Updating California's Carrier of Last Resort (COLR) Rules for the Telecommunications Modern Era

On October 30, 2024, the Public Advocates Office submitted arguments in Rulemaking (R.) 24-06-012 that California’s Carrier of Last Resort (COLR) regulatory framework remains essential to ensuring universal telephone service for all Californians. 

However, these rules, originally designed around traditional telephone service, need to be updated to reflect the state’s changing telecommunications landscape, including the growing role of broadband internet.

The COLR obligation requires telecommunications companies to provide basic service to anyone within their service area who requests it, which ensures that no Californian is left without access to essential communications services. In today’s world, access to reliable telecommunications is crucial not just for making phone calls but for participating fully in society—whether in education, employment, healthcare, or public safety. Updated COLR rules that include broadband service would guarantee universal communications service for all Californians, especially those in rural or high-cost areas.

Why the Carrier of Last Resort (COLR) Still Matters
Historically, telecommunications carriers designated as COLRs utilized Plain Old Telephone Service (POTS) copper networks to fulfill the COLR obligation.  Today, carriers are migrating their networks from copper-based POTS to fiber optic systems and other technologies that support broadband and VoIP (Voice over Internet Protocol). This shift brings new opportunities to deliver essential service, but it also raises questions about service reliability and accessibility, particularly as broadband is now crucial for everyday life.

Why the Rules Need to Evolve
In R.24-06-012, the CPUC will evaluate whether to update the COLR rules to account for the essential role that broadband now plays in society. A key issue in the proceeding is whether COLRs can provide safe, reliable, and affordable basic telephone service via VoIP, which requires a fast and reliable broadband connection.

Telecommunications companies argue that the old COLR framework is outdated, and the obligation to provide service should be lifted. The Public Advocates Office opposes the abandonment of the COLR obligation without a guarantee of universal service. To allow a COLR to withdraw from their obligation with nothing to take its place could leave vulnerable populations without access to necessary communications services.

The benefits of an update to the COLR rules include:

• Ensuring Universal Access to Broadband: Broadband delivered at speeds of at least 100/20 Mbps is essential for modern social participation, from online learning to accessing telehealth and public safety resources.
  
• Safeguarding Against Service Gaps: Without the COLR framework, service providers may opt out of serving remote or low-income areas where service provision is less profitable.
• Strengthening Service Quality and Affordability Standards: COLR obligations enable California to set and enforce minimum service quality and affordability standards, helping ensure that providers offer reliable and accessible service to all Californians, regardless of location or economic circumstances.

States Have Clear Authority to Regulate Broadband Service
The state’s COLRs, other carriers, and associated industry groups argue that broadband should not be regulated by the state and claim that the Public Advocates Office lacks the authority to obtain their data. However, the CPUC and federal courts have confirmed that states retain the right to regulate broadband. The Federal Communications Commission’s (FCC) reclassification of broadband as an "information service" reduced only its own regulatory authority over broadband, leaving the states’ regulatory power intact. Additionally, Section 706 of the Telecommunications Act of 1996 explicitly allows states to promote the deployment of advanced communication services, including broadband and VoIP, which reinforces California’s authority in this area.

Moving Forward with Modernized COLR Obligation
Our office advocates for COLR rules that reflect today’s technology and service needs, protecting Californians from being left behind in a digital world. By updating the COLR framework to include broadband, California can continue to ensure universal service for its residents, now and into the future.

For more information, please refer to our initial proposal: Proposal to Consider Changes to the Commission’s Carrier of Last Resort Rules.

For any inquiries, please contact Mary Flannelly at mary.flannelly@cpuc.ca.gov.