If California enacts a law to cap broadband prices at $15 per month for low-income households, it could collectively save residents over $1 billion annually on internet, according to a report released last month by the California Public Utilities Commission’s Public Advocates Office.
The preliminary report, released on March 18 by the state-appointed, independent advocacy arm of the state’s utilities commission, evaluated the potential effects on residents and internet service providers should California mandate that ISPs offer an affordable, fixed broadband plan for households with an annual income at or below 200% of the federal poverty guidelines. State legislators are currently considering a bill introduced in January by California Assembly Member Tasha Boerner that requires the largest ISPs to cap internet prices at $15 per month for these low-income families. It’s similar to New York’s Affordable Broadband Act that went into effect this year despite several legal challenges from internet service providers.
For the four largest ISPs, the price cap would minimally impact their profits, the report said. In fact, it would “potentially reduce the combined revenues of the four largest broadband providers … by less than one percent,” according to the report…