CPUC mandates low cost internet plans for low income households under new service requirements

The California Public Utilities Commission (CPUC) convened on January 30, 2025, to discuss critical requirements for broadband service offerings aimed at low-income and middle-class households. This meeting highlighted the CPUC's commitment to ensuring affordable internet access for all Californians, particularly in light of ongoing economic challenges.

A significant focus of the meeting was the establishment of a low-cost service offering, which mandates that all applicants for broadband funding must provide a service priced at $30 per month or less, or $75 for tribal lands. This service must be available to households with incomes at or below 200% of the federal poverty line, aligning with eligibility criteria similar to those of the Affordable Connectivity Program (ACP). The CPUC emphasized that this offering must meet specific performance standards, including a latency of no more than 100 milliseconds, and must not include data caps, surcharges, or installation fees. Additionally, a free modem or router must be provided to subscribers, ensuring transparency and affordability.

For providers unable to meet the $30 benchmark, the CPUC allows for a modified offering priced up to $50, provided they can justify the higher cost based on subscriber expenses or the financial sustainability of their projects. This flexibility aims to accommodate varying operational costs while still prioritizing affordability for consumers.

In addition to the low-cost offering, the CPUC introduced a middle-class affordable service offering, which must be available to all households at a price of $84 per month or less. Similar to the low-cost offering, this service must also adhere to performance standards and avoid additional fees. Providers seeking to exceed this price point can apply for a waiver, requiring them to submit justifications for their pricing structure.

Another key requirement discussed was the necessity for broadband providers to actively engage with potential subscribers in their service areas. The CPUC expects applicants to outline their outreach strategies, emphasizing the importance of informing communities about available services.

In conclusion, the CPUC's discussions reflect a proactive approach to expanding broadband access in California, particularly for underserved populations. By setting clear benchmarks for affordability and performance, the commission aims to foster a more inclusive digital landscape. As the implementation of these requirements progresses, stakeholders will need to navigate the complexities of service delivery while ensuring that the needs of all Californians are met.