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A project to fix Catalina Island’s internet problem loses a major grant from CA. What happened?
Catalina Island is home to more than 4,000 residents, and it draws thousands of tourists each year.
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Zaydee Sanchez
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LAist
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Topline:
The California Public Utilities Commission pulled back a $37.5 million grant for a project that would have brought fast, reliable internet to Catalina Island. The commission voted unanimously at Thursday’s board meeting to terminate its contract with telecommunications company AVX Networks.
How did we get here? The CPUC awarded AVX the grant in December 2025. Months later, CPUC staff accused the company of breaking federal spending rules. Lance Ware, CEO of AVX Networks, has denied those allegations. In July, CPUC staff sent AVX Networks a termination letter.
Why it matters: The island is home to more than 4,000 residents, and it draws thousands of tourists each year. Its slow, unreliable internet connection affects everything from remote learning to emergency response.
Ware told LAist he’s disappointed by the commission’s vote and lack of public discussion, but it doesn’t necessarily mark the end of the project. “I'm certainly not the person to quit,” he added. “There's all these downstream effects of not having reliable connectivity that are unacceptable.”
More on the project: The proposed plan would build a fiber-optic network under the San Pedro Channel, running from two points on Catalina Island to landings near Huntington Beach. Those cables will then connect to the Middle Mile Broadband Network in Stanton.
What’s next? AVX Networks filed a federal lawsuit against the CPUC in July, arguing that CPUC staff terminated the deal without notice and without a formal CPUC vote, according to court documents. A hearing is scheduled for early December, according to Ware. Attorneys for CPUC did not immediately respond to LAist’s request for comment.
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