Broadband Competition and Pricing Strategies in California’s Urban Markets

Broadband prices in California’s urban markets vary widely depending on the level and type of competition available to households. Across the four studied urban markets—San Mateo, Oakland, Los Angeles, and San Diego, the benchmark price for competitive high-speed broadband service averages approximately $51 per month. In contrast, households with access to only a single gigabit provider pay $15 to $40 more per month for comparable services. Comparing locations with limited competition to those with overlapping gigabit networks shows that Californians could save more than $1 billion annually if competitive pricing prevailed statewide. These findings indicate that policy efforts focused solely on broadband availability are unlikely to deliver affordable outcomes without also addressing competitive structure. Overlapping gigabit networks materially reduce broadband prices even in a duopoly setting where there are just two dominant providers. Policies that support entry by additional private or public gigabit-capable providers, particularly in areas served by a gigabit monopoly, offer the broadest consumer cost savings at all income levels.