New CPUC Rulemaking on Carrier of Last Resort Obligations Will Help to Ensure No Customers Are Left Behind

On June 20, 2024, the California Public Utilities Commission (CPUC) made a significant decision to reject AT&T's application to withdraw from its Carrier of Last Resort (COLR) obligations. The COLR obligation ensures that service providers within a specified area are required to offer basic phone service to any customer who requests it, including low-income households. This essential universal service obligation acts as a safety net that guarantees all Californians have access to safe, reliable, and affordable phone service. Had AT&T's application been approved, approximately 29.5 million Californians, including over 500,000 traditional landline customers, would have been left without guaranteed phone service.

In addition to denying AT&T's application, the CPUC has initiated a new rulemaking proceeding to consider potential revisions to its COLR rules. This rulemaking provides the opportunity to comprehensively address the issues on an industry-wide basis to ensure that customers are supported and not left behind, as AT&T intended to do.

The new rulemaking is crucial for several reasons:

1. Transitioning to Modern Infrastructure: This rulemaking provides an opportunity to address the transition from legacy communications networks to modern broadband infrastructure. It aims to manage customer migration in a holistic and transparent manner, ensuring that no customer, especially those most vulnerable, is left behind.

2. Redefining COLR Obligations: The initiative may redefine COLR obligations and establish clear guidelines to prevent customers from being abandoned without assurance that they will receive safe, reliable phone service.

3. Balancing Modernization with Public Safety: Technological advancements must not come at the expense of public safety. Communications companies' eagerness to upgrade their networks must be balanced with caution, particularly when considering vulnerable populations, emergency services, and others who may still rely on copper lines. Only after developing guidelines and plans to transition to quality and resilient broadband networks can an assessment of COLR obligations and guidelines be made.

The CPUC has already established milestones for the new rulemaking, including the submission of proposals from interested parties by September 2024. This year will see significant action towards network modernization, which must be addressed thoughtfully and comprehensively, keeping the public's best interests and safety in mind. Californians deserve transparency in this process and a full commitment that their communities will not be left behind.

The CPUC's rejection of AT&T's application and the initiation of a new rulemaking proceeding underscore the importance of safeguarding universal access to communications services in California. As we transition to modern broadband infrastructure, it is essential to ensure that all customers, especially the most vulnerable, continue to have access to reliable and affordable communications services.