California rejected AT&T’s (NYSE: T) bid to stop offering landline telephone service and other services as the Carrier of Last Resort (COLR). The action means the carrier must continue providing landline telephone service in mainly rural areas of the state if customers there request the service.
AT&T is the largest COLR in the state, including rural and rugged areas that rely on landlines. AT&T’s request to stop being the COLR could not be honored because there is no other carrier being designated, the California Public Utilities Commission (CPUC) said, according to KTXL-TV. Marin County said AT&T’s request, made in March 2023, would have ended services to over 580,000 eligible households throughout the state.
“Our vote to dismiss AT&T’s application made clear that we will protect customer access to basic telephone service – no matter where they live, income, or access to other forms of communication,” CPUC Commissioner John Reynolds said. The CPUC said AT&T no longer wanted to be a COLR because the carrier no longer receives federal high-cost support to provide universal services.
Sierra County, one of California’s most rural counties, voiced concerns in February if AT&T were to be relinquished of its COLR obligations, reports KTXL-TV. County leaders cited massive changes in elevation, severe weather conditions, public safety power shut-offs, and the potential for wildfires as critical issues for why their community is in need of a reliable COLR.
The CPUC said the decision does not prevent AT&T from retiring copper facilities or investing in fiber or other facilities or technologies to improve its network, according to Reuters.
The carrier said it’s committed to ensuring customers can keep their existing traditional landline voice service until they have access to an alternative. “No customer will be left without voice and 911 services,” said AT&T California President Marc Blakeman.
The CPUC opened a new rulemaking proceeding on Thursday to adapt its regulations to evolving market conditions and technological advancements.
AT&T said it’s required to go through a stringent review process by the FCC that ensures Californians retain access to reliable voice services, notes Reuters. It also cited proposed legislation that would ensure rural customers are not impacted. “We are fully committed to keeping our customers connected while we work with state leaders on policies that create a thoughtful transition that brings modern communications to all Californians,” said Blakeman.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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