By Flávia Martini Andrade da Silva
On May 10, 2024, Administrative Law Judge Thomas J. Glegola rejected the Pacific Bell Telephone Company, doing business as AT&T California (AT&T), requesting to withdraw as a carrier of last resort (COLR). In response, on June 20, 2024, CPUC filed an Order Instituting Rulemaking Proceeding to Consider Changes to the Commission’s Carrier of Last Resort Rules [R.24-06-012].
On March 3, 2023, AT&T applied for relief from its COLR obligations, requiring the company to provide basic telephone services throughout its service area, regardless of its profitability [A.23-03-002]. COLR is designed to ensure universal telephone service in California, particularly in remote or high-cost regions where other providers might be unwilling to offer service. AT&T argued that the obligation was outdated, pointing to the changing telecommunications landscape and the growing availability of alternative communication services, such as mobile and internet-based platforms. The allegation triggered strong opposition from consumers and advocacy groups, including The Utility Reform Network (TURN), who strongly opposed the move, arguing that AT&T’s withdrawal could leave vulnerable populations without access to reliable service. In his decision, ALJ Glegola upheld CPUC’s commitment to protect consumers, highlighting the ongoing challenge of balancing technological advancements and the lack of suitable alternatives.
R.24-06-012 aims to critically revise COLR rules, focusing on updating these obligations to better align with contemporary needs, such as integrating broadband services with traditional telephone services. Alongside this, enhancements to the High Cost Fund programs will provide financial support to telecommunications providers serving areas where operational costs far exceed those in urban settings. These enhancements are designed to encourage providers to invest in infrastructure improvements and expand services in high-cost regions. All of these efforts are in alignment with California’s Broadband for All initiative, which seeks to provide statewide, equitable broadband access, particularly in areas that have historically experienced connectivity gaps. This includes the pivotal Last Mile Federal Funding Account Grant Program, which aims to extend broadband internet access to underserved and unserved communities across the state.
As of this writing, the rulemaking proceeding has been assigned to Commissioner John Reynolds and ALJ Glegola. CPUC has not taken further action.