Millions Have Been Set Aside To Get More People Online. Private Companies Want To Use It For LA's Wealthy Neighborhoods

California’s Broadband For All plan aims to expand access to affordable, high speed broadband in areas with little to no service. It’s part of the largest effort in the U.S. to get more residents online.

The state has set aside $2 billion in taxpayer dollars to pay for infrastructure that connects these homes, schools and businesses to a new public broadband network it's building.

The state allocated $105 million of that to Los Angeles County, where an estimated 200,000 households don’t have internet. There are more than a dozen proposals on how to best spend it. Some lawmakers and advocates have been sounding the alarm about how it will be split and what projects will ultimately be deemed worthy of funding.

For example, telecom giant AT&T has applied for $35 million to fund six projects in L.A. County.

But an LAist review found that half of those projects include some of the most affluent neighborhoods in the area, including Bel Air, Pacific Palisades and Chatsworth Lake Manor. The median household income for residents who'd benefit from those projects is $92,000 to $105,000, according to the company’s applications.

Meanwhile Spectrum, the largest provider in the county, is requesting $2.5 million to connect about 900 unserved households in the Antelope Valley where the median income is $97,000. In a statement, the company said it's seeking funding to connect more "unserved households, businesses and government entities, providing them with an opportunity to connect to the life-changing possibilities broadband brings."

"We are confident the state will focus on project applications that connect currently unserved and underserved communities when awarding funds," a Spectrum spokesperson wrote.

Sounding the alarm

The money was intended as a “once in a lifetime” cash infusion into disadvantaged communities, says Cristal Mojica of the Michelson Center for Public Policy. But now she says there’s growing concern it will be used to maintain the status quo. One problem she points to is maps developed by the state for its Broadband For All plan, saying that there's a "huge disparity" between where the state has identified broadband needs and where the need actually is.

“If you are from L.A., you know exactly which neighborhoods are not served,” Mojica said, explaining that some of those areas aren't reflected in the maps.

While there are some residences in wealthier areas that don’t have reliable internet service, critics say the state's maps are based on "inaccurate" data provided by internet companies and include areas that are generally well-served. Both state and federal officials have acknowledged that self-reported data is flawed .

Members of the California Alliance for Digital Equity and other local groups from L.A. have written to state regulators to express their concerns about the grant application and objection process.

Advocates say incumbent service providers, and particularly AT&T, are “cherry picking” the areas they want to serve, proposing projects that don’t align with the state’s goals, and working to prevent smaller groups that are potential competitors from receiving funds.

“We are all eager to see funding directed to applicants whose projects truly meet the urgent broadband needs of unserved and underserved Californians,” according to the letter.

Meanwhile, AT&T says larger providers would make the best use of taxpayer dollars because they have more experience in the industry and are better positioned to maintain service in the long-term. The company says it will voluntarily offer $30 a month plans to eligible customers, and that it will match the funds it's requesting from the state.

“When you think about what it takes to offer customer service, technical support… having a bunch of little small companies out there trying to each do this is not the most efficient way," AT&T CEO John Stankey said in an interview with LAist.

The backstory: ‘Broadband for All’

In 2021, California Gov. Gavin Newsom signed the Broadband for All bill , a historic multi-billion dollar investment to close the digital divide. As part of this plan, the state is building a new open-access network, called the “middle-mile," which stretches 10,000 miles throughout California, including more than 500 miles in L.A. County.

It’s also offering grant funding to build the “last-mile." That’s the final leg of the network that brings service to your home. Think of it like a driveway that connects your house to public roads.

The application window closed last September. Now, the California Public Utilities Commission (CPUC) is assessing, and selecting, the proposals.

It received 484 last-mile applications in all. An LAist review found the vast majority were filed by large private internet companies: AT&T (250), Comcast (36), Cox (20), Frontier (23) and Spectrum (22).

At least 79 applications came from public utilities, nonprofits and joint powers authorities, and 8 applications from Tribal nations. CPUC also received roughly 900 objections, most of which were from internet service providers.

Here is a summary of applications from AT&T and Spectrum in L.A. County:

• AT&T is applying for $34.8 million across six separate projects in L.A. County. In one application, it’s asking for nearly $11 million dollars to connect about 2,000 households around Pacific Palisades and Bel Air. The median household income is $92,000 per year.
• Separately, AT&T is asking for about $430,000 to connect people who live around Chatsworth Lake Manor, north of Calabasas. The area has a median income of $105K. According to AT&T, the project would help connect 624 unserved households and allow 28 businesses “to receive new or improved service.”
• AT&T wants $1.3 million to connect 1,943 people near LAX and areas east of Santa Monica. It says the median household income in the project area is $60,000.
• The company is also seeking $10.8 million to connect about 1,700 households directly east and north of LAX, plus areas near South and East L.A.
• Spectrum is the largest service provider in L.A. County. It’s asking for $2.5 million to complete one local project that would serve about 900 households near Lancaster and Antelope Acres. The median household income is $97,000.

Here is a summary of applications from “alternative” providers such as government agencies and nonprofits in L.A. County:

• The city of Carson is requesting $8.2 million for a project that would help connect 1,085 households and 372 businesses in the area, as well as five “anchor institutions” like its City Hall.
• The city of Huntington Park is seeking $25.5 million to connect 3,000 households and 800 businesses.
• A group in Antelope Valley wants $45 million to connect 7,200 households and 500 businesses. The median household income is $67,000.
• AVX Networks is seeking $35.6 million to serve residents and tourists on Catalina Island and the surrounding waterways. The project would reach 1,600 unserved households and 55 businesses.
• L.A. County’s Internal Services Department is requesting $35.1 million for a broadband project that would serve about 13,000 households, 50,000 businesses and 4,600 other locations. The median household income is $56K.
• The nonprofit Destination Crenshaw wants $25 million for a neighborhood development project. It would reach 366 unserved households, 984 businesses and 83 other locations. The median household income is $54,000.
• The Gateway Council of Governments is asking for $78 million to serve about 4,300 households on the southeast side. The median household income is $59,000.

With so much money at stake, some groups joined forces to make a stronger bid.

For example, the Gateway Council of Governments, a group of 27 cities on the southeast side, including Compton, Paramount and Bellflower requested $78 million, the largest amount of any L.A. County-based project, to connect to 4,254 unserved households. (Huntington Park is also part of the group, but submitted a separate grant application). Here’s a map of the proposed project area.

Another partnership comes from L.A. County, which is working with the cities of L.A., San Fernando and others to apply for $35.1 million in last-mile grant money. The funds would help serve more than 13,000 people and 50,000 businesses across the area.

“Historically, it's always been each jurisdiction for itself,” said Selwyn Hollins, the recently retired director of L.A. County's Internal Services Department. “But we all serve the same population, so why not join forces?”

(Note: LAist will explore last-mile projects in Carson, Catalina Island and other areas in upcoming stories.)

What’s next

A spokesperson from the CPUC said the agency could announce the first round of funding as early as June, and that the money will likely be distributed in one or more additional funding rounds “in future years.”

But the grant fund could face cuts as lawmakers work to close the state’s budget deficit. The Legislative Analyst's Office is recommending a $550 million reduction from the last‑mile grant fund to help balance the state’s 2024-25 budget.

The CPUC says it’s “too early to speculate” on whether the agency would choose fewer projects as a result, or whether all counties would lose an equal amount of money. A final budget plan will be announced later this spring.

Meanwhile, state Assemblymember Tasha Boerner, a Democrat who represents Encinitas and Solana Beach, recently introduced a bill that would create a new department for broadband and digital equity programs under the state’s Government Operations Agency so that “middle-mile and last-mile are working together.”

Doing so would “free up” the CPUC to focus on other issues, she said.

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