The California Public Utilities Commission has issued a proposed order that would allow it to supplement federal economic stimulus funds for broadband telecommunications infrastructure construction in unserved and underserved areas of the Golden State. Specifically, the proposed order would supplement $4.7 billion of the $7.2 billion broadband infrastructure stimulus funding to be distributed by the National Telecommunications and Information Administration's Broadband Technology Opportunities Program (BTOP).
In an apparent bid to leverage the BTOP funds, the CPUC would supplement the 80 percent BTOP grant subsidy with 10 percent of the total project cost -- amounting to half of the 20 percent funding match for BTOP grant recipients. That means 90 percent of the cost of approved projects would be subsidized by the combined 80 percent BTOP grant and 10 percent CPUC funding under the proposed order.
The CPUC funding would be allocated out of the regulatory agency's California Advanced Services Fund (CASF). Created in 2007, the $100 million CASF is funded by a surcharge on intrastate long distance calls. As much as $80 million of CASF funding remains unrewarded, according to the proposed order. A likely reason according to proceeding documents filed by CPUC staff late last year, is applicants balked at the requirement they put up 60 percent of project costs, complaining the CASF 40 percent subsidy is inadequate.
Those seeking the CASF funding must act quickly. Priority will be given to project applications received by July 17 -- about two weeks after the NTIA is to publish its own rules for allocating the federal broadband stimulus funding. According to the proposed order, the CPUC will make those awards in September. Applications for a second round of funding will be accepted from July 18 to August 14 with funds awarded in October. As per current CASF rules, priority will be given to unserved areas lacking broadband access.
Current CASF rules restrict funding to registered wireline and wireless providers. Whether others such as local government entities, nonprofits and cooperatives would be eligible for the CASF funding depends on the enactment of authorizing legislation, AB 1012, currently pending in the California Senate after breezing out of the Assembly May 28 on a 78-0 vote. If enacted, the urgency measure would take effect immediately. If it is, under the proposed order the CPUC would require these other entities to meet the same application requirements as wireline and wireless providers including maps of areas to be served and financial and technical information.
Showing posts with label California Advanced Services Fund. Show all posts
Showing posts with label California Advanced Services Fund. Show all posts
Thursday, June 11, 2009
Wednesday, April 15, 2009
Broadband black holes: Not just a rural issue
One of the most persistently inaccurate and misleading portrayals of U.S. broadband availability is that broadband black holes are confined to rural areas. Unfortunately for those marooned within them, they can be found in plenty of other places due to telco deployments of technologically limited DSL that deteriorates just a few miles from a central office or remote terminal -- and less than that if the copper cable isn't in pristine condition.
Case in point is part of the Northern California suburb of Vacaville, located not far from Interstate 80 west of the college town of Davis. AT&T is requesting a 40 percent subsidy from the California Public Utilities Commission's California Advanced Services Fund (CASF) to extend wireline broadband to 33 households in this area as one of five AT&T CASF projects up for consideration Thursday by the CPUC.
These projects -- designated for "underserved" areas where residents can't get broadband of at least 3 Mbs down and 1 Mbs on the upload side -- are being trumpeted by the CPUC as helping close Golden State's digital divide. But given their small size -- ranging from just five households for the smallest to 125 for the largest -- there's a danger this will make the CPUC look like it's putting out AT&T PR puffery.
Friday, March 20, 2009
4 of 5 proposed California state subsidized broadband projects challenged
Since the California Public Utilities Commission began accepting proposals last year for broadband infrastructure projects eligible for 40 percent subsidies from the CPUC's California Advanced Services Fund (CASF), about four out of five of 30 projects proposed to date have not been approved.
The reason, according to a recently issued CPUC resolution as well as other documentation posted on the CPUC's Web site is they were challenged by unnamed providers on the grounds they didn't comply with CASF funding guidelines targeting unserved areas (no broadband access) and underserved areas of the Golden State (broadband access at speeds less than 3 mbs down and 1 mbs up).
There's a lesson here as the federal government revs up its own plans for subsidizing broadband infrastructure buildout: avoid going down this slippery, ever changing slope of throughput requirements and attempting to define what constitutes served, unserved and underserved when it comes to advanced IP-based services.
These metrics are simply too subjective and prone to being manipulated and gamed by providers, particularly incumbent local exchange carriers (ILECs) more interested in preserving their territorial hegemony than serving their customers' telecommunications needs.
The better course is to allow entities such as local governments and telecommunications cooperatives with priority for federal broadband economic stimulus funding determine for themselves where infrastructure buildout is most needed. Most of these entities will likely opt for fiber and avoid the issue of throughput speeds altogether given fiber's tremendous capacity to accommodate current and future bandwidth requirements.
The reason, according to a recently issued CPUC resolution as well as other documentation posted on the CPUC's Web site is they were challenged by unnamed providers on the grounds they didn't comply with CASF funding guidelines targeting unserved areas (no broadband access) and underserved areas of the Golden State (broadband access at speeds less than 3 mbs down and 1 mbs up).
There's a lesson here as the federal government revs up its own plans for subsidizing broadband infrastructure buildout: avoid going down this slippery, ever changing slope of throughput requirements and attempting to define what constitutes served, unserved and underserved when it comes to advanced IP-based services.
These metrics are simply too subjective and prone to being manipulated and gamed by providers, particularly incumbent local exchange carriers (ILECs) more interested in preserving their territorial hegemony than serving their customers' telecommunications needs.
The better course is to allow entities such as local governments and telecommunications cooperatives with priority for federal broadband economic stimulus funding determine for themselves where infrastructure buildout is most needed. Most of these entities will likely opt for fiber and avoid the issue of throughput speeds altogether given fiber's tremendous capacity to accommodate current and future bandwidth requirements.
Monday, March 16, 2009
California PUC sets March 23 public meeting re broadband funding in federal stimulus act
The Schwarzenegger administration is preparing to request some of the $7.2 billion earmarked for broadband telecommunications infrastructure subsidies and loans in the recently enacted federal economic stimulus legislation.
The governor's office has asked the California Public Utilities Commission as well as the nonprofit California Emerging Technology Fund (CETF) to get stakeholder input on how best to use the CETF and the CPUC's California Advanced Services Fund (CASF) as vehicles to "quickly target initial federal stimulus funds toward California." The goal is also to determine how to leverage California’s existing broadband programs to assist applicants seeking federal funding available for broadband infrastructure in the stimulus bill.
The CPUC has set a public hearing for March 23 in San Francisco.
"We seek input from a broad spectrum of interests, including broadband providers, public agencies, and consumer groups," the CPUC's notice states.
The governor's office has asked the California Public Utilities Commission as well as the nonprofit California Emerging Technology Fund (CETF) to get stakeholder input on how best to use the CETF and the CPUC's California Advanced Services Fund (CASF) as vehicles to "quickly target initial federal stimulus funds toward California." The goal is also to determine how to leverage California’s existing broadband programs to assist applicants seeking federal funding available for broadband infrastructure in the stimulus bill.
The CPUC has set a public hearing for March 23 in San Francisco.
"We seek input from a broad spectrum of interests, including broadband providers, public agencies, and consumer groups," the CPUC's notice states.
California PUC approves broadband subsidies for 9 Northern California, Central Valley communities
The California Public Utilities Commission last week approved 40 percent subsidies for wireline broadband infrastructure build outs to 1,262 households in nine Northern California and Central Valley communities.
The $728,093 in funding for the projects comes from the CPUC's California Advanced Services Fund, which is funded by a surcharge on intrastate long distance telephone calls.
Here's the CPUC's press release.
The $728,093 in funding for the projects comes from the CPUC's California Advanced Services Fund, which is funded by a surcharge on intrastate long distance telephone calls.
Here's the CPUC's press release.
Saturday, February 21, 2009
Don't subsidize slow, outmoded AT&T DSL, groups urge California PUC
One of five AT&T broadband build out projects subsidized with 40 percent matching funds from the California Public Utility Commission's California Advanced Services Fund (CASF) has drawn criticism from community groups in California's North Coast area.
The groups, the Mendocino Coast Broadband Alliance, Redwood Coast Rural Action, Redwood Coast Connect and Humboldt Area Foundation protest the award of $15,200 in CASF funding to AT&T to finance the roll out of DSL technology to serve 97 homes over existing wire line facilities. The groups complain that won't deliver sufficient throughput in the affected areas including Albion, Little River, Caspar, Mendocino, Fort Bragg, Elk and Point Arena. The so-called Comptche project's DSL throughput of up to 1.5 Mbs for downloads and up to 384 Kbs for uploads is too slow, they say, urging the CPUC demand AT&T offer throughputs of 3 Mbs down and 1 Mbs up as originally specified in CASF funding guidelines adopted by the commission in 2007. Moreover, some of the groups say, a Wireless Internet Service Provider (WISP) could provide faster speeds over a shorter timeframe than AT&T's DSL project.
However in its resolution adopted Feb. 20 awarding funding for the project, the CPUC notes it "has no control over what applicants ultimately offer," and that the 3 Mbs download and 1 Mbs upload speeds are guidelines and not firm requirements. "We believe that broadband speeds below 3/1 still offer large benefits to communities that have no broadband service at all and does not hinder the possibility of upgrades by incumbents or competitors," the resolution states.
The unstated cause of the debate: AT&T's aged copper cable plant that cannot support higher throughput as well as the company's reliance on underpowered DSL technology that has very limited range over copper cable due to signal degradation.
The groups, the Mendocino Coast Broadband Alliance, Redwood Coast Rural Action, Redwood Coast Connect and Humboldt Area Foundation protest the award of $15,200 in CASF funding to AT&T to finance the roll out of DSL technology to serve 97 homes over existing wire line facilities. The groups complain that won't deliver sufficient throughput in the affected areas including Albion, Little River, Caspar, Mendocino, Fort Bragg, Elk and Point Arena. The so-called Comptche project's DSL throughput of up to 1.5 Mbs for downloads and up to 384 Kbs for uploads is too slow, they say, urging the CPUC demand AT&T offer throughputs of 3 Mbs down and 1 Mbs up as originally specified in CASF funding guidelines adopted by the commission in 2007. Moreover, some of the groups say, a Wireless Internet Service Provider (WISP) could provide faster speeds over a shorter timeframe than AT&T's DSL project.
However in its resolution adopted Feb. 20 awarding funding for the project, the CPUC notes it "has no control over what applicants ultimately offer," and that the 3 Mbs download and 1 Mbs upload speeds are guidelines and not firm requirements. "We believe that broadband speeds below 3/1 still offer large benefits to communities that have no broadband service at all and does not hinder the possibility of upgrades by incumbents or competitors," the resolution states.
The unstated cause of the debate: AT&T's aged copper cable plant that cannot support higher throughput as well as the company's reliance on underpowered DSL technology that has very limited range over copper cable due to signal degradation.
Thursday, November 20, 2008
Tensions erupt between telcos, cablecos over over California broadband build out subsidy levels
As recently reported on this blog, California's incumbent telcos are bitching to the California Public Utilities Commission, complaining a 40 percent subsidy to underwrite the cost of building out broadband infrastructure to areas of the state lacking adequate access under the CPUC's California Advanced Services Fund (CASF) isn't likely to be enough for many potential projects.
Now the griping has turned into a contretemps between some of the biggest players and Comcast has jumped into the fray. In comments filed Nov. 19 on the eve of a CPUC hearing today to consider restructuring the CASF, Verizon criticizes AT&T's suggestion the 60 percent provider match be abandoned, warning it could lead to too much state funding of some projects.
In its Nov. 19 comments filed with the CPUC, cable provider Comcast takes issue with AT&T's "incredible" suggestion that the CASF fully subsidize some projects and Verizon's proposal that the CASF share be increased up to 80 percent for selected projects. The cable company warns the higher CASF funding threshold would be contrary to the CASF's goal of funding only projects that are economically viable.
AT&T's suggestion that CASF provide 100 percent funding for selected high cost projects in unserved areas "is truly outrageous, particularly coming from AT&T," Comcast said in its filed comments. "The CASF was not set up to be a slush fund to cover 100 percent of the costs of the largest ILEC in the state."
Now the griping has turned into a contretemps between some of the biggest players and Comcast has jumped into the fray. In comments filed Nov. 19 on the eve of a CPUC hearing today to consider restructuring the CASF, Verizon criticizes AT&T's suggestion the 60 percent provider match be abandoned, warning it could lead to too much state funding of some projects.
In its Nov. 19 comments filed with the CPUC, cable provider Comcast takes issue with AT&T's "incredible" suggestion that the CASF fully subsidize some projects and Verizon's proposal that the CASF share be increased up to 80 percent for selected projects. The cable company warns the higher CASF funding threshold would be contrary to the CASF's goal of funding only projects that are economically viable.
AT&T's suggestion that CASF provide 100 percent funding for selected high cost projects in unserved areas "is truly outrageous, particularly coming from AT&T," Comcast said in its filed comments. "The CASF was not set up to be a slush fund to cover 100 percent of the costs of the largest ILEC in the state."
Monday, November 10, 2008
Less than enthusiatic response to California broadband build out subsidy program
A key recommendation of California Gov. Arnold Schwarzenegger's Broadband Task Force to build out broadband Internet infrastructure in the Golden State is getting a less than enthusiastic response from the state's incumbent telcos.
In comments filed last week with the California Public Utilities Commission (CPUC), which is considering expanding eligibility for 40 percent project subsidies to a wide variety of organizations and local governments, both large and small Incumbent Local Exchange Carriers (ILECs) complain the 40 percent subsidy is too low to make it worthwhile to invest in infrastructure for high cost areas currently unserved or underserved by broadband providers. They call on the CPUC to abandon the fixed 40 percent subsidy and instead award amounts based on the cost of the project.
The CPUC's internal Division of Ratepayer Advocates (DRA) is also calling on the CPUC to revamp the subsidy program, the California Advanced Services Fund (CASF). "The general paucity of bidders for CASF funding" and just six ILEC-proposed projects submitted for funding to date "suggests that the Commission’s anticipated advancement of broadband availability and competition is not bearing fruit," the DRA stated in its filed comments in the CASF proceeding. "While the factors that have led to this outcome are unclear, what is clear is that one of the Commission’s goals for the CASF – encouraging a diversity of advanced technologies and service providers – is unlikely to be met unless there is a critical review of the CASF, as it is currently structured and administered."
The DRA also recommends against allowing municipalities and other entities that are not under the CPUC's jurisdiction from proposing projects because the CPUC would have to enforce compliance with CASF funding requirements through the courts.
The six ILEC-proposed projects to bring wireline-delivered broadband unserved areas to be considered by the CPUC at its Nov. 21 meeting total just $372,976 in requested CASF funding.
The largest of the six proposals is by Verizon California and seeks $174,000 to serve 382 housholds in the Pinyon Crest area of Riverside County. AT&T has proposed four projects in both northern and southern California, including what is arguably a token effort to bring broadband to two residences in the Mount Wilson area of Los Angeles County.
Only one of the proposed projects meets original CASF project criteria of being capable of providing at least 3 Mbs downloads and 1 Mbs uploads -- one by Frontier Communications to provide service for 171 households in the Lake Almanor area of Plumas County.
In comments filed last week with the California Public Utilities Commission (CPUC), which is considering expanding eligibility for 40 percent project subsidies to a wide variety of organizations and local governments, both large and small Incumbent Local Exchange Carriers (ILECs) complain the 40 percent subsidy is too low to make it worthwhile to invest in infrastructure for high cost areas currently unserved or underserved by broadband providers. They call on the CPUC to abandon the fixed 40 percent subsidy and instead award amounts based on the cost of the project.
The CPUC's internal Division of Ratepayer Advocates (DRA) is also calling on the CPUC to revamp the subsidy program, the California Advanced Services Fund (CASF). "The general paucity of bidders for CASF funding" and just six ILEC-proposed projects submitted for funding to date "suggests that the Commission’s anticipated advancement of broadband availability and competition is not bearing fruit," the DRA stated in its filed comments in the CASF proceeding. "While the factors that have led to this outcome are unclear, what is clear is that one of the Commission’s goals for the CASF – encouraging a diversity of advanced technologies and service providers – is unlikely to be met unless there is a critical review of the CASF, as it is currently structured and administered."
The DRA also recommends against allowing municipalities and other entities that are not under the CPUC's jurisdiction from proposing projects because the CPUC would have to enforce compliance with CASF funding requirements through the courts.
The six ILEC-proposed projects to bring wireline-delivered broadband unserved areas to be considered by the CPUC at its Nov. 21 meeting total just $372,976 in requested CASF funding.
The largest of the six proposals is by Verizon California and seeks $174,000 to serve 382 housholds in the Pinyon Crest area of Riverside County. AT&T has proposed four projects in both northern and southern California, including what is arguably a token effort to bring broadband to two residences in the Mount Wilson area of Los Angeles County.
Only one of the proposed projects meets original CASF project criteria of being capable of providing at least 3 Mbs downloads and 1 Mbs uploads -- one by Frontier Communications to provide service for 171 households in the Lake Almanor area of Plumas County.
Thursday, October 23, 2008
California PUC considering expanding eligibility for broadband build out subsidies
The California Public Utilities Commission is soliciting comment on potentially expanding eligibility for 40 percent grant funding from its California Advanced Services Fund (CASF) to build out broadband infrastructure in unserved and underserved areas of the Golden State. The commission has set aside $100 million for qualifying projects to be funded over a two-year period, paid for by a 0.25 percent surcharge on end-users’ intrastate telephone bills.
Proposals to serve unserved areas were due July 24 and underserved areas by Aug. 25. Only entities with a certificate of public convenience and necessity to offer telecommunications services or those registered with the CPUC provider of wireless telecommunications services were eligible to submit project proposals by those dates. The CPUC is now considering accepting proposals from municipalities, community-based cooperatives, Native American tribes as well as funding economic development corporations to issue loans to finance projects.
"We further anticipate significant unserved and underserved areas will remain after grant of the current pending applications," CPUC's Oct. 15 ruling states. "During our first round of applications we received significant interest from serious potential applicants who were uncertificated internet service providers in areas geographically close to unserved or underserved areas."
Proposals to serve unserved areas were due July 24 and underserved areas by Aug. 25. Only entities with a certificate of public convenience and necessity to offer telecommunications services or those registered with the CPUC provider of wireless telecommunications services were eligible to submit project proposals by those dates. The CPUC is now considering accepting proposals from municipalities, community-based cooperatives, Native American tribes as well as funding economic development corporations to issue loans to finance projects.
"We further anticipate significant unserved and underserved areas will remain after grant of the current pending applications," CPUC's Oct. 15 ruling states. "During our first round of applications we received significant interest from serious potential applicants who were uncertificated internet service providers in areas geographically close to unserved or underserved areas."
Tuesday, August 05, 2008
ISPs target remote areas of Northern California for state subsidized broadband infrastructure
A review of broadband infrastructure projects filed by the July 24 soft application deadline for 40 percent buildout subsidies from the California Advanced Services Fund to service unserved and underserved areas of the state shows nearly all of the proposed projects are located in Northern California. Most are in ZIP Codes and census tracts in North Coast counties and heavily concentrated in remote Sierra Nevada counties.
The providers -- whose identities remain under wraps until the close of the application process being overseen by the California Public Utilities Commission -- have apparently chosen to deploy outside of metro areas where they believe they could face near term competition from the telco/cable duopoly. That unfortunately means for those mired in broadband black holes where telcos and/or cable companies have limited, incomplete broadband infrastructure in parts of metro area counties such as the Sierra Nevada foothill counties of El Dorado and Placer and portions of Silicon Valley, relief doesn't appear likely anytime soon from one of these subsidized ISPs. In El Dorado County alone, for example, the California Broadband Task Force identified more than five dozen communities that aren't provided any wireline broadband services -- and that's not counting the numerous broadband black holes adjacent to U.S Highway 50.
Providers seeking the CASF funding were allowed to propose either wireline or wireless broadband projects providing minimum throughput of 3 Mbs down and 1 Mbs up.
Update 9/3/08: The CPUC has released ZIP Codes, Maps and Census Block Groups for proposed projects filed by the Aug. 25 soft deadline that would build out broadband infrastructure to underserved areas, which the CPUC defines as those where broadband is available but no facilities-based provider offers service at asymmetrical speeds of at least 3 Mbs for downloads and 1 Mbs on the upload side.
As with the proposals for unserved areas, defined as defined those not served by any form of facilities-based broadband, or where
Internet connectivity is available only through dial-up service or satellite, the vast majority of the proposed projects for underserved areas are situated in Northern California. This latest batch of proposals is heavily concentrated in Sierra Nevada and Sierra Nevada foothill counties including Toulumne, Mariposa, Amador and Calavaras counties.
The providers -- whose identities remain under wraps until the close of the application process being overseen by the California Public Utilities Commission -- have apparently chosen to deploy outside of metro areas where they believe they could face near term competition from the telco/cable duopoly. That unfortunately means for those mired in broadband black holes where telcos and/or cable companies have limited, incomplete broadband infrastructure in parts of metro area counties such as the Sierra Nevada foothill counties of El Dorado and Placer and portions of Silicon Valley, relief doesn't appear likely anytime soon from one of these subsidized ISPs. In El Dorado County alone, for example, the California Broadband Task Force identified more than five dozen communities that aren't provided any wireline broadband services -- and that's not counting the numerous broadband black holes adjacent to U.S Highway 50.
Providers seeking the CASF funding were allowed to propose either wireline or wireless broadband projects providing minimum throughput of 3 Mbs down and 1 Mbs up.
Update 9/3/08: The CPUC has released ZIP Codes, Maps and Census Block Groups for proposed projects filed by the Aug. 25 soft deadline that would build out broadband infrastructure to underserved areas, which the CPUC defines as those where broadband is available but no facilities-based provider offers service at asymmetrical speeds of at least 3 Mbs for downloads and 1 Mbs on the upload side.
As with the proposals for unserved areas, defined as defined those not served by any form of facilities-based broadband, or where
Internet connectivity is available only through dial-up service or satellite, the vast majority of the proposed projects for underserved areas are situated in Northern California. This latest batch of proposals is heavily concentrated in Sierra Nevada and Sierra Nevada foothill counties including Toulumne, Mariposa, Amador and Calavaras counties.
Monday, August 04, 2008
Will state broadband subsidies have meaningful impact?
Massachusetts appears set to join California among states providing subsidies to expand broadband telecommunications infrastructure where little or none exists.
The Berkshire Eagle of Pittsfield, Massachusetts reports Bay State lawmakers have sent Gov. Deval L. Patrick legislation that would provide $40 million to help underwrite the cost of building infrastructure in the notorious sprawling broadband black hole in the western part of the state. According to the newspaper, the goal of the legislation, signed into law today by Patrick, is to wire 32 unserved communities with high-speed broadband in the next two years.
The Berkshire Eagle of Pittsfield, Massachusetts reports Bay State lawmakers have sent Gov. Deval L. Patrick legislation that would provide $40 million to help underwrite the cost of building infrastructure in the notorious sprawling broadband black hole in the western part of the state. According to the newspaper, the goal of the legislation, signed into law today by Patrick, is to wire 32 unserved communities with high-speed broadband in the next two years.
Out on the left coast, a deadline passed July 24 for providers to submit proposals to the California Public Utilities Commission under which they would receive a 40 percent subsidy to deploy either wireline or wireless-based broadband infrastruture capable of speeds of at least 3 Mbs down and 1 Mbs up. Priority will be given first to unserved areas and then underserved areas. The $100 million California Advanced Services Fund is funded by a surcharge on telephone bills. The CPUC is expected to announce those projects selected for funding by the fall or later this year.
Given the high cost of broadband telecommunications infrastructure, it remains to be seen if these relatively small state subsidies can make a signficant dent in both states' many broadband black spots. Some believe broadband market failure is so pervasive that a much broader, larger federal initiative similar to the Eisenhower-era federal highway act is needed to bring America into the modern age of Internet-based telecommunications and are urging presidential candidates to back such a program.
Saturday, June 07, 2008
California PUC set to adopt guidelines for broadband subsidies
The California Public Utilities Commission is set to adopt guidelines June 12 for the California Advanced Services Fund (CASF). CASF was established by the CPUC in December 2007 to subsidize the deployment of broadband infrastructure in high cost unserved and underserved areas of the state. Funding will be prioritized for projects targeted to areas currently with only dial-up service or satellite and then to build out facilities in underserved areas if funds are still available.
$100 million in CASF funding is available, derived from a 25 percent surcharge on telephone bills that's estimated to be five cents a month for the average customer. The CASF surcharge will be offset by an equal reduction in the California High Cost Fund-B surcharge created to subsidize deployment of basic voice telephone service
Applications for CASF funding will be considered beginning July 3, 2008. CPUC will subsidize 40 percent of the project costs. Both wireline and wireless providers are eligible to apply. Benchmark throughput is 3Mbs for downloads and 1Mbs for uploads.
Project funding will be awarded by the fall of 2008 and successful applicants will have two years to complete their projects. That likely means for Californians currently located in broadband black holes -- there are some 2 million of them in about 2,000 towns according to a report by Gov. Arnold Schwarzenegger's Broadband Task Force issued in January -- they'll have to wait at least until the fall of 2010 before they'll realize any benefit. The CASF funding was one of seven recommendations by the task force to increase broadband availability in California.
$100 million in CASF funding is available, derived from a 25 percent surcharge on telephone bills that's estimated to be five cents a month for the average customer. The CASF surcharge will be offset by an equal reduction in the California High Cost Fund-B surcharge created to subsidize deployment of basic voice telephone service
Applications for CASF funding will be considered beginning July 3, 2008. CPUC will subsidize 40 percent of the project costs. Both wireline and wireless providers are eligible to apply. Benchmark throughput is 3Mbs for downloads and 1Mbs for uploads.
Project funding will be awarded by the fall of 2008 and successful applicants will have two years to complete their projects. That likely means for Californians currently located in broadband black holes -- there are some 2 million of them in about 2,000 towns according to a report by Gov. Arnold Schwarzenegger's Broadband Task Force issued in January -- they'll have to wait at least until the fall of 2010 before they'll realize any benefit. The CASF funding was one of seven recommendations by the task force to increase broadband availability in California.
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