The Public Advocates Office’s Vision for a Modernized Carrier of Last Resort Framework

California stands at a crucial juncture in its efforts to ensure equitable access to modern telecommunications services. On December 6, 2024, the Public Advocates Office submitted a proposal to the California Public Utilities Commission (CPUC) to modernize the Carrier of Last Resort (COLR) framework – a set of regulations designed to guarantee universal access to essential communications services. This proposal is founded on a straightforward principle: California’s major telecommunications service providers should transition to modern broadband infrastructure while ensuring no one is left behind.

Throughout the 20th century, California partnered with the telecommunications industry to achieve universal communications service, from the monopoly era to the advent of competition in the 1990s. This collaboration succeeded in providing nearly every household in the state with access to basic voice service. Now, it is time to turn the page and modernize our regulations to deliver 21st-century-ready communications access to all Californians. As we described in a previous post, this begins with updating the COLR rules to establish a clear pathway for transitioning from traditional voice services to modern broadband access.

This modernization is necessary because broadband access is an essential service. No one today can fully participate in our 21st-century society without broadband. Participation in the economy, healthcare, education, community life, and government engagement all depends on broadband connectivity. Therefore, it is time to move towards meaningful reform of the COLR framework that recognizes the operational realities of major telecommunications carriers such as AT&T and Frontier and establishes a pathway to redirect resources from maintaining outdated infrastructure toward deploying modern broadband-ready systems. 

However, this transition cannot come at the expense of the public interest. Just as we would not tolerate water or electric utilities disconnecting customers while modernizing their infrastructure, broadband must be held to the same standard.

The ultimate outcome of any COLR reform decision should be to ensure continuous service while advancing California’s connectivity for the future.

Bringing Universal Service into the 21st Century

Our recently filed proposal provides a comprehensive plan to achieve universal broadband access. If implemented, the public will benefit from access to broadband service in areas that lack it today. The proposal outlines a detailed process that a COLR must follow to withdraw from its existing COLR obligations, including clear guidance on:

• Migrating customers.
• Maintaining affordable service prices.
• Meeting service quality standards.
• Prioritizing customer needs throughout the transition process.

We also provide significant flexibility to COLRs by exempting extremely high-cost areas under certain circumstances and allowing for the withdrawal of service obligations where no one lives. These efforts refocus resources on expanding broadband access while staying committed to universal service.

Notably, our proposal establishes the minimum speed for broadband at 100/20 Mbps, aligning with the federal minimum standard set under the bipartisan 2021 Infrastructure Investment and Jobs Act. This speed is the federal government’s benchmark for sufficient internet access. While 100/20 Mbps does not require fiber-to-the-home, it necessitates significant network upgrades with fiber optics that pave the way for future connectivity.

To safeguard public safety, our proposal ensures that the new broadband service matches existing reliability and quality metrics. This is critical as Californians increasingly rely on modern applications during emergencies such as floods or wildfires. While copper-based infrastructure may be outdated, it is resilient and retains voice communications during disasters. Any replacement broadband infrastructure must have equal or greater resiliency than copper systems to ensure public safety is not compromised. Modernization should enhance – not diminish – resiliency and preparedness during emergencies.

We Must Upgrade the Promise of Universal Service
The multi-decade policy effort by states and the federal government to deliver universal service is rooted in the belief that communication is a fundamental right. The COLR framework reflects this historical commitment, recognizing that access to communication services is as essential to modern life as water and electricity. While some COLRs argue that universal broadband deployment is unrealistic, many similarly developed countries have already surpassed California in this endeavor. Countries in Europe and Asia have achieved near-universal fiber-to-the-home access, setting a standard California should aspire to meet. California should continue to lead the nation in delivering the benefits of universal broadband access to its residents.

Our Office’s proposed plan presents the CPUC with an opportunity to propel California’s universal service commitment into the future by providing 21st-century connectivity to hundreds of thousands of Californians. In today’s world, that connectivity means broadband. We urge the CPUC to seize this opportunity and deliver these transformative benefits to the public by adopting the Public Advocates Office’s proposal.

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