Gigabit Competition Could Save Californians $1B Per Year, Says CPUC

Locations with more gigabit providers tend to have lower promotional prices, report finds.

Gigabit Competition Could Save Californians $1B Per Year, Says CPUC
Photo of middle-mile broadband construction progress from CalTrans.

Jan. 16, 2025 – Greater broadband competition in California could save consumers over a billion dollars a year on Internet service, according to a report released Wednesday by the California Public Utilities Commission's Public Advocate's Office.

The report distinguishes the number of internet service providers from the number of actual overlapping gigabit networks, noting that when gigabit networks overlap, it puts “downward pressure” on prices through competitive promotions offered to customers. 

“Residential broadband prices across California’s urban markets are primarily determined by local competitive conditions,” the report found. “Where competition is limited or absent, prices are higher, regardless of neighborhood income levels or overall market size. These pricing patterns are systematic, predictable, and economically significant.” 

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