribe achieve universal access.

With New York’s Affordable Broadband Act (ABA) now in effect, lawmakers in other states are filing similar legislation that requires large Internet Service Providers to offer low-cost plans for financially-strapped households in their respective states.

In Massachusetts, State Sen. Pavel Payano filed a bill earlier this month similar to New York’s law that seeks to establish a $15/month plan for low-income households in the Bay State.

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Then, earlier this week, California Assemblymember Tasha Boerner introduced Assembly Bill 353 that would mandate ISPs “make affordable home Internet plans available to California residents,” Boerner’s office said in a press release.

“Right now, families are struggling to afford essential services, like the Internet,” Boerner said in a press statement.

Speaking to why passing an affordable broadband law was important, Boerner put it in plain terms, noting that “households in our state don’t have support to pay for a basic home Internet service plan. We are talking about kids not being able to do homework at home, parents having to go to libraries to apply for jobs, and people not having access to do basic things, like telehealth.”