Dialed In

Steve Blum says fast Internet is needed to grow tech: “In order to become an ag tech capital, we have to upgrade our broadband ability.”

A few weeks ago, salespeople knocked on doors in Gonzales handing out flyers advertising a special offer for high-speed Internet service. The only problem: It doesn’t exist in Gonzales.

The region’s cable and Internet service provider is Connecticut-based Charter Communications, the nation’s largest cable provider. For the most part, they offer a range of Internet speeds, and have updated old analog systems to digital.

Not so for the Salinas Valley.

Now the company is proposing a multibillion-dollar deal with competitors Time Warner Cable and Bright House Networks, and the three companies filed an application July 2 with the California Public Utilities Commission for permission to move forward with creating New Charter.

But there’s this footnote in Charter’s application: “A small portion (less than 1 percent) of New Charter that is not interconnected to the New Charter network may be offered at lower speeds.”

Gonzales has become the de facto leader for that 1 percent, comprising rural communities with dated Internet options. On Sept. 21, the city filed a motion to become a party to the PUC proceedings: “Gonzales, California has 8,187 residents that could be adversely affected if the pending applications in this proceeding are granted.”

It means Gonzales will be able to weigh in as the PUC hearings proceed. The city’s request is that the PUC require Charter to upgrade existing systems as a condition of approving the merger.

“Charter says they’re going to do this anyway,” says Harold Wolgamott, special projects director for Gonzales. “All we’re trying to do is say, ‘PUC, make them live up to what they’re saying.’ To Charter it’s no big deal to say, ‘We’ll put it off for 20 years, and by then we’ll be bought out anyway.’”

Wolgamott is a member of the Central Coast Broadband Consortium, a loose group with members from Monterey, Santa Cruz and San Benito counties. Also among them is Steve Blum, who owns a telecom consulting firm in Marina. (Gonzales is one of his clients.) To Blum, the PUC proceeding presents the perfect opportunity to force Charter’s hand: “Then they can’t say, ‘Oh Salinas Valley, it’s not profitable enough for us to upgrade you to digital.’”

Charter spokesman Justin Venech emails a statement: “We look forward to continuing to work with the PUC and interested parties to demonstrate the many community benefits of our proposed transaction.”

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