AT&T is on a mission to build out its national fiber-to-the-home footprint and wants to forsake copper DSL, but it will have to wait on that endeavor in California.
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 the state’s “carrier of last resort” (COLR), and urged the company to upgrade copper facilities to fiber instead of trying to shut down the outdated parts of its network.
The agency said that because of AT&T’s status as the COLR, it must continue to provide basic telephone services, typically via landline, to anyone who requests it in its specified areas.
“As the designated COLR, AT&T plays a pivotal role in providing reliable telephone service to communities across the state,” CPUC said in an announcement released last week.
“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."
Dallas-based telecom AT&T has long been trying to retire its expensive and lightly-used copper telephone wires (which power some of its landlines in rural areas) so it can allocate more funding to building fiber broadband connections.
AT&T CEO John Stankey wrote in a social media post in May that the company shouldn’t be expected to operate in areas where there is little business.
“It’s time to do what capitalism is best suited to do,” Stankey wrote. “Deploy capital and resources to their highest and best use for customers, communities, and society at large.”
For its part, CPUC contends that AT&T is free to abandon copper DSL — it just needs to provide a low-cost, reliable connectivity option to California consumers.
“AT&T’s public arguments paint the picture that the Commission’s COLR Rules require AT&T to retain outdated copper-based landline facilities that are expensive to maintain, or that AT&T needs Commission approval in order to be able to retire copper facilities and instead, invest in more modern technologies such as VoIP, wireless, and fiber,” CPUC wrote. “These arguments are not accurate.”
Still, AT&T is prohibited from revisiting the matter with the CPUC for at least one year — meaning it’s stuck with its COLR duties until at least next June.
“The law and facts of this case are such that AT&T’s Application must be dismissed with prejudice,” CPUC said. “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.”
According the CPUC, it received more than 5,000 public comments from across eight forums held about AT&T’s request to terminate its copper landlines.
CPUC said that its decision reflects its dedication to maintain service standards and address the residents who depend on telephone landline services.
“The COLR rules safeguard telephone service by ensuring Californians have access to at least one telephone company that offers reliable service, access to 911, customer protections, and affordable service through the state's Lifeline program,” CPUC president Alice Reynolds added. “We subsidize the COLRs through our high-cost fund programs to offset the cost of providing service in these remote areas.”
Despite its refusal, the committee did say it would open another inquiry to address COLR obligations, given changes in the marketplace.
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