On Monday, June 10th, Assembly Bill 2797 (McKinnor) was“gutted and amended” to (1) phase out Carrier of Last Resort (COLR) protections; and (2) begin a process—with no oversight—to remove basic phone service. AB 2797 would erode Universal Service Rules and ensure hard-to-serve and unprofitable areas have no guaranteed access to basic voice services, disproportionately affecting rural counties and disadvantaged communities.
This action comes on the heels of the recent issuance of a draft Proposed Decision by the California Public Utilities Commission (CPUC) rejecting AT&T’s controversial Application for COLR Relief with prejudice, concluding that legal and factual analysis is fatally flawed and erroneously misconstrues the CPUC’s Universal Service Rules. The Proposed Decision, as well as a new proceeding on COLR Rules, will be considered at the CPUC’s June 20, 2024, Voting Meeting. In response to the CPUC’s rejection, AT&T is sponsoring AB 2797, which applies to all Incumbent Local Exchange Carriers (ILECs) with COLR status; to view a map of carrier territories, see here.
COLR status ensures the availability of basic “plain old telephone service” (POTS) to any residential or business customer in its service territory to ensure universal access to safe, reliable, and affordable telephone service. POTS also has a uniform set of minimum service standards and regulations that does not extend to new technologies that provide similar service, such as wireline VoIP (Voice Over Internet Protocol) or wireless phones. AB 2797 requires telephone corporations to identify, as part of the relief notice to discontinue legacy voice service: (1) a census block of the telephone corporation’s service territory where there is no population or where the company has no basic exchange telephone service customers; or (2) a census block designated as urban where 2 or more different service providers offer alternative voice services, as defined, to customers, or both. Census areas affected by AB 2797 can be viewed here. There is no process established by AB 2797 to dispute errors or reject COLR relief that gets “noticed” by a telecommunications carrier.
RCRC opposes AB 2797. For more information, please contact RCRC Senior Policy Advocate Tracy Rhine.