Elimination of Carrier of Last Resort Obligations Will Result in Unaddressed Critical Access Issues

Overview

The California Public Utilities Commission (CPUC) recently dismissed AT&T’s proposal to relieve the carrier from its obligation to serve all customers in its service territory, without any carrier stepping in to provide service. The obligation, referred to as Carrier of Last Resort (COLR), requires the service provider within a specified area to provide basic phone service to any customer that requests it, including low-income customers. There are 16 carriers who serve as COLRs and provide service to approximately 952,000 customers. Phone service can be provided over various wireline technologies including fiber networks.

We support the CPUC’s decision to dismiss AT&T’s proposal, as this essential universal service obligation is a safety net that ensures all Californians have access to safe, reliable, and affordable phone service. However, a bill currently working its way through the legislature, AB 2797, would essentially undermine the CPUC’s decision and allow these 16 carriers to withdraw from their COLR obligation. To read more about the potential issues regarding AB 2797 and the elimination of COLR obligations, please see our fact sheet below. 

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