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CDT reports progress on middle‑mile broadband; legislators press for business plan clarity and operator accountability
Summary
CDT reported activation of the first 423 miles and selection of Skyline as operator for the state's 8,100‑mile middle‑mile broadband network, but senators pressed CDT on third‑party arrangements, long‑term sustainability, revenue forecasts and statutory authority for operations.
The California Department of Technology briefed the subcommittee on the statewide middle‑mile broadband initiative authorized by SB 156. Deputy Director Mark Monroe said more than 8,100 miles is the program goal, 423 miles are active and the Bishop Paiute tribe was the first community to deliver Internet service using the state's network.
CDT said roughly 70% of the network has been permitted and by December 2026 it expects to have about 5,300 miles pulled and 4,300 miles ready to connect to last‑mile federal funding awardees. The department announced Skyline Technology Solutions as the operator and said it has selected a third‑party administrator (Golden State Net) to manage program activities.
LAO noted $3.8 billion of appropriated funds have been encumbered and about $68 million remained unencumbered as of February 2026 but flagged accountability and sustainability issues tied to the novel three‑party structure (CDT/third‑party administrator/operator).
Lawmakers repeatedly asked for the underlying business plan, clarification of statutory authority and clearer reporting on revenue and operating cost forecasts. Senator Cabaldon asked for contractual documentation showing the operator will be managed by the third‑party administrator consistent with SB 156's text. CDT said ultimate responsibility rests with the department, the TPA will manage and the operator reports to the TPA; CDT also said the department is assessing operating cost forecasts and pricing and invited the legislature to request reports and briefings.
The committee held the discussion open and emphasized the need for timely reporting on mileages, encumbrances, pricing and contingency plans before the December 2026 encumbrance/liquidation deadlines.
