AT&T filed several petitions at the FCC asking the Commission to override regulations from the State of California. The State is forcing AT&T to maintain copper networks until such time that AT&T can offer the same services to customers using some alternate technology.
The FCC reacted by issuing two requests for public comments related to the AT&T petitions. In the first, the FCC asks for comments related to its ability to preempt California’s regulations related to copper networks. The second asks for public comments related to AT&T being able to walk away from carrier-of-last-resort responsibilities in California as it tears down copper networks.
These proceedings ask some interesting questions, although my hunch is that the FCC already plans to preempt California on these issues and is only going through the formalities first.
One interesting issue raised is whether the FCC can grab regulatory authority from a State. The historic framework for telecom regulation has always been that States are free to regulate anything that the FCC elects not to directly regulate. Back when AT&T was the primary telephone company, every state had numerous regulations related to telephone companies. The FCC established the big nationwide rules, often dictated by Congress, but the States were free to regulate anything the FCC didn’t directly regulate. This usually meant issues like consumer rates and customer service practices. As competition was introduced into the telecom market, AT&T and the various Bell companies were successful in convincing most states to relax regulations, and in some case telcos became almost totally unregulated. California eased some regulations, but still maintains a lot of regulation of telcos. It will be interesting to see how hard California will fight back if the FCC overrides the state’s regulatory authority.
Another interesting request is for AT&T to get out of carrier-of-last resort (COLR) obligations. The petition describes this as AT&T being relieved of ETC status (Eligible Communications Carrier), which is the formal process where states certified companies with COLR status. COLR is an obligation originally created by the Communications Act of 1934, and expanded by the Telecommunications Act of 1996, which said that regulated telcos are required to serve customers located inside their regulated service areas, with only a few exceptions related to customers in remote locations. Telcos have been obligated to connect new customers to the existing networks and to build new networks to meet new homes and businesses. This feels like a quaint concept today, and it’s one of the first things that disappeared as states deregulated telephone companies. I find it interesting that many telcos still have ETC designations and use that status to receive various kinds of universal service funding while only playing lip service, at best, to carrier-of-last-resort obligations. The real question being asked in the FCC proceeding is whether the agency has the authority to override any COLR obligation required by California.
I have to think that AT&T has already been ignoring this obligation for years in California. I recall news stories of AT&T discontinuing rural copper services in rural California with little or no notification to customers. I have to think that it’s been a long time since AT&T has built any new copper infrastructure to reach newly constructed homes and neighborhoods. But there are other obligations related to COLR and ETC status that AT&T would like to have preempted.
It’s going to be interesting to see who, other than regulators in California, responds to these dockets. These particular issues are largely already dead in most of the rest of the country, although some states still maintain greater levels of regulation over telcos than others.
These dockets don’t address the even bigger question, which is whether the state or federal government should be regulating telephone service at all. I think everybody is in favor of the FCC’s efforts to tamp down on robocalls and texts, but how much other regulation of traditional telephone companies is still needed?







