Race Communications Bets $200M on California's Fiber Frontier

SAN FRANCISCO, CA – March 26, 2026 – Race Communications, a California-based fiber optic provider, is accelerating a major expansion across the state, backed by an initial private investment of more than $200 million. The move signals an aggressive push to extend its 100% fiber-to-the-home (FTTH) network into more than 25 cities, challenging incumbent telecommunication giants in key regions from San Diego County to the Sacramento Valley.

This expansion will bring Race’s high-speed fiber deployments to communities including Bakersfield, Fresno, Atwater, Merced, Porterville, and Modesto. The company underscored that the massive infrastructure project is being financed without the use of taxpayer dollars, setting it apart from numerous government-subsidized efforts to bridge the digital divide. The investment follows recent successful launches in cities like Lancaster, Ridgecrest, and Chico, building on a statewide presence that the company has cultivated for over three decades.

“No other provider is investing at this scale and pace. We have always believed that every Californian deserves access to world-class internet, not the slow, inconsistent service that big telecom has delivered for decades,” said Raul Alcaraz, Race Communications founder and CEO, in a statement. “Our commitment to California is clear, and it’s not new. We are moving aggressively to make these expansions a reality because hundreds of thousands of Californians are done waiting for a better way to connect.”

A New Front in California's Broadband Battle

Race Communications’ expansion enters a fiercely competitive California broadband market. While the company bills itself as the state's largest privately held 100% FTTH provider, it faces formidable opponents with significantly larger footprints. Industry data shows that major players like AT&T Fiber and EarthLink Fiber each have availability across roughly 31% of the state, while Frontier Communications’ fiber network reaches nearly 20% of California households.

In contrast, Race’s current fiber availability is more localized, making this expansion a critical step in its bid for greater market share. The company’s strategy appears to be a targeted insertion into markets with a demonstrable need for more competition and higher speeds. For example, in expansion targets like Bakersfield and Fresno, AT&T Fiber is a top-rated provider but its network coverage remains limited, often leaving residents with cable as the only high-speed alternative. In Bakersfield, Race will also contend with SiFi Networks' “Bakersfield FiberCity,” another privately funded project aiming to build an open-access fiber network passing every address in the city.

This influx of private capital is poised to intensify competition, which state regulators believe ultimately benefits consumers. A January 2026 report from the California Public Utilities Commission (CPUC) noted that overlapping gigabit-capable networks create “downward pressure” on pricing, potentially saving California consumers over a billion dollars annually as providers vie for customers with promotional offers and better service.

Bridging the Digital Divide with Private Capital

The company's decision to forgo public subsidies is a significant element of its strategy. While federal initiatives like the Broadband Equity, Access, and Deployment (BEAD) program and state funds like the California Advanced Services Fund (CASF) are pouring billions into connecting unserved and underserved areas, Race is leveraging private capital. This approach, backed by its majority investor Oak Hill Capital, allows for greater agility and potentially faster deployment by avoiding the complex administrative requirements tied to government grants.

This private funding model enables the company to be market-driven, focusing on areas where it identifies a strong business case for deployment. While these targeted cities have existing internet options, universal access to high-speed, symmetrical fiber is far from a reality. Pockets within these communities often experience a localized digital divide, where one neighborhood has access to gigabit speeds while another just blocks away does not. By building out comprehensive fiber networks in cities like Modesto and Merced, Race aims to close these internal gaps and offer a uniform, high-quality service to all residents.

The expansion is crucial for the economic health of these regions. Cities like Fresno are emerging as tech hubs, and Bakersfield has been recognized as a top destination for remote work—trends that are heavily dependent on robust, reliable internet infrastructure. The availability of multi-gigabit fiber can attract new businesses, support remote education, and provide the digital foundation for future economic growth.

The 10-Gigabit Promise

At the core of Race's expansion is its commitment to deploying true fiber-to-the-home technology capable of delivering speeds up to 10 gigabits per second (Gbps). Unlike cable or fixed wireless, fiber optic networks offer symmetrical speeds—meaning upload speeds are as fast as download speeds. This is a critical advantage for households with multiple users working from home, attending online classes, gaming, or creating content.

The push for 10G connectivity is a move to future-proof its network, building an infrastructure designed to handle the exponential growth in data consumption and the rise of next-generation technologies like virtual and augmented reality. This technological edge is a key part of the company's value proposition.

Race's strategic growth was also bolstered by its 2025 acquisition of Atherton Fiber, a provider known for its top-tier speeds and high-touch customer service in the Bay Area. That acquisition, also backed by Oak Hill Capital, signaled a focus not just on expanding footprint, but also on integrating a culture of premium service and technical excellence. This strategy aims to differentiate Race from larger incumbents often criticized for poor customer support and confusing pricing structures. The company advertises transparent pricing with no hidden fees, data caps, or throttling, a direct appeal to consumers frustrated with traditional telecom practices.

“Race is California through and through, and we have no plans of slowing down,” Alcaraz stated. “We understand how important a high-quality online experience is for every city, and we’re proud to continue building an infrastructure that truly supports the way Californians live and work.”