Verizon to offer $20 broadband in California to obtain merger approval

In a strategic move to gain approval for its $9.6 billion acquisition of Frontier Communications, Verizon has pledged to provide a low-cost broadband service in California. The telecom giant will offer a $20-per-month fiber-to-the-home internet plan specifically designed for low-income residents, featuring impressive symmetrical speeds of 300Mbps. In addition to the fiber service, Verizon will also introduce a fixed wireless option at the same price, boasting download speeds of 100Mbps and upload speeds of 20Mbps. This commitment is part of a joint proposal submitted to the California Public Utilities Commission (CPUC) that outlines the terms of the merger. The agreement stipulates that Verizon must maintain these affordable plans for a minimum of ten years. After the initial three years, the company is expected to strive to enhance speeds while keeping the price unchanged. The $20 plans will be accessible to individuals who meet specific income requirements and can also be combined with Lifeline discounts, which further reduces the cost for eligible Californians. Ernesto Falcon, a program manager at the Public Advocates Office, emphasized that the options would be Lifeline eligible, potentially making the service free for many low-income users statewide. The California Lifeline program currently offers a $19 discount on monthly services. Moreover, if the merger goes through, Verizon is set to deliver an additional 75,000 fiber-to-the-home connections, surpassing Frontier's original expansion plans, with a focus on supporting low-income households. The settlement also includes a provision for establishing 250 new cell sites to enhance Verizon's 5G network. This agreement has emerged amidst ongoing tensions regarding broadband pricing between state regulators and the Trump administration, which had previously threatened to restrict access to federal funds for states imposing specific pricing requirements for low-income internet plans.