Modernizing COLR Should Leave No One Behind

 

 

Every Californian has a legal right to basic phone service – no matter where they live. This right is protected by California’s Carrier of Last Resort (COLR) rules, which require at least one telephone company in every area to provide service to anyone who requests it. 

Telecommunication companies have historically delivered universal access to phone service through traditional copper landlines. But the universal access rules themselves are technology- neutral: companies can meet their obligation using any method – copper, fiber, wireless, or Voice over Internet Protocol (VoIP) – as long as they deliver reliable voice service to everyone who needs it. 

Today, the California Public Utilities Commission (CPUC) is undertaking a review of its COLR rules, which govern the responsibilities of major telecommunication companies such as AT&T and Frontier, as well as a handful of smaller carriers. In earlier posts, we explained the history of COLR regulations and shared our proposal to bring COLR rules into the 21st century by requiring providers to deploy broadband at 100/20 Mbps for Californians. 

In this blog post, we highlight three key priorities that any modernization effort must address:

 

1. Withdrawal from COLR should not mean walking away from customers.
2. COLR withdrawal must be regulated to protect the public interest.
3. Carriers must build broadband first to avoid leaving communities behind.

Ensuring Withdrawal Is Not Abandonment

AT&T has drawn significant attention to the issue of withdrawal as the first COLR to seek release from its statewide obligations – this could impact 75% of California’s population. 

Figure 1. AT&T’s Service Territory in California

However, as Dr. Sherry Lichtenberg of the National Association of Regulatory Utility Commissioners stated at a recent legislative hearing, the removal of COLR “doesn’t mean walking away.” It’s crucial that COLRs not simply exit their obligations, especially when public safety is at stake. 

AT&T’s copper-based networks – paid for by customers and public dollars over decades – remain essential infrastructure in many areas, especially where cell service is unreliable or unavailable. In the last year alone, Californians placed over 1 million 911 calls using copper-based landlines – a statistic that should give us all pause before entirely dismissing copper infrastructure as obsolete.

The risk of losing a consistent and guaranteed communications line is real: if companies are allowed to exit their COLR obligations without first ensuring equivalent or better service, entire communities could be left disconnected during power outages, disasters, or medical emergencies. The Public Advocates Office’s proposal addresses this problem directly. It ensures that no customer is abandoned by requiring providers to maintain – or improve – existing levels of service before removing their COLR obligations.

Build Broadband Before You Exit

The Public Advocates Office supports modernization. But it must be done responsibly. If a company wants to withdraw from its COLR obligations, it should first provide reliable broadband infrastructure with speeds at 100/20 Mbps or better. Communities should not be left waiting for vague promises. At the core of our proposal is the principle that providers must ensure the infrastructure is in place before exiting COLR obligations.

The Public Advocates Office’s proposal outlines clear performance standards, oversight mechanisms, and timelines to ensure the transition is real, not just theoretical. It requires a portion of the cost savings the industry is projected to realize from eliminating its copper network, which is expected to exceed $1 billion in savings for California alone, to be reinvested in customer infrastructure. This approach ensures that the benefits of modernization are shared with the public, not just industry.

COLR Rules Are About Access, Not Copper

COLR has never been about preserving copper networks; it is about guaranteeing access to reliable communications services.  The CPUC made this clear more than a decade ago when it determined that COLR service could be delivered through “wireline, wireless, and VoIP or any other future technology” that provides telephone service. Despite the flexibility they’ve been provided, companies like AT&T continue to argue that COLR rules force them to maintain outdated infrastructure. The truth is companies are free to modernize – as long as they guarantee service quality and availability to every customer. 

Modernization should mean progress – replacing outdated infrastructure with something better, not removing access altogether. 

AT&T has admitted it plans to upgrade only part of its network from copper to fiber. The areas AT&T wants to exit – what the company calls “low utilization” and “low profitable” geographies – include many rural and low-income areas. These are exactly the areas where COLR protections are most essential. 

Figure 2. Q1 2024 Statement from AT&T Earnings Call 

The Public Advocates Office proposal ensures that “low utilization geography” and “low profitable geography” areas, such as rural and low-income communities, are not left behind. Broadband deployment must be a pre-condition to COLR withdrawal.  That way the benefits are shared with the public and carriers alike. 

Striking an Equitable Balance Between Private and Public Interests

Modernization does not have to come at the public’s expense. Like water and electricity companies, telecommunications companies provide an essential service that comes with an obligation to serve everyone, not just the most profitable customers.  A regulated transition towards modern broadband infrastructure must ensure that 21st century infrastructure does not leave people with no access at all. 

We should not sacrifice the values inherent in our laws simply to boost the profits of already profitable companies. Existing customers have paid these companies monthly bills for years or even decades, generating billions of dollars in cumulative revenues. From 2015 to 2021, federal public spending on companies like AT&T in California exceeded $420 million. COLR companies are uniquely positioned to recover their costs because they already have a customer base, and demand for broadband remains high and consistent.

The Public Advocates Office’s proposal is structured to create shared long-term benefits. Companies like AT&T would still realize long-term profits from modernizing – through lower operating costs, resale of copper infrastructure, and more efficient networks. However, under our framework, we ensure reinvestment into communities so that reliable, high-speed broadband is built in the areas that need it most. Without a mandate to build broadband in exchange for COLR withdrawal, the gains or savings will go exclusively to shareholders and investors.

Don’t Lower the Bar in the Name of Progress

Communications access is a public good. As we modernize, we must ensure that 21st century infrastructure meets at least the same standard as what it replaces. That includes:

- Guaranteed access to reliable service.
- Continued support for people with disabilities.
- Access to low-income assistance programs.
- Legally enforceable service quality standards. 

Ultimately, we do not need to choose between modernization and equity. We can have both, and the end result will benefit both COLRs and the public. California has a long history of setting the standard for universal, non-discriminatory access. We need to carry that tradition into the modern, broadband era, and ensure all customers have guaranteed access to communications services.