Economic Development Recovery and Resiliency Playbook - Flipbook - Page 33
Broadband internet services available to California residents and businesses are delivered by a range of private telecommunica
tion companies, and the broadband options for any business or household depend entirely on the location and financial
capacity to absorb the costs of infrastructure build out and service. For example, nearly all residents and businesses in Silicon
Valley have access to fiber optic technology. Conversely, communities in Northern and Eastern California and other rural areas
may have access to the internet only through satellite services. The service providers are ofen large, for-profit corporations
focused on maximizing profits, not necessarily providing equitable access for all.
Providing broadband internet access for residents and businesses that — due to access or cost — are not being served by the
private telecommunications providers poses a challenge for local governments and economic developers. At the same time,
the need for high-speed internet services continues to expand while telecommunications technologies are rapidly evolving
and changing.
Some cities, led by their economic development teams, are meeting the challenge of delivering equitable broadband
internet access by establishing their own service provider to allow residents and businesses to work around the private
telecommunication companies; for example, the City of Rancho Cucamonga is investing $20 million to construct 70 miles of fiber
optic cable along its major corridors and business districts. The city has partnered with Onward, a California-based Competitive
Local Exchange Carrier, to manage the service delivery efort.14 The goal is to provide equitable access to broadband for all
residents and businesses within the service area.
Of course, not all cities and communities have suficient locational attributes and access to capital needed to build their
own fiber optic system. This presents an important role and opportunity for local economic developers to provide access to
broadband internet services for all residents and businesses, and it has become a priority for the U.S. Economic Development
Administration (EDA). Significant grant funds are now available through the U.S. EDA to establish community and regional
broadband networks to serve households and businesses that have been unable to access the internet.
Economic developers can collaborate with nearby communities to seek EDA funding for a regional broadband system;
however, applying for these grants is a long, complicated process with no guarantee of success. Consequently, economic
developers should also be in discussions with their local telecommunications companies to explore and develop solutions that
expand access and reduce costs. The reality is that telecommunication companies are not going to implement expensive fiber
optic cable investment everywhere. Many companies can function adequately using Wi-Fi technology and do not need fiber
optic cable. But innovative solutions are needed for companies that may require access to fiber optics or they will eventually
relocate to where the service is available. Providing universal broadband access is a work in progress and a major economic
development challenge.
The State of California has also recognized the need with large investments in broadband development. In Governor Newsom’s
2021 Budget, a $6 billion broadband package was approved. This included $3.25 billion for the establishment of a state-owned,
open-access middle-mile network, $2 billion divided equally between urban and rural counties for last-mile projects, and
$750 million for a loan-loss fund to help local governments and nonprofits finance broadband service projects.15
Housing Access and Afordability
Housing is the most fundamental infrastructure system for any community. It is vital to build an adequate inventory of housing
for all residents, because access to clean, safe homes allows residents to be functional members of society and active workforce
participants. Unfortunately, many California communities lack an adequate supply of all forms of housing, which contributes to
high housing prices and unafordable rents.
In particular, the housing shortage and mismatch between wages earned and the costs of housing near job centers forces some
workers in tourism, entertainment, food service, and other low-wage industries into overcrowded conditions or extreme longdistance “super commutes.”
In the worst-case scenario, some low-wage workers who can no longer access a housing option become unhoused and live in a
14
15
See https://www.cityofrc.us/rcmu/rcmu-fiber-optics
See https://caled.org/wp-content/uploads/2021/07/CALED_CABudgetAnalysis_FINAL.pdf
Infrastructure Systems and Improvements in the Post-Pandemic Era
25
