AT&T’s Request to Withdraw from Its Carrier of Last Resort Obligation Would Leave Over 29 Million Customers Without Guarantee of Phone Service

(Posted on February 21, 2024. Updated on April 5, 2024)

In a state known for its wildfires, earthquakes, and lack of cell service in remote areas, landlines can be a crucial means of communication in times of emergency for millions of Californians, especially those in rural areas, the elderly, people with disabilities and serious health conditions, and others who rely on access to this lifeline service. In early 2023, AT&T filed a carrier of last resort (COLR) withdrawal application that, if granted, would leave approximately 29.5 million Californians and over 500,000 traditional landline customers with no guarantee of phone service.

A carrier of last resort designation essentially means that the service provider within a specified area is obligated to provide basic phone service to any customer that requests it. This essential universal service obligation is a safety net that ensures that all Californians have access to safe, reliable, and affordable phone service.

Carrier of last resort obligations are not barriers to modernizing the communications network as AT&T has claimed. AT&T has the ability to modernize its network and has done so in many areas, but there are still many communities left behind. The danger of using claims that AT&T’s carrier of last resort application is about modernizing its network is the false assumption that customers that currently have a landline will be transitioned to fiber network connections. However, AT&T has not committed to installing fiber service everywhere it has landline customers.

On June 30, 2023, our office filed a motion to dismiss AT&T’s COLR withdrawal request because the application is unlawful and withdrawal would come at a high cost – AT&T is asking the California Public Utilities Commission (CPUC) to effectively change the universal service access to communications services rules and remove the safety net that guarantees access to affordable, quality phone service for customers.

This is a huge deal because what AT&T is proposing would essentially redefine what a carrier of last resort is obligated to do for its customers – according to the rules, an existing carrier of last resort cannot relinquish its service obligations without a replacement provider stepping in. However, AT&T has failed to identify a replacement carrier of last resort and no equivalent pathway to guarantee universal service in its place. A motion to dismiss the application will ensure these customers are protected.

If AT&T’s application is granted, the decision would mostly serve to harm our most vulnerable populations, including low-income customers who participate in the California LifeLine program (which provides discounted home phone and cell phone services to qualified households) and those who participate in the Deaf and Disabled Telecommunications Program (which provides communications equipment and services to persons with disabilities).

The state’s telecommunications policy, including the CPUC’s Environmental and Social Justice Action Plan, is founded on an ongoing commitment to universal service by assuring the continued affordability and widespread availability of high-quality telecommunications services. AT&T’s obligations to offer phone service are an important component of universal access to communications services because these obligations ensure that customers who want service, receive it.

In addition to our motion to dismiss AT&T’s application, our office has also asked the CPUC to consider the following:

• Require AT&T to cure all chronic service quality issues prior to any grant to relinquish carrier of last resort obligations.
• Require AT&T to develop and provide a migration plan to assist impacted customers in transitioning to a new provider if a new carrier of last resort is designated.
• Assess the environmental impact of removing or abandoning thousands of miles of newly obsolete and unmaintained lead-sheathed copper cables in accordance with the California Environmental Quality Act and the CPUC’s Environmental and Social Justice Action Plan.
• Assess the impact of AT&T’s withdrawal on customer public purpose programs, such as customers enrolled in the Affordable Connectivity Plan (in addition to those enrolled in the California Lifeline program and the Deaf and Disabled Telecommunications Program).

To learn more about how AT&T’s carrier of last resort withdrawal request and how it can affect your service, please see our co-authored fact sheet here.

If you’d like to find out more information or share your input regarding this decision and our motion to dismiss AT&T’s application, you can go to the CPUC’s website here to learn more.