Conference Presentation, Panel
Equity in Infrastructure Development: The Digital Divide
Milken InstituteJackie Botts, Michael P. Anderson, Carolyn McIntyre, Sunne McPeak, Alexandra Rosen, David Lesher, Matt Horton
- CalMatters and the Milken Institute plan to co-host future events to explore the intersection of workforce and infrastructure development, aiming to enhance equity and facilitate regional competitiveness by retooling the state's economic development framework.
- Internet connectivity is predicted to become increasingly essential for businesses, consumers, and education, with the job market expected to prioritize candidates possessing digital skills, higher education, and home internet access, while low-wage workers face displacement due to automation.
- Significant digital gaps persist, with projections indicating eight million unconnected individuals and two million digitally disadvantaged households in California, comprising 9% of the population with no connection and 6% reliant solely on smartphones.
- Historic public investment is underway, including a state commitment of $6 billion, a $3.25 billion allocation for an open access middle-mile network, and $2 billion in federal funds via the California Statewide Public Utilities Commission (CSPU) designated for last-mile connectivity grants.
- Policy and infrastructure plans include the deployment of Rural Exchange Points (RXPs), the use of procurement to mandate affordable internet offers from providers, and legislation SB 28 intended to enable granular ISP data collection, though current approaches may leave mapping gaps.
- Economic analysis suggests broadband access drives the growth of micro businesses, which are linked to higher median incomes, increased job creation, lower unemployment, and economic resilience, with 17% of surveyed micro businesses established since March 2020.
- Specific programs like the Emergency Broadband Benefit target 2 million California households, with 700,000 having cleared the program, and a successor model proposing $50 and $30 monthly subsidies alongside device distribution to low-income families.
- Long-term connectivity strategy requires a combination of wireline and wireless technologies, as 5G is not expected to meet speed requirements by 2035 without fiber backhaul within 1,000 feet of small cells.
- Challenges to achieving universal access include the necessity of digital literacy training (estimated at six hours), the need for marketing support, and the reliance on utility customer data to identify eligible low-income households for subsidies.
- Current mapping efforts are considered robust by some stakeholders, yet significant holes remain, prompting the expectation that the FCC's Broadband Data Act and state-level data collection will improve accuracy while ensuring that infrastructure investments pay for themselves within three to ten years.