FWA advocates 'greatly disappointed' in Newsom veto on broadband bill

To the disappointment of California's wireless providers, Governor Gavin Newsom last week vetoed a bill that would have allowed the wireless industry to apply for state broadband grants.

The bill – AB 2749 – passed the state legislature in late August with near-unanimous support and awaited action from Newsom until last Thursday. In a veto message, the governor said he rejected the bill because it would have "delayed implementation" of broadband infrastructure. Notably, he did not mention the bill's "tech neutrality" nor make reference to fiber or wireless infrastructure.

"Unfortunately, this bill, while intended to bring certainty to timelines within this program, will in effect undermine the last-mile grant program by creating additional delays in its implementation," said Newsom. "Most concerning, this bill exacerbates the challenges of issuing grants for [last]-mile funding by delaying the solicitation, review, and approval of project applications that meet clear requirements designed to ensure that awarded broadband projects deliver on their promise of providing affordable, quality and reliable service."

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In response, WISPA issued a statement from its state advocacy manager Steve Schwerbel expressing disappointment and saying the veto itself will delay efforts to connect people.

"WISPA and its 80 California members are greatly disappointed by California Governor Gavin Newsom's veto of AB 2749 – legislation that would have made broadband grant dollars accessible to a wider variety of providers, such as Wireless Internet Service Providers (WISPs), and enabling localities to use the best, most agile tools available to bridge the digital divide," said Schwerbel. "The promise of more solutions for localities, not solely one, provides the best path for getting all Californians online no matter where they live."

Nevertheless, according to WISPA spokesperson Mike Wendy, the group is persisting with trying to gain access to the state's grant funds. Earlier this month, WISPA filed a Motion for Clarification with the California Public Utilities Commission (PUC) regarding its rules on allowing funding for fixed-wireless access (FWA) projects and is awaiting a response. The PUC initially announced rules in April designating wireline projects of 100/100 Mbit/s as eligible for grants.

'Strong advocacy'

The wireless industry's push to get in on broadband grants comes as states and territories continue to hand out millions of dollars in broadband funds allocated through the American Rescue Plan (ARPA), and as the federal government prepares to distribute $42.45 billion to states and territories through the Broadband, Equity, Access and Deployment (BEAD) program. As written by NTIA, the BEAD program rules prioritize fiber broadband buildouts, which wireless industry trade groups continue to fight against. States will ultimately decide how to spend those dollars.

Indeed, in a recent note to members reflecting on the association's third quarter and goals for the rest of the year, Gary Bolton, CEO of the Fiber Broadband Association (FBA) said his organization is working to counter "false narratives" coming from the wireless and cable industries.

"While fiber has been selected as the infrastructure of choice, we continue to face strong advocacy from Fixed Wireless, Cable and other technology supporters that are pressuring Congress, the Department of Commerce, NTIA, and the FCC with claims that NTIA has overstepped in prioritizing fiber and are pushing a false narrative under the veil of 'technology neutral' messaging," said Bolton.

Adding that FBA recently met with senators "to counter these false narratives," Bolton said there is still "misinformation and confusion." The association intends to address that with a "Fiber Day" in Q1 of 2023, after the next Congress is sworn in, "which will include hands-on fiber demonstrations," he said.

The Fiber Broadband Association has also been advocating on a state level to educate broadband offices on using grant funding for fiber infrastructure, including with its Broadband Infrastructure Playbook released in coordination with NTCA–The Rural Broadband Association. In his Q3 note, Bolton further assured members that FBA "continues to develop relationships within NTIA and the State Broadband Offices that will allow us to help shape policy and programs."

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— Nicole Ferraro, editor, Light Reading, and host of "​​The Divide" podcast.