CPUC to Vote on Canceling Catalina Internet Grant
The commission will decide whether to pull a $37.5 million fiber-optic project grant from AVX Networks on October 29.
Updated on Oct. 28, 2026 in Telecommunications
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The California Public Utilities Commission is set to vote on October 29, 2026, regarding the potential termination of a $37.5 million internet grant awarded to AVX Networks. The move follows staff allegations that the company lacks the operational capacity to complete the proposed infrastructure project.
Why it matters
The project was intended to provide a stable fiber-optic connection for over 4,000 Catalina Island residents who currently face internet outages during busy tourism seasons. Termination could force the company to seek alternative funding to keep the infrastructure plan alive.
The proposed fiber-optic network involves laying cable under the San Pedro Channel to link Catalina Island to Huntington Beach and the Middle Mile Broadband Network in Stanton. The current wireless links on the island are insufficient for high-demand periods.
The players
California Public Utilities Commission
This state agency is responsible for regulating privately owned electric, natural gas, telecommunications, water, railroad, and passenger transportation companies.
AVX Networks
This is a telecommunications firm that was awarded state grant funding to expand broadband infrastructure to Catalina Island.
The details
CPUC staff accused AVX Networks in July 2026 of failing to provide sufficient justification for submitted invoices and lacking the necessary technical capacity to manage the project. The company maintains it will pursue other financing options if the commission votes to end the current agreement.
Timeline
December 2025: AVX Networks received the initial grant award.
July 2026: CPUC staff accused AVX Networks of rule violations.
October 29, 2026: Commission scheduled to vote on contract termination.
The Tech Race
This project aims to bridge the digital divide by connecting a remote geography to the state-wide Middle Mile Broadband Network. It highlights the technical challenges and regulatory oversight involved in scaling fiber-optic infrastructure across challenging maritime channels.
Residents of Catalina Island currently face unreliable internet service due to reliance on wireless links during peak tourism periods. Failure to secure this fiber-optic upgrade would likely result in continued connectivity issues for local households and businesses.
The takeaway
Reliable high-speed internet remains a critical hurdle for remote communities relying on aging wireless infrastructure. Residents and local businesses should prepare for potential delays in digital infrastructure upgrades as regulatory and funding disputes continue.
What happens next
The California Public Utilities Commission will hold its scheduled vote on the $37.5 million grant termination on October 29, 2026.
Further reading
For broader information on state broadband efforts, see California Telecommunications.
Source note: This article includes information reported by LAist.
Live Poll
Should the state maintain grant funding for broadband projects currently under regulatory investigation?
