California won’t let AT&T off the hook for landline phone services

  • AT&T's request to be relieved of its duties as carrier of last resort in California has been denied
  • The matter drew a lot of concern from Californians who feared losing their vital telephone service
  • AT&T can't revisit the matter for at least one year

At a meeting last week, the California Public Utilities Commission (CPUC) voted to deny AT&T’s request to be released from its duties as Carrier of Last Resort (COLR) in the state. But CPUC intends to initiate a new rulemaking process to address COLR obligations.

Currently, AT&T is the designated COLR in many parts of the state and is the largest COLR in California. This means that it must provide basic telephone service, commonly via landline, to anyone who requests it in its specified areas.

AT&T had asked to withdraw as the COLR without a new carrier being designated as a replacement. But CPUC has denied that request.

According to CPUC, it received over 5,000 public comments about the matter. CPUC also held eight public forums, drawing more than 5,800 attendees.

CPUC stated in a May 10 press release in advance of its June 20 vote, “Despite AT&T’s contention that providers of voice alternatives to landline service — such as VoIP or mobile wireless services — can fill the gap, the CPUC found AT&T did not meet the requirements for COLR withdrawal. Specifically, AT&T failed to demonstrate the availability of replacement providers willing and able to serve as COLR, nor did AT&T prove that alternative providers met the COLR definition.”

AT&T had argued that it needs to retire its old copper telephone services so that it can divert capital funds to building superior fiber broadband connections.

But CPUC said COLR rules do not prevent AT&T from retiring copper facilities or investing in fiber to improve its network.

In the decision dismissing AT&T’s application, CPUC said, “The law and facts of this case are such that AT&T’s Application must be dismissed with prejudice. The Commission’s COLR Rules require the presence of another COLR, either one already in place or one willing to replace AT&T. No other COLR serves AT&T’s service territory, and no potential COLR volunteered to replace AT&T.”

The Dallas-based communications provider is prohibited from revisiting the matter with CPUC for at least one year.

CPUC does plan to review its COLR rules, acknowledging that there have been a lot of changes in the marketplace.