Bureaucracy is Stifling California Small Businesses
Small businesses throughout the Golden State, especially those in rural or underserved communities, are on pins and needles as the California Public Utilities Commission (CPUC) ponders Verizon’s acquisition of Frontier. The acquisition, despite scrutiny from the commission, would greatly increase connectivity and generate hundreds of millions of dollars in contract opportunities.
Entrepreneurs in the state are already fighting an uphill battle. After a second straight quarter of declining revenue, California is seeing its small businesses in Los Angeles, Sonoma, Napa and Mendocino counties close their doors. High taxes, increasing operational costs, worker shortages and a burdensome regulatory environment are adding fuel to the fire. Yet the CPUC is sitting on its hands when it comes to expanding access to a $900 billion market that can help these very businesses grow exponentially.
The merger is not simply a business agreement. It is a significant investment in California’s broadband future that strengthens competition, expands fiber access and accelerates the modernization of essential telecommunications infrastructure across the Golden State. At its core, it’s a chance to support small businesses, narrow the digital divide and safeguard affordable, high-quality connectivity for millions of Californians.
Verizon’s scale, resources and operational expertise will stabilize stalling networks and extend fiber service to our communities where it’s needed most. Families, farmers and small businesses depend on reliable, high-speed internet for work, education and telehealth. By expanding broadband access and creating new opportunities, the merger addresses two of the most significant challenges facing small and minority firms.
That’s why organizations from the United States Hispanic Business Council, to the California Hispanic Chambers of Commerce, Hispanic Chamber of e-Commerce and Oceanside Chamber of Commerce, are calling on the CPUC to move swiftly and approve the merger. With such tangible benefits to California’s businesses and families, coupled with the commission’s questionable track record, one can only wonder why the CPUC is dragging its feet.
The unfortunate reality is that this hesitation is nothing new for the Commission. They often are slow-walking critical projects, misjudging market forces or imposing requirements that ultimately harm families and small businesses. Whether it was delaying wildfire mitigation approvals, mishandling broadband programs or greenlighting rate increases without real accountability, the CPUC has built a track record of decisions that create more problems than they solve.
California cannot afford to fall further behind. Businesses are already leaving in droves. Other states are moving swiftly to modernize broadband, attract new investment and support small business growth. Yet here, where the need is just as urgent, the CPUC seems content to stall progress. Approving the merger would signal that California intends to remain competitive, that it understands the role connectivity plays in economic mobility and that it is willing to support private-sector investment when it aligns with public benefit.
The longer the Commission delays, the more harm is done to the very communities it claims to protect. Small businesses are already navigating higher costs, shrinking margins and an unpredictable economic climate. They need clarity and opportunity, not more uncertainty created by regulatory indecision. Every day without approval is another day that contractors can’t bid, communities can’t upgrade their networks and families can’t access the internet speeds they’ve been promised for years.
At the end of the day, this is a test of priorities. The question before the CPUC is simple: will it continue to bury opportunity under layers of bureaucracy and incompetence, or will it finally act in the interest of small businesses, working families, and underserved communities? The state’s economic future depends on the answer. The Commission should move before more communities lose out on the growth and stability they desperately need.
About Javier Palomarez
Javier Palomarez is the President & CEO of the United States Hispanic Business Council (USHBC), a leading voice for small businesses in national media, whose opinions have been sought after by the world’s top media outlets including CNN, MSNBC, NBC, FOX Network, and the BBC. He is an acclaimed spokesperson for small business and entrepreneurship, as well as a nationally recognized leader in the Hispanic community, being recognized as one of America’s most influential Hispanics for over a decade. The son of Mexican immigrants, Mr. Palomarez was raised in South Texas.